The Centre of Excellence for Offshore Wind and Renewable Energy (CoE), a joint initiative between the Ministry of New and Renewable Energy of India and the Danish Energy Agency, has contributed to the offshore wind development by conducting marine spatial planning studies for both Gujarat and Tamil Nadu, and demarcating the offshore wind zones to be used in the above business models as well as identifying risks and mitigation measures for offshore wind development.
The strategy paper details three different models for awarding sites for development:
Model A comprises two demarcated zones, one in the state of Gujarat and one in Tamil Nadu, with a potential capacity of 500 MW. NIWE has carried out wind resource assessment, geophysical and geotechnical investigations, a rapid Environmental Impact Assessment and oceanographic measurements for the site in Gujarat and will also carry out the necessary studies and surveys for the site in Tamil Nadu.
The projects under this model will be supported by the Government of India through viability gap funding or another financial incentive. The awards, expected before the end of 2025, will be made through a single-bid, two-stage process followed by an e-Reverse auction based on the viability gap funding amount required to arrive at fixed PPA tariff.
Model B offers demarcated zones in Gujarat and Tamil Nadu with a generation capacity of 14 GW to developers, with an initial round for 4GW expected to be floated in December 2023. The power produced will be used for captive consumption under an open access mechanism or sold through power purchase agreements or power exchanges. The site leases will be granted through a bidding process. No financial assistance will be provide by the Government of India.
Sites will be allocated with exclusivity for two years for studies and surveys to be carried out, a call for proposals has been published. Following the site investigation period, a lease agreement for the site will be awarded for a period of 35 years for project development and the sale of power.
Model C covers sites identified by developers within the Exclusive Economic Zone of India which have not already been identified under Models A and B. A call for proposals for site investigations has been published, these will be handled by NIWE who will grant the necessary consents. Consent for surveys and studies at any given site will not be exclusive to a single developer. Upon completion of the site investigation, the site will be open for auction which may be based on captive power consumption, power purchase agreements, power exchanges, or tariff based competitive bidding for government power purchase. Projects will not be supported through financial assistance from Government of India. The indicative trajectory of auctions under this model amounts to 22 GW from 2025 to 2030.