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GWEC Hails VGF Scheme Approval for India's Offshore Wind Sector
GWEC met with the Ministry of New and Renewable Energy (MNRE) in 2022 and pressed for financial support mechanisms such as VGF in India.
July 08, 2024. By Abha Rustagi
Global Wind Energy Council (GWEC) and the India Offshore Wind Working Group have welcomed the approval of the Viability Gap Funding (VGF) scheme for offshore wind energy projects in India.
GWEC met with the Ministry of New and Renewable Energy (MNRE) in 2022 and pressed for financial support mechanisms such as VGF in India. The Council has continued to engage with the government at a series of events throughout the last year and detailed the benefits to the Indian market of financial support mechanisms in several of its key reports.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has now approved a total outlay of INR 7453 crore, including INR 6853 crore for installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu), and grant of INR 600 crore for upgradation of two ports to meet logistics requirements for offshore wind energy projects.
GWEC’s Global Offshore Wind Report 2024 estimates 3 percent of the APAC’s offshore wind capacity between 2024-2033 to be rooted in India, which is also expected to gradually emerge as the ground for offshore wind manufacturing.
With one of the largest and most ambitious programs for harnessing renewable energy, India is at the forefront of the clean energy transition. At COP 26, India committed to adding 500 GW of non-fossil fuel capacity by 2030 and that 50 percent of its energy requirements shall be met by renewable energy.
Bhupinder Singh Bhalla (IAS), Secretary, Ministry of New and Renewable Energy, Government of India, said, “The Union Cabinet’s approval for a VGF scheme with a total outlay of INR 7453 crore for the installation and commissioning of 1 GW of offshore wind projects including a grant of INR 600 crore for the upgradation of two ports would be significant support for the establishment of the necessary offshore ecosystem. This will lay a strong foundation for success in the 37 GW sea bed lease tender trajectory aimed at harnessing the offshore wind potential in the country.“
Girish Tanti, GWEC India Chair, and Vice Chairman of Suzlon, mentioned VGF approval as a milestone movement and said, “Under the leadership of HE Shri Narendra Modi Ji, Hon’ble Prime Minister of India, the country has deepened its feet in the wind energy sector and witnessed widespread growth in non-fossil fuel energy capacity addition. With offshore wind, the wind industry has a tremendous opportunity to help India’s NDCs while also building a robust value chain through investments, policy measures, and partnerships that increase jobs and environmental benefits."
As per the National Institute of Wind Energy (NIWE) of the Government of India, the country has over 70 GW of technical potential for offshore wind off the coasts of Tamil Nadu and Gujarat. India’s 'National Offshore Wind Energy Policy – 2015' provided the legal framework and the right impetus for the development of offshore wind.
GWEC met with the Ministry of New and Renewable Energy (MNRE) in 2022 and pressed for financial support mechanisms such as VGF in India. The Council has continued to engage with the government at a series of events throughout the last year and detailed the benefits to the Indian market of financial support mechanisms in several of its key reports.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has now approved a total outlay of INR 7453 crore, including INR 6853 crore for installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu), and grant of INR 600 crore for upgradation of two ports to meet logistics requirements for offshore wind energy projects.
GWEC’s Global Offshore Wind Report 2024 estimates 3 percent of the APAC’s offshore wind capacity between 2024-2033 to be rooted in India, which is also expected to gradually emerge as the ground for offshore wind manufacturing.
With one of the largest and most ambitious programs for harnessing renewable energy, India is at the forefront of the clean energy transition. At COP 26, India committed to adding 500 GW of non-fossil fuel capacity by 2030 and that 50 percent of its energy requirements shall be met by renewable energy.
Bhupinder Singh Bhalla (IAS), Secretary, Ministry of New and Renewable Energy, Government of India, said, “The Union Cabinet’s approval for a VGF scheme with a total outlay of INR 7453 crore for the installation and commissioning of 1 GW of offshore wind projects including a grant of INR 600 crore for the upgradation of two ports would be significant support for the establishment of the necessary offshore ecosystem. This will lay a strong foundation for success in the 37 GW sea bed lease tender trajectory aimed at harnessing the offshore wind potential in the country.“
Girish Tanti, GWEC India Chair, and Vice Chairman of Suzlon, mentioned VGF approval as a milestone movement and said, “Under the leadership of HE Shri Narendra Modi Ji, Hon’ble Prime Minister of India, the country has deepened its feet in the wind energy sector and witnessed widespread growth in non-fossil fuel energy capacity addition. With offshore wind, the wind industry has a tremendous opportunity to help India’s NDCs while also building a robust value chain through investments, policy measures, and partnerships that increase jobs and environmental benefits."
As per the National Institute of Wind Energy (NIWE) of the Government of India, the country has over 70 GW of technical potential for offshore wind off the coasts of Tamil Nadu and Gujarat. India’s 'National Offshore Wind Energy Policy – 2015' provided the legal framework and the right impetus for the development of offshore wind.
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