GWEC hails approval of VGF scheme for Indian offshore wind sector – Asia Pacific

The Global Wind Energy Council (GWEC) and the India Offshore Wind Working Group welcomed the approval of the Viability Gap Funding (VGF) scheme for offshore wind projects in India.

GWEC met with the Ministry of New and Renewable Energy (MNRE) in 2022 and pushed for financial support mechanisms such as VGF in India. The Council continued to engage with the government through a number of events over the past year and detailed the benefits of financial support mechanisms for the Indian market in several of its key reports.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has now approved a total amount of Rs 7,453 crore, including Rs 6,853 crore for installation and commissioning of 1 GW of offshore wind power projects (500 MW each off the coast of Gujarat and Tamil Nadu) and a grant of Rs 600 crore for upgradation of two ports to meet the logistical requirements of offshore wind power projects.

GWEC’s Global Offshore Wind Report 2024 estimates that 3 percent of the Asia-Pacific region’s offshore wind capacity will come from India between 2024 and 2033, and India will also gradually become a destination for offshore wind power.

With one of the largest and most ambitious renewable energy programmes, India is at the forefront of the clean energy transformation. At COP26, India committed to adding 500 GW of non-fossil fuel capacity by 2030 and to meet 50 per cent of its energy needs with renewable energy.

Bhupinder Singh Bhalla (IAS), Secretary, Ministry of New and Renewable Energy, Government of India, said, “The approval by the Union Cabinet of the VGF scheme with a total outlay of INR 7,453 crore for installation and commissioning of 1 GW of offshore wind projects, including a grant of INR 600 crore for modernization of two ports, would go a long way in establishing the necessary marine ecosystem. This will lay a solid foundation for success in the 37 GW of seabed lease tender aimed at harnessing the offshore wind potential of the country.”

Girish Tanti, Chairman, GWEC India and Vice Chairman, Suzlon, referred to the approval of VGF as a landmark move and said, “Under the leadership of His Excellency Shri Narendra Modi Ji, Hon’ble Prime Minister of India, the country has deepened its commitment to the wind energy sector and witnessed a widespread increase in the addition of non-fossil fuel power capacity. With offshore wind, the wind industry has a huge opportunity to help India’s NDCs while building a robust value chain through investments, policy measures and partnerships that increase employment and environmental benefits.”

According to the National Institute of Wind Energy (NIWE) of the Government of India, the country has over 70 GW of technical potential for offshore wind energy off the coast of Tamil Nadu and Gujarat. The “National Offshore Wind Energy Policy-2015” of India has provided the legal framework and the right impetus for the development of offshore wind energy.