NEWS – Union Cabinet approved Viability Gap Funding (VGF) to Scheme implement Offshore Wind Energy Projects in India

HIGHLIGHTS

Key Components

• Installation and Commissioning: Rs. 6853 crore for 1 GW offshore wind energy projects.
• Port Upgradation: Grant of Rs. 600 crore for enhancing port logistics.

Implementation Strategy

• Policy Context: Aligns with the National Offshore Wind Energy Policy (2015).
• Private Participation: Projects executed by private developers through transparent bidding.
• Infrastructure Support: Power excavation infrastructure handled by Power Grid Corporation of India Ltd (PGCIL).

Role of Nodal Ministry

• Ministry: Ministry of New and Renewable Energy.
• Coordination: Ensures seamless collaboration with other Ministries/Departments.

Importance of Offshore Wind Energy

• Advantages: Higher adequacy & reliability, lower storage requirements, and increased employment potential.
• Economic Benefits: Investments, indigenous manufacturing, employment creation, and technology development.

Environmental Impact

• CO2 Emission Reduction: Estimated reduction of 2.98 million tons annually for 25 years.
• Renewable Electricity Production: About 3.72 billion units annually.

Future Prospects

• Ecosystem Development: Creation of a conducive environment for a 37 GW offshore wind energy sector.
• Investment: Estimated investment of Rs. 4,50,000 crore for offshore wind energy development.