India’s huge shoreline of seven,800 km and related wind assets make offshore wind vitality a lovely choice for growing the share of renewables in its vitality combine. In view of this, the Government of India notified the Nationwide Offshore Wind Coverage on October 6, 2015. However, over the previous eight years, not a lot progress has been made.
The coverage offered a framework for the event of offshore wind energy initiatives within the Indian financial unique zone (EEZ), as much as 200 nautical miles from the baseline. The Ministry of New and Renewready Power (MNRE) was the nodal ministry whereas the Nationwide Institute of Wind Energy (NIWE) was appointed because the nodal company for offshore wind growth within the nation. In broad phrases, the coverage outlined the event mannequin for such initiatives, starting with surveys, mandatory clearances, leasing of seabed and allocation of blocks (via worldwide aggressive bidding processes), energy evacuation preparations necessities, decommissioning necessities, and so forth.
Following the coverage’s implementation, NIWE commenced the wind useful resource assessment course of. In March 2017, it initiated the utilisation of sunshine detection and ranging expertise in India to meapositive wind potential in particular areas. Subsequently, in September 2018, NIWE issued tips for offshore wind energy evaluation research and surveys. These tips allowed personal buyers to conduct wind useful resource assessments to gather information for offshore initiatives in India.
The evaluation recognized two areas off the coast of Gujarat and Tamil Nadu with good wind potential. Consequently, in November 2018, NIWE invited international expressions of curiosity (EoI) for the primary offshore wind vitality undertaking in India, with a capability of 1 GW, positioned within the Gulf of Khambhat, roughly 23-40 km seaward from Pipavav port, off the price of Gujarat. The EoI acquired optimistic responses from each international and Indian builders; nevertheless, the undertaking didn’t progress additional, doubtless as a result of lack of a regulatory regime and points associated to the industrial viability of offshore wind initiatives in India.
For the subsequent few years, offshore wind initiatives have been on the again burner, with exercise choosing up solely within the final yr or so.
Technique paper
In July 2022, the MNRE issued the primary technique paper for establishing offshore wind vitality initiatives. It offered three models for the holistic growth of offshore wind farms in India, which was subsequently amended on August 17, 2023 and once more on September 26, 2023. This revised technique issued by the MNRE offers a roadmap to attain the 30 GW offshore wind vitality goal by 2030. As per this present technique, the next three fashions have been proposed for the event of offshore wind initiatives together with a bidding course of for website allocation:
- Mannequin A (VGF mannequin): The viability hole funding (VGF) mannequin might be adopted for these recognized zones by which NIWE/ MNRE has carried out or proposed to hold out detailed surveys/studies. Currently, below Section I, 0.5 GW capability has been recognized for allocation in Gujarat and Tamil Nadu every. It’s envisaged that SECI will conduct the bidding course of on this case and bidding might be both primarily based on energy tariffs or VGF quantities with a predetermined energy tariff. The facility might be bought to SECI with back-to-back energy sale agreements to be between SECI and state discoms.
- Mannequin B (non-VGF however with exclusivity over seabed through the research/survey period): This mannequin might be employed for websites recognized by NIWE. The recognized zones might be allotted for a hard and fast interval on a lease foundation via single-stage two envelope bidding. The electrical energy generated from these initiatives could also be utilized by the developer for self-consumption, bought via bilateral energy purchase agreements, or traded on energy exchanges.
- Mannequin C (non-VGF however with out exclusivity over seabed through the research/survey interval): Offshore wind energy builders can determine any offshore wind website inside the EEZ (excluding websites coated below the sooner two fashions) and perform their very own research and surveys. The Authorities of India will then concern tenders for such initiatives primarily based on completely different fashions. Builders who’ve carried out research or surveys of respective websites might also submit the proposal for undertaking growth and allocation of offshore websites below this mannequin. Importantly, such builders may have the best of first refusal on this bidding course of.
