Inox Wind (IWL), which commissioned 140 megawatts (MW) of capacity in the April-June 2024 period, has set an ambitious target to complete 2,000 MW of wind energy projects by the end of fiscal year 2026. As a comprehensive provider of turnkey wind energy solutions, IWL currently holds its largest order book to date, totaling around 3,000 MW.
“We plan to execute 800 MW in FY25 and 1,200 MW in FY26. The market is growing at a strong pace, and we expect more tenders for new capacity in the near future,” said Devansh Jain, Executive Director of INOXGFL Group, in an interview with a newspaper.
The company has already secured orders for 611 MW, including repeat contracts from prominent customers. According to Jain, ongoing discussions with various independent power producers (IPPs), public sector undertakings (PSUs), and commercial and industrial (C&I) clients suggest a robust pipeline of future orders.
Positive Market Outlook
Inox Wind’s CEO, Kailash Tarachandani, expressed optimism about the wind energy sector’s favorable outlook during an investor call earlier this month. In the first four months of FY25 alone, approximately 7,000 MW of new wind hybrid firm and dispatchable renewable energy (FDRE) tenders were issued, with around 7,500 MW of hybrid FDRE projects awarded.
Tariffs for these projects have remained stable, ranging between ₹3.4-3.5 per unit for central sector wind-solar hybrid projects, ₹3.6-3.68 for standalone wind projects, and around ₹5 per unit for FDRE. “The hard work of the past few years is beginning to pay off, and we are now positioned for significant growth, supported by strong market trends,” Jain noted. He also highlighted that IWL’s parent company, IWEL, recently infused ₹900 crore, making IWL net cash positive and enhancing its balance sheet to capitalize on the long-term opportunities in India’s wind sector.
With the wind energy market expected to thrive in the coming years, Jain anticipates adding 3-4 large customers to its existing base of 7-8 significant clients. Large customers are those who contribute more than 100 MW of capacity.
Inox Wind is also developing a new nacelle manufacturing facility near Ahmedabad on a lease basis, which is expected to generate substantial capex savings. The lease costs are under ₹4 crore per year, and the facility is slated to be operational in 2024.
Inox Wind remains optimistic about India’s wind energy sector, which is projected to add 80,000 MW of capacity over the next eight years. Additionally, the increasing demand from C&I consumers for renewable energy, driven by the green energy transition, bodes well for the sector.
Furthermore, a draft proposal from NITI Aayog on domestic content requirements for wind turbines could lead to further consolidation among suppliers in the Indian market. India’s green hydrogen targets of 5 million tonnes per annum (MTPA) will also necessitate an additional 125,000 MW of renewable energy capacity, likely sourced from both solar and wind energy.
