Indian Economy News

Wind energy has huge potential in India, to cost less by 2026: GWEC

  • IBEF
  • August 31, 2022

According to the Global Wind Energy Council, which has produced a study titled "India Wind Energy Market Outlook 2022-2026," wind energy has enormous potential in India, with its cost of generation being 40% lower than that of conventional sources of power. According to the study, the levelised cost of energy (LCOE), or the net current cost of generation for a generator throughout its lifespan, for wind is estimated to be Rs 2.8 (US$ 0.035)-Rs. 3.3 (US$ 0.041)/Kwh.

Wind turbine prices have risen as a result of rising global shipping costs and the recent increase in goods and services tax. In addition, a shift from solo wind to wind-solar hybrids is planned during the next five years (WSHs). According to the report, the central and state governments' renewable purchase obligations (RPO) are the primary driver of future installations. The Ministry of Power has outlined a strategy for procuring renewable energy, which will account for 43.33% of power purchased by discoms by 2029-30.

Wind power is expected to account for 33.01% of total energy consumption by 2025-26. Given this pattern, India is forecast to add roughly 19.4 Gw of wind capacity, with central tenders accounting for 76% of the total, followed by state utility markets, and finally commercial and industrial segments.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.