Navigating the Headwinds: OEMs turn to export markets amid low domestic orders

Nguồn: https://renewablewatch.in/2025/04/25/navigating-the-headwinds-oems-turn-to-export-markets-amid-low-domestic-orders/

India has emerged as a key player in the global wind energy sector with installed capacity reaching over 50 GW as of March 2025. This growth has been driven by the domestic wind turbine manufacturing sector, which has helped the industry in reducing import bills. However, this progress has not come without its set of challenges. The wind turbine manufacturing space has navigated turbulent winds with OEMs facing the brunt of sudden tariff regime changes and underutilised capacity due to tepid tender activity. OEMs are now tapping export markets and expect a surge in their order books given the government’s push towards offshore wind and repowering of old wind projects.

 

Against this backdrop, Renewable Watch examines the current status of domestic wind turbine manufacturing in India, the challenges affecting the sector and the way forward…

Present status

Manufacturing base

India’s annual wind turbine manufacturing capacity is currently estimated at approximately 18 GW, according to the Ministry of New and Renewable Energy (MNRE). This capacity is distributed across 14 OEMs, including both domestic and international players. Based on media reports, Girish Tanti, vice chairman, Suzlon Energy, said that the sector is supported by over 2,500 micro, small and medium enterprises (MSMEs) that provide critical subcomponents and ancillary systems, enabling a local content share of approximately 64 per cent in domestically deployed wind power projects.

Update on the RLMM

The MNRE recently updated the Revised List of Models and Manufacturers (RLMM) in April 2025. The list features 34 approved turbine models, each compliant with international standards such as IEC 61400 and ISO 9001:2015, with many featuring region-specific adjustments for site conditions such as high-altitude deployment and variable wind classes. These models represent a diverse mix of domestic firms, foreign joint ventures (JVs), and multinational OEMs operating within the country. In the list, eight Indian companies account for a total of 16 models, with Suzlon and Pioneer Wincon contributing four models each, followed by SIVA Wind and Inox Wind with two models each. Sany Wind India WEG India, PowerWind and Southern Wind Farms have one model each.

A total of 18 more models are distributed across another six manufacturers (global as well as global-domestic JVs),: Siemens Gamesa (Spain) with five models, Senvion (Germany) with three models, Envision Energy (China), China’s Windey (JV with Adani New Industries Limited), Germany’s W2E (JV with ANIL), Vestas (Denmark) with two models each and GE India contributing one model.

Technologically, the RLMM covers a wide array of designs, thereby catering to varied site conditions across India. Rotor diameters span from a minimum of 29.8 metres, as seen in the Southern Wind Farms Limited’s GWL 225 turbine, up to a maximum of 168.8 m found in Sany Wind Energy India Private Limited’s SI-16840 model. Hub heights range from 30 m in SIVA models to 160 m in several Suzlon models. Turbine capacities vary substantially as well, from a low of 225 kW (SIVA 225/40) up to 5.2  MW for the W2E MWL-160-5.2 MW. Tower types range from traditional tubular steel to more recent innovations such as hybrid lattice and modular concrete-lattice designs, enhancing flexibility in deployment.

Other policy updates

In a bid to further elevate technological maturity and ensure quality consistency, the MNRE, in April 2025, introduced revised draft guidelines requiring a three-year prototype testing and certification cycle for new wind turbine designs. To be implemented by the National Institute of Wind Energy, Chennai, these guidelines will apply to all wind turbine manufacturers in India. Additionally, the MNRE, in April 2025, also released a draft amendment to the process for including wind turbine models in the RLMM, mandating the OEMs to disclose the source of the turbine’s blade, tower, gearbox and generator, along with details on tower type, rated power, technical collaboration, type certification and IS/ISO certification. Only components sourced from Indian manufacturing facilities will be accepted, although exemptions permitting imports for up to 50 turbines or a capacity of 200 MW— whichever is less — have been proposed to ease entry barriers for new participants. Furthermore, the Union Budget 2025-26 introduced a budgetary allocation of Rs 1 billion for the Make in India initiative, aiming to enhance domestic production and manufacturing of several clean technologies, including wind turbines.

