Market Intelligence
Wind Energy Marine Energy Renewable Energy Equipment South Asia India Export Promotion Trade Opportunities Export Potential

India Offshore Wind Energy

Renewable energy sources in India have seen remarkable growth in recent years, achieving a combined installed capacity of 125.159 GW as of March 2023.

As per REN21 renewables 2022 global stats report, India stands 4th globally in renewable energy installed capacity and 4th in wind power capacity.  While India’s onshore wind energy capacity has reached 42.633 GW, offshore wind energy in the country is yet to gain momentum.

Offshore wind is significant in India’s goal of achieving 500 gigawatts of renewable energy capacity by 2030 and achieving its target of becoming net zero by 2070.  Ministry of New and Renewable Energy (MNRE) is the nodal ministry for developing and using maritime space within the country’s exclusive economic zones (EEZ) for offshore wind energy.  The National Institute of Wind Energy (NIWE) conducts resource assessments, surveys, and studies in EEZ demarcate blocks and facilitates developers to set up offshore wind energy farms.

India has a long coastline of about 7,600 kilometers and good prospects for harnessing offshore wind energy.  The country has set a target of installing 30 GW of offshore wind projects by 2030.  The government estimates that the states of Gujarat and Tamil Nadu alone have around 70 GW of potential for offshore wind power, enough to power over 50 million homes.  The progress in this sector has been slow primarily due to the high initial cost compared to solar and onshore wind.  Several offshore projects have been in the pipeline for many years, but none are operational.

Despite the higher costs today, offshore wind is essential for decarbonizing India’s power sector, delivering a higher capacity utilization factor than onshore farms.  According to MNRE, competitive tariffs for offshore wind can be achieved on account of higher efficiencies of the wind turbines after the development of an ecosystem within the country.  The government is actively taking measures to tap into the offshore wind energy potential of the Indian coast.  Due to the complexities of developing offshore wind and learnings from other emerging markets, it is anticipated that local companies will require collaboration and capacity building with professional organizations, particularly during the developmental years, to achieve the target the government has set.

The country has revived its offshore wind power development plan by announcing a roadmap to deploy 30 GW by 2030.  For three years, starting in FY23, bids will be issued for a project capacity of 4 GW annually for developing off the coast of Tamil Nadu and Gujarat.  After three years, the project capacity of the bids will be 5GW annually till FY30.  The tender for developing the first 4 GW off the coast of Tamil Nadu is expected to come out soon.  For the initial offshore wind projects, it is envisaged that a viability gap funding schemes or other financial incentives may be made available to make offshore wind energy projects viable.  Transmission infrastructure is also required to enable power evacuation from these projects. 

India’s commitment to achieving its clean energy goals makes it an attractive market for U.S. technology companies and developers to explore opportunities.  The U.S. Commercial Service in India actively monitors renewable energy sector market developments and Indian company announcements that might present opportunities for American companies.

For entry into the Indian market, finding the right local partner or establishing a local presence is important, and the U.S. Commercial Service team is ready to assist.
U.S. companies may consider the following local trade shows to showcase their technologies and meet Indian companies:

India’s U.S. Commercial Service team can help with your market entry strategies.  If you wish to pursue market opportunities in this region, please contact the renewable energy team at the U.S. Commercial Service in India.

.