NITI Aayog Proposes 60% Local Content Requirement in India’s Wind Energy Guidelines for Cybersecurit
Team Finance Saathi
16/Jul/2024

Key Points:
Cybersecurity Focus: NITI Aayog emphasizes cybersecurity risks in wind energy, advocating stringent certification for foreign-origin software and hardware.
Localization Requirement: Proposed 60% local content requirement aims to reduce import dependency and boost domestic manufacturing.
Impact on OEMs: Wind sector OEMs must establish data centres in India or face exclusion from government tenders and contracts.
NITI Aayog has proposed sweeping revisions to India’s wind energy guidelines, aimed at bolstering cybersecurity and reducing dependence on imports, particularly from China. The proposal, submitted to the Ministry of New and Renewable Energy, advocates for a 60% local content requirement in wind energy projects to mitigate risks associated with offshore data servers and unauthorized software updates by foreign wind turbine manufacturers.
Enhancing Cybersecurity Measures:
The report highlights critical cybersecurity risks such as vulnerabilities in offshore data servers and the potential threat of unauthorized software updates from foreign manufacturers. To address these concerns, NITI Aayog recommends stringent certification of foreign-origin software and hardware before granting grid connectivity permissions. This measure aims to safeguard India’s wind energy infrastructure against cyber threats and ensure secure operations.
Localization of Manufacturing:
Central to the proposal is the revision of the Revised List of Models and Manufacturers (RLMM) to prioritize approval for critical components manufactured within India. These components include nacelles, blades, towers, hubs, and controllers. By enforcing a 60% local content requirement, India aims to enhance its manufacturing capabilities in the wind energy sector, thereby reducing reliance on imports and promoting self-reliance.
Compliance and Consequences:
Wind sector Original Equipment Manufacturers (OEMs) are required to establish data centres and research facilities in India under the proposed guidelines. Non-compliance could lead to exclusion from government tenders and supply contracts, incentivizing adherence to local content and cybersecurity standards. This move is intended to foster a robust domestic ecosystem for wind energy production and innovation.
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Leveraging AI and ML for Cybersecurity:
Recognizing the evolving nature of cyber threats, NITI Aayog suggests adopting Artificial Intelligence (AI) or Machine Learning (ML)-based threat detection systems in the wind energy sector. These advanced technologies would enhance cybersecurity resilience and enable proactive identification and mitigation of potential threats. By integrating AI and ML, India aims to stay ahead in safeguarding its critical infrastructure amidst global competition.
Strategic Implications and Global Competition:
The proposed guidelines acknowledge the dominance of China in the global wind turbine assembly market and aim to position India as a competitive player in renewable energy. By promoting local manufacturing and stringent cybersecurity measures, India seeks to strengthen its energy security and reduce vulnerabilities associated with foreign dependencies.
Conclusion:
NITI Aayog’s recommendations for revising India’s wind energy guidelines underscore a strategic shift towards enhancing cybersecurity and local manufacturing in the sector. The proposed 60% local content requirement and emphasis on AI or ML-based threat detection systems reflect India’s commitment to achieving self-reliance in renewable energy production. As these measures are implemented, they are expected to bolster India’s position as a leader in sustainable energy solutions while mitigating risks associated with global competition and cybersecurity threats.
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