Challenges

Despite an estimated domestic wind manufacturing base of approximately 18  GW per annum, the sector remains significantly underutilised. In FY 2024-25, India installed only 4.15  GW of wind power projects, according to the MNRE, which is less than one-fourth of the available manufacturing base.

While the central government had announced a road map for issuing 50  GW of renewable energy tenders annually, with at least 10  GW earmarked for wind and 4  GW for offshore wind projects, this schedule has not been consistently adhered to. As a result, the domestic demand has stagnated, compelling OEMs to redirect their output towards international markets in order to sustain operations and preserve revenue streams. A substantial share of Indian-manufactured wind turbines is being exported to the US, Brazil, Australia and Europe, as reported by NITI Aayog.

Apart from a tepid domestic demand, wind OEMs have struggled financially in the past from a sudden shift in the tariff regime, from feed-in tariffs to competitive bidding, which resulted in a significant drop in the tariffs discovered, thereby reducing margins. Overall, there was a transition from OEMs setting up wind power projects to that work being taken over by independent power producers, which further reduced the business prospects of OEMs.

Another key challenge lies in the limited localisation of key wind turbine components. While India has developed strong capabilities in manufacturing blades and towers, many high-value parts such as special bearings, gearboxes, yaw components and wind turbine controllers continue to be imported, especially from China. The absence of targeted incentives for these components has slowed down domestic capacity building. This continued reliance on imports not only increases costs and supply risks but also exposes the Indian wind industry to cybersecurity risks.

As per NITI Aayog’s “Domestic Manufacturing Capacity & Potential CyberSecurity Challenges in the Wind Sector and Way Forward” report, imports of wind turbine components from countries such as China raise several data security issues. Some of the issues include the location of OEMs’ data collection servers outside India, vulnerabilities in data and power system network operations due to unauthorised updates of wind plant devices by OEMs and other potential cyberthreats. These risks are further aggravated by the absence of a unified regulatory framework for cybersecurity in renewable energy installations.

Future outlook

India has the potential to meet 10 per cent of the global demand for wind energy equipment by 2030, supported by its comparatively low manufacturing costs, established industrial ecosystem, and strategic geographical location near emerging markets in Asia, Africa, and the Middle East, as per Girish Tanti’s media statements. However, tapping into this potential will require targeted efforts to address the various constraints limiting domestic manufacturing in India.

One such opportunity lies in repowering ageing wind power projects with newer, higher capacity turbines and initiating offshore wind projects – both of which could provide a much-needed boost to OEM order books for the domestic market. These segments can offer consistent demand, allowing manufacturers to scale up production, streamline supply chains and enhance overall cost competitiveness. To fully capitalise on them, it will be essential to invest in R&D for larger, next-generation turbine designs – particularly those suited for offshore conditions.

To strengthen domestic manufacturing of high-value components (such as special bearings, gearboxes, yaw systems and wind turbine controllers) that are still largely imported, a targeted production-linked incentive (PLI) scheme can be considered.

Finally, the need for cybersecurity regulations is critical in the wind energy space. These cybersecurity challenges have been directly addressed in the MNRE’s recently introduced draft amendment for wind turbine model inclusion in RLMM. The amendment mandates that the data centres and servers must be located within India, with all wind turbine-related information stored and maintained domestically. Real-time operational data must not be transferred outside India, and operational control of wind turbines must be exercised exclusively from the facilities within the country. Nevertheless, NITI Aayog’s localisation framework can still serve as a useful reference point – particularly in the areas not covered in the draft – by offering guidance on mandatory certification procedures for foreign software and hardware and compliance with the national cybersecurity standards. In this context, integrating cybersecurity compliance as a prerequisite for eligibility in governmentsupported project auctions would further strengthen the safety and reliability of India’s wind energy infrastructure.

Going forward, it will be interesting to see how wind turbine OEMs and the government navigate the headwinds in the sector with respect to low domestic orders. A financially sustainable and technologically abreast wind turbine manufacturing industry will be key to meeting India’s goal of having 500 GW of non-fossil fuel capacity by 2030 and becoming net zero by 2070.

Nguồn: https://renewablewatch.in/2025/04/25/navigating-the-headwinds-oems-turn-to-export-markets-amid-low-domestic-orders/

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