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Abstract<\/span><\/strong><\/p>\n\n\n\n \nWith fossil fuels becoming scarce and climate change being a big concern, countries worldwide are delving deep into\nrenewable energy. Similar is the case in India. The Indian Government has set a high target of 500GW of\nrenewable energy by 2030, coupled with its 2070 ambition to hit a transformative net-zero economy. Hence\nventuring into Offshore Wind Energy is a step towards fulfilling this target. It was in 2015 that the government\ncame out with the National Offshore Wind Energy Policy, since then the development in this sector has been\nrather slow. In this article I analyse the recent developments, the roadblocks and challenges faced in the Offshore\nWind Energy Sector, leading to a delay. Further, by the end, I list down the major takeaways from the current\nsituation and possible areas that need more clarity and focus.<\/em>\n<\/span><\/p>\n\n\n\n Introduction<\/span><\/strong><\/p>\n\n\n\n In recent years, Offshore wind energy has become popular among countries for diversifying the\ncountry's energy mix and reducing its reliance on fossil fuels. The major difference between\nOnshore and Offshore wind energy is that the prior generates power from wind turbines located\non land, while the latter generates electricity from the wind blowing across the sea. Offshore\nwind farms are considered far more efficient<\/a> than onshore wind farms due to the higher speed of\nwinds, greater consistency and lack of any physical interference as is evident on land. India being\na peninsula has large coastal availability making it favourable for the successful set-up of\nOffshore wind Farms.\n<\/span><\/p>\n\n\n\n While China and Europe are leading players in the market for Offshore Wind Energy, the global\nmarket is divided into three sectors: Existing Market, Emerging Market and New Market<\/u>. The\ncountries such as the United Kingdom, Germany, Denmark, Netherlands, and China already\nhave an existing market. While countries such as Taiwan, the United States (Atlantic Coast),\nJapan, South Korea, and Vietnam have an emerging market for wind energy generation. Lastly,\ncountries like Turkey, Brazil, Morocco, the Philippines, South Africa, Sri Lanka, and India have\nfairly new markets.\n<\/span><\/p>\n\n\n\n India has a well-established infrastructure for Onshore Wind farms. Very recently, it has\nventured into the Offshore Wind energy sector. Interestingly, the Ministry of New and\nRenewable Energy (MNRE) had announced a medium-term offshore target of 5GW achievable\nby 2022 and a long-term offshore target of 30 GW to be achieved by 2030. Though India is\nrunning far behind the intended target there has been little progress in the Offshore Wind Energy sector. Based on the preliminary reports, the government has finalised the states of\nGujarat and Tamil Nadu0 for setting up the first offshore wind energy farm.\n<\/span><\/p>\n\n\n\n India in collaboration with the European Union (EU) formed Facilitating Offshore Wind in\nIndia (FOWIND)<\/a> It is a project funded by the EU and aims to support the Ministry of New and\nRenewable Energy (\u201cMNRE\u201d) and the National Institute of Wind Energy (\u201cNIWE\u201d) in setting\nup the first offshore farm. Under the project, Pre-feasibility, and Feasibility reports<\/a> have been\nprepared separately in both states to assess the viability and narrow down the sites for\nestablishing the wind farm. FOWIND has also published reports on supply chain, ports and\nlogistics and grid integration studies.\n<\/span><\/p>\n\n\n\n Based on the preliminary assessment<\/a> from these reports<\/a>, the Gulf of Khambhat in Gujarat and\nthe Gulf of Munnar in Tamil Nadu have been divided into 8 possible zones. Furthermore, on\nthe Gujarat coast, further assessment of Zone A & B has already begun. Initial assessment by\nNIWE within the identified zones suggests 36 GW of offshore wind energy potential exists off\nthe coast of Gujarat alone. In addition to that, nearly 35 GW of offshore wind energy potential\nexists off the Tamil Nadu coast.<\/span><\/p>\n\n\n\n But despite all this, progress in the Offshore Wind Energy sector has been slow and delayed.\nThere are various gaps and loopholes in current regulations which need to be cured for the\nproper establishment of the project. They have been discussed below:\n<\/span><\/p>\n\n\n\n Current policy and regulatory framework surrounding offshore wind energy plant\ndevelopment:<\/span><\/strong><\/p>\n\n\n\n To drive offshore wind energy development, the MNRE came up with the National Offshore\nWind Energy Policy<\/a> in 2015. Further, in 2019 MNRE announced the "Draft Offshore Wind\nEnergy Lease Rules, 2019," which outlined procedures for leasing out blocks for offshore wind\nenergy projects. These two policy documents set the tone and put down the groundwork for the\nfuture offshore wind energy policy in the country.