MNRE Proposes to Hold Bids for 7215 MW Offshore Wind in Tamil Nadu

MNRE Proposes to Hold Bids for 7215 MW Offshore Wind in Tamil Nadu

The Ministry of New & Renewable Energy (MNRE) has proposed to hold bids for the allocation of offshore wind sites off the coast of Tamil Nadu through its nodal agency ‘National Institute of Wind
Energy (NIWE)’. This initiative will look at the development of offshore wind energy projects for sale of power under Open Access mode or third party sale or sale through Power Exchanges or for captive
consumption.

Seven sites have been identified for bidding out with timelines clearly chalked out. On an area of 1443 kilometre square, a total of 7215 MW worth of capacity (at 5 MW/Km²) is to be bid out. Of this, bids for 4140 MW of capacity are to be issued by February 1, 2024 while bids for the remaining capacity are to be issued by FY 2024-2025.

Relaxations & Benefits  

The Government shall be facilitating the projects basis Stage-I and Stage-II clearances as per National Offshore Wind Energy Policy- 2015.  At the same time, offshore wind power projects commissioned on or before December 31, 2032 will be eligible for waiver of ISTS charges and additional surcharge for the power from offshore wind power projects. Among other benefits, concession on custom duty on import of critical components for manufacturing of offshore wind turbines has been proposed for offshore wind manufacturing, similar to the presently available onshore wind turbines. Additionally, renewable energy credits with multipliers, carbon credit benefits have also been proposed for offshore wind projects.

The MNRE has been giving an impetus to the development of offshore wind. In August, it issued the revised strategy for establishment of offshore wind energy projects. Keeping in view the requirement of the holistic development of offshore wind farms in the country and to fast-track the process, three models were proposed by it. Indicative auction trajectory for the sector was also shared.