India Becomes Second Largest Wind Market Within Asia Pacific In 2023

Global Wind Energy Council (GWEC) growth required an annual wind installation tripling to at least 320 GW. GWEC report found that the onshore wind energy recovered from a growth slowdown it currently is ranked fourth in total wind installations. It has installed 45 GW of onshore wind as of January 2024 and it’s the second largest wind market in the Asia Pacific region after China.

GWEC report highlighted the gaps such as, the current onshore wind forecast, such as, it identifies a gap of between wind market growth and the government’s 140 GW target of installed capacity by 2030. The current status of offshore wind energy projects is represented through three models, to award 37 GW of capacity through 2030. It added till now, 116 offshore wind lease rules have been released. In early February 2024, the central tender agency, SECI, announced offshore wind seabed leasing of 4 GW capacity in Tamil Nadu. GWEC report shared India’s plan to improve timely disbursal of payments by DISCOMs, create a transmission planning system to integrate 48 GW onshore wind capacity by 2030.

 

GWEC calls for a deliberate realignment of investment to balance North-South distribution of capital, benefits, knowledge transfer and technology. It has calls for extending support to triple renewables energy through use of AI and machine learning. It emphasized on the use of AI as it can outweigh the drawbacks for supply chain efficiencies and siting optimization.

Additionally, the report shared an overview of the onshore wind market which has reportedly recovered in India in 2023. The country has installed 2.4 GW onshore wind power in the first 10 months of 2023. Whereas the new onshore wind installations in 2023 is still lower than our Q3 2022 projection. This is due to grid related delays as well as a 200 MW project cancellation caused by litigation.

The report added, “In addition to China and the US, the top onshore wind markets were Brazil (4.8 GW), Germany (2.4 GW) and India (2.8 GW).” In comparison to previous year, the report compared and found, “The top five markets by total wind power installations at the end of 2023 remained unchanged. Countries such as, China, the US, Germany, India and Spain together made up 72% of the world’s total wind power installations in 2023, the same percentage as the previous year.”

It placed India among the top five market with new installation in 2023. The report elaborated, “The world’s top five markets for new installations in 2023 were China, the US, Brazil, Germany and India. Compared with 2022, the only change is that India overtook fifth place, a position previously held by Sweden. Together, the top five markets made up 80% of global new installations in 2023, collectively 9% higher than the previous year. This is primarily due to China’s global market share surging by 16% points compared with 2022.”

It also stated, “India and China rebound in its share of new installations within Asia Pacific. These countries consolidated its position as the world’s largest wind market last year with 71% global market share, experiencing a 15% YoY growth compared with 2022.”

Its ongoing projects have received viability gap funding (VGF) which has been recently approved for an initial 1 GW of offshore wind capacity, this is in addition to an ISTS waiver up to 2032. It further investigated and found, “Offshore Wind Energy Projects’ showcasing of the past three models were awarded 37 GW of capacity through 2030.116 The offshore wind lease rules have been released as well, and in early February 2024 and SECI, announced offshore wind seabed leasing of 4 GW capacity in Tamil Nadu.”