India must put in place a roadmap for a resilient supply chain of raw materials to further strengthen its leadership position in the wind energy manufacturing sector as recent global developments are pointing to a huge opportunity for the country, says Global Wind Energy Report 2023 of Global Wind Energy Council (GWEC).

India’s domestic annual manufacturing capacity stands at 10-12 GW for wind turbine generators. It is also the world’s second-largest market for gearbox manufacturing and the second-largest supplier of blades and generators in the APAC region.

European and American turbine OEMs decided to diversify their supply chain to ensure the security of supply, in the aftermath of Covid-19. India has since gained an increasingly prominent role in the global wind supply chain.

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A resilient supply chain of raw materials – including rare earth metals and non-standard steel – and for specific jobs, such as casting and forging will help India cement its position in the wind energy manufacturer sector.

Existing import duty relief on equipment and components, such as balsa wood and pultruded carbon fibre, which cannot be produced or manufactured in India, must continue, it added.

Stating that MSMEs play a pivotal role in the Indian wind manufacturing sector, the report said that going forward, the government should consider targeted production-linked incentives for companies currently engaged in the onshore wind sector, and for those wishing to get involved in offshore wind manufacturing.

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Also, Gujarat and Tamil Nadu carried huge potential. While there are opportunities to catalyse wind power generation and manufacturing in Tamil Nadu, GWEC also presented a similar scenario to the Government of Gujarat, alongside recommendations on repowering, offshore wind, robust monitoring of utility-scale wind farms, and transmission projects to various central government agencies.

It also pointed out that India is in a unique position to leverage growing export and international service opportunities in the APAC and European regions. A strategic supply chain impetus is pivotal to scaling up India’s wind manufacturing sector.

Wind power outlook

Presenting its outlook on wind power capacity addition in the country, the report said India’s onshore wind market will continue to recover, with new additions peaking in 2025–2026 given the expiry of the 100% interstate transmission charge waiver (ISTS) in June 2025.

Also read: Gujarat closes in on Tamil Nadu’s leadership position in wind power race

Towards 2030, annual growth has the potential to reach 5-6 GW under the new 8 GW/year tender trajectory. However, the tapering down from 50 per cent to zero of ISTS charge waive-offs between 2026 and 2028 is likely to limit installations to 4.5–5.0 GW.

In total, 21 GW of onshore wind capacity is likely to be added in India, the second largest wind market in Asia, in 2023–2027, accounting for half of the predicted additions for the region.

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