India likely to launch first offshore wind energy tender in the next 4-6 weeks

India has been slow in developing offshore wind projects even though the country has a coastline of 7,600 km and significant potential to set up offshore wind energy projects.

So far, the focus has primarily been on onshore wind energy because of challenges related to availability and regulatory changes at the state level. However, the the rising obstacles that onshore wind projects face, India is now looking at accelerating the development of offshore wind projects.

To support the offshore wind energy growth, the Centre intends to give financial assistance via viability gap funding to ensure the projects are more attractive for developers. The MNRE has sought the finance minsitry's approval for the viability gap funding model, sepficially for the first batch of 1 GW projects.

The country's ultimate goal is achieve Rs 4 per unt of offshore wind power tariff rate, even though the present cost of setting up such a project requires financial support from the government.

BS Bhalla, the MNRE secretary, said the first phase of the projects would be located along the coast of Gujarat and Tamil nadu, with a combined potential of 70 GW.

The Centre is looking at issuing seabed lease tenders for a 37 GW trajectory by 2030. Both the Gujarat and Tamil Nadu governments have showcased interest in buying offshore wind energy power at Rs 4 per unit for the initial projects.

Industry experts at the event had emphasized on the importance of creating a substantial volume of orders in the pipeline to attract OEMs to enter the country's offshore wind market.

Jan Willem Zwarteveen, the CEO of Service India as well as Sri Lanka at Siemens Gamesa, said offshore wind projects need larger turbines - of around 15 MW - and only become economically viable with a sufficient number of turbines.

Hence, he suggested that any project under 750 MW may not be appealing as a first project and multiple projects are required to attract OEMs to enter the market.

The CEO fo NTPC Renewable Energy Ltd Mohit Bhargava said that achieving tarrifs of Rs 4 or Rs 7 per unit for offsore wind energy would be ambitious at the moment. He emphasised on the need for adequate funding from the Centre to make sure the developers are able to deliver low tarrifs.

The secretary of ministry of power Alok Kumar proposed that MNRE has established a dedicated mission when it comes to offshore wind energy, similar to the green hydrogen mission. He also recommended that the renewable energy ministry set up timelines as well as trajectory for offshore wind development till 2040 instead of just 2030. He also urged the Central Electricity Authority to consider offshore wind energy more extensively when projecting India's future energy mix.

Challenges regarding cable storage for laying transmission lines for the projects were also addressed during the event. Kumar stated that the Centre is working to resolve the issue.

In conclusion, India, by leveraging its vast coastline and addressing key challenges, has the potential to emerge as a key player in the global offshore wind energy.