By Sakshi Bansal
India’s wind power sector is dynamic – with several policy announcements, regulatory updates and changes in tariff trends. The country ranks fourth globally in installed wind capacity and third in total renewable energy generation, while within the Asia-Pacific region, it is the second largest wind market after China. As per the Ministry of New and Renewable Energy (MNRE), as of July 31, 2025, India’s wind capacity had reached 52.14 GW, making it the second largest contributor within the renewables sector. Between April and July 2025 alone, 2 GW of new capacity was added. Meanwhile, the country added 4.1 GW of new wind capacity in FY 2024-25, compared to 3.25 GW in FY 2023-24. Much of this growth continues to be concentrated in wind-rich states such as Gujarat, Tamil Nadu, Karnataka and Maharashtra.
Renewable Watch provides an overview of the current status and developments in the sector, including tariff trends, cost economics, status of the manufacturing sector, challenges and the future outlook…
Onshore wind
The onshore wind segment received a significant boost in recent years, owing to the 10 GW target for annual onshore wind bids from 2023 to 2027, guidelines for a tariff-based competitive bidding process to standardise procurement, sector-specific renewable purchase obligations (RPOs) until 2030, and waiver of interstate transmission system (ISTS) charges until June 2025. Further, strong tender activity for hybrid, firm and despatchable renewable energy and round-the-clock (RTC) projects; enhanced transmission planning; reversals in tariff regimes; a strengthening domestic manufacturing base; and the government’s efforts to enter new frontiers such as offshore wind and repowering are adding to the sector’s vibrancy.
The government’s auction target of 10 GW of onshore wind annually between 2023 and 2027 is already showing results. In 2024 alone, 11 GW of capacity was awarded across standalone wind and hybrid tenders, while a total of 16.3 GW was tendered during FY 2024. This comprised 9.1 GW of hybrid projects and 7.2 GW of standalone wind, reflecting strong momentum in both segments.
This auction activity is resulting in a robust under-construction renewable energy pipeline. According to the Central Electricity Authority’s June 2025 quarterly report, wind power accounts for a substantial share, with 26 GW of standalone projects and 27 GW of hybrid projects under construction. Together, these represent 19 per cent of all standalone wind projects and 19.7 per cent of hybrid projects in the overall pipeline, underscoring the growing weight of wind in India’s clean energy buildout.
Tariff trends
The shift to tariff-based competitive bidding, coupled with expectations of higher plant load factors, initially brought wind tariffs down sharply from the earlier feed-in tariff regime of Rs 4-Rs 6 per unit, significantly enhancing the cost competitiveness of wind power. Tariffs hit a record low of Rs 2.43 per unit in December 2017, but have since trended upward – staying in the Rs 2.70-Rs 2.90 per unit range until December 2022, before crossing the Rs 3 per unit mark. Post shifting to a closed bidding tariff regime, more recently, central nodal agency tenders have seen bid tariffs in the range of Rs 3.80-Rs 4 per unit. This upward pressure reflects both the challenges of securing high-wind sites and the rise in capital costs for wind projects.
The recent auction activity reinforces this trend. Since April 2024, eight wind auctions have been conducted. The lowest utility-scale wind tariffs discovered in tenders during this period have ranged from Rs 3.56 per kWh (Gujarat Urja Vikas Nigam Limited’s VIII 200 MW auction conducted in October 2024) to Rs 3.98 per kWh (SJVN Limited’s 600 MW auction conducted in January 2025). These results signal a clear upward movement in bid tariffs, underscoring the evolving cost dynamics in India’s wind energy sector.
Offshore wind
The offshore wind segment also gathered pace in 2024 following tender announcements and policy interventions. The momentum in the offshore space further strengthened in June 2025, when the union minister for new and renewable energy announced plans for a fresh offshore wind tender of up to 4 GW. The outlook improved further in July 2025 as the Ministry of Power approved transmission infrastructure for the proposed 500 MW offshore wind project in Gujarat, scheduled for commissioning by March 2029.
However, the segment received a setback in August 2025, when the Solar Energy Corporation of India cancelled two offshore wind projects – a 500 MW project in Gujarat and a 4,000 MW seabed lease rights allocation – more than a year after the tenders had been issued, citing a lack of developer participation. This development comes despite the government’s push through viability gap funding support in FY 2024 and extended bidding timelines.
In essence, while the government’s actions show momentum and intent, the cancellations highlight that the market is not yet ready to scale offshore wind without stronger risk mitigation measures and clearer financial viability.
