Investments and policies for offshore wind energy are increasing renewable energy share in India

We must recognise our priorities moving forward and work collaboratively to address them. Although we have made strides in the growth of renewable energy, ranking among the top three globally in terms of installed renewable energy capacity and fourth in terms of onshore wind capacity, we must acknowledge that the wind capacity we have added in recent years is not very appealing.

While we welcome new technologies, it is crucial to create space to ensure their maturity in terms of their availability in the supply chain. As we focus on Atmanirbhar Bharat’s resilience, we must ensure growth across the entire spectrum of renewable energy technologies, including wind capacity.

Manufacturing and installation capacity of wind energy

Unfortunately, we have only added less than 2.5 gigawatts of wind capacity in the past few years, which could be more attractive to manufacturers and project developers. In contrast, the country has more than 10 to 15 gigawatts of annual manufacturing capacity. This significant gap between the annual addition of capacity and the manufacturing capacity available leaves us with no other option but to look for a market outside India to manufacture wind capacity.

Thus, it is crucial to recognise our priorities and work together to address the gap between manufacturing capacity and the annual addition of wind capacity while also creating space for the maturity of new technologies. By doing so, we can ensure the growth of renewable energy technologies and promote the resilience of Atmanirbhar Bharat.

Addressing the supply chain gap in renewable energy

It is crucial to ensure a sufficient market and volume for all renewable energy technologies, including solar, wind, pumped hydro, etc. This is important because we need diversity in our supply and generation to have a resilient grid system. We must address the diverse nature of intermittency that we experience due to renewables, which can only be achieved by tapping into the full potential of these technologies.

Regarding the supply chain, if we consider wind energy, India currently holds a share of almost 8.5 percent of the global supply chain. There is tremendous potential for us to expand. The International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) have been advocating for a capacity of over 8000 GW by mid-century to meet the global goal of limiting temperature increases to 1.5 degrees Celsius. This is a significant target since the current global wind capacity added is less than 1/10 of the capacity required. In the case of offshore wind, the projected number is around 2000 GW, which needs to be in place globally to achieve the 1.5-degree goal. However, we are currently only at 55 to 65 GW of capacity that has been added worldwide.

Offshore wind is making progress in India

India is progressing with its first offshore wind tender, indicating a growing momentum in the offshore wind sector. Wind power systems are eligible for repowering, and the market is continually evolving. Original equipment manufacturers (OEMs), whether solar, wind or any other technology manufacturer, invest in research and development, yielding tangible results. It is important to appreciate past achievements. However, if policies need to be more dynamic to keep up with demand and if there is no volume to appreciate past achievements, then one manufacturing section will remain active.

Investments are fast-tracking our clean energy transition

The rising investments in the clean energy space are crucial. Still, it’s important to acknowledge that the fossil fuel industry’s profits have continued to double and rise, even during the COVID pandemic. To support renewable energy growth, we need to implement the right risk mitigation and fund infrastructure development and philanthropic funds. This support is especially important for niche technologies and markets, like offshore wind, that are not yet mature in the country.

To achieve the ambitious green hydrogen mission, we must deploy many electrolysers. According to the EY project report 2022, we need almost 125 GW of RE capacity for this mission. However, our current installed capacity is only between 150 and 225 GW of renewable energy. If we aim for a 100 percent green hydrogen mission, all of the progress we’ve made so far will be consumed by hydrogen. So, we must also consider other sectors, such as electric mobility and manufacturing. There’s a huge target ahead of us, and we need to leverage all available resources to achieve it.

Policy amendments to promote wind energy

The centre announces policy amendments every other week, but such momentum is also expected from states like Tamil Nadu, India’s wind-rich state. Tamil Nadu boasts almost 9.9 GW of installed onshore wind capacity and is a fertile ground for upcoming offshore wind projects. Consequently, we expect a 2.7x increase in Tamil Nadu due to the rising demand for power in the CNI segment alone. Exponential growth is projected between 2021–2022 and 2031–2032, not only in Tamil Nadu but also in industrialised states like Maharashtra and Karnataka, which aim to enhance their industrial and manufacturing capacities. The Indian government aims to increase the share of manufacturing in GDP, which can only be achieved by inviting investments with net-zero trajectory targets.

India’s role in advancing clean energy: advocating for financial instruments to cut risks

India’s advocacy as part of G20 or SAM (CEM) is crucial in bringing all parties together. Evolving a blue-bond market should be prioritised, and the right targets should be set by DFIs, MDBs, commercial banks, and other institutions to support the propagation of these niche technologies. This will enable India to meet larger renewable energy targets and ensure that thresholds for mid-century are met.

The planning should not just focus on the present or the current decade. Instead, the decade of action must help India make the most difficult decisions and undertake the most difficult projects. While past efforts have been relatively easier, future projects will be tougher, especially since food security and land acquisition issues must be considered. India must develop a diverse energy basket for itself, the region, and the globe.

Exploring the untapped potential

There is a greater need for us to be able to exploit those diverse, rich sources of renewable energy sources that we have in the country. And whether it is solar, wind, or pumped hydro, we have to see everything from one perspective.

Furthermore, India must advocate for creating financial instruments to cut risks and support immature technologies. As a global leader in the clean energy sector, India’s actions and decisions will significantly impact the world’s ability to transition to cleaner energy sources.

(Excerpts of this article are taken from the submission of Martand Shardul, Global Wind Energy Council, during the EPR Power Talk held in March 2023.)