India's Wind Energy Sector Rebounds, Local Manufacturers Gain 58% Market Share

India's wind energy sector has shown signs of recovery, with consistent annual growth over the past four years. This resurgence contrasts sharply with the period following the introduction of competitive bidding in 2017, which replaced the feed-in tariff system, and the subsequent downturn during the COVID-19 pandemic. Local wind turbine manufacturers, such as Suzlon and Inox Wind, have seen a surge in orders, with both companies poised to turn a profit after eight years of losses.

Adani Green, JSW Energy, and ReNew are leading the way in new wind energy installations. These three major renewable energy companies are expected to account for 58% of the total new wind energy capacity added in 2024. They collectively added nearly 2GW of wind energy projects last year.

Karnataka and Maharashtra are set to surpass the traditional leader, Gujarat. Gujarat added 1.1GW of wind energy projects last year, ranking second behind Karnataka, which added 1.3GW. This year, Karnataka and Maharashtra are expected to compete for the top spot, with Gujarat likely to fall to third place. Tamil Nadu, known for having some of the best wind energy sites in India, will continue to lag in the rankings.

The dominance of Western wind turbine manufacturers is set to end. Siemens Gamesa and GE Vernova's turbines account for 2GW of the 3.4GW projects expected to be commissioned in 2024. However, their leadership in the wind energy market is expected to end this year as local manufacturers Suzlon and Goldwind see a surge in orders. Asian competitors have also seen a significant increase in orders, with Suzlon securing half of the 8GW of wind turbine orders disclosed last year. Additionally, Siemens Gamesa's announcement to sell its Indian business presents an opportunity for Suzlon to further expand its market share.

Suzlon stands to benefit from the new challenges faced by foreign wind turbine manufacturers. The Ministry of New and Renewable Energy has proposed a draft proposal aimed at restricting imports and strengthening localization requirements. Wind turbine manufacturers may need to disclose the manufacturing locations of individual turbine components. Siemens Gamesa's exit could prompt power generators to opt for domestic manufacturers like Suzlon.