According to a strategy paper on offshore wind prepared by the ministry, 16 zones have been identified in total, off the coasts of Gujarat and Tamil Nadu for harnessing offshore wind energy
The union ministry of new and renewable energy (MNRE) is considering giving incentives to companies in the offshore wind energy space including the waiver of transmission charges, renewable energy credits, carbon credits benefits and viability gap funding (VGF) among others.
According to a strategy paper on offshore wind prepared by the ministry, 16 zones have been identified in total, off the coasts of Gujarat and Tamil Nadu for harnessing offshore wind energy.
The ministry has proposed to take three approaches or models for development of offshore wind energy projects. The first model would be followed for demarcated offshore wind zones for which the ministry has carried out detailed studies and surveys. Currently, one zone off the coast of Gujarat shall be initially considered under this model.
Under this model, MNRE or its designated agency will enter into a lease agreement for 30 years with the successful bidders. The offshore wind power developer shall be required to pay the annual floor lease fee of ₹1 lakh per square kilometre per year for the entire lease period.
The successful bidders shall file the relevant information necessary for obtaining the stage-II clearances, subsequent to which the clearances for installation and
commissioning of the offshore wind farm and transmission infrastructure shall be undertaken.
The second approach will be followed for identified offshore wind sites for which detailed surveys have not been carried out. Under this approach offshore wind
developers may select a wind site within the identified zone and carry out the required surveys with the approval of MNRE subject to the clearances from various departments.
“MNRE through its implementing agencies will come up with bids for procurement of 2 GW of offshore wind power capacities tentatively in the FY 2024-25. Those developers who have carried out the studies and survey will be allowed to participate in the bidding for the development of such projects,” the strategy paper said.
Further, necessary central financial assistance in the form of Viability Gap Funding (VGF) for initial projects would be available to achieve a predetermined power tariff for these 2 GW of offshore wind power capacity under the second model.
Developers who have carried out studies and surveys may also decide to develop offshore wind power projects by themselves for sale of power on a merchant basis or under bilateral agreements with consumers under the open access mechanism or for captive consumption, as per the proposal.
For such projects the benefits of provision of power evacuation infrastructure from the off shore pooling delivery point, waiver of transmission charges, renewable energy credits with multipliers, carbon credit benefits among others as determined by the Centre and the state governments from time to time shall be applicable.
Under the model, the National Institute of Wind Energy (NIWE) shall identify from time to time large offshore wind zones within the EEZ but not covered either under the other two models. Proposed offshore wind sites demarcated within these zones would be allocated for a fixed period on a lease basis through single-stage two envelope bidding.
Project development shall be carried out by the prospective developer in this zone and the power generated from such projects shall be either used for captive consumption under open access mechanism or sold to any entity through a bilateral power purchase agreement or sold through power exchanges.
Benefits of transmission waiver and carbon credits and so on would also be available under this approach.
The strategy paper comes around a month after the ministry of new and renewable energy said that it will issue the first bid for leasing out offshore wind energy blocks equivalent to 4 GW capacity off the coast of Tamil Nadu in the next few months.
The ministry of new and renewable energy set a target of 5 GW of offshore wind installations by 2022 and 30 GW by 2030 which has been issued to give confidence to project developers in India market.
Source: livemint
