India is facing severe energy-related problems, including the deficiency of fossil fuel resources, greenhouse gas emissions, and an increase in power demand and supply gap due to overpopulation and growing industrial needs. In 2018, the average power demand and supply gap was 1617 MW, indicating that there is a deficit of 23 × 109 kWh in the country. In the meantime, a massive increase in electricity prices has made the affordability of electricity very difficult for domestic and industrial users. The development of alternative and renewable energy sources is very crucial to overcome these problems. Wind energy has emerged as a sustainable energy option for India in this respect. At the same time, the wind industry is facing several challenges as well. This paper aims to develop a value chain model of the wind power industry, assess the competitiveness of the Indian wind power industry, and comprehensively analyze the factors that have a significant influence on the industry by using the “Five Forces Model.” We employed a hybrid research methodology. First, we developed a novel value chain model for the wind power industry. Second, we conducted semistructured interviews with industry professionals on different aspects of the wind energy sector. Third, we critically analyzed official statistics and the related literature along with the national policy structure and regulations. As a result, the Five Forces Model was developed. Five main stakeholders of the Indian wind industry, i.e., buyers, suppliers, competitors, substitutes, and potential competitors, were examined to assess their effect on the development of the wind power industry. Research findings reveal the present status, challenges, the rivalry environment, industry's situation in this environment, and the future projections of the Indian wind power industry. Although the Indian government announced several policies with an aim to boost the wind industry, little substantial action has been taken for their meaningful implantation. The major government policies which need improvements are Generation-Based Incentives, Wind Bidding Scheme, and Tariff Policy. Our findings also highlight that there exists a gap between the expected and actual performances of the wind power industry value chain. Essential policy recommendations for the development of the industry have been suggested, including institutional coordination and decision-making, feed-in tariffs, reformations in the grid structure, encouragement of differentiated business models, enhancing research and development activities, developing professional base, and the full range of government support. This study will serve as a guide for government and stakeholders by understanding the dynamic relationship among all the factors influencing the competitiveness of the Indian wind power industry.

1.
Ackermann
,
T.
and
Söder
,
L.
, “
An overview of wind energy-status 2002
,”
Renewable Sustainable Energy Rev.
6
(
1-2
),
67
127
(
2002
).
2.
Adibfar
,
A.
, “
SWOT analysis for Iran's wind farms
,” in
Proceedings of the 2016 IAJC-ISAM International Conference
(
2016
).
3.
AWEA
, see https://www.awea.org/wind-101/benefits-of-wind/environmental-benefits for “
Wind's Environmental Record, American Wind Energy Association
” (
2018
).
4.
Apostoli
,
A. J.
, “
India's energy-climate dilemma: The pursuit for renewable energy guided by existing climate change policies
,”
J. Earth Sci. Clim. Change
7
,
362
(
2016
).
5.
Arora
,
D.
,
Busche
,
S.
,
Cowlin
,
S.
,
Engelmeier
,
T.
,
Jaritz
,
H.
,
Milbrandt
,
A.
, and
Wang
,
S.
, see http://www.ren21.net/Portals/0/documents/Resources/Indian_RE_Status_Report.pdf for “
Indian Renewable Energy Status Report, National Renewable Energy Laboratory
” (
2010
).
6.
Baloch
,
M.
,
Abro
,
S.
,
Sarwar Kaloi
,
G.
,
Mirjat
,
N.
,
Tahir
,
S.
,
Nadeem
,
M.
,
Gul
,
M.
,
Memon
,
Z.
, and
Kumar
,
M.
, “
A research on electricity generation from wind corridors of Pakistan (two provinces): A technical proposal for remote zones
,”
Sustainability
9
(
9
),
1611
(
2017
).
7.
Baloch
,
M. H.
,
Kaloi
,
G. S.
, and
Memon
,
Z. A.
, “
Current scenario of the wind energy in Pakistan challenges and future perspectives: A case study
,”
Energy Rep.
2
,
201
210
(
2016
).
8.
