India’s annual wind power capacity addition is projected to more than double to an average of 7.1 gigawatts (GW) over the next two financial years, compared with 3.4 GW in fiscal year 2023-25. This growth, driven by government measures to accelerate the sector, is expected to increase the country’s total installed wind capacity to approximately 63 GW by 2026-27, according to a report released on Monday.
Capacity additions in financial years 2023-24 and 2024-25 remained tepid, ranging between 6-7 GW, due to fewer successful auctions of wind capacities—5.9 GW in FY21-23 and 5.2 GW in FY23-25—according to a Crisil report.
The slow progress was largely attributed to weak developer interest caused by low tariffs that dampened returns, as well as challenges related to land availability and transmission infrastructure in high wind potential areas, the report noted.
However, emerging tailwinds are expected to double the pace of capacity additions over the next two years.
The government’s push for hybrid renewable projects—combining solar, wind, and/or storage—along with a more favorable cost structure for wind projects, is expected to drive capacity growth, the report stated.
In addition to steady standalone wind project auctions, hybrid renewable energy project auctions—requiring developers to supply electricity during high-demand hours (evening and early morning)—have gained momentum.
Wind power is expected to account for 30–50% of these hybrid projects, as it generates electricity during peak demand periods, unlike solar power, which is mostly active during daytime hours.
Moreover, since hybrid projects help distribution companies (discoms) address scheduling challenges during critical times, they are expected to gain traction in offtake and grow rapidly, the report added.
According to Ankit Hakhu, Director at Crisil Ratings, India has over 30 GW of hybrid projects in the pipeline, expected to be commissioned within the next 2-4 years, contributing significantly to the projected increase in wind capacity additions.
“Traction in signing power purchase agreements (PPAs) is also visible, with more than 60% of such projects auctioned by March 2024 having their PPAs signed by January 2025,” he said.
(Inputs from IANS)