India Wind Energy Market (2025-2033)

Market Overview

India is the world's third-largest energy consumer, with peak demand reaching a record 223 GW in June 2023. The power sector relies on both traditional sources like coal, oil, and gas, and sustainable sources such as solar, wind, biomass, and hydro. The share of non-fossil fuels in electricity production was 22.45% up to May 2023. The transition from fossil fuels to renewables is expected to take decades, with natural gas playing a key role in balancing the grid.

Wind energy is crucial for India's energy transition, offering a way to balance the intermittency of solar power. Accelerating wind capacity deployment can help India meet its energy needs during non-solar hours, reducing the need for energy storage. Wind and solar resources exhibit temporal and spatial complementarity, enhancing the reliability of renewable energy supply. By 2030, 21 Indian states plan to contract more than 100 GW of wind capacity, indicating a growing recognition of wind energy's importance.

The Indian government is actively promoting renewable energy through ambitious targets and supportive policies. The Ministry of New and Renewable Energy aims for 500 GW of non-fossil-based electricity generation by 2030. The government has launched schemes such as the National Green Hydrogen Mission and is providing incentives for domestic manufacturing of solar components. Government initiatives include promoting domestic production of goods and services under the “Make in India” initiative. In April 2023, the government of India issued notification of bids for 50 GW of renewable energy capacity annually for the next 5 years, to achieve the target of 500 GW by 2030.

Market Dynamics and Growth Prospects

The India Wind Energy market size reached US$5.37 Billion in 2023. MEA (Market Estimation Analysis) expects the market to reach US$10.51 Billion by 2033, exhibiting a growth rate (CAGR) of 7.73% during 2025-2033.

The India Wind Energy Market is experiencing substantial growth, with projections indicating a CAGR of 7.73%. This growth is propelled by favorable government policies, increasing investments in wind power projects, and the decreasing cost of wind energy. The Indian government has set an ambitious renewable energy target of 500 GW by 2030, which includes a significant contribution from wind energy, presenting considerable opportunities for market expansion.

Key Market Drivers and Challenges Shaping the Industry

The India Wind Energy Market's growth is propelled by supportive government policies and incentives, decreasing technology costs coupled with efficiency improvements, and increasing private sector and foreign investments. Challenges include difficulties in land acquisition, transmission bottlenecks, policy and regulatory uncertainties, and financial constraints related to Power Purchase Agreements (PPAs).

Market Drivers

Government policies and incentives, such as the National Wind-Solar Hybrid Policy, Renewable Purchase Obligation (RPO) targets, and Generation-Based Incentive (GBI), significantly drive the growth of the India Wind Energy Market. The National Wind-Solar Hybrid Policy, issued on May 14, 2018, aims to promote large grid-connected wind-solar PV hybrid systems for optimal use of resources, transmission infrastructure, and land. This policy also encourages new technologies and methods involving the combined operation of wind and solar PV plants. The government provides various fiscal incentives to encourage wind farm development.

Falling technology costs and efficiency improvements are also key drivers in the India Wind Energy Market. The costs of clean power technologies, including wind, solar, and battery storage, are expected to decrease. The Levelized Cost of Electricity (LCOE) for onshore wind decreased by 56% between 2010 and 2020. Refined placement and spacing standards for wind turbines further maximize energy efficiency across wind farms.

Private sector and foreign investments are increasingly flowing into the India Wind Energy Market, attracted by the country's renewable energy targets and potential. The non-conventional energy sector in India has attracted substantial foreign direct investment (FDI), with inflows of US$ 18.92 billion between April 2000 and June 2024. Innovative financing models, such as green bonds and public-private partnerships, are also helping to attract investments. The Indian government is encouraging companies to set up wind farms through financial benefits, tax relief, and land support.

Market Challenges

Land acquisition and transmission bottlenecks pose significant challenges to the India Wind Energy Market. Acquiring suitable land for wind farms is difficult, particularly in densely populated or protected areas. Insufficient grid capacity and inadequate transmission infrastructure to transport wind power from remote locations to load centers can lead to grid instability. It takes over 2.5 years to complete a transmission line due to commissioning delays, compared to 1.5 years for renewable energy projects.

Policy and regulatory uncertainties also hinder the growth of the India Wind Energy Market. Policy inconsistencies, evolving regulatory frameworks, and delays in obtaining approvals and permissions can deter investors and developers. The wind energy sector in India still faces policy uncertainty, which can deter investors and developers from investing in wind energy. Rapidly changing regulatory landscape and policy hurdles slow wind capacity growth.

Financial constraints and Power Purchase Agreement (PPA) risks are critical challenges in the India Wind Energy Market. High capital expenditures for wind energy projects, including turbine procurement, installation, and grid connection fees, create financial risks. Government policies in this sector have been historically uncertain, and fluctuating tariffs and potential revenue losses due to grid constraints can pose financial risks to investors. Discoms owe approximately $10.42 billion to power producers, leading to cash flow issues and increased risks of non-performing assets for developers.

Segmentation and Market Insights

MEA provides an estimation of each segment of the India Wind Energy market, along with forecasts at the country level from 2025-2033. Our excel has categorized the market based on location, and end-user.

• Segmentation by Location: India's wind energy market is largely driven by onshore wind due to abundant land-based wind resources, particularly in the southern regions influenced by the Western Ghats. In 2022, onshore wind capacity reached 41.93 GW, up from 25.08 GW in 2015, with cost-effectiveness making it the preferred choice for developers. Meanwhile, offshore wind is emerging as a key segment, leveraging India’s 7,600 km coastline with an estimated 60 GW potential, mainly in Gujarat and Tamil Nadu. The government targets 30 GW of offshore installations by 2030, with collaborations like Tata Power and RWE exploring project development to enhance efficiency and grid reliability.

• Segmentation by End-user: India's wind energy market serves industrial, commercial, and residential sectors, with industries being the largest consumers due to cost-effective onshore turbines that ensure quick investment recovery. Commercial wind installations, typically under 100 kW, are used by schools, businesses, and institutions, with growing adoption driven by emission reduction efforts. Residential turbines, ranging from 5 to 15 kW, support rural and off-grid areas, cutting electricity costs by up to 70%. Leading manufacturers include Vestas, Nordex, GE, and Bergey Windpower, while tax incentives and rebate schemes further drive market expansion.

Get Accurate Forecasts and Data

Our meticulously designed Excel sheet provides detailed forecasts and estimations for the India wind energy market. With segmentation across location, and end-user, our data enables businesses to identify opportunities, analyze trends, and strategize effectively in this dynamic market.

SEGMENTS COVERED

By Location

• Onshore

• Offshore

By End-User

• Industrial

• Commercial

• Residential