Lease guidelines
In 2022, the MNRE launched the Draft Offshore Wind Power Lease Guidelines, 2022 (lease guidelines, 2022), amending the earlier draft offshore wind vitality lease guidelines from 2019 (Draft Lease Guidelines, 2019). The draft Lease Guidelines, 2022 are usually not within the public area, and are doubtless present process legal vetting. Notably, the Draft Lease Rules, 2019, cowl varied features such because the grant of lease, time period of lease, safety deposit quantities together with lease fees, rights of licensees and lessees, suspension and cancellation of lease, and termination of lease. The issuance of the Lease Guidelines, 2022 is a prerequisite for any offshore undertaking bidding.
Draft tender
In November 2022, the MNRE issued a draft tender doc for seabed leasing to conduct surveys and develop offshore wind initiatives, looking for feedback from stakeholder feedback on the draft tender. The draft tender was issued for the number of an offshore wind energy developer for the leasing of seabed areas for 4 GW of offshore wind energy initiatives off the coast of Tamil Nadu, primarily based on lease leases quoted by bidders, via the worldwide aggressive bidding course of. With the present fashions proposed below the revised technique paper, it’s not sure if this draft tender might be related any longer. It might be used for offshore wind initiatives to be bid out below Mannequin B (acknowledged above).
The draft tender additionally consists of drafts of mannequin agreements that the chosen bidder will enter into with the Authorities of India. These embody the lease settlement, the mannequin survey lease deed, the mannequin building and operation lease deed and the mannequin concessionaire settlement.
Notably, in September 2023, the MNRE issued a public discover, proposing to public sale seabed areas off the coast of Tamil Nadu for the event of offshore wind initiatives. In response to the discover, offshore wind builders may have the flexibleness to promote their generated energy thtough open entry, third-party gross sales, sale through energy alternate and captive consumption. The lease for seabed areas might be granted for an preliminary interval of 5 years, with the opportunity of extending it for a further yr.
Sure incentives
In response to revised technique paper, the offshore developer is chargeable for creating the evacuation infrastructure as much as the offshore assembly/interconnection level on the voltage stage specified by the central transmission utility (CTU). The offshore substation and transmission infrastructure past that time might be developed by the CTU.
In Might 2023, the Ministry of Energy (MoP) prolonged the waiver of interstate transmission costs for offshore wind projects scheduled to be commissioned on or earlier than December 31, 2032. The transfer was geared toward attracting builders to put money into offshore wind initiatives.
Additional, an exemption from extra surcharge was prolonged to open entry shoppers buying electrical energy from offshore wind initiatives, following an modification made to the Electrical energy (Selling Renewable Power Via Inexperienced Energy Open Entry) Guidelines, 2022 on Might 23, 2023.
A number of the different incentives being provideed to the offshore wind builders are concessional customized duties on the import of vital elements for manufacturing of offshore wind generators (related to what’s out there to onshore wind generators), renewable vitality credit with multipliers and carbon credit score advantages.
Key challenges
The coverage has recognized important challenges related to offshore wind energy deployment. These pertain to resource characterisation, subsea cabling, turbine basis, set up of generators together with logistics, grid interconnection and operation, growth of transmission infrastructure and coastal safety through the building and operation interval. The federal government has taken initiatives to determine applicable websites for offshore wind growth. Nevertheless, a number of different challenges nonetheless must be addressed, similar to subsea cabling points, the quantum of VGF and its viability, viability of tariffs that might be proposed, lack of readability on the varied permits and clearances required for the event of those offshore wind initiatives, marine atmosphere and geological floor space points, and the need to develop ports and associated infrastructure to help the set up and upkeep of offshore wind generators, and so forth.
The best way ahead
Whereas nonetheless in its early phases, offshore wind vitality may play a major position in serving to attaining the web zero targets by 2070. Undoubtedly, the profitable growth of offshore wind initiatives in India is determined by:
- The precise implementation of the technique envisaged for offshore wind initiatives;
- Success in addressing the recognized challenges; and
- The supply of presidency help to incentivise builders to take a position on this sector.
