The Solar Energy Corporation of India (SECI) has scrapped two offshore wind energy tenders with a combined capacity of 4.5 GW. The tenders have been cancelled due to a lack of developers’ participation. The first tender was for sea-bed lease rights to develop 4,000 MW of projects off the coast of Tamil Nadu, while the second was for a 500 MW offshore wind project to be built off the coast of Gujarat in India under the viability gap funding (VGF) scheme. The two tenders were issued earlier in 2024, and deadlines for both were extended multiple times.
In February 2024, SECI issued a request for proposal for leasing seabed for setting up 4,000 MW of offshore wind capacity off the coast of Tamil Nadu in the open access mode. The bids are divided into four blocks, with a capacity of 1,000 MW each.
In September 2024, SECI issued a tender for 500 MW offshore wind projects (Tranche-I) in Gujarat, to be developed on a build-own-operate basis in a 202 square km area in the Gulf of Khambhat with interstate transmission system connectivity. The project was allowed to apply for VGF, with the maximum amount receivable being Rs 81.28 million per MW of the contracted capacity.
REGlobal’s Views: India’s offshore wind sector has been struggling to take off despite the country have policies and strategies for development in place. The costs for offshore wind projects continue to be very high compared to onshore wind, there are definitely power offtake concerns in the case of offshore wind. The industry has been waiting for financial incentives apart from the viability gap funding already in place. Further, supply chain of offshore wind vessels and wind turbines, and transmission systems is also a concern.
