Ministry of New and Renewable Energy (MNRE) notified guidelines are a step towards implementation of the National Offshore Wind Energy Policy, 2015.
About the VGF Scheme for Offshore Wind Energy Projects
- Installation of 1000 MW Offshore Wind Energy Projects off the coast of Gujrat and Tamil Nadu (500MW each). (Outlay: ₹ 6853 crore)
- The VGF will be provided till FY 2031-32.
- Upgradation of two ports to meet requisite logistical requirements. (Outlay: ₹ 600 crore)
- Implementation: by MNRE with Solar Energy Corporation of India Limited (SECI) as the Implementing Agency.
- The National Institute of Wind Energy (NIWE) will act as the Nodal Agency, providing technical support for installation and commissioning of projects.
- Implementation methodology: Competitive selection of bidder through International competitive bidding by SECI.
- Option for Greenshoe option which is an over-allotment option (50 MW in addition to 500 MW)
About Offshore Wind Energy
- Potential in India: long coastline of 7600 km with large Exclusive Economic Zones (EEZ).
- Significance: Important in achieving Renewable energy target of 500 GW installed capacity by 2030, addresses the issue of land availability, etc.
- Challenges: the cost per MW for offshore turbines are higher because of stronger structures and foundations needed, high corrosion, negative impact on marine biodiversity, etc.
