MNRE launches 1 GW offshore wind tender for Gujarat and Tamil Nadu.
₹7,500 crore viability gap funding to make projects commercially viable.
Developer interest remains low despite India’s ambitious clean energy expansion goals.
Union Minister for New & Renewable Energy (MNRE) Pralhad Joshi urged the country to make “wind power the cornerstone of India’s clean energy future” in his latest post on Linkedin as he inaugurated the 7th edition of Windergy in Chennai on October 30.
The MNRE minister announced a new tender to set up 1 gigawatt of offshore wind capacity off the coasts of Gujarat and Tamil Nadu by 2026.
The government will offer ₹7,500 crore in viability gap funding (VGF) to support bidders. Tamil Nadu has agreed to purchase offshore wind power at a premium of ₹4 per kilowatt hour, Aneesh Sekhar, managing director (MD) of Tamil Nadu Green Energy Corporation, told Business Standard.
Offshore Dreams Need Backing
India wants to expand offshore wind energy and is creating supportive government policies for it, but very few companies are actually showing interest to develop these projects.
According to a Mercom report published on August 13, the Solar Energy Corporation of India (SECI) cancelled two major offshore wind energy tenders totaling 4.5 gigawatts (GW) due to lack of developer interest.
The Ministry of New & Renewable Energy (MNRE) has recognised 36 GW of potential off the coast of Gujarat alone and approved a Viability Gap Funding scheme in order to counter this. However, securing large-scale projects in a shrinking global market will require exceptionally supportive infrastructure and attractive tariffs.
