Indian offshore wind power – unlimited opportunities!

India is one of the largest wind energy markets in the world, and the new offshore wind policy provides companies with several good incentives to enter this market.

India’s Largest Wind Farm in Jaisalmer (1 GW)

India’s Largest Wind Farm in Jaisalmer (1 GW)

India is blessed with a long coastline of 7500 Kilometers with persistent wind speeds between 6 m/s to 14 m/s within 12 nautical Miles. To take advantage of this, India has started focusing on offshore wind development and has now finalized the offshore wind policy. The offshore wind potential is assessed between 150 GW to 500 MW primarily dominated along the western coast. With Fresh policy and a stable new government, the segment is poised to grow leaps and bounds.

With a fivefold increase in installed wind capacity to almost 27 GW in the last decade, the wind energy currently contributes to almost 62 % of installed renewable capacity in India. The rapid addition is primary attributed to various factors such as:

  • Promotional policies and comprehensive fiscal incentives by Indian government such as 100 % FDI, Generation Based Incentive, Accelerated Depreciation etc.
  • Regulatory facilitation through renewable certificates market and preferential tariff
  • Commercial and market oriented approach thereby encouraging private participation
Wind Snapshot Onshore Offshore
Potential 102 GW 200-500 GW
Installed 24 GW 0 GW ( Policy approved by Govt recently)

Owning to its geography and topology, India boasts of total wind potential in excess of 300 GW (Offshore and onshore). Only a part of such potential has been exhausted and opportunities exist in all domains of wind sector such as project development, management, equipment manufacturing, consulting, financing & research and development.

Why Norwegian players should look at Indian offshore wind segment:

  • 5th largest wind energy market in the world with
  • 7600 Km coastline with demarcated economic Zone of 2.3 Million Square Kilometers
  • Huge Potential of 200 GW (at 80 m height), 26 % CAGR expected between 2016 to 2025.
  • Bathometry, wind speed, velocity and water depth suitable for wind installations.
  • Government Target of 60 GW operational wind assets ( onshore & offshore )
  • The challenge of Land Acquisition (major bottleneck in India) does not exist in offshore wind.
  • Single window Procedure for statutory approvals (NIWE- Nodal agency).
  • Critical component in National action plan for climate change and United Nations CoP-21 commitment by India
  • Norwegian Companies should leverage on their expertise in the offshore Oil & Gas Sector.

Major Promotional Policies facilitating offshore wind

  • Production linked incentive (0.01 USD/Kwhr) over and above Feed in tariff  (preferential tariffs)
  • Accelerated depreciation (companies can reduce Tax liability by claiming up to 80 % of depreciation as expense in 1st year)
  • Rebates on equipment concessional customs/excise duty
  • Availability of low cost financing and grants (thru’ dedicated agencies such as Indian Renewable Energy Development Agency, Green Climate Fund etc.)
  • R&D funding support
  • Investment tax credits
  • Tax holidays – income tax exemption for 10 years
  • Concessional customs / excise duty / sales tax exemption
  • Feed in tariff instead of competitive bidding, hence more sustainable projects and cash flow certainty
  • Renewable purchase obligation on power utilities

Specific opportunity areas in Offshore Wind

    • Blocks for exploration:
      Indian Govt. shall allocate blocks for exploration through International Competitive Bidding (ICB) process. 1st such Bid expected in Q3 Financial Year 16-17, for 300 MW at western coast of Pipanav Port (Financial year in India is different from Calender year. Financial Year starts from 1st March 16 to 30th April 17, initialed as FY 16-17 and all government plans and schemes work as per Financial Year.)
    • Resource Assessment and Validation:
      Current estimates of offshore wind potential vary between 150 GW to 500 GW!!!. Opportunities exist in data monitoring and validation. (DNV GL working closely with Global wind energy Council to estimate potential in various areas in India).
    • Opportunities for setting up Joint Partnership projects with Indian Power Majors
    • Manufacturing:
      Setting up Manufacturing division in India for turbines, blades, towers, gearbox etc. under Make in India campaign
    • Are these upcoming opportunities?
      – Yes. What we want to suggest is opportunities in all fields of offshore and not only as project developer. Since it is a new field for India, any company involved in Vessel supply, construction or technology sharing has space to operate in India. May a more appropriate heading could be opportunity areas in offshore wind than upcoming oppurtunities.
    • Construction activities such as special foundation
    • Vessels supply for construction and O& M requirements
    • Environment Impact Assessment study
    • Technology sharing / transfer (eg. Tripod, Jacket and Floating technology for high depth towers)
    • Reducing Cost Under current technologies available cost offshore wind is twice as expensive as onshore wind. Hence opportunities exist in any area which helps in reducing costs.
    • Capability creation and turbine designing
    • Grid connectivity and Power evacuation
    • Demonstration / Pilot Projects: Government may call for proposals for development of offshore wind energy demonstration project(s) in specified block(s).

How to get to the Indian Shore wind market:

  • DNV GL is already an important player in Offshore wind segment in India primarily in resource identification and assessment
  • Norwegian Centre for Offshore Wind Energy and National Institute Wind Energy
  • National Institute of Wind Energy India (NIWE) is exploring collaboration through institutional agreements facilitated by Innovation Norway

Innovation Norway will be glad to facilitate your entry in Indian wind sector and take first movers advantage.

Contact

More information For further details and upcoming oppourtunties in India on the sector, please contact:

Helge Tryti
Director of Innovation Norway India
Helge.tryti@innovasjonnorge.no
+91 9910084524

Avanish Verma
Market Advisor for Power & Renewable Energy
avanish.verma@innovationnorway.no
+91 9717778224

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