By Deepak Khare, Head of Projects, BluPine Energy (Leading Development, Project Management & Execution, EPCM, Engineering & Construction for India Wind Business)
With an approximate pace of 3 GW per year in recent years, India aims to significantly boost its capacity, targeting an ambitious 12-13 GW annual addition. India is currently the fourth-largest onshore wind market by installations in the world, behind China, the US, and Germany. This growth is driven by a shift from standalone wind projects to integrated “Wind-Solar” and “Wind-Solar-Battery” hybrid projects. These projects are designed to meet Firm and Dispatchable Renewable Energy (FDRE), Round the Clock (RTC), and Peak Power demands.
With an existing 45 GW of installed wind capacity (out of 190 GW of non-fossil renewable energy capacity), India aims to triple its wind capacity by 2030. A more rapid deployment of wind power is necessary to meet this target, as the Indian wind energy sector is dynamic and rife with opportunities and challenges.
Opportunities:
- Vast Wind Resource Potential: The National Institute of Wind Energy (NIWE) estimates a potential of 700 GW at 120-meter height, with less than 10% currently tapped.
- Government Support: The government’s push towards renewable energy capacity addition, especially in transitioning from standalone wind projects to integrated “Wind-Solar-Battery” projects, addresses wind power intermittency ensuring a stable and reliable energy supply. The majority of recent wind project tenders and awards have been under FDRE, PP, and RTC bids, a trend likely to continue for the next five years.
- Policy Stability & Support: Key initiatives include setting a trajectory for Wind Renewable Purchase Obligation up to 2030, waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by June 30, 2025 (with a potential extension), and a tariff based transparent Competitive Bidding Process for power procurement from grid-connected projects, to enable the distribution licensees to procure RE power at competitive rates in a cost-effective manner.
- Domestic Manufacturing: India boasts a domestic wind turbine assembly capacity of 15 GW, with two-thirds available for the burgeoning onshore wind market.
- Technological Advancements: The adoption of 3 to 4 MW+ rated Wind Turbine Generators (WTGs) with 160 M hub height and rotor diameter, and carbon fiber /and or split blades, marks significant efficiency improvements for cost-optimal logistics.
- Exploring Offshore Potential: The coastal states of Tamil Nadu and Gujarat are identified as having a significant offshore wind energy capacity, exceeding 70 GW. This potential can be achieved with the support of government Viability Gap Funding (VGF) for the initial stages of 1-2 GW, or until the tariffs become economically feasible for off-takers, including DISCOMs and Commercial & Industrial (C&I) customers, enabling them to purchase power at competitive rates.
Challenges:
- Site Selection: In light of the Udan Scheme, which adds over 100 airports, the selection of sites must balance social and environmental concerns. Additionally, it must ensure compliance with the Airport Authority’s NOC. Proximity to the grid network and obtaining connectivity approval, along with securing Ministry of Defence (MOD) clearance, often result in prolonged processes.
- Complexities in Land Acquisition: Every Wind Turbine Generator requires 7-8 acres of land for rotors larger than 150 metres in diameter, which means that each parcel of land requires negotiations with 4-5 village landowners. As a result, a typical 300 MW wind farm with 3 MW turbines usually requires engaging with over 500 landowners, which is an extremely complex and time-consuming process. Additionally, the land must be converted from agricultural to non-agricultural status, a prerequisite before construction can start, which adds another two to three-month delay.
- Right-of-Way (ROW) Issues: ROW challenges are frequent for wind projects with a capacity of 200-300 MW, spanning 500-1,000 square kilometers, involving multiple villages and stakeholders. These issues are especially prevalent during the building of the foundations for wind turbine generators, logistics, installations, and EHV 33 KV transmission lines, and they frequently cause major delays in project completion.
- Limited EPC Providers: Given the high degree of risk associated with turnkey EPC (Engineering, Procurement, and Construction) projects, there are relatively few players in the market. As a result, Independent Power Producers (IPPs) must segment their projects, taking on integration and WRAP risks, which raises the cost of financing.
- Limited WTG OEMs and Supply Chain: To maximize capital expenditure and tariff trends in the competitive landscape, production-linked incentives are required, as there are only three-four Original Equipment Manufacturers (OEMs) actively meeting domestic demands, and many of them are focused on exporting to the US and European markets.
- Inadequate Transmission Infrastructure: Longer 66 KV/220 KV EHV lines are required, which raises construction costs and increases operational losses. This limits the ability to evacuate power from remote, wind-rich locations areas to demand centers.
- Obsolescence Risk Due to Technological Progress: As technology develops quickly, there is a chance that wind turbines that are already in use will become obsolete. To stay competitive, businesses must invest in research and development as well as ongoing upgrades.
- Permit and Approval Delays: Obtaining necessary permits and approvals from central and state government bodies takes time and frequently causes delays in project execution.
- Shortage of Skilled Workforce: To close the skill gaps, the wind energy industry, academia, and policymakers must work together to develop a collaborative strategy.
- Wind Turbine Generator (WTG) Logistics Infrastructure: As split blade technologies and higher WTG ratings are adopted, the state and national highway infrastructure is crucial to the growth of wind energy and the expansion of its capacity.
The Road Ahead
To ramp up wind capacity addition by 4X per year to meet the ambitious target of a 500 GW non-fossil RE capacity by 2030, concerted efforts from all stakeholders are crucial. This includes lenders, equity partners, Independent Power Producers (IPPs), the government at both state and central levels, OEMs, technology providers, environmental consultants, BOP contractors, off takers, local villagers/community, CTU/ STU operators, manpower – machinery resources/service providers.
An equal emphasis on optimizing the Levelized Cost of Energy (LCOE) through enhanced turbine efficiency, site-specific power curves, digital tools, IoT, weather prediction for grid management, predictive maintenance, and skilled personnel is crucial for maximizing plant performance and energy generation.
Conclusion
India’s commitment to a sustainable and energy-secure future depends on its ability to effectively harness these winds of change. With strategic planning, policy support, and technological innovation, India is poised to not only meet but potentially exceed its ambitious renewable energy targets. As India navigates these turbulent skies, a dynamic landscape for wind energy is being shaped by a blend of robust opportunities and daunting challenges.