India is expected to install just over 20GW of wind power capacity between 2021 and 2025, a growth rate of nearly 50%, according to analysis from the Global Wind Energy Council (GWEC) and MEC Intelligence.
The country has an installed capacity of 39.2GW.
The impact of Covid-19 lockdowns resulted in only 1.1GW out of an anticipated 3.3GW being installed in 2020.
A pipeline of projects totalling 10.3GW in central and state markets are expected to “drive installations” until 2023.
Post-2023, the market will likely be driven by nearly 10GW of new capacity awarded to wind mainly through hybrid tenders, GWEC and MEC Intelligence said.
Over the next five years, 90% of new installed wind capacity will come from central tenders, followed by corporate procurements and state markets.
Greater consensus and coordination between central and state governments around wind targets, supply chain utilisation, and the definition of a clear market roadmap are some of the key actions needed to put India on a pathway to meet its decarbonisation and renewable energy goals, the study stated.
MEC Intelligence founder Sidharth Jain said: “India’s wind market moved forward last year with new tenders, new capital, and new policies. Wind will be the central axis of renewable energy portfolios as we move from renewable energy making up less than 10% of the country’s energy matrix today, to more than 30% by the end of this decade.
“We will see higher revenue for electricity generation that matches the buyer’s needs, which means generation of electricity at the time and the quality they need. This is where wind will be critical.”
“In 2020, we saw a clear trend of hybrid projects, with procurement occurring across central, state, and corporate markets, as policymakers sought to find ways to scale-up renewables while reducing the cost of renewables integration.
“We also saw corporate renewables procurement, an essential tool in the sustainability toolbox for companies, start to wake-up to the benefits of hybrid renewable energy systems, but remains a largely untapped market.”