The ministry of new and renewable energy (MNRE) is in discussions with the ministry of petroleum and natural gas (MoPNG) to combine the exploration of offshore hydrocarbon blocks with offshore wind farms for better synergies, according to two government officials aware of the plan.
The contours of the idea are in the works and initial discussion with the stakeholders has been positive, the officials added.
“This is a good concept we are trying to work on. The idea to combine offshore hydrocarbon blocks with wind farms is to extract maximum energy through the same resource or block. We are working on the details of the plan,” said the first government official on the condition of anonymity.
This idea also assumes significance as India gets ready to float its first offshore wind seabed lease tender shortly. During a side-event of the third Energy Transitions Working Group of the G-20 presidency of India in Mumbai on May 16, MNRE joint secretary Dinesh Jagdale said the country’s first offshore wind seabed lease tender is expected to be floated within the next 4-6 weeks.
Despite being blessed with 7,600 km of coastal length-Gujarat has the longest coastal length of 1,600 km while Tamil Nadu has 1,076 km-India has been slow in developing offshore wind projects.
The first phase of offshore wind projects will be located along the coasts of Tamil Nadu and Gujarat, with a combined potential of about 70 GW.
The government plans to issue seabed lease tenders for a trajectory of 37 GW by 2030. Both Tamil Nadu and Gujarat governments have shown interest in purchasing offshore wind power at a competitive tariff rate of Rs 4 per unit for the initial projects.
The second government official said the idea to marry hydrocarbon blocks with offshore wind farms will be a win-win for energy companies.
“While exploration and production companies are looking at increasing oil and gas production, they are also diversifying their energy mix and have net zero goals. We are thinking of how to offer the companies an option to meet both goals,” he said, adding that there are a lot of hydrocarbon blocks in India which have good prospects of wind generation.
As part of its decarbonisation goals, India has committed to reduce global warming, by achieving 500 GW of renewable energy by 2030, including approximately 140 GW from wind energy.
To support the growth of offshore wind energy, the government is also mulling the idea of providing financial assistance through viability gap funding (VGF) to make projects more attractive for developers. MNRE has sought approval from the finance ministry for the VGF model.
The ultimate goal is to achieve a tariff rate of ₹4 per unit for offshore wind power, although the current cost of setting up such projects necessitates financial support from the government.
Source: PTI
