Dinesh Jagdale, Jt Secy, MNRE, ET EnergyWorld

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New Delhi: The approval for the viability gap funding (VGF) for one-gigawatt (GW) of offshore wind energy capacity is expected in the next couple of months, said Dinesh Jagdale, joint secretary, ministry of new and renewable energy (MNRE) at an event here today.

“VGF is near to achievement… We are expecting approvals in the next couple of months and bids will be issued thereafter through the Solar Energy Corporation of India,” said Jagdale.

The 2023 strategy paper has set out three development models to establish offshore wind capacities in India – Model-1 is the VGF-based business model. VGF is a type of grant to support projects that are not financially viable yet.

“The VGF is a process for which we have received the concurrence from the Ministry of Finance, but there is a two stage process thereafter. One is the Expenditure Finance Committee and then it goes to the Cabinet,” Jagdale said while speaking at the Fourth International Conference on Clean Energy organised by the Confederation of Indian Industry.

He said that the expenditure finance report has been prepared and sent for consultation. After that approval it will be taken to the government.

“This VGF is for one-gigawatt of offshore wind support. The VGF-based model talks about 500 MW in Gujarat and 500 MW in Tamil Nadu… The Gujarat one is in an advanced stage as the data for it is available through NIWE,” he said.

He added that the buyers for this energy are already there. “We have Tamil Nadu and Gujarat who have already committed to buy the electricity,” he said.

Under Model-2 and Model-3, it is about opening up the seashore.

For Model-2, he said it is about giving exclusivity to the bidding process. “We are working on the last set of approvals and we expect it to come out by 1 December 2023, we are trying to bring out the RfS very soon,” he said.

On evacuation, he said that the infrastructure for grid evacuation is being planned for 500 MW across Gujarat and 500 MW in Tamil Nadu in the first phase.

“The necessary documentation from Central Transmission Utility is being prepared and it goes to a committee for approval which is expected to be placed for the next October meeting. We are planning infrastructure creation for 10 GW so that the visibility is there for the investment community by minimising the evacuation risks,” he added.

Jagdale said that there will be clear-cut on-ground development to be seen from the government side on these areas. On wind turbines, he said that it should be ensured that turbines are made for the Indian offshore specifically.

  • Published On Sep 14, 2023 at 08:36 PM IST

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