Gujarat’s Onshore & Offshore Energy Powering India’s Energy Transition

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India has set an ambitious goal to achieve net-zero emissions by 2070, a commitment that aligns with the
2015 Paris Agreement. This journey towards a cleaner future is driving a significant transformation in the country’s energy sector, with renewable energy, including wind power is, playing a crucial role.

According to Invest India, as of July 2024, India has reached a total installed renewable energy capacity of 197.20 GW, which makes up 43.9% of the country’s total power capacity. This achievement positions India as the fourth-largest country in the world in terms of renewable energy capacity additions. The country aims to reach 500 GW of non-fossil energy capacity by 2030, a commitment made under the “Panchamrit” agenda at COP26. By then, renewables will account for about 50% of the installed power capacity.

Wind energy has been a key driver of this growth. From just 9.3 GW in 2008, to the current India’s wind power capacity of 47 GW by July 2024, making it the fourth-largest onshore wind energy market globally. The country’s goals include reaching 100 GW of onshore wind capacity and launching 37 GW offshore wind projects by 2030.

However, to achieve the 2070 net-zero target, India needs to significantly increase its wind capacity, aiming for 557 GW by 2050 and 1,792 GW by 2070, according to the Council on Energy, Environment and Water (CEEW).

With its favourable geography and progressive policies, Gujarat is leading India’s renewable energy revolution, especially in wind power. The state is not just contributing to the national energy transition—it is at the forefront of it.

GUJARAT: A WIND ENERGY POWERHOUSE

Gujarat’s prominence in India’s wind energy sector is growing rapidly. The state boasts the longest coastline in the country, stretching around 1,600 kilometres. This extensive coastline experiences high-speed winds, creating ideal conditions for wind energy production. This natural advantage has positioned Gujarat at the forefront of India’s wind power sector.

Gujarat boasts India’s highest installed wind capacity, with approximately 12.1 GW as of July 2024 i.e. 25.7% of overall India’s total wind power capacity. This impressive figure underscores Gujarat’s significant contribution to India’s global standing as the fourth-largest onshore wind energy market.

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The state’s success in wind energy can be attributed to several factors:

• Favorable wind conditions: Gujarat’s coastline, particularly in the Kutch region, experiences strong and consistent winds, making it ideal for wind power generation.
• Proactive policy measures: The state government has implemented supportive policies, including attractive tariffs and ease of land acquisition, encouraging investment in the wind energy sector.
• Robust infrastructure: Gujarat has invested in developing the necessary transmission and distribution
  infrastructure to support large-scale renewable energy projects.
• Industrial demand: The state’s strong industrial base provides a steady demand for power, making wind
  energy projects economically viable.
• Technological advancements: Adopting the latest and more efficient wind turbine technologies has significantly increased the power generation capacity of wind farms in the state.

GUJARAT’S RENEWABLE ENERGY POLICY: A BLUEPRINT FOR SUCCESS

In 2023, Gujarat unveiled its Renewable Energy Policy for 2023-2028, a comprehensive framework designed to
accelerate the state’s transition to clean energy. This policy aims to fulfil 50% of the state’s energy needs through
renewable sources by 2030, aiming to attract investments worth ₹5 lakh crore (approximately $60 billion).

Key features of Gujarat’s renewable energy policy include:

• Diverse renewable portfolio: The policy encompasses a range of renewable energy sources, including ground-mounted solar, rooftop solar, floating solar, canal-top solar, and wind-solar hybrid projects. This diversification ensures a balanced and resilient renewable energy mix.
• Decentralization of renewable energy generation: The policy emphasizes decentralizing renewable energy production, encouraging greater industry participation. This approach aims to reduce transmission losses and enhance energy security.
• Removal of capacity restrictions: The policy eliminates previous capacity constraints, allowing firms to meet 100% of their energy requirements through their own renewable energy plants, as compared to the earlier 50% cap. This change is expected to boost corporate investment in renewable energy projects.
• Collective purchasing power: Companies can now collectively purchase renewable power from Renewable Energy Service Companies (Rescos), resulting in savings on various surcharges associated with third-party
  power sales. This provision particularly benefits small and medium enterprises that lack the capacity to establish their own renewable energy plants.
• Promotion of energy storage: The policy includes provisions for promoting energy storage solutions, which are crucial for managing the intermittent nature of renewable energy sources.
• Focus on offshore wind: The policy recognizes Gujarat’s vast potential and includes measures to promote offshore wind energy development along the state’s coastline.

These policy initiatives demonstrate Gujarat’s commitment to creating a conducive environment for renewable energy growth, focusing particularly on wind energy given the state’s geographical advantages. The policy is expected to add significant renewable energy capacity to the state’s power mix, with wind energy playing a crucial role.

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THE GUJARAT HYBRID RENEWABLE ENERGY PARK: A GAME-CHANGER

One of the most exciting developments in Gujarat’s renewable energy landscape is the ongoing construction of the Gujarat Hybrid Renewable Energy Park. Located near Khavda in the Kutch district, this ambitious project will become the world’s largest hybrid renewable energy park upon completion.

