India’s Union Minister for Power and New & Renewable Energy Shri R K Singh has unexpectedly proposed that the country hold a 4-GW offshore wind auction in each of the next three years, followed by more large-scale auctions in subsequent years
At a meeting on transmission planning for offshore wind projects, the Minister discussed transmission system infrastructure required for 10 GW of offshore wind off the coasts of Tamil Nadu and Gujarat.
A statement issued by the government after the meeting said it had subsequently been decided to issue regular, large-scale tenders for offshore wind, starting with tenders equivalent to 4.0 GW per year for a period of three years, starting in FY 22-23, off the coast of Tamil Nadu.
In subsequent years, said the statement, project capacity of 5 GW will be tendered every year, for a period of five years, that is, until FY 29-30. The 8 GW bid for in the first two years beginning FY 22-23 will be able to make use of ‘carbon credits.’
According to statement, the Ministry of New & Renewable Energy will launch a tender for the first round of projects ‘in the next 3-4 months’ in order to lease offshore wind energy blocks equating to 4.0 GW of offshore capacity off the coast of Tamil Nadu.
The statement said projects bidding for the first 12 GW of overall capacity will be evaluated based on their ‘techno-commercial capabilities.’ Only technically qualified bidders will proceed to financial evaluation.
The financial evaluation process will be based on what was described as ‘a lease fee per square kilometre of seabed.’ The bidder offering the highest lease fee per square kilometre will be declared the winner and allocated rights to develop a project.