Bhat
,
D. M.
,
Murali
,
K. S.
, and
Ravindranath
,
N. H.
, “
Formation and recovery of secondary forests in India: A particular reference to Western Ghats in South India
,”
J. Trop. For. Sci.
13
601
620
(
2001
).
9.
Blanco
,
M. I.
, “
The economics of wind energy
,”
Renewable Sustainable Energy Rev.
13
(
6-7
),
1372
1382
(
2009
).
10.
CAT, see
https://climateactiontracker.org/countries/india/ for “
Climate Action Tracker
” (
2018
).
11.
CEA
, see http://www.cea.nic.in/reports/monthly/executivesummary/2018/exe_summary-08.pdf for “
Executive Summary Report Aug-2018, Central Electricity Authority, Government of India, Ministry of Power, New Delhi
” (
2018
).
12.
Chaurasiya
,
P. K.
,
Warudkar
,
V.
, and
Ahmed
,
S.
, “
Wind energy development and policy in India: A review
,”
Energy Strategy Rev.
24
,
342
357
(
2019
).
13.
CSO
, see http://mospi.nic.in/sites/default/files/publication_reports/Energy_Statistics_2018.pdf for “
Energy Statistics Report 2018, Central Statistics office, Ministry of Statistics and Programme Implementation, Government of India, New Delhi
” (
2018
).
14.
CSO
, see http://www.mospi.gov.in/sites/default/files/publication_reports/Energy%20Statistics%202019-finall.pdf for “
Energy Statistics Report 2019, Central Statistics Office, Ministry of Statistics and Programme Implementation, Government of India, New Delhi
” (
2019
).
15.
CSTEP, see
http://www.cstep.in/uploads/default/files/publications/stuff/CSTEP_Addressing_the_Challenges_of_RE_Manufacturing_in_India_Report_2015.pdf for “
Addressing the Challenges of RE Manufacturing in India: Horizon 2032, Centre for Study of Science, Technology and Policy, Government of India, Karnataka
” (
2015
).
16.
Devine‐Wright
,
P.
, “
Beyond NIMBYism: Towards an integrated framework for understanding public perceptions of wind energy
,”
Wind Energy
8
(
2
),
125
139
(
2005
).
17.
Divya Charen
,
C.
,
Falling Wind Tariffs to Impact IRR in Wind Energy: India Ratings
(
Energetica India
,
New Delhi
,
2016
).
18.
Dong
,
C.
,
Qi
,
Y.
,
Dong
,
W.
,
Lu
,
X.
,
Liu
,
T.
, and
Qian
,
S.
, “
Decomposing driving factors for wind curtailment under economic new normal in China
,”
Appl. Energy
217
,
178
188
(
2018
).
19.
Drewitt
,
A. L.
and
Langston
,
R. H.
, “
Assessing the impacts of wind farms on birds
,”
Ibis
148
,
29
42
(
2006
).
20.
EAI
, see http://www.eai.in/ref/ae/win/business_opportunities.html#raw for “
Wind Energy Business Opportunities in India, Energy Alternatives India
” (
2018
).
21.
EAI, see http://www.eai.in/ref/ae/win/win.html for "India Wind Energy, Energy Alternatives India" (2019).
22.
Eletimes, see
https://www.eletimes.com/renewable-energy-innovations-for-indias-burgeoning-wind-market# for “
Renewable Energy Innovations for India's Burgeoning Wind Market
” (
2018
).
23.
GWEC
, see https://gwec.net/wp-content/uploads/2019/04/GWEC-Global-Wind-Report-2018.pdf for “
Global Wind Statistics, Global Wind Energy Council
” (
2019
).
24.
Graham
,
J. B.
,
Stephenson
,
J. R.
, and
Smith
,
I. J.
, “
Public perceptions of wind energy developments: Case studies from New Zealand
,”
Energy Policy
37
(
9
),
3348
3357
(
2009
).
25.
Han
,
X.
,
Zhou
,
M.
,
Li
,
G.
, and
Lee
,
K.
