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India Emerges as RE Manufacturing Hub for Global Markets, S&P Global Reports

A lot of the manufacturing in India is owned by regionally diversified western turbine makers, who supply almost everywhere outside China and prominently in Europe and the US.

February 22, 2024. By News Bureau

International turbine makers have large production bases in India some of which can also double as an export hub, according to S&P Global Commodity Insights, the leading independent provider of information, analysis, data and benchmark prices for the commodities, energy and energy transition markets.

“We expect average annual wind additions (onshore) of around 4 GW between 2024 and 2030,” according to Indra Mukherjee, Associate Director of Analysis of Gas, Power and Climate Solutions, S&P Global Commodity Insights. “Based on that, the Indian market is already around 4 times oversupplied.”

A lot of the manufacturing in India is owned by regionally diversified western turbine makers, who supply almost everywhere outside China and prominently in Europe and the US. This opens opportunities for exports.Prominent western turbine makers like Vestas as well as specialist equipment makers like TPI Composites have scaled up and modernized their India manufacturing footprint – priming it as an export hub.

“Exports of wind turbine components in 2023 were nearly twice that of 2019 levels in revenue terms. Export opportunities are more attractive for standardized and labor-intensive components like towers and blades, and is growing for nacelles too,” notes Indra Mukherjee, Associate Director of Analysis of Gas, Power and Climate Solutions, S&P Global Commodity Insights.

“However, not all the capacity is suited for exports. A lot of it is owned by domestic turbine makers who don’t have international orderbooks. Some of the manufacturing capacity is also not optimally located for exporting.”

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