The Union Cabinet has approved a funding scheme of Rs 7,453 crore for offshore wind energy projects.
Funds Allocation:
The government has allocated Rs 6,853 crore for the installation of 1 gigawatt (GW) of offshore wind energy, with projects of 500 megawatts (MW) each planned off the coasts of Gujarat and Tamil Nadu. Additionally, Rs 600 crore has been set aside for upgrading two ports to support these offshore wind projects.
Purpose:
The scheme is designed to implement the National Offshore Wind Energy Policy of 2015 by harnessing India’s offshore wind energy potential. It aims to lower the cost of power generated from these projects, making it more affordable for distribution companies.
Project Development:
Private developers will construct the wind energy projects, while Power Grid Corporation of India will manage the excavation infrastructure and offshore substations.
Expected Outcomes:
The 1GW offshore wind projects are expected to produce approximately 3.72 billion units of renewable electricity every year, leading to a reduction of approximately 2.98 million tonnes of CO2 emissions annually over a span of 25 years. The initiative aims to kickstart the development of 37 GW of offshore wind energy, necessitating an investment of around Rs 4,50,000 crore.