, “
Stochastic unit commitment of wind-integrated power system considering air-conditioning loads for demand response
,”
Appl. Sci.
7
(
11
),
1154
(
2017
).
26.
He
,
Y.
,
Xu
,
Y.
,
Pang
,
Y.
,
Tian
,
H.
, and
Wu
,
R.
, “
A regulatory policy to promote renewable energy consumption in China: Review and future evolutionary path
,”
Renewable Energy
89
,
695
705
(
2016
).
27.
Henriksen
,
L. C.
, “
Wind energy literature survey no. 27
,”
Wind Energy
16
(
1
),
159
161
(
2013
).
28.
IEA,
see http://www.indiaenvironmentportal.org.in/files/file/CO2_Emissions_from_Fuel_Combustion_2018_Highlights.pdf for “
CO2 Emissions from Fuel Combustion 2018, International Energy Agency
” (
2018
).
29.
Iftikhar
,
M.
,
Najeeb
,
F.
,
Mohazzam
,
S.
, and
Khan
,
S.
, “
Sustainable energy for all in South Asia potential, challenges, and solutions,” 12275
(
2017
).
30.
Igliński
,
B.
,
Buczkowski
,
R.
,
Iglińska
,
A.
,
Cichosz
,
M.
, and
Plaskacz-Dziuba
,
M.
, “
SWOT analysis of the renewable energy sector in Poland. Case study of Wielkopolskie region
,”
J. Power Technol.
95
(
2
),
143
157
(
2015
).
31.
IWTMA, see
http://www.eqmagpro.com/wp-content/uploads/2018/04/02_Indian_Wind_Industry_Analytical.pdf for “
Indian Wind Industry Analytical Report-FY 2017–18, Indian Wind Turbine Manufacturers Association, New Delhi
” (
2017
).
32.
IWTMA
, see http://indianwindpower.com/wind-energy-in-india.php#tab1 for “
India-Cumulative Wind Power Installation up to October 2018, Indian Wind Turbine Manufacturers Association, New Delhi
” (
2018
).
33.
IRENA,
see https://www.irena.org/DocumentDownloads/Publications/RE_Technologies_Cost_Analysis-WIND_POWER.pdf for “
Renewable Energy Technologies: Cost Analysis Series Report 2012, Internal Renewable Energy Agency
” (
2012
).
34.
IRENA
, see http://biblioteca.olade.org/opac-tmpl/Documentos/cg00355.pdf for “
Renewable Capacity Statistics Report 2017, Internal Renewable Energy Agency
” (
2017
).
35.
IRENA
, see https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Mar/IRENA_RE_Capacity_Statistics_2019.pdf for “
Renewable Capacity Statistics Report 2019 Internal Renewable Energy Agency
” (
2019
).
36.
Irfan
,
M.
,
Zhao
,
Z. Y.
,
Ahmad
,
M.
, and
Mukeshimana
,
M. C.
, “
Solar energy development in Pakistan: Barriers and policy recommendations
,”
Sustainability
11
(
4
),
1206
(
2019a
).
37.
Irfan
,
M.
,
Zhao
,
Z. Y.
,
Ahmad
,
M.
, and
Mukeshimana
,
M. C.
, “
Critical factors influencing wind power industry: A diamond model based study of India
,”
Energy Rep.
5
,
1222
1235
(
2019b
).
38.
Irfan
,
M.
,
Zhao
,
Z. Y.
,
Mukeshimana
,
M. C.
, and
Ahmad
,
M.
, “
Wind energy development in South Asia: Status, potential and policies
,”
in 2019 2nd International Conference on Computing, Mathematics and Engineering Technologies (iCoMET)
(
IEEE
,
2019c
), pp.
1
6
.
39.
Iqbal
,
T.
,
Dong
,
C. Q.
,
Lu
,
Q.
,
Ali
,
Z.
,
Khan
,
I.
,
Hussain
,
Z.
, and
Abbas
,
A.
, “
Sketching Pakistan's energy dynamics: Prospects of biomass energy
,”
J. Renewable Sustainable Energy
10
(
2
),
023101
(
2018
).
