India's wind power to hit 63 GW by 2026-27
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New Delhi: India's wind power sector is poised for significant growth, with the country's installed capacity expected to surge to 63 GW by 2026-27. This projection is based on a report by Crisil, which states that India's annual wind power capacity addition is likely to more than double to 7.1 GW in the next two financial years.
The report attributes this growth to the government's initiatives to promote renewable energy, particularly hybrid renewable projects that combine solar, wind, and storage. These projects have gained traction, with over 30 GW of hybrid projects in the pipeline, expected to be commissioned within the next 2-4 years.
The growth in wind power capacity is also driven by an emerging favourable cost regime for wind projects. The report notes that while capacity additions were slow in the past due to low tariffs and infrastructure issues, tailwinds are emerging to drive growth.
In recent years, the capacity additions of wind power have been tepid, ranging from 6 to 7 GW per annum. This was largely due to fewer successful auctions of wind capacities, with only 5.9 GW auctioned in FY21-23 and 5.2 GW in FY23-25.The low tariffs and issues with land and transmission infrastructure also dampened the interest of developers.
However, the report suggests that the government's push for hybrid renewable projects and the emerging favourable cost regime for wind projects will drive growth in the sector.
The auctions of hybrid renewable energy projects, which require developers to supply renewable electricity during peak demand hours, have spurted.
These projects are expected to find favour with distribution companies, as they help solve the problem of scheduling power during critical times.
According to Ankit Hakhu, Director, Crisil Ratings, "The country has over 30 GW of hybrid projects in the pipeline, which are expected to be commissioned within the next 2-4 years. Traction in signing power purchase agreements (PPAs) is also visible, with more than 60% of such projects auctioned till March 2024 having their PPAs signed by January 2025."
(with inputs from IANS)