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Wind sector in India has been facing several issues which has relegated target of achieving its ambitious annual installation targets. Still Wind segment is grappling with plethora of issues like low tariff leading to low margins, tariff caps in recent tenders, slowdown in economy, renewable power curtailment, evacuation constraints and non-clarity on duties and tariffs. On the other hand reverse auction mechanism introduced in 2017 after FIT mechanism have slowed development in the wind sector, response of developers has been underwhelming on low bids and tariff caps which resulted in reduced participation of bidders subsequent to under subscription in many of the tenders.

Growth in the wind sector has been sluggish in windy states of south India, it is due to the curtailment of power by SLDC. Government’s increased focus on reducing wind tariff has pushed developers to move to windy stated instigating land availability and evacuation infra issues leading to project delays. Also Andhra Pradesh government move on revisiting tariffs has impaired faith of investors in the renewable segment.

To optimize on the land usage and evacuation infrastructure, government has been actively promoting wind solar hybrid projects, following which hydrid policies are announces in many states but the development and response of developers are yet to be perceived. The wind sector needs some fresh ideas and policies to get the momentum back going into 2020.