The Modi government's objective is to supply 175 GW of the growing energy demand using renewable energy sources by 2022 – 60 GW from wind energy alone. By 2030, renewables are expected to contribute more than 450 GW to the energy mix, which is currently dominated by coal.
At 37.5 GW in 2019, India is the fourth largest onshore market worldwide. Geographical conditions make wind power generation possible in eight states – in particular, Gujarat and Tamil Nadu offer favourable conditions. According to the National Institute of Wind Energy (NIWE), India has a potential of up to 300 GW onshore and 195 GW offshore. Compared to photovoltaics (PV), wind energy has proven itself to be competitive in India - particularly in the morning and evening hours, wind energy is better able to meet increased electricity demand than PV.
Numerous international players are active on the Indian market. Among the wind turbine manufacturers, the sector is led by Siemens Gamesa. With a market share of 30% of the 2.4 GW of installations in the past year, Siemens Gamesa is ahead of the once dominant manufacturer Suzlon for the first time. After Suzlon ran into massive financial difficulties, its market share shrank to just 19%. In 2018, it accounted for 41%.
Current Situation in the Sector
The Corona pandemic has also severely impacted the wind industry. This not only involves delays in the value creation chains and the implementation of new projects, but also worsening liquidity problems at Indian energy companies (DISCOMS) in conjunction with a sharp drop in the demand for electricity.
However, even before the outbreak of the pandemic, capacity growth had slowed down significantly. While 4.1 GW were connected to the grid in 2017, this figure was only 2.4 in 2019. In particular, legal changes (switch from the feed-in procedure to the tendering procedure) led to a decline in investment in the short to medium term. Further market barriers arise from complications in the acquisition and use of land, sub-par infrastructure and grid access, and stalled payment flows.
Under current conditions, India is unlikely to reach its ambitious target of 60 GW in 2022.
At present, India's political support and tendering procedures are currently in place for approximately 3 GW per year. The Indo-German Energy Forum assumes that only 1.5 GW will be connected to the grid in 2020, and +3 GW per year from 2021 onwards.
Hamburg Representation Mumbai
Since January 2011, Hamburg has had a representative office in the Indian business metropolis of Mumbai. In addition to the Hamburg Chamber of Commerce, the partners of the Hamburg Representation Mumbai are the Senate Chancellery, Hamburg Invest, Hamburg Messe und Congress GmbH and Hafen Hamburg Marketing e.V. The aim of the representative office is to further expand business relations between the two regions.
As part of the Indo-German Chamber of Commerce in Mumbai, the office serves as an excellently networked, experienced local contact and agent, and would be glad to assist you in your activities.
- Hamburg Representation Mumbai http://www.hamburgmumbai.com/
- GWEC India Wind Outlook https://gwec.net/india-wind-outlook-towards-2022-looking-beyond-headwinds/
On the author: Lea Miram (firstname.lastname@example.org) ist Hamburg Business Manager at the Hamburg Representation Mumbai.