Consultations on for offshore wind tenders in TN: official

1. At a Glance

• Union Renewable Energy Ministry is holding fresh consultations for a new offshore wind tender off Tamil Nadu, after an earlier tender failed to draw adequate response [3].
• National Institute of Wind Energy (NIWE) has completed all feasibility studies (wind velocity, geo-technical, geo-physical) off the TN coast, with Capacity Utilisation Factor (CUF) >50% [3].
• Relevant for UPSC as it intersects renewable energy policy, coastal/marine governance, India's climate/NDC commitments, and Centre–State execution of infrastructure tenders.
• India targets 30 GW offshore wind capacity by 2030 [2].

2. Why in the News

• On 2 September 2026, Rajesh Kulhari, Joint Secretary, Union Ministry of New and Renewable Energy (MNRE), told reporters that consultations are underway for introducing a new tender for offshore wind in Tamil Nadu, citing completed feasibility studies and CUF above 50% [3].
• He noted the government had earlier faced a "setback" in Tamil Nadu as tenders did not receive the anticipated response [3].

3. Background & Evolution

• Government initially identified eight potential offshore wind zones each off Tamil Nadu and Gujarat [1][3].
• NIWE's assessment: nearly 35 GW potential off Tamil Nadu and ~36 GW off Gujarat [2].
• Offshore Wind Energy Lease Rules notified 19 December 2023 to regulate leasing of offshore areas [1].
• Solar Energy Corporation of India (SECI) issued the first 4 GW seabed lease tender (four blocks of 1 GW each, international competitive bidding) off Tamil Nadu under captive/bilateral/open-access modes [1].
• This first tender attempt saw poor investor response, prompting Viability Gap Funding (VGF) Scheme, which itself went from "zero bids" to a second attempt [1].
• NIWE has historically deployed LiDAR-based measurement campaigns off Gujarat and Tamil Nadu coasts for resource assessment [2].

4. Core Static Facts

5. Multi-Dimensional Analysis

Economic

• High CUF (>50%) in Tamil Nadu makes offshore wind commercially more attractive than onshore (25% CUF), potentially lowering per-unit cost over time [2][3].
• Poor initial bid response indicates high capital cost/financing risk, necessitating VGF support [1].

Environmental

• Offshore wind avoids land-use conflicts common with onshore wind/solar, relevant to India's coastal ecology and EIA processes; Rapid EIA studies were conducted by NIWE off TN [1].

Geopolitical/Strategic

• Supports India's energy security and diversification of the renewable mix beyond solar-heavy capacity additions; aligns with India's NDC and net-zero-by-2070 commitment.

Legal/Administrative

• Governed by the Offshore Wind Energy Lease Rules, 2023, which formalize seabed leasing — a novel regulatory domain for India straddling Union subjects (EEZ, energy) [1].
• Central agencies (MNRE/NIWE/SECI) drive project development even though the project site lies off a state's coast — a Centre-led model, unlike onshore renewable siting which involves more state discretion.

Scientific/Technological

• Reliance on LiDAR, geo-technical and geo-physical surveys, and oceanographic (wave/tide/current) studies for site characterization [1][2].

6. Recent Developments (last 12–18 months)

• 2 September 2026: MNRE Joint Secretary Rajesh Kulhari announces fresh consultations for a new TN offshore wind tender, confirming completion of all feasibility studies and CUF >50% [3].
• Prior: SECI's first 4 GW TN offshore wind seabed lease tender (under the 2023 Lease Rules) failed to elicit adequate bids, prompting a re-think and VGF-based approach [1].

7. Prelims Hooks

• Nodal ministry for offshore wind tenders: Ministry of New and Renewable Energy (MNRE), not MoEFCC [3].
• Technical/resource-assessment body: National Institute of Wind Energy (NIWE) [3].
• Tender/bid-issuing agency: Solar Energy Corporation of India (SECI) [1].
• Offshore Wind Energy Lease Rules notified on 19 December 2023 [1].
• Eight potential offshore wind zones identified each off Tamil Nadu and Gujarat [1][3].
• TN offshore wind potential estimated at ~35 GW; Gujarat at ~36 GW [2].
• First TN offshore wind tender: 4 GW capacity, 4 blocks of 1 GW each, via international competitive bidding [1].
• Offshore wind CUF in India: 30–40% generally, up to >50% off the Thoothukudi coast, Tamil Nadu [2][3].
• Onshore wind CUF in India for comparison: ~25% [2].
• India's offshore wind capacity target: 30 GW by 2030 [2].
• The earlier TN offshore tender saw a poor/zero-bid response, leading to consideration of a Viability Gap Funding (VGF) Scheme [1].

8. Mains Relevance

• GS-III: Infrastructure — Energy; Conservation; Environmental Pollution and Degradation; Achievements of Indians in Science & Technology.
• GS-II (secondary): Government policies and interventions for development in various sectors.
• Possible question stems: 1. Discuss the potential and challenges of offshore wind energy development in India with special reference to Tamil Nadu and Gujarat. (GS-III) 2. Examine why India's first offshore wind seabed lease tender failed to attract adequate investor interest. What policy instruments can address this? (GS-III) 3. Offshore wind energy can be a game-changer for India's renewable energy transition. Critically evaluate the regulatory and financial framework supporting it. (GS-II/III)

9. Related Topics to Study Next

• National Green Hydrogen Mission — offshore wind could feed green hydrogen production hubs.
• India's Renewable Energy Targets (500 GW non-fossil capacity by 2030) — offshore wind is a subset of this broader goal.
• Exclusive Economic Zone (EEZ) and Maritime Zones Act, 1976 — legal basis for offshore leasing.
• Viability Gap Funding (VGF) Scheme — financing mechanism now extended to offshore wind.
• PM-KUSUM / Solar Park schemes — comparative Centre-driven renewable siting models.
• National Institute of Wind Energy (NIWE) — institutional mandate and history.
• India's NDC and Net-Zero 2070 target — climate policy context.
• Coastal Regulation Zone (CRZ) Notification — environmental clearance overlap with offshore projects.

10. Common Errors / Trap Areas

• Confusing MNRE with MoEFCC as the nodal ministry — offshore wind sits under MNRE, not Environment Ministry [3].
• Mixing up NIWE (technical/resource assessment) with SECI (bid/tender-issuing agency) — different roles [1].
• Assuming offshore wind CUF is uniform nationally — TN's Thoothukudi coast figure (>50%) is a site-specific high, not the national offshore average (30–40%) [2].
• Treating the "eight zones" figure as combined — it is eight zones each for Tamil Nadu and Gujarat separately (16 total), not eight total [1][3].
• Assuming the Offshore Wind Energy Lease Rules are old policy — they were notified only in December 2023, a relatively recent regulatory development [1].