India’s Wind Power Expansion Set To Double In Two Years: Report

India’s annual wind power capacity addition is likely to more than double to 7.1 GW in the next two financial years, compared to 3.4 GW in FY23-25, according to a report by Crisil.

This increase, driven by government initiatives, could push the country’s total wind capacity to approximately 63 GW by FY27.

In FY24 and FY25, capacity additions remained modest at 6-7 GW due to fewer successful auctions—5.9 GW in FY21-23 and 5.2 GW in FY23-25.

The report attributed this to low developer interest caused by reduced tariffs, land availability issues, and transmission constraints at high-wind sites.

However, the sector is now seeing positive momentum, which will likely accelerate growth.

The government’s focus on hybrid renewable projects—combining wind, solar, and storage—along with improving cost structures is likely to drive capacity expansion.

Standalone wind project auctions remain steady, while hybrid project auctions, which require supplying power during high-demand periods like evenings and early mornings, have increased.

Wind energy, which can generate electricity during peak hours, is to make up 30-50% of these projects.

Since hybrid projects help distribution companies manage power supply during critical hours, they will likely see strong demand and rapid growth.

Ankit Hakhu, Director at Crisil Ratings, stated that India has over 30 GW of hybrid projects in the pipeline, slated for commissioning within the next 2–4 years, which will support the anticipated increase in wind capacity additions.

He stated, “Traction in signing power purchase agreements (PPAs) is also visible, with more than 60 percent of such projects auctioned till March 2024 having their PPAs signed by January 2025.”

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