Economy
Wind Energy in India
GS3 EnergyPrelims and Mains
- Why in news
- On 14 June 2026 PIB released a note ahead of Global Wind Day (15 June 2026), when India hosts a conference in Goa on the theme "Wind Energy: From Ambition to Acceleration."
- What it is
- Wind energy is India's second-largest renewable source after solar. The Ministry of New and Renewable Energy leads policy, and the National Institute of Wind Energy (NIWE), Chennai, does resource assessment and testing. India has a long coast and strong wind belts in the western and southern states, so it has both onshore and offshore potential.
- Gross potential
- Estimated gross wind potential is 695.5 GW at 120 m and 1,163.9 GW at 150 m hub height.
- Record addition
- A record 6.05 GW was added in 2025-26, beating 4.15 GW in 2024-25.
- Offshore VGF
- Viability Gap Funding of ₹6,853 crore is approved for 1,000 MW offshore wind, 500 MW each off Gujarat and Tamil Nadu.
- Contracts for Difference
- A 500 MW CfD pilot has been launched. CfD reduces price volatility and gives revenue certainty to developers.
- Targets
- India aims for 100 GW wind capacity by 2030 and 156 GW by 2036.
- Global rank and capacity
- India ranks fourth globally in wind energy, with over 56.1 GW installed and 28 GW more under implementation.
- Potential
- Wind potential at 150 m hub height is estimated at nearly 1164 GW.
- Peak-hour role
- About 45% of wind generation occurs in peak demand hours, so it complements solar.
- CfD pilot
- A 500 MW pilot under the Contracts for Difference model has been launched to give revenue certainty.
- Cumulative capacity
- Total installed wind capacity has crossed 56 GW.
- Lead states
- Gujarat, Karnataka and Maharashtra contributed most of the addition during the year.
- ISTS waiver
- The government gives a graded waiver of Inter-State Transmission System charges until June 2028 to promote wind power.
- 2030 target
- The addition supports India's target of 500 GW of non-fossil fuel capacity by 2030.
- NIWE
- The National Institute of Wind Energy is in Chennai and is an autonomous institution under MNRE.
Don’t confuse with Viability Gap Funding vs Generation Based Incentive: VGF is a capital support to make a project viable (here offshore wind). GBI pays per unit of electricity generated.
Don’t confuse with Contracts for Difference vs fixed-tariff PPA: CfD settles the gap between a strike price and market price to give revenue certainty. A fixed-tariff PPA fixes the price paid by the buyer.
Don’t confuse with RPO vs ALMM: Renewable Purchase Obligation makes distribution companies and large buyers procure a share of renewable power, creating demand. ALMM lists approved models and manufacturers, promoting domestic manufacturing.
Don’t confuse with Onshore vs offshore wind: Onshore turbines are on land, with most Indian capacity in states like Tamil Nadu and Gujarat. Offshore turbines are at sea and are at an early stage in India.
Don’t confuse with ISTS waiver vs RCO: The ISTS waiver cuts transmission charges for renewable power. The Renewable Consumption Obligation requires designated consumers to use a minimum share of renewable energy.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Wind generates about 45% of its output in peak demand hours, complementing solar and aiding grid reliability.
- Domestic manufacturing (about 24 GW capacity, 70-80% indigenisation) supports energy security and industrial growth.
- Wind peaks in evening and night hours, balancing solar and easing peak demand.
- Domestic manufacturing above 24 GW a year supports energy security and the net-zero 2070 goal.
- Wind complements solar because it often generates at different times of day, which helps grid balance.
- It helps India move towards 500 GW of non-fossil capacity by 2030.
Problems
- Regulatory, land, transmission and implementation delays slow projects; a Task Force was set up in January 2026 to address them.
- Offshore wind is new in India and needs finance, ports and supply chains.
- Deviation Settlement Mechanism penalties, curtailment and transmission delays hurt developers.
- Few new wind tenders and costly finance slow the pace of capacity addition.
- Transmission readiness and grid integration of variable power remain constraints.
- Good land sites are limited, and land acquisition is difficult.
Way forward
- Strengthen transmission, storage-linked round-the-clock models and AI-based forecasting.
- Expand into emerging states such as Madhya Pradesh, Telangana and Odisha and develop offshore leasing areas.
- Expand Green Energy Corridor transmission, repower old turbines and promote wind-solar-storage hybrid and round-the-clock projects.
- Mobilise low-cost long-term finance through blended finance, credit enhancement and CfD.
- Build transmission alongside projects and expand wind-solar hybrids and storage.
- Develop offshore wind and repower old turbines to raise output from existing sites.
Put in your answer
Wind capacity growth: Installed capacity rose 2.66-fold from 21.04 GW to 56.09 GW between March 2014 and March 2026.
Offshore wind support: ₹6,853 crore VGF for 1,000 MW offshore wind off Gujarat and Tamil Nadu.
India-UK cooperation: An India-UK Offshore Wind Taskforce was launched in February 2026.
Manufacturing base: Annual wind manufacturing capacity exceeds 24 GW, with 70–80% indigenisation.
Policy measures: Policy tools include a wind component in RPO, Late Payment Surcharge rules, ALMM and Green Energy Open Access.
Capacity data: India has over 56.1 GW of installed wind capacity, ranking fourth globally.
Policy support measures: Concessional customs duty on components, ISTS waiver till June 2028, competitive bidding and separate wind RCO.
- 2022Mains GS1 · Q7Examine wind energy potential in India and reasons for limited spatial spread.
- 2022Mains GS3 · Q12Will India meet 50% energy needs from renewables by 2030?
- 2016Mains GS3 · Q11Current status and targets of renewable energy; importance of LED programme.
- 2023Mains GS1 · Q14Resource potentials of India's long coastline and natural hazard preparedness.
- 2025Prelims Q70Statements on PM Surya Ghar scheme's targets and skilling components.
- 2007Prelims Q130Match companies like Enercon GmbH with their major areas, including wind energy.
- 2015Prelims Q100Statements on IREDA: public company status and NBFC classification.
- 2008Prelims Q13Which Union Ministry is nodal for implementing the Biodiesel Mission.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting topic with wind potential figures (695.5 GW at 120 m). Wind questions are rare in news-linked Prelims; no debate here for Mains.
Worth revising until Prelims 2028: most news questions come within two years of the event.