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Wind sector revival on agenda as Centre targets 100 GW capacity

Environmental and regulatory factors have also weighed on the sector.

December 24, 2025 / 09:10 IST
India currently has about 53 GW of wind capacity, which accounts for 10.5% of the country's total installed power generation capacity of around 505 GW.
Snapshot AI
  • Government plans revival for India's wind power sector facing stalled projects
  • Key issues include land acquisition, grid access, and unsigned power agreements
  • Plan includes repowering old turbines and expanding offshore wind.

The Union government is drawing up a revival plan for India's wind power industry, which has lost momentum in recent years, by tackling long-standing challenges such as land acquisition bottlenecks and inadequate grid connectivity, people familiar with the matter told Mint.

The proposed blueprint also seeks to address a clutch of structural issues, including unsigned power purchase agreements (PPAs), weaknesses in scheduling and forecasting of wind generation, poor coordination among states, and reluctance by distribution companies to buy power from renewable energy projects. The people cited above requested anonymity as discussions are still at a preliminary stage.

Another key pillar of the plan is repowering-modernising or replacing ageing wind turbines-to help the country reach its target of 100 gigawatts (GW) of installed wind capacity by 2030.

India currently has about 53 GW of wind capacity, which accounts for 10.5% of the country's total installed power generation capacity of around 505 GW. Even so, the sector faces significant stress. Around 10 GW of stalled wind projects-requiring investments of roughly Rs 60,000 crore-form part of the 43 GW of renewable energy capacity still awaiting PPAs, Mint has reported earlier.

After several years of muted capacity additions, attributed to falling wind speeds and policy-related uncertainty, a task force comprising officials from the ministries of new and renewable energy (MNRE) and power, along with industry representatives, is expected to examine the issues and draft a long-awaited revival roadmap.

At a meeting convened by MNRE on 12 December with wind energy developers, EPC firms and other stakeholders, the ministry discussed the formation of the task force and its proposed mandate, one of the people cited above said. Grid constraints, land acquisition hurdles and coordination with state governments were flagged as the main focus areas, although the final terms of reference are still being worked out.

Industry participants at the meeting also proposed the creation of a web-based portal to track wind power projects, including regulatory clearances and implementation milestones, a government official said, requesting anonymity. "The proposals are under discussion and consultations are ongoing," the official added.

Environmental and regulatory factors have also weighed on the sector. Protection measures for the endangered Great Indian Bustard-a low-flying bird vulnerable to collisions with turbine blades and transmission lines-along with delays in approvals for transmission and renewable energy projects in Rajasthan and Gujarat since 2021, have slowed project execution.

MNRE did not respond to queries until press time.

Sector experts say land and grid access remain the most critical obstacles.

"When the bidding framework shifted to reverse auctions, it significantly affected the wind power space. In addition, wind projects typically require multiple parcels of land involving several landowners, which becomes a major challenge," said MP Ramesh, former director-general of the National Institute of Wind Energy, an MNRE research body. In reverse bidding, developers compete by quoting the lowest tariff.

There have also been cases where developers acquired land but could not move ahead due to lack of technical feasibility or grid connectivity, said Amit Kumar, partner and leader for energy and renewables at Grant Thornton.

"The sector needs a fresh push. Manufacturing of components should also be part of the strategy. India already has a strong base in wind component manufacturing, but competitiveness must improve, and products such as magnets should be developed domestically," Kumar said.

Speaking at the Global Wind Day conference in June, MNRE minister Pralhad Joshi underlined the need for a coordinated national effort to unlock India's wind potential. He said the government is prioritising expansion into states such as Madhya Pradesh, Telangana and Odisha, while also kick-starting offshore wind development, with 4 GW of seabed areas already identified off the coasts of Gujarat and Tamil Nadu.

Moneycontrol News
first published: Dec 24, 2025 09:10 am

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