FOWIND Capacity Building Workshop (12 September, 2014) Proposed National Offshore Wind Energy Policy J.P. Singh, Director Ministry of New & Renewable Energy 1
Global Status & Technology Over 7 GW Global cumulative offshore wind power installed capacity Led by UK (3.6 GW), then Denmark (1.3 GW), Belgium(0.5 GW), Germany(0.5 GW) and China (0.4 GW) European Union s target - 40 GW by 2020 (150 GW by 2030); China - 30 GW by 2020 London Array largest offshore wind farm off eastern coast of GB (630 MW) Latest offshore wind turbine capacity > 5 MW; largest capacity is 8 MW Offshore wind speeds are steadier and higher than onshore winds, allowing more generation => higher PLF and more predictability Setting up and financing of offshore wind projects quite different from onshore wind projects in terms of size, clearances required, construction and power evacuation and O&M. 2
Background India s coastline of 7600 KM and Exclusive Economic Zone of over 2.3 million sq. km provides good potential for offshore wind power development. Off-shore Wind Energy Steering Committee (OWESC) was constituted under the Chairmanship of Secretary, MNRE ( in 2012) to suggest policy frame work and interagency coordination. Sub-Committee was constituted for preparation of draft policy guidelines for development of offshore wind energy project under the chairmanship of Chairman, TNEB in 2012 having representatives from MOD, MOEF, MOP&NG, MOES, DGH, Maritimes Board from Gujarat, Tamil Nadu & Maharashtra and C-WET. Draft Offshore Wind Energy Policy prepared based on the recommendations of the Sub-Committee. National Consultation to discuss draft policy and its provisions with investors, manufacturers, PSUs and related Ministries & Agencies from Union and State Governments organized by MNRE on 14 th August 2013. Draft National Offshore Wind Energy Policy announced. 3
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Main Features of Proposed Policy Promote development of Offshore Wind Farms up to 200 nautical miles from coast (within Exclusive Economic Zone) MNRE to be Nodal Ministry for development of offshore wind power National Institute of Wind Energy (NIWE) - Single Window Mechanism for dealing with clearances and approvals NIWE to coordinate with CERC and SERCs for tariff setting and regulatory issues EIA study of proposed offshore wind farms regarding aquatic life, fisheries, avian life, archaeological remains, etc. to be conducted by the developer Also oceanographic studies to determine construction costs for special foundations, special vessels for construction and O&M requirements. Sea Bed Lease Agreement between NIWE and developer for development of offshore wind farm 5
Nodal Ministry s Role Ministry of New & Renewable Energy to be Nodal Ministry for development of offshore wind power. Overall monitoring of offshore wind development. Co-ordination with other Ministries / Departments / Agencies. Issuing guidelines/directives for development of offshore wind power; also by other ministries / stakeholders. Oversee working and provide necessary support to NIWE for smooth functioning. Promoting indigenous research for technology development. Coordination for tariff setting and regulatory issues. 6
National Institute of Wind Energy (NIWE) NIWE to be Single Window Agency to accept applications and coordinate with concerned Ministries/Departments for clearances/approvals/ consents To carry out and coordinate resource assessment and surveys in the EEZ To call for proposals for development of demonstration and other offshore wind power projects Enter into contract with power projects project developers for development of offshore wind Will accord final approval of setting up and commissioning of offshore wind farm(s) Will work on development of International Cooperation and Capacity Building 7
Key Initiatives Two studies, one sponsored by DFID and other by EU being done to bring international experience in India. European Union has launched Facilitating Offshore Wind in India (FOWIND) project on January 2014 of duration 51 months ending March 2018. Pre-feasibility study report to be completed by December 2014 and specific outcome includes: Identification of select potential wind farm zones in the states of Gujarat and Tamilnadu Taking into consideration the existing hard constraints i.e. oil & gas, communications etc. and preliminary applications of hard constraints Preliminary prefeasibility wind farm designs Preliminary project costing and financial feasibility Environmental and social impact study Identification of suitable location/platform for LIDAR deployment for validation of wind data 8
Demonstration Offshore Wind Power Project A group consisting of National Institute of Wind Energy, ONGC, GPCL, IT Power & WISE working on activities such as identification of potential sites, resource assessment, techno-commercial & feasibility studies and financial model for demonstration offshore wind power project Potential sites i.e. Porbander & Cambay Basin (Gujarat) and Rameswaram & Kanyakumari (Tamil Nadu) are being considered for demonstration project. Parameters being considered are Within 20 km from sea coast/port Average water depth < 25 m Average wind speed > 6.5 m/sec at 50 m height Outside oil and gas activity zone, marine protected areas, submarine power and communication channels, air traffic, free from security considerations, cyclone zone and in low risk earthquake zone. Within 20 km from onshore substation 9
Demonstration Offshore Wind Power Project (Contd.) Pre-feasibility studies on offshore under the EU award project are in process and expected to be completed by December 2014. Following Ministries/Departments of Union & State Governments involved in granting clearances for demonstration offshore wind power project(s) MoEF EIA, CRZ clearance Ministry of Defence Security clearance Ministry of Shipping Clearances for projects near Major Ports MoPNG Clearance to operate outside oil and gas exploration zones Ministry of Civil Aviation Aviation Safety DoT Clearance for operating outside subsea Cable zones Geology and Mining Department Seabed and related environment issues Dept of Animal Husbandry, Dairying and Fisheries No impact on fishing grounds MHA Declaring offshore wind energy exploitation zone. Department of Space Clearances relating to satellite launching stations State Maritime Board or designated agency State Electricity Board or designated agency If we start planning the project today, it will take atleast 5-6 years for commissioning since aforesaid statutory clearances will take time Formation of seabed leasing rules for offshore wind power projects 10
Demonstration Offshore Wind Power Project (Contd.) Ministry organised meetings with major central and State Public Sector Undertakings i.e. NTPC, PGCIL, PTC, PFC, NIWE & GPCL to discuss first demonstration offshore wind power project including possibility of signing MOU and formation of JVC. One of the major outcome of the meeting - Idea of setting up of first demonstration offshore wind power project supported including signing of MOU among the interested parties. Outcome of the pre-feasibility study report shall decide the formation of JVC. Ministry would facilitate in obtaining statutory clearances from concerned Ministries / Departments.
Proposed Incentives Accelerated Depreciation (AD) in the first year of commissioning for offshore wind power installations Tax Holiday for 10 years for electricity produced from offshore projects. Concessional Customs Duty @5% and Excise Duty @nil for import of eligible parts and components for manufacture of Offshore Wind Operated Electricity Generators. Service Tax exemption for offshore wind power projects and related services i.e. WRA, EIA and Environmental Clearance, Oceanographic and Bathymetric Studies, Utilisation of Survey Vessels and Installation Vessels Viability Gap Funding (VGF) and availability of low interest rate may be explored. Support from National Clean Energy Fund (NCEF). Support for evacuation infrastructure may be requested from Power System Development Fund (PSDF) 12
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