\n<\/span><\/p>\n\n\n\n \u25cf National Offshore Wind Energy Policy, 2015 (National Policy)<\/u>\n<\/span><\/p>\n\n\n\n The National Policy sets forth that MNRE will act as the Nodal Ministry for the development of\nOffshore Wind Energy in India<\/u> and act as one of the government entities, along with others, for\nthe development and use of Maritime Space within the Exclusive Economic Zone (EEZ) of the\ncountry. The National Policy further designated NIWE as the nodal agency for conducting resource assessment and demarcating blocks for facilitating the development of offshore wind\nenergy in the country.\n<\/span><\/p>\n\n\n\n Further, it also mentions the required clearance\/No Objection Certificate (NOC) for site survey\nand development of offshore wind energy. The clearance is divided into 2 stages. In the first\nstage, in-principal clearance has to be procured by NIWE from various ministries like the\nMinistry of Defence, Home, External Affairs, Environment & Forests and Department of Space.\nIn Stage II, the blocks will be allocated and, the successful bidder\/developer will have to take\nfurther Stage II Clearances\/NOCs from various Central and State Government\nMinistries\/Departments as stated in the table provided in Annexure A of the National Policy.\nFor a better understanding, one can refer to the \u201cList of Important Documents\u201d shared by the\nFirst Offshore Wind Project of India<\/a> (FOWPI).\n<\/span><\/p>\n\n\n\n A detailed list of ministries from which clearance is needed is mentioned in the National Policy\nand a list of all the agreements like Power Purchase Agreement (PPA), onshore and offshore\nsubstation agreements etc. along with licenses and permits required are mentioned on the\nFOWPI website.\n<\/span><\/p>\n\n\n\n \u25cf Draft Offshore Wind Energy Lease Rule, 2019 (Draft Rules)<\/u>\n<\/span><\/p>\n\n\n\n According to the National Policy, private developers will receive offshore wind energy blocks\nthrough International Competitive Bidding. Considering this, the government has formulated\nthe Draft Rules<\/a> for input from stakeholders.\n<\/span><\/p>\n\n\n\n The Draft Rules, among others, provide for the following:\n<\/span><\/p>\n\n\n\n i. The offshore blocks will be leased out to the private developers for 35 years, including 5\nyears of prospecting and 30 years of project installation and operation.\n<\/span><\/p>\n\n\n\n ii. No person\/entity shall install\/commission an offshore wind energy project except in\npursuance of an offshore wind energy lease granted under this Draft Rules.\n<\/span><\/p>\n\n\n\n iii. Activities related to the assessment of offshore wind energy potential through related\nstudies and surveys are also to be undertaken under the lease; and\n<\/span><\/p>\n\n\n\n iv. Provisions related to fees, identification of project sites, penalties, cancellation of the\nlease, and restriction on wind energy generation for national security.\n<\/span><\/p>\n\n\n\n Furthermore, the Draft Rules also provide that the lessee shall have no right to block or bar\nroutine activities, including activities related to fishing. Moreover, the lease agreement is subject\nto cancellation if the project causes environmental damage to flora and fauna lying under the sea.\nBut these Draft Rules are still in the formative stage and have not reached finality.\n<\/span><\/p>\n\n\n\n \u25cf Other Rules and Regulations:<\/u>\n<\/span><\/p>\n\n\n\n While the \u2018National Policy\u2019 and the \u2018Draft Rules\u2019 refer to specific environmental and social issues\nrelated to the deployment of offshore wind energy in the nation, there are other laws and\nregulations<\/a> governing the marine environmental systems that also have an impact, albeit\nindirectly, on the deployment of offshore wind energy in the nation.\n<\/span><\/p>\n\n\n\n The "Coastal Regulation Zone Notification, 2019"<\/strong> is one such regulation. While the central\ngovernment outlines the coastal regulation zone standards under such notification, the state\ngovernment is required to publish its intentions for managing the coastal zone and create a\nCoastal Zone Management Authority (CZMA). These notifications are framed under the\nEnvironmental Protection Act of 1986<\/u>, and as a result, the primary goal of their construction is\nto safeguard the maritime environment and ecosystem.\n<\/span><\/p>\n\n\n\n Further, the National Policy allows for the grant of permission by NIWE to interested private\ndevelopers who have proven expertise in offshore studies and surveys to collect data on offshore\nblocks. In furtherance of this, the NIWE published Guidelines for offshore wind power\nassessment Study and Survey<\/a> (Guidelines). These guidelines lay down the qualification\nrequirements, the application process and other rights and obligations of private players w.r.t.,\ntechnical assessment. They also clearly state that no private player shall have the right to the\nallocation of offshore blocks<\/em> on account of surveys and studies carried out by them under the\nguidelines.