Cabinet approves Rs 7,453-cr VGF scheme for offshore wind energy projects
Notable because
The VGF approval for 1 GW of offshore wind marks a major step forward for the sector. It is part of a larger scheme to invest INR 4,50,000 crore in developing 37 GW of offshore wind capacity. This will add substantially to the existing 45.9 GW of installed wind capacity (as of FY24) and contribute to the 140 GW of wind requirements by 2030, as estimated in CEA's optimal energy mix report.
What to look out for in the months ahead
SECI had earlier planned on issuing tenders for 1 GW of offshore wind projects (500 MW each in Gujarat and Tamil Nadu). If this VGF is applied to these tenders, how will it affect tariff discovery compared to onshore wind projects? Will the 37 GW of wind capacity supported by this VGF provide sufficient economies of scale to ensure that additional offshore capacity can be deployed without further support?