40.
Jagadeesh
,
A.
, “
Wind energy development in Tamil Nadu and Andhra Pradesh, India institutional dynamics and barriers—A case study
,”
Energy Policy.
28
(
3
),
157
168
(
2000
).
41.
Jethani
,
J. K.
, “
Wind power policy in India
,”
World
6000
,
5358
(
2016
).
42.
Jethani
,
J. K.
, see https://mnre.gov.in/file-manager/akshay-urja/october-2017/Images/20-25.pdf for “
Wind Power Development in India, Ministry of New and Renewable Energy, New Delhi
” (
2017
).
43.
Kazemi Golkhandan
,
R.
,
Aghaebrahimi
,
M.
, and
Farshad
,
M.
, “
Control strategies for enhancing frequency stability by DFIGs in a power system with high percentage of wind power penetration
,”
Appl. Sci.
7
(
11
),
1140
(
2017
).
44.
Khare
,
V.
,
Nema
,
S.
, and
Baredar
,
P.
, “
Reliability analysis of hybrid renewable energy system by fault tree analysis
,”
Energy Environ.
30
(
3
),
542
555
(
2019
).
45.
Khare
,
V.
,
Nema
,
S.
, and
Baredar
,
P.
, “
Status of solar wind renewable energy in India
,”
Renewable Sustainable Energy Rev.
27
,
1
10
(
2013
).
46.
Krajačić
,
G.
,
Duić
,
N.
,
Tsikalakis
,
A.
,
Zoulias
,
M.
,
Caralis
,
G.
,
Panteri
,
E.
, and
Carvalho
,
M. G.
, “
Feed-in tariffs for promotion of energy storage technologies
,”
Energy Policy
39
,
1410
1425
(
2011
).
47.
Kumar
,
A.
and
Thapar
,
S.
, see https://shaktifoundation.in/wp-content/uploads/2018/01/Study-Report-Addressing-Land-Issues-for-Utility-Scale-Renewable-Energy-Deployment-in-India.pdf for “
Addressing Land Issues for Utility Scale Renewable Energy Deployment in India, New Delhi
” (
2017
).
48.
Kumar
,
A.
,
Kumar
,
K.
,
Kaushik
,
N.
,
Sharma
,
S.
, and
Mishra
,
S.
, “
Renewable energy in India: Current status and future potentials
,”
Renewable Sustainable Energy Rev.
14
(
8
),
2434
2442
(
2010
).
49.
Kuvlesky
,
W. P.
, Jr.
,
Brennan
,
L. A.
,
Morrison
,
M. L.
,
Boydston
,
K. K.
,
Ballard
,
B. M.
, and
Bryant
,
F. C.
, “
Wind energy development and wildlife conservation: Challenges and opportunities
,”
J. Wildl. Manage.
71
(
8
),
2487
2498
(
2007
).
50.
Liu
,
J.
,
He
,
D.
, and
Long
,
T.
, “
Study on value creation effect of wind power industry value chain based on system dynamics
,”
Sci. Technol. Manage. Res.
29
,
243
248
(
2017
).
51.
Liu
,
J.
,
Wei
,
Q.
,
Dai
,
Q.
, and
Liang
,
C.
, “
Overview of wind power industry value chain using diamond model: A case study from China
,”
Appl. Sci.
8
(
10
),
1900
(
2018
).
52.
Mani
,
S.
and
Dhingra
,
T.
, “
Offshore wind energy policy for India—Key factors to be considered
,”
Energy Policy
56
,
672
683
(
2013
).
53.
Mabel
,
M. C.
and
Fernandez
,
E.
, “
Growth and future trends of wind energy in India
,”
Renewable Sustainable Energy Rev.
12
(
6
),
1745
1757
(
2008
).
54.
Mahesh
,
A.
and
Jasmin
,
K. S.
, “
Role of renewable energy investment in India: An alternative to CO2 mitigation
,”
Renewable Sustainable Energy Rev.
26
,
414
424
(
2013
).
55.
