The union cabinet has green lighted a viability gap funding (VGF) scheme amounting to ₹7,453 crore, aimed at developing one GW of offshore wind energy projects in Gujarat and Tamil Nadu. The initiative marks India’s foray into offshore wind energy.
Specifically, the VGF scheme allocates ₹6,853 crore for the installation and commissioning of 500 MW wind energy projects off the coasts of both Gujarat and Tamil Nadu. Additionally, ₹600 crore is designated for upgrading two ports to support the logistical needs of these offshore projects.
Upon successful commissioning, the 1 GW offshore wind projects are expected to generate approximately 3.72 billion units of renewable electricity annually. This will help reduce CO2 equivalent emissions by about 2.98 million tons each year over a span of 25 years.
The scheme is designed to jumpstart the development of offshore wind energy in India and create a supportive ecosystem for further ocean-based economic activities. This ecosystem will facilitate the development of 37 GW of offshore wind energy, requiring an investment of around ₹4,50,000 crore
The VGF scheme is a significant step toward implementing the national offshore wind energy policy, which was announced in 2015, aiming to harness the extensive offshore wind potential within India’s exclusive economic zone.
As reported by Deccan Herald, offshore wind energy offers numerous advantages over onshore wind and solar projects, including higher efficiency, greater reliability, and reduced storage needs. This initiative will play a crucial role in achieving India’s energy transition goals.