Manufacturing push
As the second largest base for onshore wind turbine assembly and key component production in the Asia-Pacific region, India is well positioned to scale up wind manufacturing while lowering dependence on imports of large components such as castings and pultrusion carbon fibre. Reflecting this strength, the country ranks as the world’s third largest wind manufacturing hub, according to the Global Wind Energy Council (GWEC) India’s report titled “Wind at the Core: Driving India’s Green Ambitions and International Influence (2025)”.
Manufacturing capacity has surged from 12 GW in 2022 to 20 GW in 2024 (a 74 per cent growth), enabling the country to cater to nearly 10 per cent of global wind demand. This growth is underpinned by a diverse product portfolio – India now produces 33 turbine models ranging from 225 kW to 5.2 MW, developed by 14 manufacturers to serve both domestic and international markets.
Building on this momentum, in April 2025, the MNRE issued a draft amendment to the procedure for including wind turbines in the Revised List of Models and Manufacturers (RLMM). The amendment requires local procurement of key components such as towers, blades, gearboxes and generators, with limited exemptions for imports. These proposed rules seek to reinforce India’s wind turbine manufacturing ecosystem by introducing non-tariff barriers that curb dependence on imports and encourage domestic innovation and scale. This policy push was further reinforced in July 2025, when the RLMM was restructured and renamed as the Approved List of Models and Manufacturers (Wind). Under the new framework, it became mandatory to source key components from the ALMM (wind turbine components), with the MNRE set to issue the detailed component list separately.
Challenges
While policy support and auction activity have expanded the pipeline, challenges remain.
The sector is facing significant delays and cancellations, slowing overall progress. According to GWEC India, execution continues to lag, with the shortfall in project installation for central and state utilities and commercial and industrial consumers rising from 0.5 GW in 2023 to 2.48 GW by December 2024. Of the 2.48 GW, 1.79 GW of projects were cancelled and 0.69 GW delayed, underscoring persistent execution risks despite a strong policy and pipeline outlook.
Wind projects need specific, non-contiguous parcels and longer timelines. Developers often acquire land before securing connectivity, while reliance on lease-based procurement adds to the delays in access and clearances.
The slow pace of grid infrastructure development is creating additional complications for project execution, making timelines harder to meet. Delays in five key ISTS substations (11 GW) in wind-rich states risk stalling nearly 5 GW of projects under development. Further, suboptimal allocation of prime wind sites to solar developers has reduced effective wind utilisation.
Nearly 12 GW of wind capacity is awaiting power sale agreement (PSA) signing as of June 2025, mainly due to weak RPO compliance and financially stressed discoms. Without PSAs, developers struggle to secure financing. The government’s uniform renewable energy tariff mechanism, meant to ease this, was discontinued in August 2025, leaving the issue unresolved.
Slow roll-out has limited the sector’s ability to achieve economies of scale, resulting in 22 per cent fewer jobs across the value chain, 10-20 per cent higher turbine costs than China, and only around 65 per cent local content, limiting domestic value creation.
The way forward
India aims to reach 100 GW of wind power capacity by 2030, with 30 GW for offshore installations. To bridge the gap, the country must accelerate annual onshore wind installations to at least 10 GW by 2030.
This ambitious target calls for competitive tariffs, lower project costs and stronger domestic manufacturing – not just to meet India’s own demand but also to build export competitiveness. It also requires continuous policy evolution, integrated transmission planning and flexible auction strategies, while combining wind with solar and storage to enable RTC supply and strengthen grid stability. For offshore wind, in particular, the priority must be de-risking through stronger financial incentives, early infrastructure readiness and phased, bankable tenders to rebuild developer confidence.
The future outlook is positive. On Global Wind Day in June 2025, the union minister of new and renewable energy stated that there has been a 53 per cent rise in budget allocation for renewable energy (reaching Rs 265.49 billion), with a significant share earmarked for wind power. Growth opportunities are also emerging through expansion into new states such as Madhya Pradesh, Telangana and Odisha; integration of wind into RTC and firm power supply through storage-linked models; grid modernisation; artificial intelligence-based forecasting for variable renewable energy; and a renewed push to strengthen the domestic supply chain.
Net, net, India’s wind energy sector is at a crossroads, witnessing both significant challenges and positive developments. Realising the targets and translating potential into capacity on the ground will demand sharper execution and sustained commitment. With the right mix of strategies, wind power can firmly establish itself as a cornerstone of India’s clean energy transition.
