 "Wind energy")
Wind resource-rich Tamil Nadu is looking to play a pivotal role in the upcoming offshore wind energy sector with an estimated investment of over $30 billion in the sector. However, industry experts indicate that the growth would depend on technology evolution and viability gap funding by the government to bring down the cost.
According to estimates by the government, as many as 14 locations have been identified in the state, with the potential to generate around 25 giga watt (Gw) of wind energy. Denmark is one of the countries that's betting big on India's wind offshore market potential. Last September, the setting up of a 4-10 Gw energy island – an offshore wind farm in the Gulf of Mannar – was one of the key topics of discussion during Denmark Energy Minister Dan Jorgensen's visit to India. However, Indian energy experts indicate that without viability gap funding, offshore wind farms will not be feasible in the country.
According to industry estimates, the per-megawatt cost of setting up an offshore wind power plant is Rs 8-10 crore. “If one wants to put up a turbine, the cost of power is likely to be in the region of Rs 8-9 per unit. The government is now talking about auctioning the wind site without any viability gap funding. If viability gap funding is not there, who will buy power at Rs 9 a unit? Offshore wind energy will not take off without viability funding,” said D V Giri, secretary general of the Indian Wind Turbine Manufacturers Association.
The association says that of the total offshore potential of about 70 Gw in India, 35 GW will be in Tamil Nadu. The state has already put forward four initial sites for the first auction of 4 Gw equivalent seabed in 2022-2023. These will be leased to carry out required studies and surveys and subsequent project development under an open access model.
India and Denmark have launched a knowledge hub called the Centre of Excellence for Offshore Wind and Renewable Energy to play a key role in implementing and accelerating India's offshore wind strategy.
“Indo-Danish collaboration in offshore wind energy is expected to create significant economic opportunities for the industry the value chain. While we have seen some Danish and European companies in the wind energy supply chain investing and setting up their presence in India in recent years, we are expecting many more to come and establish a much larger presence through FDI, joint ventures and collaboration with Indian businesses,” said Alex T Koshy, Director, India Entry Advisory Services of SAS Partners, a corporate advisory firm facilitating and managing foreign investments in India. Important Danish companies in Tamil Nadu inclide Vestas, Cubic, Maersk, Grundfos, FLSmidth, and Danfoss.
“Whether it is Vestas, GE or Siemens, everybody is present in India, but none has a presence in the offshore segment. Danish companies will bring new technologies. The impact of offshore generation on the fishing community should also be studied,” Giri added.
