Source: Statista

Trends in external environment of the industry – 1990s

• Surge in the oil prices owing to the Gulf war. More emphasis on cheaper renewable resources- Economic

• Development and Rural-to-Urban migration in many Asia Pacific countries led to an increase in demand
for electricity which could not be met by non-renewable resources- Social, Demographic

• 2 competing technological trajectories (US and Denmark) drove the invention of modern turbines-
Technological

• US launched a series of policies favouring wind energy (early 1980s to mid 1990s) which led to a high
demand for wind turbines & introduction of many players in the wind energy industry- Political-
regulatory

• Europe introduced feed-in tariffs policy sourced from various European countries- Political-regulatory

• Power centers of the wind energy industry were concentrated in Europe (Denmark and United
Kingdom)- Economic, Political

• Restructuring in the wind energy industry in the mid 1990s- Economic

 1990s Trends Continued-
The Indian Scenario
• Indian government had begun to promote entrepreneurship in
the wind energy sector due to an increased consumption of
electricity & rising oil prices after the oil crisis & the Gulf war

• The budding companies were offered financial incentives such

as 100% accelerated depreciation on equipment, relief from
excise & custom duty, 5-year tax holiday as well as soft loans

• This led to the emergence of many wind energy OEMs and

competition budded in the sector

• The government promoted the infrastructure necessary for the

manufacturing and transmission of wind energy