Wind energy revival is here, but bottlenecks remain

India wind energy 2026
India’s wind energy rebound in 2025 is real, but grid limits, weak contracts, and ecological risks threaten its durability.

Wind energy rebound in 2025: For countries with credible climate targets, wind power is no longer optional. It is a core element of the energy transition. India, after years of neglect and investor fatigue, has begun to rediscover this reality. What looks like a revival in 2025 is less a policy breakthrough than a delayed correction. Grid bottlenecks have eased. Stranded projects have finally come onstream. And planners have begun to accept that a solar-heavy power system needs balance.

The headline numbers are strong. India is expected to add over 6 gigawatts of wind energy capacity this year, the highest annual addition on record and above the previous peak in 2017. In annual additions, India now ranks third globally, behind China and the United States, overtaking traditional wind leaders such as Germany and Brazil. After years of underperformance caused by poorly designed auctions, ultra-low tariffs, and execution delays, the sector has regained momentum.

The danger is in assuming that momentum will sustain itself.

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Grid bottlenecks, finally addressed

Wind energy’s return owes little to new policy ingenuity and much to the slow clearing of old constraints. Transmission was long the weakest link in India’s renewable push. That link has begun to strengthen.

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Grid projects in wind-rich states such as Rajasthan, Gujarat, and Karnataka have been commissioned over the past year. This has allowed projects that were physically complete in 2024 but unable to evacuate power to be synchronised only in 2025. The timing has flattered capacity-addition figures, but it reveals a basic truth. Renewables do not fail for lack of capacity. They fail for lack of wires.

Without coordinated transmission planning, auctions produce stranded assets rather than usable power.

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Wind energy in a solar-heavy system

India’s wind energy rebound is part of a broader acceleration in clean energy. Nearly 22 gigawatts of solar and wind capacity were added in the first half of the year, sharply higher than in 2024. Non-fossil sources now account for more than half of installed capacity, though coal still dominates generation.

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Within this mix, wind has grown faster than solar. Part of this reflects a low base. More importantly, it reflects a shift in thinking. A grid dominated by solar is exposed to sharp daily and seasonal swings. Wind offsets this by generating power at night and during the monsoon. As renewable penetration rises, diversity matters more than speed.

A resilient grid needs complementarity, not monocultures.

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Contracts, capital, and the offshore gap

Old weaknesses persist. Securing long-term power purchase agreements remains difficult. Several state distribution companies are financially stretched and reluctant to lock themselves into contracts, even at competitive tariffs. For developers, this uncertainty complicates financing in a sector where capital costs are high and payback periods long.

Wind energy also faces rising land and regulatory constraints. Projects require large contiguous parcels, complex approvals, and community consent. Delays are costly and often irreversible. These pressures make India’s stalled offshore wind programme harder to ignore. The Ministry of New and Renewable Energy has identified nearly 37 gigawatts of offshore potential off the coasts of Gujarat and Tamil Nadu, yet no commercial project has reached financial close. High capital costs, unclear seabed leasing rules, and the absence of offshore transmission planning have kept investors away.

This is not a marginal omission. Offshore wind avoids land conflict, offers higher capacity factors, and aligns better with coastal demand. Countries such as the United Kingdom and China turned to offshore wind when onshore growth slowed. India risks postponing that shift until constraints become binding.

Biodiversity, technology, and wind energy

Environmental conflict has become a binding constraint. Wind corridors often overlap with ecologically sensitive regions where land records are weak and consent is contested. A recent intervention by the Supreme Court of India to protect the Great Indian Bustard has restricted overhead transmission lines in parts of Rajasthan and Gujarat, forcing redesigns and delays. Wind may be cleaner than fossil fuels, but it is not impact-free.

These conflicts are manageable, but only if anticipated. European practice integrates spatial planning, underground cabling, and mitigation technology into project design. The lesson is not to weaken conservation standards, but to make them predictable.

Technology depth is another quiet constraint. Domestic manufacturing has softened global supply shocks, but India still lags in next-generation turbines with taller towers and longer blades that now dominate global installations. Without systematic upgrades, productivity will suffer and site options will narrow. Wind manufacturing has yet to receive the kind of technology-linked incentives that reshaped solar.

Market design compounds these issues. Auctions still reward capacity, not system value. Time-of-day pricing, ancillary service markets, and clear dispatch rules remain underdeveloped. Wind’s nocturnal and seasonal advantages go largely unrewarded. As renewable penetration rises, these design failures will matter more than gigawatts added.

Making the revival stick

India’s target of around 100 gigawatts of wind energy capacity by 2030 is achievable on paper, but demanding in practice. It will require auctions that reward hybrids and storage, transmission that keeps pace with capacity, and utilities that can honour contracts. Offshore wind can no longer remain an announcement without execution.

Most of all, wind energy must stop being treated as a cyclical correction tool. In a power system dominated by variable renewables, wind is not optional insurance. It is core infrastructure.

If India wants a stable, low-carbon grid, wind cannot remain an afterthought revived only when targets fall short.

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