MNRE Revises Offshore Wind Energy Lease Rules to Boost Sector Growth
The Ministry of New and Renewable Energy (MNRE) has proposed amendments to the Offshore Wind Energy Lease Rules, 2023, initially notified in December 2023 under the Territorial Waters, Continental Shelf, Exclusive Economic Zones and Other Maritime Zones Act, 1976.The draft amendment aims to simplify the leasing process for offshore wind energy projects.
October 01, 2024. By EI News Network
It was initially notified by the Ministry of External Affairs under the 'Territorial Waters, Continental Shelf, Exclusive Economic Zones, and Other Maritime Zones Act, 1976, in December' 23. However, the recent amendments shows the evolving needs of the offshore wind industry and are expected to foster smoother development of wind energy projects in India’s maritime zones.
As per the new draft, one of the key changes proposed involves refining the definition of a 'lease', clarifying it as an agreement that grants rights over the seabed within India’s 'Territorial Waters and Exclusive Economic Zones' for a fixed term in exchange for a lease payment. The revised rules aim to create a more transparent and accessible framework for developers, enhancing the attractiveness of India's offshore wind energy sector to investors and developers alike.
The amendment also expands the scope of an 'Offshore Wind Energy Project' to include not just wind turbines and offshore substations but also cables (both intra-array and inter-array) and power-generating systems from other renewable sources. These additional renewable power systems, used to meet auxiliary energy needs, can be integrated into offshore platforms. The update ensures a comprehensive approach to offshore wind energy, supporting advancements in renewable energy technology that can be deployed at sea.
As per the new draft, the Central Government will lease out offshore areas for wind energy and transmission projects, following a structured selection process aligned with the 'National Offshore Wind Energy Policy'. This leasing will be based on wind resource assessments and marine spatial planning, ensuring the most suitable areas are identified. The amendments also stipulate that approvals from key ministries, including the Ministry of Defence, Ministry of Home Affairs, Ministry of Environment, Forest and Climate Change, Ministry of External Affairs, and others, must be obtained before leases are granted.
Additionally, the amendment proposes setting the lease term at 35 years, which can be extended on a case-by-case basis, depending on the continued functional viability and safety of the project. Another significant update addresses the issue of lease transfer, requiring written consent from the Central Government before any rights over the leased area can be assigned or transferred. This provision aims to maintain strict control over who holds rights to offshore wind development.
The amendments also introduce more specific regulations regarding the construction, installation, operation, and maintenance of offshore wind projects, requiring lessees to adhere to technical standards set by the Central Government. This ensures that offshore wind projects operate efficiently and safely, with proper oversight throughout their lifecycle.
MNRE has requested feedback on the proposed changes from stakeholders, including industry bodies, government departments, and other interested parties within 15 days of the issuance of the circular.
It may be mentioned that the Offshore Wind Energy Lease Rules, 2023, were originally implemented to regulate the leasing of offshore areas for wind energy development within India's maritime zones. With India targeting 500 GW of renewable energy capacity by 2030, offshore wind energy plays a critical role in meeting this target.
These proposed changes are seen as an important step in the development of India’s offshore wind energy sector, which has significant potential to contribute to the country’s renewable energy goals. Industry experts have welcomed the amendments, viewing them as a positive move toward accelerating the deployment of offshore wind projects, particularly along the coastal regions of states like Gujarat and Tamil Nadu, where wind potential is high.
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