At a recent industry event, Pralhad Joshi, Union Minister of New and Renewable Energy and Consumer Affairs, Food and Public Distribution, outlined the government’s vision for accelerating wind energy development alongside broader renewable energy expansion. Emphasising the strategic role of wind power in the energy transition, he spoke about policy interventions, capacity addition targets and improving manufacturing capabilities, as well as key sectoral challenges. Edited excerpts…
India’s renewable energy journey is rooted in the broader objective of ensuring environmental sustainability and energy security for future generations. Aligning with the country’s long-term climate commitments, the government continues to focus on scaling up clean energy capacity while maintaining economic growth. India’s wind energy segment has witnessed a notable uptick in capacity addition. In 2025-26, the country added 6.1 GW of new wind capacity, marking a significant improvement over past years. With this, India’s cumulative installed wind capacity has crossed 56.1 GW, placing it fourth globally. In addition, around 28 GW of capacity is currently at various stages of implementation.
The government aims to achieve 100 GW of wind capacity by 2030 and 156 GW by 2036. These targets are aligned with India’s broader net-zero commitment for 2070. To meet these goals, the country will need to add nearly 10 GW of wind capacity annually over the next decade, requiring sustained policy support, investment inflows and industry participation.
The government has introduced several policy measures aimed at strengthening the wind energy ecosystem. A key initiative is the inclusion of a dedicated wind component within the renewable purchase obligation framework, ensuring that wind energy receives focused attention alongside other renewable sources. Efforts have also been made to improve the investment environment. These include the enforcement of late payment surcharge rules to address payment delays, and the formulation of transparent bidding guidelines and measures to ensure fair competition in the sector. Such interventions have contributed to improved financial discipline and enhanced investor confidence.
In addition, the government is strengthening green energy open access rules, enabling industries to procure renewable power directly from developers. This is expected to reduce reliance on discoms and facilitate greater demand for wind energy, particularly from commercial and industrial consumers. Another important policy focus area is the Approved List of Models and Manufacturers (ALMM), which aims to promote domestic manufacturing and reduce import dependence. While ensuring quality and reliability, the ALMM framework also supports the development of a robust local supply chain.
India has made significant progress in developing a domestic manufacturing ecosystem for wind energy. The country currently has an annual manufacturing capacity of around 24 GW for wind turbines, with an indigenisation level of 70-80 per cent. Wind turbines ranging from 225 kW to 5.3 MW are being manufactured domestically, reflecting technological advancements and increased localisation.
In addition, the supply chain ecosystem has expanded considerably, with manufacturing capacities of approximately 23 GW for blades, 15 GW for towers and 29 GW for gearboxes and other components.
This strong domestic base has been achieved through a combination of government support and private sector participation. Continued policy backing is expected to further enhance manufacturing capabilities and position India as a global hub for wind energy equipment.
Wind energy plays a complementary role in India’s renewable energy mix. Unlike solar power, which is limited to daylight hours, wind generation is typically higher during evening and night periods.
Around 45 per cent of wind power generation occurs during peak demand hours in the evening, making it a critical resource for balancing the grid. As renewable energy penetration increases, the importance of wind as a stabilising element in the energy system is expected to grow further.
The global wind energy landscape is undergoing significant changes. China currently dominates the wind energy supply chain, supported by extensive state subsidies, making its components 17-25 per cent cheaper than those manufactured in India. At the same time, turbine sizes are increasing globally, particularly in offshore wind projects, where capacities of 14-15 GW are becoming common. However, shifting geopolitical and economic dynamics present new opportunities for India.
India, with its growing manufacturing base and policy support, is well-positioned to emerge as a reliable alternative supplier. The government is actively engaging with stakeholders to capitalise on this opportunity and strengthen India’s position in the global renewable energy value chain.
Despite the progress, several challenges continue to affect the wind energy segment. Transmission infrastructure constraints remain a critical issue, often leading to delays in project commissioning and increased costs. The government is addressing this through investments in the Green Energy Corridors project, aimed at strengthening transmission networks and facilitating renewable energy integration. Curtailment of renewable energy is another concern. Significant expenditure is currently being incurred to maintain grid stability, often resulting in continued reliance on thermal power. There exists the need to redirect such investments towards structural solutions such as battery storage systems, grid-forming inverters and transmission upgrades.
Deviation settlement mechanism penalties have also been a point of contention, particularly regarding their retrospective application. In addition, issues related to defence clearances for wind projects in certain regions have been raised by developers. The government has assured that these concerns will be addressed through inter-ministerial coordination.
Repowering of old wind turbines is being prioritised as part of the government’s strategy to maximise output from high-potential sites. A national policy framework has been introduced to facilitate the replacement of older, lower-capacity turbines with modern, higher-efficiency models. Financial incentives, including access to lower-cost loans, are being provided to support such initiatives. The transition towards hybrid and round-the-clock (RTC) renewable energy projects is another key focus area. Combining wind, solar and storage technologies will enable more reliable and consistent power supply, addressing the intermittency challenges associated with standalone renewable sources. The government has encouraged developers to actively participate in hybrid and RTC projects, highlighting their importance in the evolving energy landscape.
Mobilising capital at scale is essential for achieving India’s wind energy targets. The government is working to facilitate access to long-term, low-cost financing through blended finance mechanisms and improved credit frameworks. A notable initiative in this regard is the launch of 500 MW of pilot projects under the contract for difference mechanism. This approach is expected to provide revenue certainty to developers, reduce market risks and enhance investor confidence. Payment security mechanisms have also improved in recent years, contributing to better financial health of the sector. Continued enforcement of payment surcharge rules is expected to further strengthen discipline and ensure timely payments.
India’s wind energy segment is at a critical juncture. It is witnessing strong policy support, improving market conditions and growing investor interest. The combination of ambitious capacity targets, improving domestic manufacturing capabilities and evolving global dynamics presents significant growth opportunities. However, addressing challenges related to transmission infrastructure, regulatory uncertainties and project execution will be crucial for sustaining the momentum. Greater coordination between central and state agencies, along with active industry participation, will be key to achieving the desired outcomes.
The shift towards integrated renewable energy systems, incorporating wind, solar and storage, is likely to define the next phase of growth. As the sector evolves, wind energy is expected to play an increasingly important role in ensuring grid stability and meeting peak demand. With a clear policy direction and continued stakeholder engagement, India is well-positioned to expand its wind energy capacity and strengthen its leadership in the global renewable energy transition.