India’s Wind Energy Sector Witnesses Strong Growth & Investment Surge

India’s renewable energy sector is witnessing rapid growth, with wind energy capacity reaching 48.3 GW as of January 2025. The sector recorded a 21% year-on-year growth, adding 3.4 GW of new wind power capacity in 2024. Gujarat, Tamil Nadu, and Karnataka continue to lead, contributing 64% of India’s total wind energy output.

With government incentives, offshore wind projects, mergers & acquisitions (M&A), and corporate investments, India's clean energy landscape is set for significant expansion. The nation is progressing towards its 140 GW wind energy target by 2030, reinforcing its position as a key player in global renewable energy markets.

Key Highlights:

1. Wind Energy Capacity Development

• Total installed wind energy capacity: 48.3 GW (Jan 2025).
• New wind power installations in 2024: 3.4 GW, marking a 21% increase over 2023.
• Leading states: Gujarat, Tamil Nadu, and Karnataka, accounting for 64% of total wind power.

2. Government Policies & Announcements

Central Government Initiatives

• Viability Gap Funding (VGF) Scheme Approved:
  • ₹74.53 billion allocated for offshore wind energy development.
  • 1 GW of offshore wind projects to be installed in Gujarat & Tamil Nadu.
  • ₹6 billion for offshore wind logistics infrastructure upgrades.
• Supports the National Offshore Wind Energy Policy, 2015.

State Government Initiatives

• Andhra Pradesh Integrated Clean Energy Policy:
  • Aims to make Andhra Pradesh a wind energy hub.
  • Aligns with India’s 140 GW wind power goal by 2030.

3. Market Trends & Investment Updates

i. Corporate Investments in Wind Energy

• Amazon’s Renewable Energy Expansion in India:
  • 180 MW wind power project with JSW in Tamil Nadu.
  • 100 MW capacity with CleanMax in Karnataka.
  • 99 MW wind project with BluePine in Maharashtra.
• Hero Future Energies commits $20 billion investment to scale renewable energy capacity from 1.9 GW to 30 GW by 2030.

ii. Mergers & Acquisitions (M&A) in Renewable Energy

• ONGC-NTPC Green Energy (ONGPL) acquires Ayana Renewables for $2.3 billion.
• Ayana’s portfolio includes 1.59 GW operational capacity & 3 GW under development in solar, wind, and hybrid energy projects.

iii. Funding & Auction Updates

• ₹74 billion Viability Gap Funding Program approved for offshore wind energy projects.
• SJVN Wind Power Auction Results:
  • 600 MW wind capacity awarded at ₹3.09 per kWh.
  • Adyant Enersol (Datta Infra) secured 70 MW at ₹3.98 per kWh.
  • UPC Renewables secured 100 MW at ₹3.99 per kWh.

4. Wind Energy Capacity Outlook (2024-2034)

• Business-as-Usual Scenario: 2,500 MW/year capacity addition, continuing historical trends.
• Very High Wind Scenario: 5,500 MW/year, based on peak growth trends.
• High Wind Scenario: 3,200 MW/year, aligned with 2023-24 performance.
• Low Wind Scenario: 1,100 MW/year, reflecting minimal growth conditions.

Conclusion

India’s wind energy sector is witnessing unprecedented growth, driven by policy support, corporate investments, and offshore wind projects. With strong renewable energy commitments, India is on track to achieve its 140 GW wind energy target by 2030, strengthening its global clean energy leadership and commitment to sustainable development.