India to auction off 37 GW of offshore wind using four different auction models

April 24, 2023
 | 
2 min read
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India’s first offshore wind auction is coming, and it will be the first of many – an ambitious 37 GW of offshore wind is planned to be allocated before 2030 through no less than four different offshore wind auction models.

The Indian offshore wind market saw a rapid development in 2022 with an offshore wind strategy paper specifying the auction timeline and a set of draft tender documents for the first offshore wind auctions in the country.

INDIA TO USE OFFSHORE WIND LEASE AUCTIONS BOTH WITH AND WITHOUT SUBSIDIES

The offshore wind strategy paper outlines a trajectory of auctions totaling 37 GW to come towards 2030. The auctioning is envisaged to be fast-tracked through four different auction models that will be used concurrently:

The lease auction model will tender 12 GW without subsidies. Developers will compete for pre-defined site leases.

The lease and offtake auction model will tender 1 GW in one single auction for both site lease and support. This model is intended for use only for the northwestern state Gujarat.

The semi-open door model will tender 2 GW. Under this model, developers can define sites and apply for site leases within nominated zones. Allocation of site leases will be followed by an offtake-based auction with guaranteed power off-take.

The open door model will tender 22 GW using a full open-door concept where developers can define sites and apply for site leases ad hoc.

India’s first tender will use the lease auction model and is expected to be launched in 2023 with 4-5 sites off the coast of Tamil Nadu up for grabs.

The final tender designs are still under development, so India is a market to keep an eye on.

To learn more about the different auction models in India or the current draft tender, please reach out.

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