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Centre sets ball rolling for offshore wind projects, seeks bids to survey sites in Tamil Nadu
- The government plans to bid out projects of 4 GW capacity on 1 December, 2023. Further, in the next financial year, the government plans to bid projects with total capacity of 3 GW
New Delhi: The union ministry of new and renewable energy (MNRE) has sought bids for survey of sites identified for offshore wind power projects in Tamil Nadu.
A notification released by the ministry showed that the government plans to bid out projects of 4 GW capacity on 1 December, 2023. Further, in the next financial year, the government plans to bid projects with total capacity of 3 GW.
The government would bid out sites for offshore wind power projects through two models. In one model, it would provide viability gap funding. In the other model, identified offshore wind sites would be leased out under competitive bidding for carrying out studies and surveys, and subsequent project development without any central financial assistance.
The bids for study of the sites have been called for the second model wherein financial support is not available.
Under this model, sites are proposed to be allocated for a period of two years to carry out the survey. The development of offshore wind energy projects shall be taken up by the selected offshore wind power developer (OPWD) after the survey period, and the power offtake will be the responsibility of the OWPD, to be used either for captive consumption under open access mechanism or sold to any entity through a bilateral power purchase agreement or sold through power exchanges.
The government may also call for bids for procurement of power for distribution companies on the basis of tariff after two years, the notification said.
"Proposals from interested developers identified sites (without any exclusivity on seabed) in order to have preparedness for participating in the bids," it said.
Despite having a 7,600-km coastline, India does not have any offshore energy project, prompting a major government focus on the segment to move away from thermal power and achieve the target of 500 GW of installed renewable energy capacity.
Although the government notified the national offshore wind energy policy in 2015 and efforts have been on to establish the sector in the country, the sector has not taken off as anticipated.
The wind resources assessment carried out by the National Institute of Wind Energy (NIWE) shows total wind energy potential in the country at 302 GW at 100 metre and 695.50 GW at 120 metre hub height. Out of the total estimated potential, more than 95% of commercially exploitable wind resources are concentrated in seven states -- Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu.
According to the government, offshore wind power offers a plausible alternative in such a scenario. Absence of any obstruction in the sea offers much better quality of wind and its conversion to electrical energy. Offshore wind turbines are much larger in size (in range of 5-10 MW per turbine) as against 2-3 MW of an onshore wind turbine. However, the high cost of offshore wind energy is a major obstacle in its development and adoption.
In a bid to boost investments in this space, the union ministry of power in May announced a waiver of Inter-State Transmission (ISTS) charges on the transmission of electricity generated from offshore wind sources.
Offshore wind power projects commissioned on or before 31 December 2032, through power purchase agreements (PPA) or on a merchant basis, will be exempt from ISTS charges for a duration of 25 years from the date of project commissioning. According to the ministry, projects commissioned after this deadline will be subject to ISTS charges following a specified trajectory.
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Business NewsIndustryEnergyCentre sets ball rolling for offshore wind projects, seeks bids to survey sites in Tamil Nadu
First Published:18 Aug 2023, 08:15 PM IST
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