\n<\/span><\/p>\n\n\n\n Social and Environmental Impact:<\/span><\/strong><\/p>\n\n\n\n It is very clear from the National Policy and Draft Rules that any serious threat to the environment caused due to the establishment of offshore wind farms may lead to the cancellation of the project. Thus, for the successful establishment of offshore wind farms, there is need for a comprehensive Environment Impact Assessment (EIA)<\/u> to have an in-depth study of the effect of putting up windmills, offshore sub-station, cables, land acquisition etc. As per the Environmental Impact Assessment notification, 2006,<\/a> EIA is not a compulsory process in the case of establishing renewable energy projects and some even are expected. Yet, Offshore Wind\nEnergy projects might require a detailed EIA as this project is going to have a significant impact<\/a>\non both onshore and offshore lives. Additionally, as offshore wind energy is the first of its kind\nin India, that too in a region with prior habitat, it is important to gauge the effect of such a big\nproject on existing lifestyle, habitat, port routes, fish and fisheries etc. \n<\/span><\/p>\n\n\n\n Based on the reports prepared by FOWIND on Gujarat and Tamil Nadu, the two areas\nidentified as promising sites for early offshore wind development are the Gulf of Khambhat,\nGujarat and the Gulf of Munnar, Tamil Nadu. As these coastlines are known to be home to rare\nmarine species and natural coral reefs, it\u2019s important to assess the effect of the noise,\nelectromagnetic waves, heat waves and pre and post-construction effects of offshore wind\nenergy plants on the marine habitat and the migratory routes of the birds. \n<\/span><\/p>\n\n\n\n Large projects in several of the developed European markets undergo a comprehensive EIA. For\nthose affected by offshore developments in the United Kingdom, there are community benefit\nschemes in place. The issues raised by the impacted communities are handled transparently. In\nGermany<\/a>, citizens are made aware of offshore developments and their effects on the\nenvironment. Regulations and rules, particularly for impacted industries like fisheries, are taken\ninto consideration when formulating policies and compensation mechanisms in emerging\nmarkets.\n<\/span><\/p>\n\n\n\n Currently, we do not have any comprehensive EIA for the coast where the Offshore wind farm\nis expected to come up. We only have one Light Detection and Ranging (LiDAR) commissioned\non the Gujarat front and none on the Tamil Nadu side. A rapid EIA was conducted in Gujarat,\nbut a detailed EIA is necessary to attract responsible investment. The rapid EIA had indicated\nthat many coastal areas of Gujarat are rich in biodiversity and home to fishing activity up to 10\nkm off the coast. Mangroves and corals are also major ecosystems that need to be managed with\ncare. In the case of Tamil Nadu, detailed studies are yet to be conducted, but the state is known\nto be home to a stronger fishing community and equally critical biodiversity resources.\n<\/span><\/p>\n\n\n\n Construction, Technical and Financial Impact:<\/span><\/strong><\/p>\n\n\n\n India is categorized under the \u2018new market\u2019 in the global offshore wind energy sector, but to fully\nmeet the ambitious goal set by the Government for 2030, we first need to have a proper\nassessment of the viability of the projects, get the relevant laws and rules in place and make the\nenvironment conducive for such heavy-duty project.\n<\/span><\/p>\n\n\n\n As per Lok Sabha's 17th Standing Committee<\/a> report on Wind energy, it was estimated that\nOffshore wind turbines and tariffs would cost two to three times more than the cost of onshore\nwind turbines. Offshore wind farms are an expensive technology, especially when there is a price\ndrop in onshore wind and solar energy. Thus, there is a requirement for financial assistance, and\nincentives to act as a luring factor for investors and businesses to invest into India\u2019s dream.\n<\/span><\/p>\n\n\n\n As stated in the Global Wind Energy Council Report of 2021<\/a> (GWEC 2021) even after\nsignificant progress on the Gujarat project with the commissioning of LiDAR, rapid EIA, and\nfloating of tender, the project has not progressed since 2018 due to the need for heavy initial\ncapital. Similarly, on the Gulf of Munnar the progress is negligible, only recently have they\nfloated tenders for the commissioning of LiDAR.\n<\/span><\/p>\n\n\n\n A working paper<\/a> of NIIF published in 2022 suggested the following for easy logistical and\ninfrastructure management:\n<\/span><\/p>\n\n\n\n – Existing ports should be modified to handle offshore wind transport requirements\n<\/span><\/p>\n\n\n\n – Offshore wind equipment manufacturing clusters can be developed close to the port\ncities to facilitate offshore wind and easy transportation of parts and equipment.