Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 127
Offshore Wind Worldwide 2023
aspects including bidding specifications,
earnest money deposit, development of the
projects under captive mode / third party
sale / open access, setting up of offshore
wind project which shall be inclusive of an
offshore pooling station with the voltage
capacity of 220 kV and other contractual
terms for the lease of the seabed. As per the
Draft Tender, the survey lease for the seabed
would be granted for a 5-year period (extendible for a further 2 years), for carrying out
study, survey and development activities
imperative for the preparation of the detailed project report and to bring a project to
financial close.14
The Draft Tender envisages a 2-envelope
single bid process for each offshore wind
sub-block with a quote of single seabed
lease fees for the seabed area of the project
applied for, with a cap of 2 blocks per bidder.
The Draft Tender specifies that upon submission of the detailed project report, the
concessionaire entity is required to execute
a construction and operation lease deed
and a concession agreement for a 35-year
concession period15 . The Draft Tender provides that acquisition of land near the seacoast, if required, from the state or port authorities in order to set up the project, shall be
the sole responsibility of the developer and
indicates that the central transmission utility
would be responsible for the evacuation of
power from the offshore delivery point to
the onshore interconnection point.
14 Ibid at 17.
15 Supra note 13 at page 18.
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1.2 Scheme in relation to exclusivity to
construct, own and operate a project, as
well as to receive feed in revenues
The development process envisaged under
the Strategy Paper is based on the model
applied. For example, under Model-1, the
MNRE or the designated agency would
float a bid for 1GW in the demarcated area
for which ‘in principle’ clearances ("Stage I
approvals") have already been obtained by
NIWE. Once the successful bidder is identified, the MNRE or its designated agency
would execute a 30-year lease with the successful bidder in accordance with lease rules
which shall be notified, with an annual floor
lease fee of INR 100,000 (approximately USD
1,219) per square kilometre per year for the
duration of the lease. Under this model, the
onus of obtaining Stage II approvals would
be with the successful bidder who would
have to file the relevant information required for the grant of such clearances. Please
see section 2.2 for details of Stage I and
Stage II approvals. In addition to the lease
agreement, the successful bidder would
also enter into a concession agreement with
the MNRE or its designated agency which
would, among others, provide for a period of
4 years for the establishment of the offshore
wind project, extendable in case of extenuating circumstances up to a maximum
duration of 5 years to set up and commission the project. Once commissioned, power
would be sold via the implementing agency
or Solar Energy Corporation of India ("SECI")
which would have back-to-back power sale
