Offshore Wind Energy in India

Based on the preliminary studies Government has identified potential off-shore wind zones off the coast of Gujarat and Tamil Nadu. It is estimated that, approximately 36 Giga Watt (GW) offshore wind power potential exists off the coast of Gujarat and 31 GW offshore wind power potential exists off the coast of Tamil Nadu.

Transmission and evacuation infrastructure is required for offshore wind projects of total capacity 10 GW off the coasts of Gujarat and Tamil Nadu. It is decided to bid out offshore wind energy blocks.

1. Bids equivalent to a project capacity of 4.0 GW per year for a period of three years starting with the current FY 22-23 for development off the coast of Tamil Nadu and Gujarat for sale of power through open access or captive or bi-lateral third party sale or merchant sale.

2. Subsequently a project capacity of 5 GW will be bid out every year for a period of five years i.e. up till FY 29-30.

The project capacity of 8 GW bid out in the first two years beginning FY 22-23 will also be able to avail of the benefits of green attributes like carbon credits.

The bidding for the first 12 GW will be conducted on a single stage two envelope model wherein the bidders will be evaluated based on their techno-commercial capabilities and only the technically qualified bidders will proceed to financial evaluation.

The financial evaluation will be based on quoted lease fee per sq km of sea bed area. The bidder offering the highest lease fee per sq km of sea bed area would be declared as the winner for allocation of the project.

Evacuation and transmission of power from offshore pooling Substation (PSS) to onshore transmission will be provided free of cost for all offshore wind capacities that will be bid out up to FY 29-30.

The Ministry of New & Renewable Energy through its implementing agency will issue the first bid in the next three to four months for leasing out offshore wind energy blocks equivalent to 4.0 GW capacity off the coast of Tamil Nadu.

Viability Gap Funding (VGF)

Government has launched the 'Viability Gap Funding (VGF) scheme for offshore wind energy projects' with total outlay of ₹7453 crore, including an outlay of ₹ 6853 crore for installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu), and grant of ₹ 600 crore for upgradation of two ports to meet logistics requirements for offshore wind energy projects.

MNRE has issued Scheme Guidelines for implementation of ‘VGF Scheme for Offshore Wind Energy Projects’ vide sanction dated 11.09.2024.