India is a major player in the global wind turbine market and ranked fifth in the world in terms of total installed capacity. According to C-WET (Center for Wind Energy Technology) the total installed capacity as on 31st March 2012 is 17365.03 MW, of commercial wind power projects.
The demand for electricity in India will be going up in the near future and wind energy will be contributing to 70% of the installed capacity in the renewable energy sector. The Indian wind energy industry had total revenue of $1.6billion in 2011, representing an annual growth rate (CAGR) of 27.5% between 2007 and 2011.
According to industry sources the CAGR is expected to reduce to 17.7% for the five year period between 2011-2016 and the industry is expected to reach a value of $3.6 billion by the end of 2016.
Wind power seems to be an ideal choice for the nation that is power deficient as it is of moderately low cost compared to other renewable sources. Moreover, it is pollution free source of energy. With technological advancements, wind energy will become the most competitive source of power generation, creating immense business opportunities for manufacturing and material component companies. The drivers for Wind energy growth in the country are:
- There is a huge untapped wind energy power potential in India.
- Global Drive towards clean energy
- Volatile Oil prices
- Energy deficiency in the country
- Depleting coal reserves
The industry challenges being:
- Withdrawal of GBI (Generation based Incentive) and AD (Accelerated Depreciation) Schemes
- Wind Power Evacuation Issues
- Land Acquisition Problems
- Issues of Grid Integration
Further improving performance and reliability of wind turbines and decreasing gestation period of installation has positioned India as one of the most dynamically growing wind energy markets in the world. There is huge potential for development of off-shore capacity and towards vertical integration and hybrid generators that will stimulate investments in this sector.
However, the challenges that plague the wind turbine manufacturing sector in India are withdrawal of GBI and AD schemes, rise in prices of important raw materials like steel and copper and land acquisition problems.
Special initiatives are taken by the regulatory bodies like the Ministry of New and Renewable Energy (MNRE), Indian Renewable Energy Development Agency (IREDA), Centre for Wind Energy Technology (C-WET) and industry bodies like Indian Wind Energy Association (InWEA) and Indian Wind Turbine Manufacturers Association (IWTMA). Policy and regulatory incentives are been offered by the central & various state government bodies.