Energetica India Magazine - November 2025

Policy innovation has been a decisive factor in sustaining wind growth. One of the most notable interventions was the reduction of GST on wind turbine components from 12 percent to 5 percent, which effectively lowered upfront project costs. India has emerged as one of the world’s most dynamic renew- able energy markets. At the heart of this transformation lies its pledge to achieve 500 GW of non-fossil fuel capacity by 2030. This target is not just a symbolic statement of intent; it is a carefully calibrated response to international climate obliga- tions, domestic energy security needs, and the economic imper- atives of sustainable growth. For a country where electricity demand is expected to nearly double by 2030, scaling renewables is the most practical path- way to ensure affordable, clean, and reliable power. Within this mix, wind energy is expected to contribute more than 100 GW of capacity, playing a crucial balancing role alongside so- lar. Unlike solar, which peaks during the day, wind patterns in India often strengthen during evenings and monsoon months, making it a natural complement for grid stability. Progress So Far: Building on Milestones Wind energy has been a cornerstone of India’s renewable sto- ry since the early 2000s, well before solar power took centre stage. As of March 2025, the country’s installed wind capacity had crossed 50 GW, accounting for around 10 percent of total renewable capacity. The sector generated more than 80 TWh annually, equivalent to roughly 4–5 percent of national elec- tricity demand. This capacity is geographically concentrated. Gujarat and Tamil Nadu together account for nearly half of India’s total installations, followed by Karnataka, Maharashtra, and Rajas- than. These states have favourable wind corridors and support- From Gusts to Gigawatts: Scaling Wind Power for India’s Clean Energy Future WIND POWER 52 Neha Somvanshi Chief Manager (Research) State Bank Academy energetica INDIA- November_2025 ive state-level policies. Beyond these onshore projects, India is preparing to tap into its offshore wind potential, particularly along the coasts of Gujarat and Tamil Nadu, where studies by the National Institute of Wind Energy (NIWE) estimate a re- source base of more than 70 GW. India is also moving towards hybrid renewable projects, where wind and solar share common land, transmission corridors, and storage systems. The Kutch Hybrid Renewable Energy Park, with an expected capacity of 30 GW, is one of the largest proj- ects of its kind globally. Such hybridisation ensures that re- newable power remains available throughout the day, reducing variability and curtailment. Policy and Incentive Mechanisms Policy innovation has been a decisive factor in sustaining wind growth. One of the most notable interventions was the reduc- tion of Goods and Services Tax (GST) on wind turbine compo- nents from 12 percent to 5 percent, which effectively lowered upfront project costs. This move made tariffs more attractive for power distribution companies, indirectly benefiting end