CHENNAI: The Ministry of New and Renewable Energy has floated its first-ever tender to lease seven seabed sites to develop offshore wind energy projects along the Tamil Nadu coast spread over 1,443 sq km with a total generation capacity of 7,215 MW in two phases.
The auctioning of the bid for phase 1 comprising four seabed sites spread over 828 sq km with an offshore wind generation capacity of 4,140 MW would be conducted on February 1, 2024, while the second phase bidding would be during the next financial year for the rest of the three seabed sites.
To make offshore wind projects attractive, MNRE offers various incentives to the developers or generators including waiver of the inter-state transmission system (ISTS) charges and additional surcharge if they commission the project on or before December 31, 2032.
The developers would also get a concessional customs duty on the import of critical components for manufacturing offshore wind turbines is proposed to be extended for offshore wind turbines like that of onshore.
The generators would also get renewable energy credits with multipliers, and carbon credit benefits as well for offshore wind projects.
According to the tender notification, the leasing of the seabed area to the developer will initially be for a period of 5 years extendable by a further 1 year on a case-to-case basis. The developer has to commission the offshore wind energy project (s) including conducting required studies and surveys within this time period, " it said.
The MNRE has made the National Institute of Wind Energy (NIWE) the nodal agency for offshore wind projects. NIWE has estimated offshore wind energy potential of 70,000 MW along the coasts of Tamil Nadu and Gujarat.
With Tamil Nadu's potential of 31,000 MW, Tangedco officials said that the utility has given consent to procure 2,000 MW of offshore wind power at a rate of Rs 4 per unit through state transmission utility connectivity.
The official added that any work on the installation of the offshore wind turbines would happen only after 2030.
"Unlike the onshore wind power generation cost, the offshore wind generation cost will be much higher considering the installation costs at the seabed and transmission infrastructure cost, " the official noted.