\n<\/span><\/p>\n\n\n\n – If the transmission system operator accepts responsibility for bringing wind energy to\nshore, confidence increases and costs fall.\n<\/span><\/p>\n\n\n\n Major roadblocks on the way:\n<\/span><\/p>\n\n\n\n 1) Lack of Infrastructure:<\/strong> Currently, India lacks the appropriate infrastructure to facilitate Offshore wind energy farms. For example, there are currently no specialized vessels or ports in India that can support the installation and maintenance of offshore wind turbines adding to the already heavy cost. Additionally, transportation is a huge concern; the blades, turbines and additional parts of an offshore windmill are rather bigger than the ones built for Onshore Wind Farms. Thus, the government will have to provide adequate support and space for a cost-efficient solution. 2) Lack of Impact Assessment:<\/strong> Environmental concerns are also a significant issue in the\noffshore wind energy sector in India. Offshore wind energy projects can have significant\nimpacts on marine ecosystems, including the displacement of marine wildlife and changes\nin water quality. These concerns must be addressed through a comprehensive\nEnvironmental and Social Impact Assessment (ESIA) process that considers the potential\nimpacts on both the environment and local communities. 3) Lack of comprehensive regulatory framework:<\/strong>One of the major issues is the lack of a\ncomprehensive regulatory framework for offshore wind energy projects. While the Indian\ngovernment has set a target for offshore wind energy capacity, there are no clear\nregulations governing the development and operation of offshore wind energy projects.\nThis lack of clarity can lead to delays and uncertainties for developers, which can\nultimately impact the growth of the sector. Takeaways<\/span><\/strong><\/p>\n\n\n\n Having taken an overview of the Offshore Wind Energy Sector in India, and some of the issues it\nfaces, the following are some of the takeaways or major points the Indian Government could\ndelve into to get the work moving in this sector:\n<\/span><\/p>\n\n\n\n 1. Infrastructure:<\/strong> Optimize ports with existing infrastructure for offshore wind, such as\nPipavav port in Gujarat, and plan for necessary alterations for smaller ports like Tamil\nNadu's, to save costs on transportation infrastructure. Even with the recent tender bids, which should have been out months ago are facing two major issues<\/a>: one being- to put\nup the transmission line from the offshore site to the landing point onshore and two,\ntime given to the project developers to implement the project. It seems that the\ngovernment has overlooked some really important details and hence the progress in this\nsector is staggered.\n<\/span><\/p>\n\n\n\n 2. Cost Optimization:<\/strong> Developing Offshore Wind Farm is a costly affair as it demands\ndedicated infrastructure, such as offshore substations, subsea cables, and onshore grid\nconnections. The government along with incentives need to put coordinated effort\nbetween themselves, investors, and stakeholders to mobilize resources and build the\nnecessary infrastructure. 3. Impact Assessment:<\/strong> Conduct detailed and comprehensive Environmental and Social\nImpact Assessments to cater to marine habitat, pollution, and environmental and social\nimpact on people, their lifestyle, existing activities, and businesses. A thorough EIA study\nis necessary to meet international standards for project bankability and to engage financial\ninstitutions from abroad.\n<\/span><\/p>\n\n\n\n 4. Effective Distribution:<\/strong> Plan for electricity distribution by putting in place a policy that\noutlines the planning and delivery of offshore wind grid infrastructure, mapping out a\nfeasible route for power generated from the offshore plant to where it would be used.\nCoordination between the state and centre is necessary for filling up regulatory gaps and\nthe easy establishment of offshore wind projects.\n<\/span><\/p>\n\n\n\n 5. Cues from the pre-existing model:<\/strong> India has shown progress in the development of\nhybrid energy projects that combine solar, wind, and storage technologies. Similar hybrid\nprojects can be explored in the offshore wind energy sector, where energy storage\nsolutions can be integrated to ensure a stable and reliable power supply. A hybrid project\nwill also help in rationalizing the cost, currently given the huge manufacturing and\noperational cost attached to Offshore Wind Energy, the electricity so generated is\nexpected to be costlier than usual. 