Offshore wind can be the next frontier of India's energy transition. Examine the policy framework and the challenges involved.

Offshore wind farms are built at sea, where winds are stronger and steadier, and offshore turbines can reach about 15 MW each [1]. NIWE estimates 36 GW of potential off Gujarat and nearly 35 GW off Tamil Nadu [1]. Onshore wind is held back by land and Right-of-Way problems, so offshore wind is a logical next frontier. However, the policy framework is well ahead of what has actually been built.

Policy Framework

• National Offshore Wind Energy Policy was notified on 6 October 2015. MNRE is the nodal ministry. NIWE, Chennai is the nodal agency for resource assessment and surveys in the EEZ [1].
• Offshore Wind Energy Strategy (2023) sets a 37 GW bidding trajectory by 2030. The Offshore Wind Energy Lease Rules, 2023 (19 December 2023) govern how seabed is allotted [1].
• Viability Gap Funding (VGF): ₹6,853 crore for 1 GW (500 MW each off Gujarat and Tamil Nadu), plus ₹600 crore to upgrade two ports. PGCIL will build the transmission links [3].
• Development models: Model A uses government-led studies plus VGF. Models B and C are developer-led and get no central financial help [1].
• Partnerships: the India–Denmark MoU (2019, renewed May 2025) and the India–UK Offshore Wind Taskforce (2026) bring in technical know-how [2].

Challenges

• Funding gap: VGF covers 1 GW of a 37 GW plan [1][3]. The 4 GW Tamil Nadu tender is on open-access terms with no VGF [4].
• Cost and infrastructure: large turbines need specialised ports, installation ships and undersea cables, so they cost much more than onshore projects [1]. The port grant covers only two ports [3].
• Execution lag: in 2022 the Standing Committee on Energy noted about 70 GW of offshore potential and not a single project [5].
• Payment risk: DISCOMs owed wind developers ₹14,247 crore in overdue payments (March 2022) [5]. This makes lenders see the sector as risky and raises the cost of capital.

India has a strong plan for offshore wind but limited money and infrastructure behind it. The way forward is to:

• extend the 500 MW Contracts-for-Difference pilot [2] to offshore blocks;
• release VGF in phases linked to falling costs;
• build a port-and-vessel ecosystem on India's ~24 GW turbine manufacturing base [2];
• enforce timely DISCOM payments.

Done this way, offshore wind can become a real frontier and advance SDG 7 and India's net-zero 2070 goal.