By Preeti Wadhwa
India’s wind power sector has regained momentum, recording its highest annual additions in nearly a decade. During 2025-26, the country added 6.05 GW of new wind capacity, exceeding the previous peak of around 5.5 GW achieved in 2016-17. After several years of subdued growth, the sector is once again witnessing strong activity.
A key driver of this growth has been the expanding commercial and industrial (C&I) market, which accounted for nearly 4.5 GW, or about 75 per cent, of total wind capacity additions during the year. Further, India’s total installed wind capacity stood at about 56 GW as of 2025-26, almost entirely from onshore projects. The sector’s growth continues to be led by Gujarat, Tamil Nadu and Karnataka, which together account for nearly 65 per cent of the country’s installed wind capacity. Between 2021-22 and 2025-26, India added nearly 17 GW of wind capacity, with annual installations increasing from about 1.5 GW to over 6 GW. At the same time, strong tendering activity across standalone wind, hybrid, firm and despatchable renewable energy (FDRE) and round-the-clock renewable energy projects has helped improve market visibility and investor confidence.
While recent momentum in the wind sector is encouraging, key challenges remain. These include untapped offshore wind potential, slower technology advancement compared to global markets, and persistent project execution and grid constraints. Even at its peak, annual wind capacity additions are equivalent to what the solar sector installed in just two months. Over 6.7 GW of solar capacity was installed– in April and May 2026 alone. Therefore, much more remains to be done before the wind sector can take off in the same way that solar has in India.
Tariff fluctuations in response to changing tariff regimes
Wind auction activity has been robust in India, with five standalone auctions conducted between April 2025 and May 2026. In April 2025, GUVNL awarded 250 MW of capacity under Phase IX to KPI Green Energy, Juniper Green Energy, JGRJ Four Renewable and Inox Neo Energies, at tariffs ranging from Rs 3.64 per kWh to Rs 3.66 per kWh. In June 2025, the Solar Energy Corporation of India (SECI) awarded 300 MW of capacity under Tranche XVIII to Torrent Green Energy at Rs 3.97 per kWh. Subsequently, under GUVNL’s Phase X auction in December 2025, 250 MW was awarded to Patel Infrastructure, Alfanar Power, KP Energy and Powerica at tariffs of Rs 3.43-Rs 3.44 per kWh.
In February 2026, SECI awarded 1,200 MW of capacity under Tranche XIX, with tariffs ranging from Rs 3.67 per kWh to Rs 3.69 per kWh. The capacities were allocated to KP Energy, Waaree Forever Energies, Ganeko Three Energy, Opera Energy, Purvah Green Power, Refex Holding and Vena Energy Aura. This was followed by SJVN’s 600 MW interstate transmission system (ISTS)-connected wind auction in March 2026, where KPI Green, Urdhvaga, Adyant and Lambent Energy secured capacities at tariffs of Rs 3.64-Rs 3.65 per kWh.
The lowest L1 tariff during the period was Rs 3.43 per kWh, which was discovered in GUVNL’s Phase X auction, while the highest L1 tariff of Rs 3.97 per kWh was discovered in SECI’s Tranche XVIII auction in June 2025. Excluding the SECI Tranche XVIII result, tariff discoveries remained within a range of Rs 3.43-Rs 3.69 per kWh.
Wind tariffs have witnessed considerable fluctuations over the years, shaped by shifts in incentives (appreciated depreciation, generation-based incentives, ISTS-waivers, etc.), market dynamics (emergence of wind-focused independent power producers) and bidding mechanisms. Under the feed-in tariff regime, tariffs typically ranged between Rs 4 per kWh and Rs 6 per kWh. The introduction of tariff-based competitive bidding in 2017 led to a sharp decline in prices, with tariffs falling to a record low of Rs 2.43 per kWh and largely remaining in the Rs 2.70-Rs 3.10 per kWh range until the end of 2022. However, tariff levels have gradually moved upwards since 2023, following the transition from e-reverse auctions to a closed-envelope bidding mechanism.
Tariff discovery has stabilised at higher levels, with tariffs ranging from about Rs 3.42 per kWh to Rs 3.98 per kWh in auctions conducted between January 2024 and May 2026. The increase reflects the persistent challenges facing the sector, including delays in land acquisition and right-of-way approvals, slow transmission infrastructure development, delays in PPA signing, increasing pressure on high-quality wind resource sites and the need for continued technological upgradation.
The healthy auction activity points to a revival in the sector, but tariffs remain above their 2022 lows, a reminder that the recovery is being made at a higher cost. IRENA’s research also shows that India’s weighted average onshore wind power levellised cost of energy (LCOE) is $0.048 per kWh, higher than that of China ($0.029 per kWh) and Brazil ($0.030 per kWh), though marginally lower than Europe ($0.051 per kWh). This highlights the scope for cost reductions in India.
