Offshore wind energy in India: Removing barriers and harnessing the potential

India has set for itself rather ambitious goals and targets on the global climate platform. The third largest emitter of carbon dioxide after China, and the US in 2020, India resolved to achieve the target of Net Zero at the UN Climate Change Conference in Glasgow (COP 26), which translates to reduction in carbon emissions and not contributing to the amount of greenhouse gases (GHGs) in the atmosphere. India has further pledged to generate 50% of its electricity from non-fossil fuel sources, which amounts to around 500GW. This could lead to 45% reduction of emission intensity of the GDP (amount of GHG emissions for every unit of GDP) by 2030.

Yet, the road to achieving goals is fraught with challenges, one of them being the lack of usable land and increasing difficulty of acquiring lands for building renewable sources of energy production. Off-shore wind energy generation is an opportunity for the country to ease pressure on land and develop a cost-effective, reliable source of clean energy.

Offshore vs. Onshore wind energy 

For those uninitiated, energy generation that happens through wind farms constructed on shallow bodies of water, usually in the ocean, is considered off-shore wind energy. It differs from the on-shore wind turbines built on the land. The former has specific pros over the latter. Higher and more consistent wind speed off the shores than winds blowing on land result in higher energy production by the wind turbines. They generate more electricity with greater consistency owing to lack of physical interference, a common downside for turbines located on land.

India pursuing its potential for harnessing off-shore wind energy 

India reportedly has technological offshore wind potential of 195 GW (112 GW fixed and 83 GW floating). With a coastline extending over 7500 km, off-shore wind energy production provides a window of opportunity for India to actualise its clean energy goals. In a decisive step, the Ministry of New and Renewable Energy (MNRE) has proceeded to float tenders for off-shore windmills along the coast of Tamil Nadu and Gujarat.

This project is the first of its kind in the Asia-Pacific region, and the areas earmarked for installation of windmills are strategic, for reasons more than one. Tamil Nadu is the wind power capital of India, with its onshore windmills having a capacity of more than 18000 MW. A study by the Tamil Nadu Generation and Distribution Corporation has concluded that unlike its onshore counterpart where wind power is seasonal, the state will get off-shore wind power continuously between June 15 and January 15. Moreover, the waters between Tamil Nadu and Sri Lanka are reported to have strong wind power that is not intermittent, hence presenting opportunities for continuous energy production. 

Dhanushkodi, a small uninhabited coastal village, has been selected as the best site for off-shore wind projects, and a test facility is likely be set up there by the National Institute of Wind Energy, Chennai (NIWE). The Government of India plans to set up two wind farms with a capacity of 8 MW each at an investment of INR 350 crore. The facility will gather data on the feasibility and performance of turbines, generally manufactured in Europe, in Indian conditions. Such data will be instrumental in setting up windmills with turbines that can perform to their fullest potential, considering wind conditions in India.

In Gujarat, the 1600-km-long coastline is touted to have a potential of generating 32GW to 35 GW off-shore wind power. The MNRE has approved setting up of off-shore windmills in three coastal areas: Saurashtra, South Gujarat, and the Gulf of Khambhat coastlines. The project is estimated to generate power of over 20,000 MW and expects an investment of over INR 16,000 crore. Once commissioned, this will help provide for a large percentage of the state's electricity requirements. 

Understanding India’s challenges in tapping off-shore wind potential 

While India seems to have identified promising avenues for off-shore wind energy generation, some roadblocks remain. 

High costs of setting up off-shore windmills is one such roadblock as increased component costs translate into higher tariffs for the electricity generated. Solar power energy and onshore wind energy generation industry are competitive with their rates. For example, in India, offshore wind tariffs are likely to range between Rs 7-9 per unit as compared to Rs 2.8-2.9 per unit for onshore wind. How can then off-shore wind industry compete with them? Further, floating off-shore wind energy projects cost 50% more than fixed-bottom off-shore wind projects. Even though there has been a drop in the cost of off-shore wind energy, especially in the European markets, the costs still pose a significant challenge. 

Another challenge to establishing a steady off-shore wind power energy in India is the concerns over environmental impact the wind farms on water bodies may have. There is a growing apprehension in the scientific community about the risk of increased noise levels, collisions, “alterations to food webs, and pollution from increased vessel traffic or release of contaminants from seabed sediments”. The off-shore wind development also affects local fishing communities and disrupts shipping routes. 

Regarding technological requirements, India still lacks substantial studies that may identify areas for off-shore wind energy production (both floating and fixed-bottom) as well as zones that need to be cleared out and excluded in its development for other ocean uses. 

How does India approach these issues?

The challenges are diverse, but they are not insurmountable. Effectively tackling these issues requires a coordinated institutional framework wherein the Centre and the states work in tandem and follow a multi-stage or phase-wise approach to offshore wind energy development. Robust policy frameworks, including necessary project clearances at the national and state levels, are crucial for offshore wind development to take off effectively. 

Another way of reducing the risks associated with offshore wind power generation is to revamp and improve the existing infrastructure of onshore wind infrastructure. Developing port infrastructure can also boost project delivery, according to this report by the Centre for Science and Environment. The report also suggests financial aid from bodies such as the World Bank for off-shore wind projects, as well as collaboration and partnerships with the European Investment Bank, which may help cover the large initial costs of production.

Not just financial aids, the industry must find ways to reduce the early project development cost.  One of the ways could be urging upon the government to waive off excise duties and GST for most of the wind farm components that have to be imported: inverters, turbines, transformers, etc. This can be an incentive for players who want to venture into off-shore wind energy.

While India has begun its journey to harvest green energy, especially through technologies like off-shore wind energy production, creating an enabling policy and financial environment is crucial for accelerating the off-shore potential and maximise its benefits. This will ensure that India sticks to its global climate commitment and get closer to its target of generating 5GW of electricity from off-shore wind by 2030.