Wind revival: Building momentum towards 2030

This article was first published on September 04 2026. Please click here to read the article.

After spending much of the past decade in the shadow of solar energy, India’s wind sector is re-emerging as a critical pillar of the country’s clean energy transition. FY26 marked a turning point, with the country adding a record 6.1 GW of wind capacity as per the Ministry of New and Renewable Energy (MNRE), marking a stunning growth of over 45 per cent year on year. According to the MNRE, the total installed capacity now stands at 58 GW, as of July 31, 2026, making India the world’s fourth-largest wind market. 

However, the industry and government ambitions are far greater. India aims to reach 100 GW of wind capacity by 2030. To achieve this target, we will require 42 GW in the next 4 years, which means around 10 GW annually. This will require more than strong policy intent but also faster execution, diversified demand, and the resolution of long-standing structural bottlenecks.

The most important change is that wind has stopped competing on price alone but on its availability during times of peak demand. Standalone wind tenders have largely given way to hybrid and firm and despatchable renewable energy tenders. This shift is being driven by procurement trends, as utilities and corporate buyers increasingly seek round-the-clock power rather than intermittent energy alone. This is where wind’s economics have quietly improved. Wind generation peaks during the evening hours and the monsoon season, when solar generation declines. Nearly 45 per cent of wind generation occurs during peak demand hours, enhancing its strategic value in India’s evolving power system.

The Green Energy Open Access framework lowered entry barriers enabling a wider range of consumers to procure renewable power directly. Rising industrial electricity tariffs, sustainability commitments and export-related carbon compliance requirements are all strengthening the business case for renewable procurement. C&I renewable capacity is expected to reach roughly 40 GW by the end of FY26 and 57 GW by FY28 as per CRISIL, driven by steel, cement, mining and, increasingly, data centres, which need round-the-clock supply rather than daytime energy. Importantly, corporate demand provides an alternative route to market that is less dependent on utility procurement cycles.

The Renewable Consumption Obligation framework with a distinct wind sub-target creates non-substitutable demand for wind energy among consumers. Repowering and offshore wind energy have opened new avenues for growth. As per Centre for Science and Environment’s “Facilitating Wind Repowering” report, India has more than 25 GW of identified repowering potential, where ageing turbines can be replaced with larger and more efficient machines on existing sites. Offshore wind also presents a substantial long-term opportunity, supported by recent viability gap funding announcements and dedicated government initiatives. Despite these positives, several challenges continue to constrain growth.

Supply chain is not an obstacle as there are competent manufacturers who continue to scale the domestic manufacturing ecosystem as well as upgrading technologically. India today has approximately 24 GW of annual manufacturing capacity across key wind components, with 70-80 per cent localisation levels.

Land acquisition remains difficult, transmission infrastructure often lags generation development, and tariff levels have remained relatively stagnant despite rising supply-chain costs. Wind sites are concentrated in a handful of states, and the best ones are already taken. Transmission is the bigger issue, with the central transmission utility flagging difficulty in providing connectivity for tens of gigawatts of renewable capacity in Rajasthan alone. The gap between project allocation and project commissioning keeps widening. While renewable energy tenders continue to be awarded, a significant volume of capacity remains stuck due to delayed or unsigned power purchase agreements.