6. Foreign Legislations:<\/strong> Lack of proper regulatory framework is one of the biggest\nroadblocks we face today. While Offshore Wind Energy might be new to India, it is an\nexisting and flourishing concept in the world. To up our game in this sector we will need\nto move fast, but with caution. One way of going about it would be to take instances\nfrom counties that have an established Offshore Wind Energy sector with proper\nregulations in place. We can use these regulations as the base and build upon them\ndepending on our needs, circumstances, and resources. Some of the countries and\nregulations that India can look towards are: Conclusion<\/span><\/strong><\/p>\n\n\n\n \nThe Indian peninsular has a large coastal area at its disposal, with great potential for setting up Offshore Wind Energy. While the Indian Government has already taken a stride towards it and has made quite progress, there is still a long way to go. The national Offshore Wind Energy Policy came out in 2015 since then we have only been in the research and feasibility stage, and no actual work can be seen happening on the ground. The COVID Pandemic was a huge blow and staggered the progress but we have moved past it now. It is time the government starts looking into the critical areas causing the apparent delay and tackles it from all the corners. India has set an ambitious net zero and renewable energy target, and to achieve that Offshore Wind Energy can contribute immensely.<\/span><\/p>\n\n\n\n About the Author<\/span><\/strong><\/p>\n\n\n\n \nAnukriti Prakash is a recent graduate from the Faculty of Law, University of Delhi. She also holds a degree in English Literature, which fuels her love for reading and writing. She has a keen interest in Renewable Energy Sector and Technology law.<\/span><\/p>\n\n\n\n Editorial Team<\/span><\/strong><\/p>\n\n\n\n Managing Editor: Naman Anand<\/em> [\/et_pb_text][\/et_pb_column] [et_pb_section admin_label=”section”][et_pb_row admin_label=”row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Text”] Abstract With fossil fuels becoming scarce and climate change being a big concern, countries worldwide are delving deep into renewable energy. Similar is the case in India. The Indian Government has set a high target of 500GW of renewable energy by 2030, coupled with its 2070 ambition to hit a […]<\/p>\n","protected":false},"author":257,"featured_media":7543,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"\n Abstract<\/span><\/strong><\/p>\n\n\n\n \nWith fossil fuels becoming scarce and climate change being a big concern, countries worldwide are delving deep into\nrenewable energy. Similar is the case in India. The Indian Government has set a high target of 500GW of\nrenewable energy by 2030, coupled with its 2070 ambition to hit a transformative net-zero economy. Hence\nventuring into Offshore Wind Energy is a step towards fulfilling this target. It was in 2015 that the government\ncame out with the National Offshore Wind Energy Policy, since then the development in this sector has been\nrather slow. In this article I analyse the recent developments, the roadblocks and challenges faced in the Offshore\nWind Energy Sector, leading to a delay. Further, by the end, I list down the major takeaways from the current\nsituation and possible areas that need more clarity and focus.<\/em>\n<\/span><\/p>\n\n\n\n Introduction<\/span><\/strong><\/p>\n\n\n\n In recent years, Offshore wind energy has become popular among countries for diversifying the\ncountry's energy mix and reducing its reliance on fossil fuels. The major difference between\nOnshore and Offshore wind energy is that the prior generates power from wind turbines located\non land, while the latter generates electricity from the wind blowing across the sea. Offshore\nwind farms are considered far more efficient<\/a> than onshore wind farms due to the higher speed of\nwinds, greater consistency and lack of any physical interference as is evident on land. India being\na peninsula has large coastal availability making it favourable for the successful set-up of\nOffshore wind Farms.\n<\/span><\/p>\n\n\n\n While China and Europe are leading players in the market for Offshore Wind Energy, the global\nmarket is divided into three sectors: Existing Market, Emerging Market and New Market<\/u>. The\ncountries such as the United Kingdom, Germany, Denmark, Netherlands, and China already\nhave an existing market. While countries such as Taiwan, the United States (Atlantic Coast),\nJapan, South Korea, and Vietnam have an emerging market for wind energy generation. Lastly,\ncountries like Turkey, Brazil, Morocco, the Philippines, South Africa, Sri Lanka, and India have\nfairly new markets.\n<\/span><\/p>\n\n\n\n India has a well-established infrastructure for Onshore Wind farms. Very recently, it has\nventured into the Offshore Wind energy sector. Interestingly, the Ministry of New and\nRenewable Energy (MNRE) had announced a medium-term offshore target of 5GW achievable\nby 2022 and a long-term offshore target of 30 GW to be achieved by 2030. Though India is\nrunning far behind the intended target there has been little progress in the Offshore Wind Energy sector. Based on the preliminary reports, the government has finalised the states of\nGujarat and Tamil Nadu0 for setting up the first offshore wind energy farm.