Key features of the Gujarat Hybrid Renewable Energy Park include:

• Massive capacity: The facility will generate 30 gigawatts of electricity using solar panels and wind turbines. To put this in perspective, this single park will have the capacity to power nearly 18 million homes.
• Land utilization: Covering an area of 1.79 lakh acres, the park will primarily be situated on wasteland, minimizing environmental impact. This approach to land illustrates the potential for executing large-scale
  renewable energy projects while preserving agricultural lands and ecologically sensitive regions.
• Advanced storage: The park plans to incorporate a storage system addressing one of the key challenges of renewable energy – intermittency. The storage will enable the park to provide a stable power supply even
  when the wind or solar generation is low.
• Economic impact: The project is estimated to create around 100,000 job opportunities and attract investments amounting to ₹1.5 lakh crore (approximately $18 billion). These jobs will span various sectors including construction, operation and maintenance, and associated services.
• Environmental benefits: From an environmental perspective, the park is anticipated to contribute significantly to carbon emission reduction, with an estimated decrease of approximately 50 million tonnes
  annually. This is equivalent to taking about 10 million cars off the road for a year.
• Technological innovation: The park will be a testing ground for cuttingedge renewable energy technologies, including advanced wind turbines and high-efficiency solar panels.
• Grid integration: Sophisticated grid integration technologies will be employed to manage the large-scale
  influx of variable renewable energy into the grid, providing valuable lessons for similar projects across India and globally.

This mega-project exemplifies Gujarat’s commitment to large-scale renewable energy development and its potential to drive India’s energy transition on a massive scale. It represents a significant step towards achieving India’s renewable energy ambitions and serves as a model for other states and countries looking to implement large-scale hybrid renewable energy projects.

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CHALLENGES AND FUTURE PROSPECTS

While Gujarat’s progress in wind energy development is impressive, the sector faces several challenges that need to be addressed for sustained growth:

• Rate determination: Implementing the new policy framework requires careful consideration of rate determination under the new rules. Balancing the need for attractive tariffs for developers with affordable electricity prices for consumers remains a challenge.
• Replicating success: While Gujarat has seen significant success in solar projects, replicating this success in the wind sector presents unique challenges. Wind projects typically require larger land areas and are more locationspecific than solar installations.
• Infrastructure development: Scaling up wind energy capacity requires substantial investments in grid
  infrastructure and storage solutions to manage the intermittent nature of wind power.
• Land acquisition: As wind farms require significant land area, balancing land use for energy production with other needs (agriculture, conservation, etc.) is crucial. Innovative approaches like agrivoltaics (combining agriculture with solar power generation) could provide solutions, but similar strategies for wind farms are still in nascent stages.
• Supply chain and manufacturing: Developing a robust domestic supply chain for wind turbine components is essential for long-term cost competitiveness and energy security. While India has a growing wind turbine manufacturing industry, further expansion and localization of the supply chain is required.
• Skill development: The rapid growth of the wind energy sector demands a skilled workforce. According to a
  CEEW study, India’s renewable energy sector could create 1 million jobs by 2030. Ensuring adequate training and skill development programs will be crucial to meet this demand.
• Offshore wind development: While Gujarat has significant potential for offshore wind, the technology is still nascent in India. Developing offshore wind projects requires significant financial investments and specialised technological experts. Despite these challenges, the future of wind energy in Gujarat looks promising. Given its natural advantages and policy support, Gujarat is wellpositioned to play a significant role in achieving these targets.

GUJARAT’S ROLE IN INDIA’S BROADER ENERGY TRANSITION

Gujarat’s leadership in wind energy development is playing a crucial role in India’s broader energy transition. The
state’s success demonstrates the potential for other Indian states to accelerate their renewable energy adoption, particularly in regions with similar wind resources.

Some key aspects of Gujarat’s role include:

• Policy leadership: Gujarat’s renewable energy policies, particularly its support for wind energy, serve as a model for other states. The state’s experience in implementing these policies acts as a significant guide for policymakers across India.
• Technology demonstration: Projects like the Gujarat Hybrid Renewable Energy Park showcase the feasibility of largescale renewable energy integration, boosting confidence among investors and policymakers.
• Grid management expertise: Gujarat’s experience in integrating large-scale wind energy into its grid provides valuable lessons for managing the challenges associated with variable renewable energy sources. The state’s investments in hybrid projects and energy storage solutions pave the way for a more resilient and flexible energy system to accommodate higher shares of renewables.
• Industry development: The growth of Gujarat’s wind energy sector has contributed to developing a robust renewable energy industry in India, including manufacturing, project development, and services.
• Job creation: The renewable energy sector in Gujarat has become a significant source of employment. According to a report by CEEW, the renewable energy sector in India could create 3.4 million jobs by 2030, with states like Gujarat leading the way.
• Climate action: Gujarat’s wind energy development contributes substantially to India’s climate action goals. The state’s renewable energy projects align with Sustainable Development Goals (SDG), reduce carbon emissions and demonstrate India’s commitment to addressing climate change.

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CONCLUSION

As India accelerates towards achieving its goal of 500 GW of clean power capacity by 2030, Gujarat’s contributions to wind energy development stand out as a beacon of progress. The state’s natural advantages, forward-thinking policies and ambitious projects like the Gujarat Hybrid Renewable Energy Park, position it as a key player in India’s energy transition.

Gujarat’s success in the wind energy sector contributes to India’s climate goals and demonstrates renewable energy’s economic potential. Gujarat shows that the transition to clean energy can drive economic growth and sustainable development by creating jobs, attracting investments, and fostering innovation.

As we look to the future, Gujarat’s wind energy journey offers valuable insights for other states and countries grappling with the challenges of energy transition. While obstacles remain, the state’s progress so far provides a roadmap for scaling up renewable energy to balance economic, environmental, and social considerations.

Gujarat’s wind energy initiatives serve as an example of how visionary policies, effective natural resource utilization, and committed implementation can drive India’s path towards net zero emissions.

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