Headwinds from cancelled tenders, high project costs and an absent supply chain in the offshore segment
While onshore wind has regained momentum, offshore wind continues to be the sector’s biggest missing piece. India has set an ambitious target of developing 30 GW of offshore wind capacity by 2030 and plans to bid out around 37 GW of seabed lease areas by 2029-30. However, despite years of policy discussions and resource assessments, not a single offshore wind project has been awarded so far. In 2025, SECI cancelled offshore wind tenders totalling 4.5 GW – a 500 MW project off the Gujarat coast and a 4,000 MW seabed lease rights allocation for Tamil Nadu – after receiving no bids from developers despite multiple extensions of the submission deadlines.
High project costs, technology risks and uncertain returns continue to dampen developer interest. In addition, the domestic supply chain for offshore wind components is still at a nascent stage, resulting in heavy import dependency and significantly higher project costs. Meanwhile, offshore wind deployment continues to gather pace globally. Recently, in April 2026, the 504 MW Huaneng Shandong Peninsula North offshore wind project in China became fully grid connected. In Japan, J-POWER commenced commercial operations at the 220 MW Kitakyushu Hibikinada offshore wind farm in March 2026. The UK awarded 8.4 GW of offshore wind capacity under the seventh allocation round of its contracts for the difference scheme in January 2026.
Offshore wind remains an important part of India’s long-term renewable energy strategy. With a coastline of over 7,600 km and strong wind resources along the Gujarat and Tamil Nadu coasts, the Ministry of New and Renewable Energy (MNRE) estimates an offshore wind potential of around 70 GW in these two states alone. Recognising the need for government support in the initial years, the union cabinet has approved a viability gap funding (VGF) scheme worth Rs 74.53 billion. Of this, Rs 68.53 billion has been earmarked for the installation and commissioning of 1 GW of offshore wind capacity, split equally between Gujarat and Tamil Nadu, while Rs 6 billion has been allocated for upgrading two ports to support project logistics and infrastructure requirements.
Even with VGF support, project economics remain challenging. GWEC’s “Global Offshore Wind Report 2026” highlights that the estimated tariff of around Rs 10.50 per kWh for Gujarat and Rs 9.60 per kWh for Tamil Nadu are substantially higher than prevailing grid power tariffs, making offtake and financing key concerns for developers. Nevertheless, recent developments indicate renewed efforts to kick-start the sector. In February 2026, India and the UK launched an Offshore Wind Task Force under the Vision 2035 partnership to facilitate knowledge sharing, technology cooperation and sector development. Meanwhile, the MNRE is expected to issue fresh offshore wind tenders in the second half of 2026, either through two 500 MW projects or a single 1 GW tender.
Furthermore, the Bureau of Indian Standards has introduced offshore wind turbine design standards aligned with International Electrotechnical Commission norms, covering key components such as blades and towers. In parallel, the Offshore Wind Energy Lease Rules, 2023, and the government’s Strategy Paper for Establishment of Offshore Wind Energy Projects have laid the policy foundation for the sector. Together, these measures are expected to support the gradual emergence of an offshore wind market, although large-scale deployment is likely to take longer than initially envisaged.
Bigger turbines, but technological advancements still lag behind global developments
Indian developers and manufacturers are indeed focusing on larger turbines, taller towers and advanced blade designs to improve generation efficiency and enhance project viability. As of March 2026, the now rechristened Approved List of Models and Manufacturers (ALMM-Wind) featured turbine models with capacities exceeding 5 MW, including Venwind Refex Power’s 5.3 MW GWH182 turbine with a rotor diameter of about 183.5 metres and Adani New Industries’ 5.2 MW MWL-160 turbine. Rotor diameters of over 140 metres and hub heights of up to 160 metres are becoming increasingly common, enabling higher energy yields and making low- and medium-wind sites more attractive for development. Turbine manufacturers are also introducing specialised low-wind-speed machines, such as those offered by Inox Wind and Senvion India, to expand the geographical footprint of wind development beyond traditional high-resource states. Meanwhile, advancements in blade aerodynamics, composite materials and hybrid tower designs are helping improve capacity factors while reducing the LCOE.
Despite this progress, India continues to lag behind global leaders in turbine technologies. While the domestic market is only beginning to adopt turbines in the 5 MW class, China has already commercialised much larger machines, including Sany Renewable Energy’s 15 MW SI-270150 onshore turbine with a rotor diameter of nearly 270 metres. The gap is even more pronounced in offshore wind, where manufacturers such as MingYang Smart Energy, Goldwind and Dongfang Electric have developed offshore turbine platforms ranging from 16 MW to 18 MW.
Domestic wind manufacturing capacity reaches 24 GW, but remains underutilised due to subdued domestic demand
India’s wind manufacturing ecosystem has expanded considerably over the past decade. The domestic wind manufacturing ecosystem is well localised, with a strong presence across turbines, blades, towers and key components, which is a positive for the sector. According to GWEC’s Global Wind Report 2026, India is the second-largest hub for onshore wind turbine assembly and key component manufacturing in the Asia-Pacific region. The country’s wind turbine manufacturing capacity has increased from about 10 GW in 2014 to nearly 24 GW as of March 2026, as per government releases.