\n<\/span><\/p>\n\n\n\n India in collaboration with the European Union (EU) formed Facilitating Offshore Wind in\nIndia (FOWIND)<\/a> It is a project funded by the EU and aims to support the Ministry of New and\nRenewable Energy (\u201cMNRE\u201d) and the National Institute of Wind Energy (\u201cNIWE\u201d) in setting\nup the first offshore farm. Under the project, Pre-feasibility, and Feasibility reports<\/a> have been\nprepared separately in both states to assess the viability and narrow down the sites for\nestablishing the wind farm. FOWIND has also published reports on supply chain, ports and\nlogistics and grid integration studies.\n<\/span><\/p>\n\n\n\n Based on the preliminary assessment<\/a> from these reports<\/a>, the Gulf of Khambhat in Gujarat and\nthe Gulf of Munnar in Tamil Nadu have been divided into 8 possible zones. Furthermore, on\nthe Gujarat coast, further assessment of Zone A & B has already begun. Initial assessment by\nNIWE within the identified zones suggests 36 GW of offshore wind energy potential exists off\nthe coast of Gujarat alone. In addition to that, nearly 35 GW of offshore wind energy potential\nexists off the Tamil Nadu coast.<\/span><\/p>\n\n\n\n But despite all this, progress in the Offshore Wind Energy sector has been slow and delayed.\nThere are various gaps and loopholes in current regulations which need to be cured for the\nproper establishment of the project. They have been discussed below:\n<\/span><\/p>\n\n\n\n Current policy and regulatory framework surrounding offshore wind energy plant\ndevelopment:<\/span><\/strong><\/p>\n\n\n\n To drive offshore wind energy development, the MNRE came up with the National Offshore\nWind Energy Policy<\/a> in 2015. Further, in 2019 MNRE announced the "Draft Offshore Wind\nEnergy Lease Rules, 2019," which outlined procedures for leasing out blocks for offshore wind\nenergy projects. These two policy documents set the tone and put down the groundwork for the\nfuture offshore wind energy policy in the country.\n<\/span><\/p>\n\n\n\n \u25cf National Offshore Wind Energy Policy, 2015 (National Policy)<\/u>\n<\/span><\/p>\n\n\n\n The National Policy sets forth that MNRE will act as the Nodal Ministry for the development of\nOffshore Wind Energy in India<\/u> and act as one of the government entities, along with others, for\nthe development and use of Maritime Space within the Exclusive Economic Zone (EEZ) of the\ncountry. The National Policy further designated NIWE as the nodal agency for conducting resource assessment and demarcating blocks for facilitating the development of offshore wind\nenergy in the country.\n<\/span><\/p>\n\n\n\n Further, it also mentions the required clearance\/No Objection Certificate (NOC) for site survey\nand development of offshore wind energy. The clearance is divided into 2 stages. In the first\nstage, in-principal clearance has to be procured by NIWE from various ministries like the\nMinistry of Defence, Home, External Affairs, Environment & Forests and Department of Space.\nIn Stage II, the blocks will be allocated and, the successful bidder\/developer will have to take\nfurther Stage II Clearances\/NOCs from various Central and State Government\nMinistries\/Departments as stated in the table provided in Annexure A of the National Policy.\nFor a better understanding, one can refer to the \u201cList of Important Documents\u201d shared by the\nFirst Offshore Wind Project of India<\/a> (FOWPI).\n<\/span><\/p>\n\n\n\n A detailed list of ministries from which clearance is needed is mentioned in the National Policy\nand a list of all the agreements like Power Purchase Agreement (PPA), onshore and offshore\nsubstation agreements etc. along with licenses and permits required are mentioned on the\nFOWPI website.\n<\/span><\/p>\n\n\n\n \u25cf Draft Offshore Wind Energy Lease Rule, 2019 (Draft Rules)<\/u>\n<\/span><\/p>\n\n\n\n According to the National Policy, private developers will receive offshore wind energy blocks\nthrough International Competitive Bidding. Considering this, the government has formulated\nthe Draft Rules<\/a> for input from stakeholders.\n<\/span><\/p>\n\n\n\n The Draft Rules, among others, provide for the following:\n<\/span><\/p>\n\n\n\n i. The offshore blocks will be leased out to the private developers for 35 years, including 5\nyears of prospecting and 30 years of project installation and operation.\n<\/span><\/p>\n\n\n\n ii. No person\/entity shall install\/commission an offshore wind energy project except in\npursuance of an offshore wind energy lease granted under this Draft Rules.