The commissioning of 1 GW offshore wind projects will generate approximately 3.72 billion units of renewable electricity annually, leading to a reduction of 2.98 million tonnes of CO2 equivalent emissions per year over a 25-year period. Additionally, this scheme will initiate offshore wind energy development in India and foster the creation of a necessary ecosystem to enhance its ocean-based economic activities. This ecosystem will facilitate the establishment of an initial 37 GW of offshore wind energy with an investment of approximately Rs 4,500 billion.
Congratulations to the Government on the VGF Scheme Approval for Offshore Wind Energy Projects
We are delighted to congratulate the Government and the Cabinet for their visionary decision to sanction the Viability Gap Funding (VGF) scheme for offshore wind energy projects. This significant initiative, with a total budget of Rs 74.53 billion, marks a pivotal step towards harnessing the immense potential of offshore wind energy in India.
The sanctioned amount includes Rs 68.53 billion dedicated to the installation and commissioning of 1,000 MW of offshore wind energy projects. This ambitious 1 GW capacity will be strategically distributed with 500 MW each off the coasts of Gujarat and Tamil Nadu. Additionally, Rs 6 billion has been allocated for the enhancement of two key ports, ensuring they meet the logistics needs of these groundbreaking projects.
The execution of these projects will be undertaken by private developers selected through a transparent bidding process, ensuring efficiency and competitiveness. Power Grid Corporation of India Limited will play a crucial role by constructing the necessary power evacuation infrastructure, including offshore substations. The Ministry of New and Renewable Energy, as the nodal ministry, will coordinate with various other ministries and departments to ensure the seamless implementation of this scheme. Additionally, the Ministry of Ports, Shipping, and Waterways will support the development of the two designated ports, further strengthening the offshore wind infrastructure.
The commissioning of these 1 GW offshore wind projects is anticipated to generate approximately 3.72 billion units of renewable electricity annually. This will lead to a substantial reduction of 2.98 million tonnes of CO2 equivalent emissions per year over a 25-year period. Such a remarkable environmental benefit underscores the importance of this initiative in our fight against climate change.
Moreover, this scheme will not only kickstart the development of offshore wind energy in India but also foster the creation of a robust ecosystem to enhance our ocean-based economic activities. This foundational ecosystem will be crucial for achieving an initial target of 37 GW of offshore wind energy, with an estimated investment of approximately Rs 4,500 billion.
This landmark decision reaffirms India’s commitment to renewable energy and its leadership in the global energy transition. We extend our heartfelt congratulations to the Government and the Cabinet for their foresight and dedication to a sustainable future. This VGF scheme is a monumental stride towards a greener, more sustainable India, and we eagerly look forward to witnessing the positive impact of this initiative on our environment and economy.
Congratulations once again on this commendable achievement!