India hatches offshore wind plans, to tender 4 GW in coming months

The Indian government on Thursday outlined plans for offshore wind leases, in hopes of launching the first tender for acreage equivalent to 4 GW of capacity off the coast of Tamil Nadu soon.

According to an announcement by the Ministry of New and Renewable Energy, the ministry will issue the inaugural tender through its implementing agency in the next three to four months.

The government plans to offer 4 GW of offshore wind energy blocks per year starting in the current fiscal year through March 2023 for development off the coast of Tamil Nadu and Gujarat. It will then tender 5 GW per year for the subsequent five years.

The decision follows a meeting hosted by Raj Kumar Singh, minister of power and minister of new and renewable energy, where transmission and evacuation infrastructure needed for 10 GW of wind offshore Gujarat and Tamil Nadu was discussed, it is explained in the announcement.

The bidding for the first 12 GW will be based on a single stage two envelope model. Bidders will first go through an assessment of techno-commercial capabilities and the qualified participants will then proceed to financial assessment, where those offering the highest lease fee per square kilometre of sea bed area would be awarded the project.

Power transmission from offshore pooling substation to the onshore grid for the capacities auctioned till the 2029/2030 year will be provided at no cost.

Offshore wind has so far failed to take off in India, which set a goal of adding 5 GW of offshore wind capacity by 2022 and 30 GW by 2030 back in 2018.

Earlier in 2022, German energy group RWE AG (ETR:RWE) and India’s Tata Power (BOM:500400) unveiled a partnership to explore the potential for a joint development of offshore wind projects in the country.

“India has excellent wind resources, which can help to meet the country’s increasing energy demands. If clear regulations and an effective tender scheme are in place, we expect India’s offshore wind industry will gain a real momentum,” Sven Utermoehlen, CEO Wind Offshore of RWE Renewables, said then.

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