Wind Energy Investment – Destination India

The manufacturing industry (IWTMA) is equipped with proven technology from Europe and USA with turbine size ranging from 250 KW to 2.5 MW of various technologies of stall, pitch, direct drive turbines with hub heights up to 120 meters and rotor size above 100 meters. The modern turbines are designed to harness even in low and medium wind regimes. Twenty manufacturers have over 50 models and with a manufacturing capacity of over 9500 MW per annum.

With the time tested legal and fiscal system and India as a growing fast track economy is considered as a favored destination for industrial activity. This is proved by the fact that out of the 24 GW of wind power almost 95% is from private sector.

The entire wind energy industry is governed by solid foundations from the Electricity Act, viable regulatory procedures from CERC and other state regulatory policies.

The paradigm shift from retail market to the IPP market with major investors like Goldman Sachs, Black Stone, IDFC and others is proven demonstration of the interest of the private sector.

Capital cost in India is perhaps one of the lowest in the world and India is emerging as the fastest growing supply chain hub with many industries choosing for in-house manufacture of towers, blades, generators, convertors etc. The commercial arm of MNRE, IREDA and other financial and banking institutions has backed the industry as a stable market where there is assured off take and no marketing challenges. The Government of India has announced a laudable Renewable Energy target of 500 GW by 2030 out of which 140 GW will be coming from wind power. This will require an addition of more that 5GW per annum. The country would require over 7000 MW per annum of RE to achieve 15% by all renewable by year 2020 under the National Action Plan for Climate Change. The Government commitment to promotional tariff, incentivizing generation, plans to revitalize the REC market through RPO obligation will certainly make this market vibrant and self sustaining.