Wind Power Crisis: 5 Shocking Truths Behind India’s Underused Turbine Factories

India’s wind energy sector faces a critical paradox: while boasting robust domestic manufacturing capacity (20 GW annually for turbines, plus 29 GW for gearboxes and 28 GW for blades), these factories operate at just 20% utilization due to insufficient demand. Despite reaching 50 GW installed capacity—halfway to its 2030 target of 100 GW—progress is hampered by land acquisition challenges and inconsistent project pipelines. Industry leader Suzlon projects installations will rise to 6 GW in FY26 but warns India will likely achieve only 85-90 GW by 2030, falling short of its goal.

Meanwhile, idle factories represent wasted economic potential and delay further cost reductions. Suzlon is prioritizing high-margin maintenance services (offering a groundbreaking 25-year warranty) and diversifying into defense/railways components while deferring exports. The path forward demands accelerated land clearances, stable policy signals like the RLMM reforms, and grid upgrades to harness India’s self-sufficient manufacturing base and vast 1,200 GW wind potential.

Wind Power Crisis: 5 Shocking Truths Behind India’s Underused Turbine Factories

India’s wind energy sector presents a striking contradiction. While the country celebrates crossing the 50 GW installed capacity milestone – halfway to its ambitious 2030 target of 100 GW – its manufacturing heart is barely beating. According to JP Chalasani, CEO of leading renewable player Suzlon Group, a mere 20% of India’s robust 20 GW annual wind turbine manufacturing capacity is currently being utilized. This underutilization isn’t isolated; it cascades down the supply chain, leaving gearbox, blade, and generator factories similarly idle. 

The Capacity Chasm: Factories Waiting for Demand 

Chalasani paints a sobering picture of the manufacturing landscape: 

• Gearbox Production: 29 GW annual capacity 

• Blade Production: 28 GW annual capacity 

• Generator Production: 15 GW annual capacity 

He highlights a stark example: Suzlon’s former 3 GW generator factory in Coimbatore, sold during difficult times, now sits completely idle due to lack of orders. “If these capacities are fully utilised,” Chalasani asserts, “prices of wind energy in India will come down further.” This points to a critical missed opportunity – unused capacity hinders economies of scale and cost reduction, potentially slowing the very transition it’s meant to fuel. 

The Installation Imperative: Can India Catch the Wind? 

Despite the manufacturing slack, the installation pace is increasing. FY25 saw 4.5 GW added, and Chalasani projects a significant 33% rise to 6 GW for FY26. However, he tempers expectations for the 100 GW by 2030 target. “At the current pace,” he states pragmatically, “we will be able to reach 85-90 GW… which would also be a decent achievement.” This projection, while falling short of the goal, acknowledges the immense progress made but underscores the acceleration still needed. 

The Bottlenecks: Land, Policy, and Momentum 

What’s holding back demand despite massive potential (estimated at 1,200 GW) and ready manufacturing? Chalasani identifies key hurdles: 

• Land Acquisition: Securing suitable land for wind farms remains a persistent, complex challenge. 

• Demand Generation: Translating ambitious national targets into consistent, bankable project pipelines for developers is crucial. 

• Policy Implementation: He pins hopes on the government’s proposed Revised List of Models and Manufacturers (RLMM) reforms, which could incentivize manufacturers like Suzlon with high domestic value content (70-80% in their case). 

Suzlon’s Strategy: Doubling Down on India, Not Exports 

While acknowledging export market potential long-term, Suzlon is firmly focused on the domestic opportunity: 

• Core Turbine Business: Targeting 60% growth in FY26, fueled by their successful 3.15 MW ‘S144’ turbine and a strong order book (55% from Commercial & Industrial users like Jindal Steel). 

• High-Margin Services (Renom): Expanding comprehensive maintenance services, including an industry-first 25-year warranty offer, leveraging a business generating a healthy 40% EBITDA margin. 

• Diversification (SEForge): Exploring markets in defense and railways for its foundry and forging subsidiary. 

The Human Insight: A Self-Sufficient Sector at a Crossroads 

India’s wind sector is uniquely positioned – largely ‘Atmanirbhar’ (self-reliant) with strong domestic manufacturing. Yet, the chronic underutilization reveals a disconnect between industrial capability and deployment reality. It’s a story of: 

• Wasted Potential: Idle factories represent lost jobs, stifled innovation, and unrealized cost reductions. 

• Systemic Hurdles: Land issues and inconsistent demand signals are throttling a sector ready to perform. 

• Adaptive Business: Companies like Suzlon are pivoting towards high-value services and diversification to weather the installation gap. 

The Path Forward 

Reaching even 85-90 GW by 2030 is a formidable task requiring more than incremental growth. It demands: 

• Accelerated Project Clearances: Streamlining land acquisition and permitting. 

• Stable, Long-Term Demand Signals: Ensuring consistent auction schedules and offtake guarantees. 

• Policy Synergy: Effectively implementing reforms like RLMM to boost domestic manufacturing uptake. 

• Grid Integration Focus: Enhancing infrastructure to handle variable renewable influx, especially peak demand. 

India’s wind energy journey is far from over. The manufacturing muscle exists. The targets are clear. Bridging the gap between factory floors and operational wind farms is now the critical mission – one that requires concerted action to harness the true power waiting in those underused factories. The blades are ready to spin; India needs to give them the wind.