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Energy industries

India's Offshore Wind Energy Ambitions Hit Snag Over Lack of Developer Interest

Strategic Insights

— 2 min read

The Indian government's ambitious plan to develop 1 GW of offshore wind energy projects has been dealt a significant blow after the Solar Energy Corporation of India (SECI) canceled two major tenders totaling 4.5 GW due to a lack of developer interest. The move is seen as a setback for the country's renewable energy ambitions, which were expected to be a key driver of growth in the wind energy sector. Despite the government's efforts to incentivize the industry through a viability gap funding program worth 74.53 billion (~$852.31 million), developers have been hesitant to participate, citing the lack of specialized port infrastructure and facilities in India.

Key Takeaways:

  • The SECI canceled two offshore wind energy tenders totaling 4.5 GW due to a lack of developer interest, with the first tender aiming to allocate seabed lease rights for 4 GW and the second seeking developers for 500 MW.
  • The Ministry of New and Renewable Energy (MNRE) had announced a 74.53 billion (~$852.31 million) viability gap funding program for 1 GW offshore wind projects.
  • Raj Prabhu, CEO and Co-Founder at Mercom Capital Group, expressed skepticism about the viability of offshore wind projects in India, stating that they are too expensive and unlikely to take off in the country.
  • A collaborative study by the Centre of Excellence for Offshore Wind and Renewable Energy found that the zones identified in Tamil Nadu and Gujarat fulfill basic navigation and access criteria to support the installation of wind turbines and foundations.
  • The study found that the identified zones in Tamil Nadu have excellent wind conditions, with an average wind speed of 8.75 m/s at 150 m hub height, while the zones in Gujarat have an average wind speed of 6.5 m/s.
  • The depth to the seabed and water depth in both states are suitable for deploying fixed-foundation offshore wind turbines.

Statistics:

  • 4.5 GW: Total offshore wind energy capacity targeted through the canceled tenders.
  • 1 GW: Targeted capacity for the viability gap funding program announced by the MNRE.
  • 74.53 billion (~$852.31 million): Amount of viability gap funding allocated for 1 GW offshore wind projects.
  • 4 GW: Capacity of the first tender floated by SECI.
  • 500 MW: Capacity of the second tender sought by SECI.
  • 150 m: Hub height at which wind speed measurements were taken in the study.
  • 7-10.5 m/s: Average wind speed in the identified zones in Tamil Nadu.
  • 11-50 m: Water depth in the identified zones in Gujarat.
  • 10-65 m: Depth to the seabed in the identified zones in Tamil Nadu.

Sources:

  • Solar Energy Corporation of India (SECI)
  • Ministry of New and Renewable Energy (MNRE)
  • Mercom Capital Group
  • Centre of Excellence for Offshore Wind and Renewable Energy (joint initiative between the Danish Energy Agency and MNRE)

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