National Offshore Wind Energy Policy

The National Offshore Wind Energy Policy – 2015 was introduced by the Government of India to promote and regulate the exploration and development of offshore wind energy. It provides a comprehensive framework for utilising India’s vast maritime wind resources and sets the foundation for offshore wind power generation within the country’s Exclusive Economic Zone (EEZ). The policy seeks to encourage investment, ensure sustainable development, and integrate offshore wind energy into the national renewable energy mix.

Background

Before the adoption of this policy, India’s achievements in the wind energy sector were largely confined to onshore developments, especially in states such as Tamil Nadu, Gujarat, Maharashtra, and Karnataka. However, the country’s extensive coastline, spanning over 7,500 kilometres, offered substantial potential for offshore wind power generation.
Globally, offshore wind energy had already matured in regions such as the North Sea, with the United Kingdom, Denmark, Germany, and the Netherlands demonstrating technological and economic viability. India’s policy was modelled to draw from these international experiences while addressing local environmental, technical, and regulatory contexts.

Objectives

The policy outlines several key objectives designed to promote the offshore wind sector:

• To explore and promote deployment of offshore wind farms in India’s EEZ through both public and private participation.
• To enhance energy security by diversifying renewable energy sources and reducing dependence on fossil fuels.
• To encourage indigenisation of technology, promote research and development (R&D), and develop skilled manpower for offshore wind energy.
• To attract domestic and foreign investment in offshore wind infrastructure and manufacturing.
• To support coastal development and create employment opportunities in the renewable energy sector.

Scope and Coverage

The policy applies to offshore wind energy development up to 200 nautical miles from the baseline along India’s coast, covering the territorial waters and the Exclusive Economic Zone. It includes activities such as resource assessment, site surveys, project installation, grid connectivity, and research.

Institutional Framework

The Ministry of New and Renewable Energy (MNRE) serves as the nodal ministry responsible for implementing and overseeing the policy. It coordinates with various other ministries and departments, including defence, environment, shipping, and fisheries, to ensure regulatory compliance.
The National Institute of Wind Energy (NIWE), based in Chennai, acts as the nodal agency for executing the policy. NIWE is tasked with carrying out wind resource assessments, identifying potential offshore blocks, facilitating developers, and maintaining national offshore wind energy databases.

Key Provisions

The policy contains detailed provisions to support systematic offshore wind development:

• Resource Assessment and Surveys: Offshore wind potential is assessed through preliminary and detailed resource mapping, oceanographic studies, and site feasibility analysis.
• Block Allocation and Leasing: Offshore wind blocks are to be demarcated and leased to developers, generally through transparent competitive bidding.
• Regulatory Clearances: Developers must obtain necessary clearances related to environmental protection, maritime safety, defence, and navigation before commencing operations.
• Grid Connectivity: The policy highlights the importance of efficient onshore grid integration and evacuation systems to ensure seamless power transmission.
• Indigenisation and R&D: Encouragement is given to domestic manufacturing of turbines, foundations, and transmission components to reduce costs and dependency on imports.
• Investment Facilitation: The policy allows foreign direct investment (FDI) up to 100% under the automatic route and promotes public-private partnerships (PPP) to attract large-scale capital.

Potential and Targets

India’s initial assessments estimated an offshore wind energy potential of around 70 GW, particularly off the coasts of Gujarat and Tamil Nadu. The policy initially targeted 5 GW by 2022 and 30 GW by 2030, aligning with national renewable energy goals. Offshore wind, with its higher capacity utilisation factors compared to onshore projects, was seen as a vital contributor to India’s renewable energy transition.

Implementation and Challenges

Although the policy provided a clear roadmap, actual implementation has progressed slowly. No commercial offshore wind projects were operational in the early years following the policy’s introduction.
Several challenges have hindered progress:

• High Capital Costs: Offshore projects require greater investment compared to onshore due to expensive installations, subsea cabling, and marine operations.
• Technical and Logistical Constraints: The lack of specialised infrastructure such as heavy-lift vessels, port facilities, and maintenance bases has delayed execution.
• Regulatory Complexity: Multiple clearances from central and state authorities have created procedural delays.
• Tariff Uncertainty: The absence of established tariff mechanisms and bankable offtake agreements reduced investor confidence.
• Limited Domestic Supply Chain: India’s manufacturing and service ecosystem for offshore wind components remains underdeveloped.

Despite these obstacles, progress has been made in resource mapping and in the preparation of initial offshore wind blocks off the coasts of Gujarat and Tamil Nadu. The government has also initiated port modernisation and logistical planning to support upcoming projects.

Recent Developments

To accelerate implementation, the government introduced additional measures such as the Offshore Wind Energy Lease Rules, 2023, which streamline leasing procedures and define responsibilities among different agencies.
Further, a Viability Gap Funding (VGF) scheme was approved to support the development of the first 1 GW of offshore wind capacity. This aims to reduce financial risk for developers by subsidising part of the project cost. The MNRE has also undertaken initiatives to improve data quality, promote international collaborations, and explore floating offshore wind technologies suitable for deeper waters.

Significance

The National Offshore Wind Energy Policy is a crucial element of India’s broader energy transition strategy. Its implementation promises several benefits:

• Energy Diversification: Offshore wind complements solar and onshore wind energy, ensuring a more stable and balanced renewable energy mix.
• Industrial Growth: The policy can stimulate the creation of new manufacturing hubs for turbines, foundations, and subsea cables, enhancing India’s industrial capabilities.
• Employment Generation: Offshore projects require skilled labour for design, fabrication, installation, and maintenance, contributing to coastal employment.
• Climate Change Mitigation: Offshore wind power can significantly reduce greenhouse gas emissions, supporting India’s commitments under the Paris Agreement.
• Regional Development: Coastal states benefit from infrastructure upgrades, including improved ports, roads, and industrial facilities.

Criticisms and Limitations

Despite its progressive framework, the policy has faced several criticisms:

• The pace of project development has been much slower than anticipated, falling short of the initial targets.
• The absence of a dedicated financial support system during the early years discouraged private sector participation.
• Overlapping jurisdiction among ministries often causes delays in project approvals.
• Infrastructure gaps in ports and grid connectivity continue to hinder readiness for large-scale deployment.

Way Forward

To realise the full potential of offshore wind energy, several strategic steps are necessary:

• Fast-track the demarcation and auctioning of offshore wind blocks.
• Strengthen domestic manufacturing and R&D to reduce import dependency.
• Enhance port and grid infrastructure to support large-scale installations.
• Develop clear tariff frameworks and long-term power purchase mechanisms.
• Promote floating wind technology to access deeper offshore resources.
• Encourage greater coordination among ministries and streamline environmental clearances.

The National Offshore Wind Energy Policy – 2015 thus marks a significant step in India’s renewable energy journey. While the policy has laid the groundwork for an emerging industry, the realisation of its vision depends on the timely execution of projects, development of industrial ecosystems, and the creation of a stable regulatory and financial environment.