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Wind Energy in India: Unpacking the Challenges and Opportunities in the Winds of Change

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As India intensifies its clean energy journey, wind power finds itself at a crucial crossroads. With a cumulative installed capacity of over 46 GW as of March 2025, India remains one of the world’s top wind energy producers. Yet, new capacity addition has lost its momentum over the last few years, even as solar continues to shine. This has prompted deeper questions—what’s holding wind energy back, and more importantly, what can push it forward again?

Wind Energy: The Untapped Potential

India has a theoretical wind energy potential of over 300 GW at 100 metres hub height, according to estimates by the Ministry of New and Renewable Energy (MNRE). This potential rises even further at greater heights, such as 120 metres and above. However, a large portion of this resource is concentrated in just seven states—Tamil Nadu, Gujarat, Karnataka, Maharashtra, Rajasthan, Andhra Pradesh and Telangana.

Despite these natural advantages, wind development has remained patchy. Several states with abundant wind continue to underutilize their capacity. Tamil Nadu, a long-standing wind energy leader, witnessed limited fresh installations in 2024 owing to grid constraints and difficulty in securing new land parcels. Similar patterns are seen in Gujarat and Maharashtra. The disparity between potential and actual generation highlights the need for better planning, transmission infrastructure, and regulatory clarity.

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What Slowed Down the Wind — and the Promise of Wind Energy?

The slowdown in wind capacity addition isn’t accidental. It is the result of several interconnected challenges that have emerged over the past five to six years. The shift to competitive bidding and reverse auctions, while aimed at reducing tariffs, led to developers quoting unsustainably low prices. Many of those projects turned unviable, leading to cancellations or delays.

Securing land and obtaining clearances has proven to be increasingly complex, especially in coastal and hilly terrains. In many cases, forest land approvals and environmental clearances have taken years. Transmission readiness has also lagged, with several projects completed but unable to evacuate power due to lack of substation connectivity.

Moreover, the wind turbine manufacturing ecosystem in India remains narrow, dominated by a handful of players. This has constrained supply diversity and limited competition on technology and pricing. As a result, wind power has found it harder to compete with the rapidly falling costs and modular advantages of solar PV.

Winds of Opportunity in Wind Energy

Despite these setbacks, 2025 may well be the year that redefines the role of wind energy in India’s clean energy transition. The most promising trend is the rise of hybrid projects, where wind and solar are co-located or blended to ensure higher plant load factors. With the government encouraging round-the-clock (RTC) power supply through hybrid and storage-backed bids, wind-solar combinations are gaining traction among large developers.

Offshore wind, long stuck in the planning stage, is finally showing signs of movement. The MNRE has announced tenders for 4 GW of offshore capacity off the coasts of Gujarat and Tamil Nadu. Backed by viability gap funding, this could lay the foundation for India’s first operational offshore wind energy farms within the next five years. With a theoretical offshore potential of over 70 GW, this segment could be a gamechanger for states with land constraints.

Another area of opportunity lies in repowering India’s aging wind farms. Thousands of turbines installed in the early 2000s operate at sub-megawatt capacity and low efficiency. Replacing them with modern turbines of 2 to 3 MW on the same land can potentially double the generation. States like Tamil Nadu, Gujarat and Maharashtra are drafting repowering policies, and the Centre has expressed support for dedicated tenders.

There is also a growing demand from corporate buyers for wind power. With increasing environmental accountability and net-zero commitments, industrial and commercial consumers are seeking long-term green power through open access and green attribute markets. Wind, with its higher nighttime generation profile, is especially suited for meeting 24/7 power needs.

Challenges Still Blow Hard for Wind Energy

The path to revival isn’t without obstacles. Policy implementation remains slow, and developers still face long approval timelines from central and state bodies. In many wind-rich states, congestion in the grid during peak season has led to curtailment, discouraging fresh investments.

Financing continues to be a hurdle. Lenders remain cautious toward wind projects, especially those without central government-backed power purchase agreements. Developers are often forced to navigate state-level discoms with weak credit profiles, resulting in payment delays.

In certain regions, public opposition to wind farms has also emerged, citing noise pollution, bird mortality, or land ownership disputes. While such incidents remain limited, they point to the need for better community engagement and environmental safeguards.

image from wind cycle

Creating local impact and jobs

Beyond electricity generation, wind power brings meaningful benefits to rural India. A typical 1 MW wind installation can generate 30 to 40 direct and indirect jobs—ranging from civil works and transport to long-term maintenance. With smart repowering and hybridisation, new opportunities can be unlocked in districts like Tirunelveli, Kutch and Satara.

Wind turbines also allow for dual land use. In many regions, agriculture continues unhindered even after installation, while farmers receive steady lease income. This model of shared prosperity, if promoted well, could improve public perception and attract more landowners into wind partnerships.

India’s energy ambitions for 2030 hinge on achieving 500 GW of non-fossil fuel capacity. Wind, as the second-largest renewable contributor, is central to that goal. The technology is proven, the workforce is trained, and the natural wind resources are abundant—India is not starting from scratch, but from strength.

What is needed now is targeted and timely intervention—repowering old turbines to increase efficiency, accelerating offshore wind execution, reforming bidding mechanisms to ensure viability, and integrating wind with storage solutions for grid stability. These are not distant possibilities but achievable actions that require political will, industry coordination, and policy clarity.

If these steps are taken decisively, wind energy will no longer trail behind solar—it will emerge as an equal partner in powering India’s low-carbon, energy-secure future.

India’s wind energy sector is not dying; it is simply poised—waiting for the right wind to lift its sails once more and carry it toward its full potential.

Abhishek Katiyar
Abhishek Katiyar
Abhishek Katiyar is the Founder and CEO of B2L Communications. For over 15 years, he has been actively involved in advocacy and government relations, especially in the infrastructure and energy sectors.

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