Posted on October 3, 2023
India is inviting developers to tender bids for the allocation of a large swathe of offshore wind sites off the coast of Tamil Nadu. According to a notice issued by India’s Ministry of New and Renewable Energy (MNRE), a total of seven sites covering an area of more than 550 square miles are on offer. The estimated power generation potential is as much as 7.2 GW of wind energy.
India has recently completed preliminary studies and determined that there is good potential for offshore wind development off the country’s southern tip and west coast. Eight zones each off the coast of Gujarat and Tamil Nadu were identified. Offshore wind capacity of approximately 37 GW is planned to be auctioned by 2030.
On top of this, the government has published a strategy for development of offshore wind energy projects, proposing three models.
Under this tender notice, bids will be accepted in a single stage two envelope process. The first envelope will be on the techno-commercial bid. The second envelope will be the financial bid for the site lease, with a minimum floor price of $1200 per square kilometer per year.
The initial seabed lease will be for a period of five years, during which time the developer will have to complete and commission the project. This trial period is extendable on a case-by-case basis, one year at a time. After commissioning, the lease will be extended for the lifetime of the project.
The first allocation for half of the sites is expected by February of next year, and the second is scheduled for the 2025 financial year.
