India has federal and unitary governance structures. Thus, the Constitution establishes the distribution of executive and legislative powers between the Union and the States. In this separation of powers, electricity is on the competing list of the Indian Constitution. Therefore, both the national legislature and the state legislatures have the right to legislate on the subject. However, in case of conflict, the provisions of the central laws take precedence over the laws of the State. 13 MoP, „Green Hydrogen Policy“, notification No. 23/02/2022-R&R, of 17 February 2022, available at powermin.gov.in/sites/default/files/Green_Hydrogen_Policy.pdf. One of the biggest barriers to building wind projects is land acquisition. Since land is a matter of state, many state government agencies, including the Ministry of Finance and the Panchayats, are involved in land acquisition/lease authorization.
The presence of many departments and entities makes the whole process very long and incredibly cumbersome. Typically, it takes about 6 to 9 months to acquire land for new wind projects, but this sometimes extends to 18 to 24 months in some states. Project commissioning is expected to take about 12 to 18 months in most central and state tenders, but permits and purchase coverage only take 60 to 70 percent of the time. However, the implementation of a single window system has significantly improved the land acquisition permit process, there are still many issues that lead to project delays. The total land footprint required to meet India`s renewable energy target for 2022 ranges from 55,000 to 125,000 km, roughly the size of a state like Himachal Pradesh (Kiesecker et al. 2019). Despite the huge land needs, only four states, Rajasthan, Madhya Pradesh, Maharashtra and Gujarat, have a special government land allocation policy for renewable energy projects. Karnataka and Jammu and Kashmir (J&K) have not yet implemented standardized land allocation policies. J&K, Leh and Ladakh were recently granted the status of Union Territories governed by the central government. Therefore, the government should take advantage of the enormous potential of renewable energy in these regions through a structured land allocation policy to take advantage of the abundance of land available in these regions.
49 As of May 2022, there are three electricity exchanges in India: Power Exchange of India Limited (PXIL); Indian Energy Exchange Limited (IEX); and Pranurja Solution Limited. 57 See mercomindia.com/tata-power-solar-fourth-partner-sunsure-leading-rooftop-solar-2021/. In February 2022, Sify Technologies Limited entered into power purchase agreements with Vibrant Energy Holdings for a total capacity of 231 MW to power Sify`s hyperscale data centers.21 The A, Jani HK, Nagababu G, Kachhwaha SS (2021) Wind and Solar Power Deployment in India: Economic Aspects and Policy Implications. African J Sci Technol Innov Dev 13:357-375. doi.org/10.1080/20421338.2020.1762302 As the world grapples with the problem of climate change, India has decided to slowly shift from conventional forms to clean renewable sources of electricity generation. In 2008, the federal and state governments launched a major initiative called the National Solar Mission, while simultaneously launching India`s National Climate Change Action Plan. With the aim of switching to clean renewable energy, the country has set a target of reaching 450 GW of capacity by 2030. India currently has over 100 GW of installed capacity of renewable energy assets, with about 80 GW of solar and wind assets. GERC (2021b) Tariff Framework for Wind-Solar Distribution and Other Licensees` Electricity Supply-In addition, over the past two years, the state has ranked second among renewable energy plants with 994.14 MW, including 688.58 MW of wind power. The state has made significant progress in wind power generation, with the construction of large-scale wind turbines starting in the early 1990s.
However, this is also the reason for the underutilization of wind resources, as most wind turbines are completed or nearing the end of their defined life cycle. These turbines have lower outputs (500 kW) and lower hub heights (25-30 m), and due to technical issues and associated inefficiencies, these aging turbines typically result in low capacity utilization factors (CUF). Despite the significant development of the wind energy sector in the first years, the development of the market is slower than expected. The government must continue to take the necessary steps to resolve the problems. To achieve this goal, several areas need to be addressed, including streamlining the land acquisition process, strengthening DISCOM through capital injection, and increasing efficiency through privatization, location-based auctions, and equitable policies comparable to those of solar energy. The government can refocus on wind energy or the balance between the two. There is also a need to repower aging wind turbines to increase efficiency, improve transmission lines and work on grid stability. The huge potential of offshore wind must be harnessed to reach the target of 150 GW by 2030. In order to minimise disruption, the federal government and the Länder should work together to achieve the national target.
Wind energy requires targeted incentives at the central and state levels. In addition, governments at various levels need to create an enabling environment to attract investment to promote wind energy research, development, installation and transmission. The Government of India (GOI) actively promotes alternative energy sources (Singh 2018) and has been able to create a favourable climate for investment in renewable energy sources through its policies (Thapar and Sharma 2020) (Ramesh and Saini 2020). Among renewable energy sources, wind energy has been widely used to meet the growing demand for clean and affordable energy (Deep et al.