The year 2024 marked a transformative period for the wind energy sector in India, with significant growth and regulatory advancements.

India’s cumulative wind power installations  as of September 2024 was 47.3 GW. The capacity additions in 2024 have been driven by increased demand for wind energy by state distribution companies and other obligated entities to fulfill their renewable purchase obligations.

Here are some of the top developments in the wind energy sector in 2024:

The Union Cabinet approved a VGF program of ₹74.53 billion (~$893.34 million) in June to support offshore wind projects, with ₹68.53 billion allocated for 1 GW of capacity across Gujarat and Tamil Nadu. This initiative also includes ₹6 billion (~$71.92 million) for port upgrades to aid in logistics.

Later in the year, MNRE introduced guidelines for the VGF implementation for 1 GW offshore wind projects. The VGF program is for projects to be commissioned until the financial year 2031-2032. The VGF will be disbursed in a phased manner: 25% will be released after the completion of foundation works, 35% after commissioning 50% of project capacity, 35% after commissioning the total project capacity accepted under the PPA, and 5% after one year of operation of the project. The first installment of VGF will only be released after the developer submits an equal amount of equity/debt or both.

The National Institute of Wind Energy identified a 500 MW offshore project site off Gujarat, with another 500 MW site off Tamil Nadu still under review.

In September, the Tamil Nadu government introduced new regulations to repower old wind turbines to improve the state’s wind power capacity and generation potential. The policy will be valid until March 31, 2030, or until a new repowering policy is announced. Generators will be allowed a maximum of 1.5 years for repowering and one year for refurbishment from the approval date.

Wind-Solar Hybrid Power Projects

According to Mercom India Research, the operational wind-solar hybrid project capacity as of September 2024 stood at 7,705 MW, with about 30 GW of projects in the pipeline.

Early in the year, the Ministry of Power declared that the central pools for solar power and solar-wind hybrid power have begun operations from February 15, 2024. Any interstate transmission system-connected solar and solar-wind hybrid capacity bid after this date will fall under their corresponding pools. The operation of these pools will follow a first-in, first-out approach. This means that projects receiving their letter of award first will be included and sold first within their respective pools.

In February, the Tamil Nadu Electricity Regulatory Commission introduced the forecasting, scheduling, and deviation settlement regulations for wind and solar generation. These regulations aim to support the integration of wind and solar energy into the state grid to ensure stability and security as per the state grid code and related laws.

In November, KERC clarified that additional wind or solar capacity added to existing co-located wind-solar hybrid projects would not incur transmission charges beyond the contracted capacity if the total installed capacity remains within the contracted limits. If the additional capacity exceeds the contracted transmission capacity, the charges will be based on the higher of the two capacities, pending evacuation approval for the added capacity.