$900m ‘Gap Funding’ For India’s First Offshore Wind Farm In Gujarat

India has set very ambitious capacity addition targets in the offshore wind energy sector. The country plans to have an operational offshore wind energy capacity of 5 gigawatts by 2022 and increase it to 30 gigawatts by 2030.

The National Institute of Wind Energy (NIWE) and other agencies in India has taken several measures to lay the groundwork for the first project.

Extensive wind resource surveys have been completed at the proposed sites off the coast of Gujarat, and additional surveys are planned in the near-future.

The Indian government is planning to approve viable gap funding worth US$909 million to support the first offshore wind energy project in the country.

The viability gap funding shall ensure that the project goes ahead at the tariff rate agreed with the buyers. The 1 gigawatt project is planned to be implemented off the coast of the west Indian state of Gujarat.

Power distribution utilities in the state have reportedly agreed to buy energy generated from power plant at Rs 3.50/kWh (US¢5.11/kWh).

The government funding would compensate the project developer for the difference between the financially viable tariff and the already agreed power purchase tariff.

Once the government approves the viability gap funding, little to no hurdles may remain in the path to the country’s first-ever offshore wind energy tender.

The tender is supposed to be issued sometime in October this year.

Reference- Recharge News, MNRE website, Clean Technica