Mallet
,
V. K.
, “
The use of wind energy in India-lessons learned
,”
Term Paper, Sustainable Energy.
10
,
24
(
2001
).
56.
Maurya
,
V.
,
Khare
,
S.
, and
Bajpai
,
S.
, “
Future scope of wind energy in India
,”
IOSR J. Electr. Electron. Eng.
10
(
1
),
79
83
(
2015
).
57.
Mirza
,
U. K.
,
Ahmad
,
N.
,
Majeed
,
T.
, and
Harijan
,
K.
, “
Wind energy development in Pakistan
,”
Renew. Sustain. Energy Rev.
11
(
9
),
2179
2190
(
2007
).
58.
MLJ
, see http://www.cercind.gov.in/Act-with-amendment.pdf for “
The Electricity Act 2003, Ministry of Law and Justice, New Delhi
” (
2003
).
59.
MNRE, see
https://mnre.gov.in/state-electricity-regulatory-commissions-sercs-are-determining-preferential-tariffs for “
State Electricity Regulatory Commissions (SERCs) are determining preferential tariff, Ministry of New and Renewable Energy, New Delhi
” (
2014
).
60.
MNRE
, see https://mnre.gov.in/file-manager/annual-report/2016-2017/EN/pdf/1.pdf for “
Annual Report 2016–17, Ministry of New and Renewable Energy, New Delhi
” (
2016
).
61.
MNRE
, see https://mnre.gov.in/file-manager/annual-report/2011-2012/EN/index.htm for “
Record Wind Tariff, Ministry of New and Renewable Energy, New Delhi
” (
2019a
).
62.
MNRE
, see https://mnre.gov.in/ for “
Guidelines for Setting Up Projects, Ministry of New and Renewable Energy, New Delhi
” (
2019b
).
63.
MPR
, see http://www.wberc.gov.in/sites/default/files/tariff-policy-28.01.2016.pdf for “
Tariff Policy 2016, Ministry of Power Resolution, New Delhi
” (
2016
).
64.
Mukherjee
,
S.
,
Dhingra
,
T.
, and
Sengupta
,
A.
, “
Status of Electricity Act, 2003: A systematic review of literature
,”
Energy Policy
102
,
237
248
(
2017
).
65.
NIWE, see
http://niwe.res.in/department_wra_data_portal.php for “
Wind Power Programme, National Institute of Wind Energy, New Delhi
” (
2018
).
66.
Ning
,
J.
,
Tang
,
Y.
, and
Gao
,
B.
, “
A time-varying potential-based demand response method for mitigating the impacts of wind power forecasting errors
,”
Appl. Sci.
7
(
11
),
1132
(
2017
).
67.
Pandey
,
R.
,
Bali
,
S.
, and
Mongia
,
N.
,
The National Clean Energy Fund of India: A Framework for Promoting Effective Utilization
(
Springer
,
2014
).
68.
Panwar
,
N. L.
,
Kaushik
,
S. C.
, and
Kothari
,
S.
, “
Role of renewable energy sources in environmental protection: A review
,”
Renewable Sustainable Energy Rev.
15
(
3
),
1513
1524
(
2011
).
69.
Porter
,
M. E.
,
Competitive Strategy: Techniques for Analyzing Industries and Competitors
(
Free Press
,
1980
).
70.
Porter
,
M. E.
,
Competitive Strategy
(
HuaXia Press
,
Beijing, China
,
2005
).
71.
Potdar
,
A.
,
Unnikrishnan
,
S.
, and
Singh
,
A.
, “
Study of energy regulations in India
,”
Int. J. Environ. Sci. Dev.
7
(
11
),
835
842
(
2016
).
72.
Rennkamp
,
B.
and
Perrot
,
R.
, “
Drivers and barriers to wind energy technology transitions in India, Brazil and South Africa
,”
Handbook on Sustainability Transition and Sustainable Peace
(
Springer
,
Cham
,
2016
), pp.
775
791
.
73.
