Date: 30/03/2023

Relevance: GS-3: Economic Development, Biodiversity, Environment.

Key Phrases: Global Wind Energy Council (GWEC), rare earth metals and non-standard steel, Cost competitiveness, Grid integration, Technological advancements, micro, small, and medium enterprises (MSMEs).

Context:

• India has the potential to become a global manufacturing hub for wind energy, according to the Global Wind Energy Report 2023 of the Global Wind Energy Council (GWEC).

Key Highlights:

• The report suggests that India needs to create a roadmap for a resilient supply chain of raw materials to consolidate its position in the wind energy manufacturing sector.
• India currently has an annual manufacturing capacity of 10-12 GW for wind turbine generators and is the world's second-largest market for gearbox manufacturing and the second-largest supplier of blades and generators in the Asia-Pacific (APAC) region.
• With recent global developments, such as the diversification of supply chains by European and American turbine original equipment manufacturers (OEMs) to ensure the security of supply in the aftermath of Covid-19, India has gained an increasingly prominent role in the global wind supply chain.
• To further strengthen its leadership position in the wind energy manufacturing sector, India needs a resilient supply chain of raw materials, including rare earth metals and non-standard steel, and for specific jobs, such as casting and forging.
• The report recommends that existing import duty relief on equipment and components, such as balsa wood and pultruded carbon fibre, which cannot be produced or manufactured in India, must continue.
• The report also highlights the crucial role played by micro, small, and medium enterprises (MSMEs) in the Indian wind manufacturing sector.
• The government should consider targeted production-linked incentives for companies engaged in the onshore wind sector and those wishing to get involved in offshore wind manufacturing.

Favourable conditions for Wind power Generation in India:

• Large land availability: India has a large landmass with vast open spaces, making it suitable for large-scale wind power projects.
• Favourable wind conditions: India has high wind speeds in coastal areas and some parts of the interior regions, making it ideal for wind power generation.
• Government support: The Indian government has been actively promoting renewable energy, including wind power, through various policies and initiatives.
• Growing demand: The demand for electricity is increasing in India due to economic growth, urbanization, and industrialization. Wind power can help meet this growing demand for electricity.
• Cost competitiveness: The cost of wind power has been declining in India, making it increasingly competitive with traditional sources of power.

Challenges Associated:

• Land Acquisition: Acquiring land for wind power projects can be challenging, especially in densely populated areas where land is scarce and expensive.
• Financing: Financing renewable energy projects can be challenging due to high upfront costs and a lack of long-term financing options.
• Grid integration: Integrating wind power into the national grid can be challenging due to the intermittency of wind, which can cause stability issues on the grid.
• Infrastructure: Developing the necessary infrastructure for wind power, such as transmission lines, can be challenging in remote and inaccessible areas.
• Policy uncertainty: Changes in government policies and regulations can create uncertainty for investors, leading to a lack of investment in the sector.
• Technological advancements: Rapid technological advancements in the wind power sector can make it difficult for existing projects to remain competitive.
• The high cost of capital is another significant challenge facing the Indian wind energy sector. The cost of borrowing in India is high, and this can make financing wind power projects expensive.

Way Forward:

• There is a need for continuous research and development to improve the efficiency of wind turbines and reduce costs. The Indian government should continue to invest in research and development in the wind power sector.
• India has significant offshore wind power potential, which remains largely untapped. The Indian government should take steps to develop offshore wind power projects to harness this potential.
• Hybrid energy systems, which combine wind power with other sources of renewable energy such as solar power or energy storage, can improve the reliability and consistency of power supply. The Indian government should promote the development of hybrid energy systems in the country.
• Improving grid connectivity and grid stability is crucial for the growth of wind power in India. The Indian government should continue to invest in the development of transmission infrastructure and energy storage systems to ensure the smooth integration of wind power into the grid.

Source: The Hindu BL

Mains Question:

Q. Evaluate the potential for growth in the Indian wind energy sector, and discuss the challenges that need to be addressed to achieve this growth. (250 Words).