$891.5 M for offshore wind in India
The funding includes almost $819.5 million for the installation and commissioning of 1 GW of offshore projects, 500 MW each off the coast of Gujarat and Tamil Nadu.
Image for illustration purposes.
India, New Delhi: India’s Union Cabinet has approved the viability gap funding (VGF) scheme for offshore wind energy projects totalling INR 7453 crore ($891.5 million). The funding includes almost $819.5 million for the installation and commissioning of 1 GW of offshore projects, 500 MW each off the coast of Gujarat and Tamil Nadu, and an almost $72 million grant for upgrading two ports to meet logistics requirements for offshore projects.
The VGF support from the government could reduce the cost of power from offshore projects and make them viable for purchase by distribution companies. The projects will be established by private developers selected via a transparent bidding process, but the power infrastructure, including the offshore substations, will be built by Power Grid Corporation of India Ltd (PGCIL).
The government says the successful commissioning of 1 GW offshore wind projects could produce renewable electricity of about 3.72 billion units annually, resulting in a yearly reduction of 2.98 million tonne of CO2 equivalent emission for 25 years. The scheme will kick start offshore development in India and lead to the creation of the required ecosystem in the country to supplement its ocean-based economic activities. The ecosystem will support the development of an initial 37 GW of offshore wind energy at an investment of about INR 450000 crore ($54 billion).
At the beginning of 2024, India launched a tender for four blocks of 1 GW each on an open-access basis for the development of offshore projects off the coast of Tamil Nadu, with the last date for bid submission being May 2. Four areas have already been and the remaining three off the coast of Tamil Nadu are planned to be put on offer in 2025.
Source: offshorewind.biz