Sahir
,
M. H.
and
Qureshi
,
A. H.
, “
Assessment of new and renewable energy resources potential and identification of barriers to their significant utilization in Pakistan
,”
Renewable Sustainable Energy Rev.
12
(
1
),
290
298
(
2008
).
74.
Saidur
,
R.
,
Rahim
,
N. A.
,
Islam
,
M. R.
, and
Solangi
,
K. H.
, “
Environmental impact of wind energy
,”
Renewable Sustainable Energy Rev.
15
(
5
),
2423
2430
(
2011
).
75.
SECI, see
https://www.iitk.ac.in/ime/anoops/FOR-17/FOR-17%20photos/PPTs/IITK%20Outreach%20Centre%20Day%203/SECI%20presentation-IITK-11-12-2017.pdf for “
Competitive Bidding of Solar and Wind Projects , Solar Energy Corporation of India, New Delhi
” (
2017
).
76.
Sengupta
,
D. L.
,
Ferris
,
J. E.
, and
Senior
,
T.
, “
Assessment of electromagnetic interference effects of the Solano windfarm
,” Report No. 388266-1-F (
1981
).
77.
Shahmohammadi
,
M. S.
,
Yusuff
,
R. M.
,
Keyhanian
,
S.
, and
Shakouri
,
H.
, “
A decision support system for evaluating effects of feed-in tariff mechanism: Dynamic modeling of Malaysia's electricity generation mix
,”
Appl. Energy
146
,
217
229
(
2015
).
78.
Shah
,
S. A. A.
and
Solangi
,
Y. A.
, “
A sustainable solution for electricity crisis in Pakistan: Opportunities, barriers, and policy implications for 100% renewable energy
,”
Environ. Sci. Pollut. Res.
26
,
1
17
(
2019
).
79.
Sharma
,
A.
,
Srivastava
,
J.
,
Kar
,
S. K.
, and
Kumar
,
A.
, “
Wind energy status in India: A short review
,”
Renewable Sustainable Energy Rev.
16
(
2
),
1157
1164
(
2012
).
80.
Sharma
,
S.
,
Kishan
,
R.
, and
Doig
,
A.
, see https://in.boell.org/sites/default/files/low-carbon_south_asia_report.pdf for “
Low-carbon Development in South Asia. Leapfrogging to a Green Future, Climate Action Tracker, Bonn
” (
2014
).
81.
Sholapurkar
,
R. B.
and
Mahajan
,
Y. S.
, “
Review of wind energy development and policy in India
,”
Energy Technol. Policy
2
(
1
),
122
132
(
2015
).
82.
Singh
,
S.
,
Bhatti
,
T. S.
, and
Kothari
,
D. P.
, “
Indian scenario of wind energy: problems and solutions
,”
Energy Sources
29
(
9
),
811
919
(
2004
).
83.
Solangi
,
Y. A.
,
Tan
,
Q.
,
Mirjat
,
N. H.
, and
Ali
,
S.
, “
Evaluating the strategies for sustainable energy planning in Pakistan: An integrated SWOT-AHP and Fuzzy-TOPSIS approach
,”
J. Cleaner Prod.
236
,
117655
(
2019
).
84.
Warren
,
C. R.
and
McFadyen
,
M.
, “
Does community ownership affect public attitudes to wind energy? A case study from south-west Scotland
,”
Land Use Policy
27
(
2
),
204
213
(
2010
).
85.
Xu
,
L.
,
Wang
,
Y.
,
Solangi
,
Y. A.
,
Zameer
,
H.
, and
Shah
,
S. A. A.
, “
Off-grid solar PV power generation system in Sindh, Pakistan: A techno-economic feasibility analysis
,”
Processes
7
(
5
),
308
(
2019
).
86.
Zhao
,
Z. Y.
,
Yan
,
H.
,
Zuo
,
J.
,
Tian
,
Y. X.
, and
Zillante
,
G.
, “
A critical review of factors affecting the wind power generation industry in China
,”
Renewable Sustainable Energy Rev.
19
,
499
508
(
2013
).
You do not currently have access to this content.