·The Hindu·15 marks·250–350 wordsEconomy

Discuss the potential and challenges of offshore wind energy development in India with special reference to Tamil Nadu and Gujarat.

In this answer
  1. Potential
  2. Challenges

Offshore wind — turbines sited in territorial waters and the Exclusive Economic Zone — is India's least-tapped renewable resource. The Ministry of New and Renewable Energy (MNRE) targets 30 GW by 2030 [1], with Gujarat and Tamil Nadu identified as the two frontier states. Yet a decade after the National Offshore Wind Energy Policy, potential continues to outpace execution.

Potential

  • Resource abundance: NIWE assessments indicate nearly 36 GW off Gujarat and 35 GW off Tamil Nadu, with eight zones identified in each state [1][5].
  • Superior efficiency: offshore Capacity Utilisation Factor is 30–40% against roughly 25% onshore, rising above 50% off the Thoothukudi coast — reducing intermittency and per-unit cost over time [1][6].
  • Land-neutrality: avoids the land acquisition and displacement conflicts that constrain onshore wind and solar parks.
  • Regulatory clarity: the Offshore Wind Energy Lease Rules, 2023, framed under the Maritime Zones Act, 1976, formalise seabed leasing [4]; SECI's 4 GW seabed lease tender off Tamil Nadu (four blocks of 1 GW) operationalised it [2].
  • Blue economy spillovers: port upgradation, shipping, and coastal manufacturing jobs, plus feedstock for green hydrogen hubs [3].

Challenges

  • Weak investor response: the first Tamil Nadu tender failed to attract adequate bids, forcing fresh MNRE consultations for a redesigned tender [6].
  • Capital intensity: the Cabinet's ₹7,453 crore Viability Gap Funding scheme covers just 1 GW (500 MW each off Gujarat and Tamil Nadu), indicating that projects are not yet commercially viable unaided [3].
  • Evacuation and logistics gaps: dedicated offshore transmission of 5 GW per state and port upgrades are still being built out [5][3].
  • Ecological and livelihood concerns: fisher access, the biodiversity-rich Gulf of Mannar, and cyclone exposure along both coasts demand rigorous impact assessment.
  • Centre–State coordination: a Centre-driven model (MNRE–NIWE–SECI) requires assured State DISCOM offtake to bankably close projects.

Offshore wind can therefore anchor India's post-2030 clean energy mix, but only if de-risked. Deepening VGF, guaranteeing offtake through long-term PPAs, phasing port and transmission readiness ahead of bidding, and coupling projects with green hydrogen demand can convert survey-stage potential into installed capacity — advancing India's 500 GW non-fossil goal, SDG-7 and the net-zero-by-2070 pledge.

Sources

  1. 1Offshore Wind, Ministry of New and Renewable Energy30 GW by 2030 target; ~35 GW Tamil Nadu and ~36 GW Gujarat potential; offshore vs onshore CUF
  2. 2Government invites bids for Development of 4 GW Off-shore Wind Energy Projects off the coast of Tamil Nadu, PIBSECI 4 GW seabed lease tender, four 1 GW blocks
  3. 3Cabinet approves Viability Gap Funding (VGF) scheme for Offshore Wind Energy Projects, PIB₹7,453 crore outlay for 1 GW plus port upgradation
  4. 4Offshore Wind Energy Lease Rules, 2023, MNREseabed leasing framework under the Maritime Zones Act, 1976
  5. 5Potential offshore wind zones off the coast of Gujarat and Tamil Nadu identified, PIBeight zones each; 5 GW transmission planning per state
  6. 6"Consultations on for offshore wind tenders in TN: official", The Hindu, 3 September 2026poor response to earlier tender; fresh consultations; CUF above 50%
Practice
10 questions on this article
Check the answer for each question, or reveal all at once.
Practice MCQs →

More from this note

More on Economy