With a national target of 60 GW of wind energy by 2022 the future outlook of the sector is bright.

Dr. K. Kasthurirangaian, Chairman, Indian Wind Power Association

India's stated vision of reducing the carbon footprint by nearly 33% by 2030 and achieve 175 GW renewable capacities by 2022? Where do we stand now?

The target of 175 GW of renewable capacity by 2022 was set in 2015. The installed capacity then was 37.4 GW. Since then India has added 51.4 GW of RE capacity to reach a total of 88.8 GW. There are several projects in the pipeline with more getting announced day by day. Accordingly, it is quite possible that the target of 175 GW may be achieved by end December 2022.

What is the contributory role from the wind power sector in this?

Out of the target of 175 GW of renewable capacity by 2022 set in 2015, the target for wind energy was 60 GW. In 2015 India had an installed wind energy capacity of 23.5 GW. Currently the installed capacity (as on 30th September 2020) is 38.2 GW. In addition, another 9.4 GW of wind energy projects are currently under implementation. The shortfall to reach 60 GW therefore, is just 12.4 GW. Given the track record of the wind energy sector and the engineering capability available, this is easily achievable.

What has been the impact of the pandemic on this segment so far?

The impact of the pandemic is manifold:

- By virtue of being included as an essential service, wind energy generation continued unabated throughout the pandemic. However, the demand for electricity was lower by around 20%.

- Whilst wind mills for captive consumption continued to generate power, the industries that own them were either not operating or had reduced operations. Energy generated has thus been lost to the grid.

- Projects under construction came to a standstill since logistics and manpower unavailability were issues. Though extra time has been granted by the Ministry, it is likely that there will be project delays.

- The CAGR between FY 2016 and 2020 stands at 17.33%; given the normalization of demand for electricity post the lifting of lockdowns, it is likely to remain positive.

- Notwithstanding the pandemic, capacity additions to wind energy have gone on unabated.

What are the key continuing challenges which you foresee impacting the economy as a whole, and the wind power sector?

The challenges impacting the economy as a whole largely relate to lower disposable incomes following pandemic-induced manpower rationalisation and pay cuts. This would translate into lower demand for items of conspicuous consumption. This would impact the need for backend manufacturing. However, it is not likely to result in reducing the demand for electricity. As wind energy is among the energy sources with the lowest cost, there is likely to be a market for it. The critical challenges to achieving scale in the wind power sector, however, continue to be dispatch ability, intermittency, variability and latency.

What further measures should be undertaken by the states / central governments?

Regulatory issues continue to befuddle the industry. There seems to be little consensus between the centre and states in matters of power sector reform. Though there seems to be an overall vision in place, there seems to be no buy-in with regard to the processes that would help achieve that vision. With a wind energy potential of 695 GW available at a hub height of 120 metres and a growing demand for electricity, attracting investment to tap the market and the potential remains a challenge. This can only be resolved through meaningful dialogue and cannot be legislated, as currently seems to be the approach.

How do you see the impact on the investment scenario in this sector?

Gradual opening up has led to higher demand for electricity. Plans to achieve 60 GW by 2022 are already underway. Barring a few project delays, there is no significant change in the investment scenario.

Tell us how do you see the mergers and acquisition landscape post gradual opening up?

The industry has been in a consolidation phase from around 2018 onwards with several mergers &acquisitions taking place. M&A activity has continued even through the pandemic, barring a few agreements coming unstuck because financial closure did not take place as per schedule. We do not see any change post gradual opening up.

What further measures should the government undertake towards the migrant labourers and employment generation in this sector?

The government has already put in place a scheme for skill development in the wind energy sector and meetings have taken place with industry stakeholders. It is now a question of converting the ideas into action. Overall, the wind energy sector provides a good working environment. With the economy getting back to normal, it is only likely to become better.

What is your outlook on this segment in terms of disruptive technology adoption in design / production / marketing / and supply chain management?

The industry has already commenced using AI, unmanned aerial vehicle or drone technology and machine learning models in various aspects such as maintenance, trouble shooting and transmission; the industry has already commenced working on alternative delivery mechanisms. In addition to the above Internet of Things or IoT and blockchain technology would play a huge role in the smart grid technology, in better production and transmission. These technologies would also help India decarbonise its power sector. India is likely to fully harness the potential of these technologies, once the costs become affordable for all players.

Please brief us on the future outlook of the sector? What contributory role is expected to play by the Wind Power Association in the transformation of this segment?

With a national target of 60 GW of wind energy by 2022 and 140 GW by 2030, the future outlook of the sector is bright. The Indian Wind Power Association has been championing the growth of wind energy for around 25 years and continues to do so even now. IWPA is now spearheading a movement to enhance the extent of grid penetration. This obviously calls for newer approaches to integration of wind energy into the grid. IWPA is working in coordination with experts in driving the transformation.

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