In a significant milestone for renewable energy, the Union Cabinet of India, under the leadership of Prime Minister Shri Narendra Modi, has given the green light to the Viability Gap Funding (VGF) scheme. This groundbreaking initiative will support India’s first-ever offshore wind energy projects, with a substantial investment of ₹7,453 crore (approximately $1 billion). The goal is to install and commission 1 GW of offshore wind capacity, with 500 MW each off the coasts of Gujarat and Tamil Nadu.
This ambitious project not only marks a new era in India’s energy landscape but also aligns with the country’s National Offshore Wind Energy Policy, introduced in 2015. Offshore wind energy, known for its higher efficiency and reliability compared to onshore wind and solar projects, also offers significant employment opportunities. By making these projects financially viable, the Indian government is ensuring that distribution companies (DISCOMs) can purchase power at competitive rates.
Key to the success of these projects is the development of necessary infrastructure. The Power Grid Corporation of India Ltd (PGCIL) will be responsible for creating the power evacuation systems, including offshore substations. Additionally, ₹600 crore will be allocated for upgrading two major ports, critical for handling the large and heavy equipment required for offshore wind projects. The Ministry of Ports, Shipping, and Waterways will oversee these upgrades, ensuring that the logistical needs of the projects are met.
The completion of these 1 GW projects is expected to generate approximately 3.72 billion units of renewable electricity annually, significantly reducing India’s carbon dioxide emissions by 2.98 million tons each year. Moreover, this initiative is set to catalyze further development, with the potential to unlock an additional 37 GW of offshore wind capacity, requiring an estimated ₹4,50,000 crore (around $60 billion) in investment.
India’s venture into offshore wind energy not only propels the nation towards its ambitious renewable energy goals but also sets the stage for broader ocean-based economic activities. This initiative is a key step in India’s energy transition journey, promising a cleaner and more sustainable future.
