India took a step forward in its ambition to build out offshore wind energy this month with a planned auction off Tamil Nadu
The Ministry of New and Renewable Energy (MNRE) released a revised Offshore Wind Strategy Paper, outlining an auction trajectory of 37 GW offshore wind by 2030 through three different auction models. The first tender for lease rights under one of these auction models is tentatively planned to already open in December of this year. Four sites off the state of Tamil Nadu have been nominated for this first seabed lease auction, totaling 4 GW.
Moreover, a support-based auction is planned in 2024 for 500 MW capacity off the coast of Gujarat and another 500 MW in Tamil Nadu in 2024-25. However, specific timing of these auctions is yet to be announced.
The state of Tamil Nadu boasts the best conditions for offshore wind in India, with a considerable area above an average wind speed of 9 m/s, both for floating and fixed-bottom territory and close proximity to several large demand centers.
A rapidly growing electricity demand, strong political ambitions and a need for diversifying the electricity mix offer a substantial opportunity for offshore wind in India. However, several issues and uncertainties persist, among other ambiguities in the auction models, uncertainty on financial support and potential bottlenecks in the supporting infrastructure for offshore wind.
Market Intelligence by Aegir Insights
Aegir Insights has just released an updated Market Playbook on the Indian offshore wind market, covering commercial, regulatory and technical drivers in the market.
In our market reports, offshore wind markets are analyzed thoroughly with the aim of identifying growth opportunities. Factors considered include metocean conditions, infrastructure and constraints, LCoE forecasts, market activity overview, policy regime and current renewables build-out, among many other topics relevant for a given market. The reports are often used as a go-to for a market overview that contains all relevant information for early stage market screening. Coverage is global and reports are regularly updated to reflect major changes in the market.
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