India’s offshore wind energy potential

Offshore wind farms produce more electricity per installed capacity than onshore wind farms.

India’s offshore market is on the verge of exploding. The most difficult aspect is getting started.

India’s wind energy capacity increased to 39.2 gigawatts (GW) per year in March 2021. According to the Global Wind Energy Council, an additional 20 GW would be added over the next five years (GWEC).

Between 2010 and 2020, the compound annual growth rate for wind generation was 11.39 percent, while the rate for installed capacity was 8.78 percent.

The Union Ministry of New and Renewable Energy (MNRE) has set a target of 5 gigawatts (GW) of offshore capacity by 2022 and 30 gigawatts (GW) by 2030. Wind energy has experienced various obstacles in recent years, and 2019 was no exception.

Along with a declining economy, low tariffs, tariff ceilings, and curtailments, the sector has been heavily burdened by a plethora of levies and tariffs.

India has not yet developed an offshore wind energy industry. According to the MNRE, India’s 7,600 kilometres of coastline can create 127 GW of offshore wind energy.

According to the National Institute of Wind Energy, the total wind energy potential is 302 GW at a 100-meter hub height (NIWE). Over 95% of the total estimated potential is concentrated in seven states: Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Tamil Nadu.

Offshore Wind Energy’s Advantages

Offshore wind energy is the placement of wind turbines within bodies of water. They generate electricity by harnessing the power of the sea breezes. These wind farms employ either fixed- or floating-foundation turbines.

A fixed-foundation wind turbine is constructed in shallow water, but a floating wind turbine is constructed in deeper water with its base tethered to the seabed. Wind farms on the water are still in their infancy.

Offshore wind farms must be located at least 200 nautical miles from the land and at least 50 feet below the surface of the water. Offshore wind turbines generate electricity that is returned to shore via submarine cables. The coastal load centres prioritise the distribution of this electricity.

Large wind farms positioned over water bodies will be critical in India, where land is scarce and the population is growing.

Offshore wind parks have a plethora of advantages. Offshore wind turbines have been shown to be more efficient than onshore wind turbines. Wind speed is high and steady in direction over bodies of water. As a result, offshore wind farms produce more electricity per kilowatt-hour installed.

Additionally, fewer offshore turbines are required to generate the same amount of energy as onshore ones.

Because offshore wind is stronger during the day, it enables more constant and efficient energy generation during periods of peak customer demand. Wind energy on land, on the other hand, performs better at night, when electricity use is lower.

The capacity utilisation factor (CUF) of a wind turbine is equal to its average output power divided by its maximum power capability. Along with wind availability, the generator size and swept area of the turbine will influence its productivity.

Offshore wind farms have a greater capacity utilisation factor (CUF) than onshore wind farms. As a result, offshore wind energy enables longer operating hours.

Offshore wind turbines can be built larger and taller, resulting in improved energy harvesting. Additionally, the wind is not constrained by hills or buildings.

Offshore wind farms’ benefits and India’s abundant offshore wind potential enable them to play a significant role in reaching the targeted climate commitment and energy security goals.

Offshore wind energy’s challenges

Offshore wind assets also face a number of hurdles, which have hampered their development in India. It is critical to understand the technical, regulatory, and operational challenges. These include the following:

India lacks indigenous substructure producers, installation vessels, and qualified labour. Offshore wind turbines require significantly more robust buildings and foundations than onshore wind farms do. This may result in increased installation expenses.

As a result, rates for offshore wind in India are estimated to range between Rs 7-9 per unit, compared to Rs 2.8-2.9 for onshore wind.

Wind turbines can be damaged by the force of waves and even powerful winds, particularly during storms or hurricanes. Eventually, offshore wind farms will require more expensive and demanding maintenance.

Numerous Indian ministries and departments are expected to approve offshore wind energy projects. This element may slow the process, resulting in delays and cost overruns.

Recommendations for Offshore Wind Energy Development in India

A comprehensive set of suggestions is offered, outlining the necessary components for developing a legislative, regulatory, grid integration, and financial framework.

Renewable purchase obligation: Under a renewable purchase obligation, government-specified obligated businesses such as power distribution firms, open access consumers, and captive users can purchase clean energy as part of their overall electricity consumption.

There are two types of RPOs now available: solar and non-solar. MNRE, like it does for solar, can establish particular wind RPO targets for each state.

Reduced taxes: In India, the Goods and Services Tax (GST) law exempts electricity and power sales from the GST. In comparison, wind energy producers cannot claim input tax credits when they pay GST on products and/or services used to establish the project.

The majority of components for wind farms must be imported. Turbines, transformers, inverters, and evacuation infrastructure are all costly to acquire because to the associated taxes. If excise charges and GST could be eliminated, the cost of early project development would be reduced.

Feed-in tariffs: Discoms may establish feed-in tariff (FiT) policies and require the acquisition of offshore wind energy. FiT can be adapted to the specific requirements of any offshore wind project. FiT can be used to support offshore wind energy throughout its infancy, until it becomes economically feasible.

A long-term contract and price guarantee mitigate the inherent risk associated with renewable energy production, so promoting investment and development that might not have occurred otherwise. Additionally, discoms can ensure that offshore wind projects receive priority payments.

A ‘front-loaded’ FiT agreement could also be established and implemented, in which, rather than charging the same rate throughout the project’s life, a higher tariff is charged in the early years, gradually reducing. Offshore wind projects can thus benefit from increased financial support.

Offshore wind projects must be protected from curtailment problems due to the difficulty of State Load Dispatch Centers (SLDCs) to absorb large amounts of power generated. Offshore wind can be granted a “deemed generating provision” to accomplish this. SLDCs / regional load dispatch centres may compensate through the state or regional unplanned interchange pool.

The Power Grid Corporation of India Ltd. may construct the undersea power evacuation and subsea substations. This would mitigate the risk encountered by developers of offshore wind farms.