Challenges and Developments in India's Wind Energy Sector

Wind energy in India is facing significant challenges compared to solar power, affecting its growth and development. Here's a comprehensive overview of the current state and future prospects of the wind energy sector in India.

Current Status and Growth Comparison

• Wind energy constituted only a sixth of solar power installations last year due to its unique siting and development challenges, along with a higher tariff structure.
• India has installed 50 gigawatts (Gw) of wind capacity as of May, a journey spanning 40 years, while solar achieved twice the capacity in just a decade.
• Wind energy constitutes 11% of the country's total installed electricity capacity, compared to nearly 23% for solar.
• In the past decade, solar energy grew 38 times, whereas wind energy only expanded 2.4 times.

Importance of Wind Energy

• Wind energy is critical for India to achieve carbon neutrality by 2070.
• Wind power complements solar energy by providing natural generation strength during evening hours, making it a vital part of the energy mix.

Challenges Facing Wind Energy Development

• The Revised List of Models and Manufacturers (RLMM) policy mandates domestic procurement of wind turbine components, causing concern among developers.
• RLMM requires manufacturers to disclose detailed information about turbine components, increasing regulatory complexity.
• Higher development costs for wind power (₹7.3 crore per Mw) compared to solar (₹4 crore per Mw) lead to higher tariffs (over ₹3.70 per kWh for wind).
• Delays in signing Power Purchase Agreements (PPAs) have derailed nearly 20 Gw of both solar and wind projects.

Impact of Indigenization Policies

• The push for 100% localization of wind components is likely to escalate costs in the short-to-medium term.
• The RLMM policy could disrupt pricing and availability, affecting tariffs and PPAs.
• Developers express concerns over immediate localization impacting supply chains and increasing costs.

Industry Responses and Recommendations

• Developers suggest exempting existing projects and providing an advance notice for localization changes.
• WIPPA recommends a phase-wise implementation of increased localization over the next four-five years.
• The industry proposes a graduated import tax with initial exemptions to ease the transition.

The future of India's wind energy sector remains uncertain, with stakeholders divided on the impact of localization policies and the path forward.