Wind industry seeks policy parity, infra support to meet energy goals

India’s wind energy sector is calling for budgetary support to address transmission infrastructure needs and ensure the country meets its renewable energy target of 500 gigawatt (Gw) by 2030. Industry leaders believe focused investments and balanced policy measures could further boost growth in the sector, which is already gaining momentum.

 

“We need to increase investment in electrical infrastructure to ensure we meet the target of 500 Gw of renewable power by 2030. We will need a robust grid with enough evacuation infrastructure for 500 Gw. Otherwise, it could become a bottleneck in achieving our targets,” said Amit Kansal, chief executive officer and managing director of Senvion India.

 

Girish Tanti, vice-president of Suzlon, highlighted the evolving role of the grid in renewable energy. “Our traditional infrastructure has largely been for central generation and distribution, whereas in renewables, now you are generating at the far end, so you need a very different kind of grid system. It’s also an opportunity to upgrade and grow our grid, making it smarter and more intelligent. That capacity buildup can speed up,” he said.

 

According to the Central Electricity Authority, wind installations in India surged to a seven-year high in 2024. Tanti attributed the growth to government policy support and India’s established ecosystem. After three decades of development, India has a strong supply chain capable of meeting domestic and global demand.

 

However, industry leaders noted an imbalance in policy support between wind and solar energy. Kansal pointed out that production-linked incentives are more focused on solar, but wind, with its higher local content, receives less attention.

 

“Electricity must be brought under the goods and services tax regime for the full value chain. Rates could be rationalised to a single rate for supply and services at 12 per cent. As larger wind turbines need to be launched and manufactured in India to meet the needs of the nation and exports, it is recommended that capital equipment needed to make these turbines come under a preferential tax/duty structure to promote faster expansion and growth,” said Kanwal.

 

A sentiment shared by Tanti, who calls for harmony between policies for wind and solar.

 

"Today, the policies for solar are distinctly different and focused on Make in India to achieve higher local content, but the same compliance is not applied to wind. We need the same level of attention because while we are building Make in India for solar, wind should not be left behind. Just because it is in a good state doesn’t mean it doesn’t need a framework,” said Tanti.

 

India’s renewable energy growth has been driven by wind and solar, but solar capacity has nearly doubled that of wind, which could create an imbalance, according to Tanti.

 

“It is very important that moving forward we balance the two; otherwise, there could be implications on the cost of energy to the end consumer and the grid infrastructure being built. The return on investment for those will go up too,” he said.

 

As the Union Budget approaches, industry leaders hope for measures that will align policy, infrastructure, and investment to further strengthen India’s renewable energy sector.