MNRE to invite bids for offshore wind energy projects off TN coast in Feb 2024

New Delhi: The Ministry of New and Renewable Energy (MNRE) is going to invite bids for the allocation of seabed along the Tamil Nadu coast for Offshore Wind Energy projects starting February 1, 2024. In a public notice issued on Thursday, the Ministry announced the dates and detailed the roadmap it intends to follow for the invitation of bids. “The Ministry of New & Renewable Energy proposes to hold bids for the allocation of offshore wind sites off the coast of Tamil Nadu through its nodal agency ‘National Institute of Wind Energy (NIWE)’ for the development of offshore wind energy projects for the sale of power under Open Access Mode/Third Party Sale/sale through Power Exchanges or for captive consumption,” said the document released by the MNRE.

Offshore wind energy projects: 7 sites on offer along TN coast

The bids will be invited in two tranches. The first tranche will include four sites in Zone B covering an area of 828 square kilometres off the coast of Tamil Nadu and bids for the same will be invited on February 1, 2024, the MNRE said. Bids for the second tranche, which will include three sites in Zones E and G covering an area of 615 square kilometres along the TN coast, will be invited some time during FY 2024-25, the ministry said without specifying the date.

MNRE hopes to put in place offshore wind energy projects of 7.2 GW off TN coast

A total of seven offshore wind energy sites in Zone B, E & G off Tamil Nadu coast are on offer, covering seabed area of 1,443 square kilometres. At the rate of 5 MW/Km², the ministry is hoping that offshore wind energy projects of 7.2 GW will come up at these sites. “The applicable Stage-I and Stage-II clearances as per National Offshore Wind Energy Policy- 2015 from various Central/State Ministries/Departments shall be facilitated by NIWE,” said the MNRE.

The grid evacuation infrastructure up to the offshore substation (including the offshore substation) shall be provided as part of ISTS network by state-run Central Transmission Utility (CTU) of India Limited or Power Grid Corporation of India Limited (PGCIL).

Seabed will be leased out for 5 yrs, lease rental will be quoted in financial bid

The bid will be on the basis of single-stage two envelope, wherein the first envelope will be the techno-commercial bid and the second envelope will be the financial bid. In the financial bid, the bidder will quote the seabed site lease rental which has a floor price of Rs 1 lakh/sq km/year. The leasing of the seabed area to the developer will initially be for the period of five years extendable by further one year on a case-to-case basis. The developer has to commission the offshore wind energy project, including conducting required studies/surveys within this time period, said the MNRE.

The developer may exit from the project development during these five years of lease period subject to submission of the study/survey data to NIWE, forfeiture of the submitted Bank Guarantee of USD 1 million for a site, said the ministry. NIWE will monitor the activities/progress of project development during the period of lease.

After the commissioning of the project, the developer will continue to pay the seabed lease floor price @Rs 1 lakh/sq km/year for the remaining operation period, said the MNRE. “Post commissioning of the project the lease will be extended for the operational life of the project and decommissioning period,” said the MNRE.

Govt proposing carbon credits, RE credits for offshore wind projects

Offshore wind power projects commissioned on or before December 31, 2032 will be eligible for waiver of ISTS charges and additional surcharge for the power from offshore wind power projects. Concessional Custom Duty on import of critical components for manufacturing of offshore wind turbines is proposed to be extended for offshore wind manufacturing, similar to the presently available onshore wind turbines.

Renewable Energy Credits with multipliers, Carbon Credit benefits are also proposed for offshore wind projects, said the MNRE.

“In order to have necessary preparedness towards participating in the above bids for allocation of offshore wind sites, interested developers may carry out their own required study/survey on these sites after informing NIWE,” said the MNRE.

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