\n<\/span><\/p>\n\n\n\n iii. Activities related to the assessment of offshore wind energy potential through related\nstudies and surveys are also to be undertaken under the lease; and\n<\/span><\/p>\n\n\n\n iv. Provisions related to fees, identification of project sites, penalties, cancellation of the\nlease, and restriction on wind energy generation for national security.\n<\/span><\/p>\n\n\n\n Furthermore, the Draft Rules also provide that the lessee shall have no right to block or bar\nroutine activities, including activities related to fishing. Moreover, the lease agreement is subject\nto cancellation if the project causes environmental damage to flora and fauna lying under the sea.\nBut these Draft Rules are still in the formative stage and have not reached finality.\n<\/span><\/p>\n\n\n\n \u25cf Other Rules and Regulations:<\/u>\n<\/span><\/p>\n\n\n\n While the \u2018National Policy\u2019 and the \u2018Draft Rules\u2019 refer to specific environmental and social issues\nrelated to the deployment of offshore wind energy in the nation, there are other laws and\nregulations<\/a> governing the marine environmental systems that also have an impact, albeit\nindirectly, on the deployment of offshore wind energy in the nation.\n<\/span><\/p>\n\n\n\n The "Coastal Regulation Zone Notification, 2019"<\/strong> is one such regulation. While the central\ngovernment outlines the coastal regulation zone standards under such notification, the state\ngovernment is required to publish its intentions for managing the coastal zone and create a\nCoastal Zone Management Authority (CZMA). These notifications are framed under the\nEnvironmental Protection Act of 1986<\/u>, and as a result, the primary goal of their construction is\nto safeguard the maritime environment and ecosystem.\n<\/span><\/p>\n\n\n\n Further, the National Policy allows for the grant of permission by NIWE to interested private\ndevelopers who have proven expertise in offshore studies and surveys to collect data on offshore\nblocks. In furtherance of this, the NIWE published Guidelines for offshore wind power\nassessment Study and Survey<\/a> (Guidelines). These guidelines lay down the qualification\nrequirements, the application process and other rights and obligations of private players w.r.t.,\ntechnical assessment. They also clearly state that no private player shall have the right to the\nallocation of offshore blocks<\/em> on account of surveys and studies carried out by them under the\nguidelines.\n<\/span><\/p>\n\n\n\n Social and Environmental Impact:<\/p><\/span><\/strong><\/p>\n\n\n\n It is very clear from the National Policy and Draft Rules that any serious threat to the environment caused due to the establishment of offshore wind farms may lead to the cancellation of the project. Thus, for the successful establishment of offshore wind farms, there is need for a comprehensive Environment Impact Assessment (EIA)<\/u> to have an in-depth study of the effect of putting up windmills, offshore sub-station, cables, land acquisition etc. As per the Environmental Impact Assessment notification, 2006,<\/a> EIA is not a compulsory process in the case of establishing renewable energy projects and some even are expected. Yet, Offshore Wind\nEnergy projects might require a detailed EIA as this project is going to have a significant impact<\/a>\non both onshore and offshore lives. Additionally, as offshore wind energy is the first of its kind\nin India, that too in a region with prior habitat, it is important to gauge the effect of such a big\nproject on existing lifestyle, habitat, port routes, fish and fisheries etc. \n<\/span><\/p>\n\n\n\n Based on the reports prepared by FOWIND on Gujarat and Tamil Nadu, the two areas\nidentified as promising sites for early offshore wind development are the Gulf of Khambhat,\nGujarat and the Gulf of Munnar, Tamil Nadu. As these coastlines are known to be home to rare\nmarine species and natural coral reefs, it\u2019s important to assess the effect of the noise,\nelectromagnetic waves, heat waves and pre and post-construction effects of offshore wind\nenergy plants on the marine habitat and the migratory routes of the birds. \n<\/span><\/p>\n\n\n\n Large projects in several of the developed European markets undergo a comprehensive EIA. For\nthose affected by offshore developments in the United Kingdom, there are community benefit\nschemes in place. The issues raised by the impacted communities are handled transparently. In\nGermany<\/a>, citizens are made aware of offshore developments and their effects on the\nenvironment. Regulations and rules, particularly for impacted industries like fisheries, are taken\ninto consideration when formulating policies and compensation mechanisms in emerging\nmarkets.