Clean Power wind farm india

Published on October 31st, 2014 | by Mridul Chadha


India’s Wind Energy Capacity To Double In Five Years: GWEC

October 31st, 2014 by  

Through the effective implementation of existing policies India’s wind energy capacity could double over the next five years, latest estimates of the Global Wind Energy Council (GWEC) show.

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The recent re-introduction of a crucial tax incentive for wind energy project developers in addition to a generation-based financial incentive will help India push its installed wind energy to almost 50 GW by the end of this decade, Global Wind Energy Council (GWEC) has reported. By the end of next year the capacity is expected to reach 25 GW.

At 21.6 GW wind energy contributes about 67% to the total renewable energy capacity in India. During its peak growth period the Indian wind energy industry added 2.5-3 GW capacity every year. As per GWEC estimates the annual capacity addition could increase to 5 GW. The Indian government, however, has intentions to add 10 GW capacity every year over the next five years.

The government hopes to achieve this ambitious target by encouraging developers to set up projects in regions with comparatively low wind power potential. The government also announced plans to set up offshore wind energy projects following which leading wind energy solutions providers also announced plans to set up similar large-scale offshore projects.

The government also plans to launch the National Wind Energy Mission in the near-term. While the details of this mission are not known yet it could significantly boost India’s wind energy capacity. As per GWEC estimates, the installed wind energy capacity could reach 83 GW by 2030 under current existing policy scenario and can surpass 150 GW if more ambitious policies are implemented.

According to the Planning Commission of India, a low-carbon economic development plan would see a total of 700 GW installed power generation capacity by 2030. Considering GWEC estimates, at 154 GW wind energy would have a share of 22% in the installed capacity, second only to super-critical coal power technology.

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.

  • Paul

    I’m concerned that with coal and oil prices dropping and a glut of US shale gas eventualy to export its way to users the price incentive diminishes. If the Global economy dips further , as it looks like it may, then oil and coal could as yet go some making the economic gap a weaker argument. It wont happen but what better time to introduce a carbon tax to neutralise the effect of falling fossil fuel prices. Its clear there is likely unstoppable momentum in RE in all forms but price has been the driver and not a nouveau Green feel for the Planet. Removing the price differential through whatever means may slow that momentum

    • Mesquite Ice

      unless the US subsidies shale gas exports, there is no way it will compete with wind and solar. Assuming the cost of gas is 0, The cost of liquifaction and deliquifaction and transport is double the cost of solar/wind per kwh over a 25 year period.

      Fossil fuels can only compete with nuclear to provide base power standardisation, since wind/solar are not constant. so investment in solar and wind is not a pure math but one of requirment. If you run a hospital, you cant depend on solar to power your operation theatre, whereas you can depend on fossil fuels.

  • Larmion

    It would be interesting to see what percentage of generating capacity the current wind capacity accounts for and what it will be if the targets are met. After all, non-renewables like coal are still growing at breakneck speed too.

    • Ronald Brakels

      Looking on the bright side, coal consumption in China was increasing at a rapid pace until suddenly it’s not any more. Factors that contributed to the stop in the growth of coal use in China are in effect in India – a massive drop in the cost of renewables and air quality that is even worse than what is experienced by many people in China. Now that renewables are cheaper than new coal capacity, there is going to be a rapid turnabout in what kind of new generating capacity is built because India has a strong incentive to generate its electricity as cheaply and as cleanly and with as little water consumption as possible. I presume it will take time for the turnabout to occur. Time will be required to further ramp up renewable production and exceed targets, but without subsidies for fossil fuels it will happen and the current government doesn’t appear to be willing to bend over backwards to support coal. Fingers crossed Indian coal consumption stops increasing soon and surprises many people as China’s recent decrease in coal consumption did.

      • Bob_Wallace

        You hit on what others are often missing. The rapidly dropping cost of wind and solar are very disruptive. A few years back countries that needed more generation looked to coal because that gave them electricity at an affordable cost and the population put up with the pollution because that was just part of the cost for keeping their lights on and their jobs going.

        Now it’s 2014, no longer 2012 and certainly not 2010. As the new price realities sink in and work their way thorough the official studies we’ll see major changes in national energy programs.

  • Matt

    So GWEC think India will add 25 (5GW/year) over next 5 years while India government wants to add 10GW/year. Currently at ~22GW so the difference of adding 25 verse 50 over the next 5 years is a big difference. No comment on while the two number are so different?

    • I think India’s 10GW target is new, no? Takes time for such reports to incorporate such news. (Or maybe GWEC is just skeptical?)

      • Indian government wants to add 10 GW every year over next five years. This would presumably be done through the National Wind Energy Mission whose details are not out yet so GWEC cannot account for that. GWEC has only mentioned it by name in its report.

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