Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 126
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identified in the Strategy Paper is envisaged
for NIWE-identified offshore wind sites for
which detailed surveys and studies have not
been undertaken. Within the ambit of Model-2, Model 2-A contemplates that MNRE,
through the implementing agencies, would
run a bid process for a targeted offshore
wind capacity of 2 GW in FY 2024-25 wherein
developers who have undertaken studies
and surveys under Model-2 would be
permitted to submit bids for development
of the offshore wind projects. The Strategy
Paper also indicates that required central
financial assistance in the form of viability
gap funding (VGF) would be available for the
initial projects under this Model 2-A. Alternately, under Model 2-B, developers having undertaken detailed survey may also develop
offshore wind projects for sale of power on
merchant basis/bilateral agreements with
customers under an open access mechanism or on a captive consumption basis. The
Strategy Paper provides that projects under
Model 2-B would be entitled to benefits
such as the provision of evacuation infrastructure from the offshore pooling delivery
point, a waiver of transmission charges,
carbon credit benefits, renewable energy
credits etc. as may be available from time to
time.10
Under Model-3 mentioned in the Strategy
Paper, large offshore wind zones may be
identified by NIWE from time to time, but
which would not fall within the scope of Mo-
India
del-1 or Model-2 described above. Proposed
wind sites within these zones would be
allocated on a lease basis for a fixed period
through a single-stage 2 envelope bidding
and the power generated from projects
developed under this model would be used
either on a captive consumption basis under
an open access mechanism or sold to any
entity under a bilateral power purchase agreement or sold via power exchanges. Such
projects would also be entitled to applicable
benefits as described above for Model 2-B.11
It has also been reported that a concept
note on a VGF scheme for the initial 3 GW
offshore wind power project for an amount
of INR 142.83 billion (approximately USD 1.74
billion) has been submitted for in-principle
approval of the Department of Expenditure,
Ministry of Finance, Government of India
and that the draft of the Offshore Wind
Energy Lease Rules has been finalised by
the concerned Ministry and is awaiting legal
vetting/approval.12
On 14 November 2022, MNRE released a
draft tender document for sea-bed leasing
for offshore wind power projects off the
coast of Tamil Nadu, India ("Draft Tender").13
Through the Draft Tender, the government
proposed to lease out sea-bed areas for
wind power projects with an approximate capacity of 4 GW for the financial year
2022-23. The Draft Tender is an exhaustive document and elaborates on various
10 Ibid at 2.
11 Ibid.
12 Supra note 2.
13 Ministry of New and Renewable Energy, ‘Draft Tender Document for Sea bed leasing for offshore wind energy Project’, dated 14 November 2022,
accessed on 21 April 2023.
