Tapping the wind

Govt support will help wind-energy projects

It is well recognised that harnessing offshore wind energy can accelerate India’s energy transition. Introducing offshore wind in the renewable-energy mix can support power management during peak load hours in both monsoon and non-monsoon months. In this context, the Union Cabinet’s recent decision to provide viability-gap funding (VGF) for implementing offshore wind-energy projects must be welcomed. The government outlay for this purpose is fixed at Rs 7,453 crore, including Rs 6,853 crore for installing and commissioning 1 gigawatt (Gw) of offshore wind-energy projects, and a grant of Rs 600 crore for the upgrade of two ports to meet associated logistics requirements. The government plans to deploy offshore wind projects off the coasts of Gujarat and Tamil Nadu. Both these states are considered wind-energy hotspots. Gujarat, for instance, experiences high offshore wind speeds between May and August. The capacity utilisation factor of offshore wind is estimated to go beyond 50 per cent during these months, increasing to nearly 70 per cent in July.

The push to increase wind-energy capacity aligns with India’s commitment to combat climate change and reduce global warming, aiming to achieve 500 Gw of renewable-energy capacity by 2030, with wind energy contributing about 140 Gw. The country is endowed with a 7,600-km coastline and significant offshore wind-energy potential, and yet, there is not a single operational offshore wind farm currently. An assessment made by the National Institute of Wind Energy has identified a potential of about 70 Gw coming from offshore wind projects, spread across 16 offshore zones along the Tamil Nadu and Gujarat coasts. The government aims to tap into 37 Gw of this by 2030. Accordingly, the Union government floated the first ever tender last year to allocate seabed sites along the coast of Tamil Nadu for developing offshore wind farms.

Although the technology is commercially advanced, the cost of generation is high compared to other renewable-energy options. In this respect, introducing viability-gap funding is expected to address some of the cost concerns. It is hoped that support from the government will render the projects viable. The government will also support private firms in establishing the projects by investing in power evacuation infrastructure and offshore substations through Power Grid Corporation of India. While the cost of offshore turbines is higher because of stronger structures and foundations needed in marine environments, desirable returns can be achieved on account of higher efficiencies of these turbines after the development of the ecosystem.

The successful launch of the 1 Gw capacity offshore wind projects is expected to produce renewable electricity of about 3.72 billion units annually, resulting in an annual reduction of 2.98 million tonnes of carbon dioxide equivalent emission. Compared with onshore wind and solar photovoltaic energy, offshore wind technology can generate a relatively high amount of energy per unit of installed capacity. It also helps address the emerging land constraints for putting up large-scale renewable-energy projects. However, to increase the scale significantly, issues like the high cost of technology, lack of domestic supply chains and turbine models suited to local wind conditions, and complexities in securing approvals and clearances should be addressed. India will need to build on the learning of the initial projects.