Government aims to build 30 GW of offshore wind capacity by 2030

Source: THE ECONOMIC TIMES

In order to beef up its clean energy portfolio, the government wants to build 30 GW offshore wind capacity by 2030, a move which may bring India in the list of leading markets in the segment.

India has set itself a target of achieving 175 GW renewable energy target by 2022, which the government is expected to exceed by additional 50 GW within the same timeline, Minister for Power and New & Renewable Energy RK Singh recently announced.

The ministry has earlier announced a short-term target of setting up 5 GW offshore wind capacity by 2022.

Globally, UK tops the list of offshore wind markets, followed by Germany, Taiwan, China and the USA.

The government has already invited expression of interest for 1GW offshore wind tender in India, and has elicited interest from leading wind players in India and abroad, sources said.

Leading clean energy players including Sembcorp Green Infra, ReNew Power, Mytrah Energy and France’s Engie, among others have been shortlisted by the government for the technical stage of the tender.

Around 35 companies, including players from the US, Germany and Denmark evinced interest in the said tender, said a person aware of developments.

While the tender has piqued interest of clean energy players, offshore wind projects involve bigger challenges, and developers need to be incentivised accordingly, industry opines.

“Wind efficiency in the Nordic regions is better and the plant load factor in these regions is higher. For this to take off in India, the government needs to allow incremental tariffs as the cost of setting up an offshore wind project is way higher,” said a leading industry player who did not wish to be quoted.

The Indian government has identified Gujarat and Tamil Nadu as potential destinations for offshore wind projects in the country.

While the government is aware of the “difficulties” involved in setting up offshore wind projects, power from this source “would add a new element to the already existing basket of renewable energy for the country”, the ministry said in a statement on Tuesday.

“Given India’s coastline of 7,600 km, the country has enormous potential for offshore wind energy and it can potentially repeat the success achieved in onshore wind energy,” said Tulsi Tanti, founder of Suzlon leading wind turbine manufacturer in India.

Industry officials say that the tariffs for offshore wind projects would also range somewhere between Rs 5 to 7 per unit, which is more than double the existing tariffs for wind and solar energy in India.

Source: THE ECONOMIC TIMES