\n<\/span><\/p>\n\n\n\n Currently, we do not have any comprehensive EIA for the coast where the Offshore wind farm\nis expected to come up. We only have one Light Detection and Ranging (LiDAR) commissioned\non the Gujarat front and none on the Tamil Nadu side. A rapid EIA was conducted in Gujarat,\nbut a detailed EIA is necessary to attract responsible investment. The rapid EIA had indicated\nthat many coastal areas of Gujarat are rich in biodiversity and home to fishing activity up to 10\nkm off the coast. Mangroves and corals are also major ecosystems that need to be managed with\ncare. In the case of Tamil Nadu, detailed studies are yet to be conducted, but the state is known\nto be home to a stronger fishing community and equally critical biodiversity resources.\n<\/span><\/p>\n\n\n\n Construction, Technical and Financial Impact:<\/p><\/span><\/strong><\/p>\n\n\n\n India is categorized under the \u2018new market\u2019 in the global offshore wind energy sector, but to fully\nmeet the ambitious goal set by the Government for 2030, we first need to have a proper\nassessment of the viability of the projects, get the relevant laws and rules in place and make the\nenvironment conducive for such heavy-duty project.\n<\/span><\/p>\n\n\n\n
\nCreating offshore wind energy clusters can promote the establishment of a robust supply\nchain and manufacturing ecosystem. By bringing together manufacturers, suppliers, and\nservice providers in close proximity to offshore wind projects, the sector can benefit from\neconomies of scale and reduced logistics costs.\n<\/span><\/p>\n\n\n\n
\nDenmark has a long history<\/a> of offshore wind energy and has developed a robust\nregulatory framework for offshore wind farm development. The Offshore Wind Farm\nRegulation in Denmark ensures proper permits, environmental assessments, and safety\nstandards for offshore wind projects. India can adopt similar regulations to ensure\ncompliance with environmental and safety requirements for offshore wind farms.\n<\/span><\/p>\n\n\n\n
\nIt is important to have clear guidelines, rules and policies to provide a strong base for the\nginormous project and aim set by the government. We can take cues from counties with\nexisting Offshore Wind Energy Farms such as Denmark, the US, the UK, and the\nNetherlands.
\nBy adopting and adapting these existing legislations from established offshore wind\nenergy markets, India can create a robust legal framework that provides clarity, promotes\ninvestment, and ensures the sustainable development of offshore wind energy projects.\nIndia needs to leverage the experiences of other countries to accelerate its offshore wind\nenergy sector and contribute significantly to its renewable energy goals.\n<\/span><\/p>\n\n\n\n
\nIndia has successfully implemented Public-Private Partnership (\u201cPPP\u201d) models in various\nsectors, such as highways, airports and even the solar energy sector. Similar partnerships\ncan be explored in the offshore wind energy sector, where private companies can\ncollaborate with the government to develop and operate offshore wind farms. This\napproach can bring in private sector expertise and resources to accelerate the growth of\nthe sector.\n<\/span><\/p>\n\n\n\n
\nAnother would be implementing a system of Renewable Energy Certificates, similar to\nwhat is used in the solar and wind energy sectors, which can incentivize the development\nof offshore wind energy projects. By issuing RECs for every unit of electricity generated\nfrom offshore wind farms, developers can sell these certificates to obligated entities, such\nas power distribution companies, to meet their renewable energy obligations. This will\nprovide an additional revenue stream for offshore wind energy projects and attract more\ninvestments.\n<\/span><\/p>\n\n\n\n
\n i. Netherlands (Maritime Spatial Planning): The Netherlands has a sophisticated\nmaritime spatial planning system<\/a> that designates specific areas for offshore wind\nenergy development. This approach helps in minimizing conflicts with other\nmarine activities and ensures efficient use of marine space. Given how busy the\nGujarat and Tamil Nadu waters can be, India can develop its maritime spatial\nplanning system to identify suitable areas for offshore wind energy projects and\nstreamline the permitting process.
\n ii. Germany (Offshore Wind Energy Act): Germany has a well-developed offshore\nwind energy sector, and its Offshore Wind Energy Act<\/a> provides a comprehensive\nlegal framework for the development, operation, and decommissioning of\noffshore wind farms. The Act sets out clear rules for permits, grid connection,\nenvironmental impact assessment, and stakeholder engagement. India can adopt\nsimilar legislation to provide clarity and certainty to developers, investors, and\nstakeholders involved in offshore wind energy projects.\n<\/span><\/p>\n\n\n\n\n\n
Editors-in-Chief: Abeer Tiwari & Muskaan Singh<\/em>
Senior Editor: Kopal Kesarwani<\/em>
Associate Editor: Tisa Padhy<\/em>
Junior Editors: Nalin Arora & Apoorv Vats<\/em><\/span><\/p>\n\n\n
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