Indian Economy News

NITI Aayog proposes a minimum 60% local sourcing requirement by value for wind energy plants

  • IBEF
  • July 16, 2024

NITI Aayog has proposed significant revisions to India’s wind energy guidelines, advocating for a 60% local content requirement to enhance cybersecurity and reduce dependence on imports, especially from China. In its report to the Ministry of New and Renewable Energy, NITI Aayog highlighted cybersecurity risks such as offshore data servers and unauthorized software updates by wind turbine manufacturers, emphasizing the need for stringent certification of foreign-origin software and hardware before granting grid connectivity permissions.

The proposal also recommends revising the Revised List of Models and Manufacturers (RLMM) to prioritize approval only for critical components manufactured within India, including nacelles, blades, towers, hubs, and controllers. It stresses that wind sector OEMs must establish data centres and research facilities in India, with non-compliance potentially leading to exclusion from government tenders and supply contracts.

Additionally, NITI Aayog urged the adoption of AI or ML-based threat detection systems to bolster cybersecurity resilience in the wind energy sector. These measures aim to promote self-reliance in renewable energy production while acknowledging global competition, particularly from China, which dominates the global wind turbine assembly market.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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