Manufacturing capacity remains concentrated in the western and southern states. Tamil Nadu leads wind turbine manufacturing capacity with 7.5 GW, followed by Maharashtra (5.08 GW), Dadra & Nagar Haveli and Daman & Diu (3.12 GW), Gujarat (2.1 GW) and Puducherry (1.89 GW). Meanwhile, India’s wind blade manufacturing capacity stood at 15.57 GW as of March 2026, led by Gujarat (4.4 GW), Tamil Nadu (3.6 GW), Andhra Pradesh (2.26 GW), Karnataka (1.5 GW) and Maharashtra (1.05 GW).
The past year saw several measures being taken to strengthen domestic manufacturing. In July 2025, the MNRE restructured the Revised List of Models and Manufacturers (RLMM) as the ALMM-Wind, making domestic sourcing of key components such as blades, towers, gearboxes, generators and special bearings mandatory for listed turbines. This was followed by the strengthening of ALMM standard operating procedures in December 2025, which made performance testing and certification as per IEC 61400-12-1 standards mandatory through accredited laboratories. In February 2026, the MNRE provided additional compliance time for special bearings in recognition of existing supply chain constraints. The industry is responding with greater backward integration and recently, JSW Energy commissioned a wind blade manufacturing facility in Gujarat with an annual production capacity of up to 450 blades. The facility will manufacture 82-metre blades designed for 4 MW wind turbine generators. Also, Inox Wind inaugurated its nacelle and hub manufacturing plant in Gujarat for its 3 MW class turbine and 4X MW class turbines.
Despite the strong manufacturing base, limited domestic demand over the past few years resulted in low-capacity utilisation, prompting many manufacturers to focus on export markets. With annual wind installations now accelerating and a large project pipeline under development, domestic demand is expected to improve, supporting higher factory utilisation rates and encouraging further investments in backward integration and manufacturing expansion.
Long way to go: 155 GW target by 2035-36 requires annual additions at nearly double the current pace
The sector’s revival has come at a time when energy independence has once again become a key concern globally. Rising geopolitical tensions in West Asia and the resulting uncertainty in fossil fuel markets have underscored the importance of strengthening domestic renewable energy sources such as wind.
Despite strong recovery, the sector continues to face several structural challenges. Land acquisition, right-of-way approvals, environmental clearances and grid connectivity remain among the most persistent hurdles, often delaying project execution and increasing costs. Transmission infrastructure is another key bottleneck. According to Ember, renewable energy curtailment reached around 470 GWh in the first quarter of 2026, of which nearly 300 GWh was attributed to transmission constraints. Curtailment continues to impact project economics in wind-rich states, highlighting the need for timely grid expansion and evacuation infrastructure. Further, over 45 GW of awarded renewable energy capacity is still awaiting power purchase and sale agreements. A relief package is being proposed to address this.
Operational challenges for developers are also evolving. In April 2026, the CERC notified revised deviation settlement mechanism regulations, reducing the permissible deviation band for renewable projects from ±15 per cent to ±10 per cent and initiating a phased transition towards schedule-based deviation calculations. While the move is expected to improve forecasting accuracy, grid discipline and system reliability from a grid operator’s perspective, developers have expressed concerns regarding increased penalty exposure and project viability. Wider deployment of advanced forecasting tools, improved weather modelling, battery energy storage systems and portfolio-level scheduling could help mitigate some of these risks over time.
Repowering also offers a significant opportunity that remains untapped at present, despite a policy framework being in place. According to the National Institute of Wind Energy, India has a repowering potential of over 25 GW, which could be unlocked by replacing ageing turbines with larger and more efficient machines at existing sites. One global example is of Germany’ Elster Wind Farm, which recently replaced 50 ageing turbines with just 16 modern 6.6 MW machines, increasing electricity generation sixfold and reducing land use by one-third. For India, repowering is a low hanging fruit that can be fully leveraged if business models incentivise all the stakeholders involved.
GWEC estimates that nearly 969 GW of new wind capacity will be added globally between 2026 and 2030, with India expected to remain one of the key growth markets. According to the CEA’s National Generation Adequacy Plan, India’s installed wind capacity is projected to reach around 155 GW by 2035-36, up from about 56.8 GW at present. Achieving this target will require annual additions of around 10 GW, significantly higher than the current deployment levels. This is in line with the bidding plan of 10 GW per annum envisaged by the government. The project pipeline is robust, with around 29 GW of wind projects under construction as of April 1, 2026, according to information provided by the MNRE in the Lok Sabha. Hybrid, FDRE and storage-linked projects are expected to drive the next phase of growth. Further, India’s green hydrogen ambitions will depend on such projects, while rising demand from C&I consumers for VPPA projects could create another market opportunity for wind projects.
Clearly, the wind sector still has considerable ground to cover in areas such as offshore wind, repowering and technological advancements, and it needs to address operational challenges to accelerate project implementation. That said, it is on a much stronger footing than it was a few years ago and the signs of revival are clear and tangible.
