Government Launches VGF Scheme for 1,000 MW Offshore Wind Projects
The Government of India has approved the 'Viability Gap Funding (VGF) scheme for offshore wind energy projects' with a total outlay of INR 7453 crore including VGF of INR 6853 crore for installation of 1000 MW of offshore wind energy projects.
September 14, 2024. By EI News Network
The scheme aims to install 1,000 MW of offshore wind capacity along the coasts of Gujarat and Tamil Nadu. The Ministry of New and Renewable Energy (MNRE) will oversee the scheme, while the Solar Energy Corporation of India Limited (SECI) will handle its implementation. SECI will manage application processes, issue awards, disburse funds, and monitor the scheme’s progress, reporting quarterly to MNRE. The initial focus will be on a 500 MW project off Gujarat, with a 500 MW site off Tamil Nadu to be finalised after further studies by the National Institute of Wind Energy (NIWE). Bidders will be selected through international competitive bidding, with an e-reverse auction determining the final VGF allocation.
The VGF scheme is set to support offshore wind projects until the fiscal year 2031-32. In case of a tie in financial bids, the bidder requesting the lowest VGF will be ranked highest, with further ties resolved by a draw of lots.
Eligibility for bidding includes technical experience in offshore wind projects or related infrastructure and financial criteria such as net worth and average annual turnover over the past three years. The scheme offers 1,000 MW of capacity equally between Gujarat and Tamil Nadu, with potential for additional capacity up to 50 MW if VGF requests are lower than anticipated. Projects must be commissioned within 48 months of signing the Power Purchase Agreement (PPA). Bidders are required to submit an Earnest Money Deposit (EMD) and Performance Bank Guarantees (PBG). Failure to meet requirements or project delays will lead to forfeiture of EMD and other guarantees, with penalties remitted to the Consolidated Fund of India.
The project must connect to the Inter-State Transmission System (ISTS) according to Central Electricity Regulatory Commission (CERC) regulations. The Offshore Wind Power Developer (OWPD) will handle connections to the offshore pooling substation, while the Central Transmission Utility (CTU) will manage the substation and transmission infrastructure. SECI will assist with substation coordinates and seabed allocation for offshore transmission.
Refer the document given below for further details.
please contact: contact@energetica-india.net.
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