5 July 2024, Delhi | GWEC and the India Offshore Wind Working Group welcomes the approval of the Viability Hole Funding (VGF) scheme for offshore wind vitality initiatives in India.
GWEC met with the Ministry of New and Renewable Power in 2022 and pressed for monetary help mechanisms akin to Viability Hole Funding in India. GWEC has continued to interact with the federal government at a sequence of occasions all through the final 12 months and detailed the advantages to the Indian market of monetary help mechanisms in a number of of its key stories.
The Union Cupboard, chaired by HE Shri Narendra Modi Ji, Hon’ble Prime Minister of India, has now permitted a complete outlay of INR 7453 crore (~ USD 0.89 billion), together with INR 6853 crore (~ 0.69 billion) for set up and commissioning of 1 GW of offshore wind vitality initiatives (500 MW every off the coast of Gujarat and Tamil Nadu), and grant of INR 600 crore (~ USD 0.06 billion) for upgradation of two ports to fulfill logistics necessities for offshore wind vitality initiatives.
GWEC’s International Offshore Wind Report 2024 estimates 3% of the APAC’s offshore wind capability between 2024-2033 to be rooted in India, which can also be anticipated to step by step emerge as the bottom for offshore wind manufacturing.
With one of many largest and most formidable applications for harnessing renewable vitality, India is on the forefront of the clear vitality transition. At COP 26, India dedicated to including 500 GW of non-fossil gas capability by 2030 and that fifty% of its vitality necessities shall be met by renewable vitality.
India’s deepening and continued progress in energy demand throughout all sectors of the economic system and accelerated give attention to a low-carbon future has fuelled efforts to harness offshore wind, which can also be more likely to help the nation’s Nationwide Hydrogen Mission and different flagship endeavours for decarbonization and low carbon progress.
As per the Nationwide Institute of Wind Power (NIWE) of the Authorities of India, the nation has over 70 GW of technical potential for offshore wind off the coasts of Tamil Nadu and Gujarat. India’s “Nationwide Offshore Wind Power Coverage – 2015” supplied the authorized framework and the correct impetus for the event of offshore wind.
Mr. Bhupinder Singh Bhalla (IAS), Secretary, Ministry of New and Renewable Power, Authorities of India, mentioned “The Authorities of India endeavours to facilitate an enabling surroundings for the offshore business. The Union Cupboard’s approval for a viability hole funding scheme with a complete outlay of INR 7453 crore (USD 90 million approx.) for the set up and commissioning of 1 GW of offshore wind initiatives together with a grant of INR 600 crore (USD 7 million approx.) for upgradation of two ports can be important help for the institution of the required offshore ecosystem. It will lay a robust basis for fulfillment within the 37 GW sea mattress lease tender trajectory aimed toward harnessing the offshore wind potential within the nation. “
Mr. Girish Tanti, GWEC India Chair, and Vice Chairman of Suzlon, talked about VGF approval as a milestone motion and mentioned, “Beneath the management of HE Shri Narendra Modi Ji, Hon’ble Prime Minister of India, the nation has deepened its ft within the wind vitality sector and witnessed widespread progress in non-fossil gas vitality capability addition. With offshore wind, the wind business has an amazing alternative to assist India’s NDCs whereas additionally constructing a sturdy worth chain by way of investments, coverage measures, and partnerships that enhance jobs and environmental advantages. GWEC India seems ahead to persevering with our work with nationwide and state governments to drive ahead the deployment of offshore wind in India.”
Ms. Rebecca Williams, Chief Technique Officer – Offshore Wind, GWEC, congratulated the MNRE and mentioned: “GWEC may be very happy to see that the Viability Hole Funding has been permitted by the cupboard. This second sends an essential sign about India’s dedication to progressing offshore wind at scale. GWEC’s 2024 Offshore Wind Report exhibits that offshore wind can speed up simply transition within the vitality sector, taking part in an essential position in sparking new jobs and investments within the sector. Facilitative measures taken by the Indian authorities, together with the approval of VGF by the Union Cupboard, assist construct confidence that may allow offshore wind to graduate from the standing of an rising expertise in India”.
Learn the official information on VGF from the Authorities of India: pib.gov.in/PressReleaseIframePage.aspx?PRID=2026700
