Clean Power wind farm india

Published on August 25th, 2014 | by Mridul Chadha


India Plans To Add 10,000 MW Wind Energy Capacity Every Year

August 25th, 2014 by  

wind farm india

A wind energy project at Kanyakumari (Tamil Nadu) India

Indian wind turbine manufacturers and project developers have been advised by the government to make efforts to increase annual capacity addition to five times its current level, a leading Indian newspaper has reported.

The new Indian government is looking to promote aggressive investment in the wind energy sector after it re-introduced financial incentives in this year’s budget. The current rate of annual capacity addition is around 2,000-3,000 MW. The government has restored the accelerated depreciation tax benefits in addition to the existing generation-based incentives with a hope to rekindle growth in the sector.

On May 31, 2014, India had an installed wind energy capacity of just over 21,200 MW, with an estimated 2,000 MW to be added between April 2014 and March 2015. Wind energy has a share of almost 67% in India’s renewable energy capacity. Wind energy is clearly a favourite for the project developers, as well as financial institutions, as it is a proven technology.

The Indian government is expected to take several additional measures to boost wind energy infrastructure in the country. A national wind energy mission is slated to be launched soon, which will, in all likelihood, implement capacity addition targets higher than those set under the ambitious national solar mission.

The national wind energy mission will also include the central and state governments to implement additional regulatory and financial incentives for project developers. This will lead to more project developers getting into the market which, in turn, will spur competition and drive tariffs down.

Rapid evolution in wind turbine technology, and rising preferential tariffs have attracted many companies to invest heavily in the sector. Recently, GE announced that it will invest $200 million to set up a wind turbine manufacturing unit in India. Over the last couple of years, ReNew Power (an independent power producer) has raised $390 million in equity funding from a fund backed by Goldman Sachs, the Asian Development Bank, and the Global Environment Fund. The company had announced plans to invest about a billion dollars to boost its wind energy capacity to 1,000 MW in the short-term.

Some wind energy companies, like ReNew Power and Inox Wind, are also planning initial public offers to raise additional funds to boost capacity.

Image credit: wind turbines in India via Shutterstock

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About the Author

currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.

  • Matt

    It is time and past time to use GW when talking about most country’s renewable energy. While 21,000MW might sound bigger than 21GW to someone who doesn’t know what either term means. The GW term makes the story easier to read/understand.

    • JamesWimberley

      I’v got bad news for you. Indians count large sums of money in lakhs (100,000) and crores (10,000,000), using ancient Vedic conventions. Luckily Midhul converts for you.

      • Suman C

        Is there anything more unscientific than the fact that US doesn’t use metric system of measurements, just to show they are different than England. Hilarious.
        Miles, feet, inches, Fahrenheit.

  • spec9

    Keep it up, India. One thing that people often forget is that solar PV and wind have once nice big advantage over traditional sources like coal & natural gas . . . they do not require much if any fresh water. A traditional thermal plant requires millions of gallons of fresh water and that is becoming a more scarce resource in many places.

    • DDG

      Also they can be built to supply small localities obviating need for distribution. Up to third, possibly more, of India’s electricity is stolen from the distribution system. More in Bangladesh.

  • JamesWimberley

    The big news from India was the dog that didn’t bark in the night. The deadline for imposing anti-dumping tariffs on imported solar modules was August 22, and it passed without any announcement by the Ministry of Finance (link). Obviously a decision of this importance would have been Narendra Modi’s, but this way there are no fingerprints on it. He will still protect the domestic renewables industries, but in ways that won’t kill the solar expansion, like domestic content requirements for state-aided projects.

    • Suman C

      Nitin Gadkari, Roads & transport minister first raised this issue. He is another efficient and technocratic leader from Maharastra, India

  • Will E

    When the big banks enter the windturbine market to make big money on wind power, it will go fast. like the story of the grain on the chesboard. 6 Mgw direct drive turbines are easy to install,
    first year 1000 of them,
    second year 2000
    third year 4000
    fourth year 8000
    fifth year 16000 6 Mgw direct drive windturbines installed
    there is plenty of wind and plenty of space.

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