A report published on Monday projects that during the next two fiscal years, India’s wind power capacity increase will more than double to an average of 7.1 gigawatts (GW), up from 3.4 GW in FY 2023–25. By 2026–27, this expansion is anticipated to raise the nation’s installed wind capacity to almost 63 GW.

Due to the low success of wind project auctions, which yielded 5.9 GW in FY 2021–23 and 5.2 GW in FY 2023–25, wind capacity additions in FY 2023–24 and 2024–25 stayed between 6–7 GW, according to research by Crisil. According to the research, low developer interest was brought on by low tariffs, problems with land availability, and difficulties with transmission infrastructure in locations with strong wind potential, which contributed to the delayed pace.

Hybrid Projects and Policy Support Driving Growth

It is anticipated that government efforts to speed up hybrid renewable energy projects—which include solar, wind, and storage—will greatly increase capacity growth. According to Crisil’s research, hybrid energy auctions—which mandate that developers provide electricity during the nighttime and early morning hours of peak demand—are becoming more popular.

Since wind energy produces electricity during times of high demand, as opposed to solar energy, which is mostly active during the day, it is anticipated that India’s wind power capacity will account for 30–50% of these hybrid projects. Since hybrid projects help manage power scheduling difficulties, distribution firms (discoms) are becoming more interested in them, making them appealing for off-take agreements.

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Pipeline of Upcoming Projects and PPA Progress

Over 30 GW of hybrid projects are planned for India and are expected to be put into service within the next two to four years, according to Ankit Hakhu, Director at Crisil Ratings. These initiatives will be crucial in hastening the expansion of wind capacity.

Power purchase agreements (PPAs) had advanced significantly, according to the study; by January 2025, PPAs for over 60% of projects that were put up for auction by March 2024 had been signed. It is anticipated that the government’s ongoing support and evolving wind energy cost structures will spur additional industry expansion.

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