The Union Ministry of New and Renewable Energy (MNRE) has issued a tender for the construction of India’s first set of offshore wind projects.
- The ministry has offered them at seven locations off the coast of Tamil Nadu, with a cumulative capacity of 7 gigawatts (Gw).
- The ministry has appointed the National Institute of Wind Energy (NIWE) the nodal agency for conducting the bidding.
About Offshore wind power
- Offshore wind power is a type of renewable energy that harnesses the wind’s force at sea to generate electricity. The electricity is then transmitted to the grid or onshore network through undersea cables buried in the seafloor.
- The MNRE has suggested three models. Under Model A, necessary central financial assistance in the form of viability-gap funding (VGF) will be available to achieve a predetermined power tariff. Under Model B, offshore wind sites demarcated within identified zones would be allocated for a fixed period on lease through a single-stage, two-envelope bid- ding, and there will be no central financial assistance. Under Model C, either the wind sites would be awarded through a bidding process on a lease/allocation fee or revenue-sharing basis.
- The first batch of projects being ten- dered will follow Model B.
- The government’s push to increase wind energy capacity aligns with India’s commitment to combat climate change and reduce global warming, aiming to achieve 500 GW of renewable energy by 2030, with wind energy contributing approximately 140 GW.
- Despite possessing a 7,600 km coastline and significant offshore wind energy potential, India has been slow in developing offshore wind projects.
- The government plans to tap into offshore wind projects totalling 70 GW along the coasts of Tamil Nadu and Gujarat.
- This is a significant development as currently, there are no offshore wind projects in India. The country only has land-based wind farms as of now, totalling a capacity of 44,089.68 MW.
- The MNRE will allocate the seabed sites through auction and will waive off inter-state transmission system (ISTS) charges for developers or generators who commission their offshore wind projects on or before.
- Tamil Nadu and Gujarat have been identified by the Centre for the development of offshore wind power projects in the country.
