India Sets Sail on 1 GW Offshore Wind Energy Projects in Gujarat, Tamil Nadu

The Union Cabinet, in a significant move towards bolstering renewable energy sources within India, has sanctioned a viability gap funding (VGF) scheme amounting to Rs 7,453 crore. This initiative is aimed at the development of one GW offshore wind energy projects across Gujarat and Tamil Nadu. I&B Minister Ashwini Vaishnaw, during a media briefing post the Cabinet meeting led by Prime Minister Narendra Modi, unveiled this ambitious plan marking the inception of India's journey into offshore wind energy projects.

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The allocated funds under the VGF scheme include Rs 6,853 crore dedicated to the installation and commissioning of wind energy projects, with a capacity of 500 MW each off the coasts of Gujarat and Tamil Nadu. Additionally, Rs 600 crore is earmarked for the upgradation of two ports to cater to the logistical demands of these offshore wind energy projects. The successful implementation of these 1 GW offshore wind projects is projected to generate approximately 3.72 billion units of renewable electricity annually. This initiative is expected to contribute significantly to environmental conservation by reducing CO2 emissions by nearly 2.98 million tons annually over a span of 25 years.

This venture not only aims to kickstart offshore wind energy development in India but also seeks to establish a supportive ecosystem for ocean-based economic activities. The anticipated outcome is the facilitation of 37 GW of offshore wind energy, attracting an investment close to Rs 4,50,000 crore. The VGF scheme aligns with the National Offshore Wind Energy Policy announced in 2015, which targets the exploitation of India's vast offshore wind potential within its exclusive economic zone.

Government support through VGF is expected to make offshore wind projects economically viable for DISCOMs by reducing power costs. The execution of these projects will be carried out by private developers selected through a transparent bidding process, whereas the Power Grid Corporation of India Ltd (PGCIL) will be responsible for constructing the necessary power excavation infrastructure, including offshore substations.

The Ministry of New and Renewable Energy will play a pivotal role as the nodal ministry, coordinating with various Ministries/Departments to ensure the smooth implementation of this scheme. Additionally, specific port infrastructure capable of handling storage and movement of heavy and large dimension equipment is crucial for the construction and operation of offshore wind energy projects. To this end, the Ministry of Ports, Shipping and Waterways will support two ports under this scheme to meet offshore wind development requirements.

Offshore wind energy stands out as a renewable source with several advantages over onshore wind and solar projects, including higher reliability, lower storage needs, and greater employment potential. The development of this sector is poised to yield economy-wide benefits such as attracting investments, fostering indigenous manufacturing capabilities, creating job opportunities across the value chain, and advancing technology for offshore wind in India. Moreover, this initiative is a step forward towards achieving India's ambitious energy transition targets.