A version of this blog was originally published in the January 2025 edition of the WindPro magazine.

India and the UK recently announced the establishment of a UK-India Offshore Wind Taskforce focused on advancing offshore wind ecosystem development, supply chains and financing models. India’s recent progress in developing offshore wind energy marks a key step forward in diversifying the country’s energy mix.

India’s Growing Commitment to Offshore Wind 

In 2023, the Ministry of New and Renewable Energy (MNRE) announced a strategy paper that details different business models for offshore wind energy development projects across the Indian coastline. A Request for Proposals (RfP) in 2024 invited bids for an offshore 4 GW wind development capacity off the coast of Tamil Nadu. 

The cabinet also approved the Viability Gap Funding (VGF) Scheme for implementing offshore wind energy projects with a total outlay of ₹ 7,453 crores. This includes an outlay of ₹ 6,853 crore for the installation and commissioning of 1 GW of offshore wind energy projects split between 500 MW each for projects off the coast of Gujarat and Tamil Nadu and a ₹ 600 crore grant to upgrade two ports to meet the logistical requirements for offshore wind energy projects. The potential for offshore wind energy along these two states alone is estimated to be around 71 GW.

Why Offshore Wind?

Offshore wind energy is expected to be one of the primary drivers for meeting net zero targets. Offshore wind allows for much higher capacity turbines than their onshore counterparts. This can fast-track India’s progress towards its target of 500 GW non-fossil fuel capacity by 2030. Offshore wind also has a higher Capacity Utilization Factor (CUF) compared to other renewable energy technologies, enabling cleaner electricity production and a faster green energy transition. By the end of 2023, offshore installations worldwide had reached a total capacity of 75.2 GW.

India currently ranks 4th in onshore wind installed capacity, following China, the USA and Germany. Offshore wind presents a distinct landscape with differences in location, installation setups, energy production, transmission and costs as compared to onshore wind, where India has established a good manufacturing ecosystem. To harness its offshore wind potential, India must build on this onshore wind expertise while adopting best practices to address the unique challenges of offshore wind development.

Setting up an Offshore Wind Farm

Establishing an offshore wind farm entails a series of steps, each with a defined timeframe to ensure the successful execution of the projects.

wind farm

Developmental phase (3-5 years): This includes feasibility studies, environment planning, wind assessment, grid access and site layout. It begins with site preparation, which involves seabed surveys, obtaining permits, and establishing the necessary infrastructure at the marshaling harbor and installation site.

Pre-construction phase (2-4 years): This is followed by site conditioning, detailed design and procurement. During this phase, turbine components including blades, towers, nacelles and foundations are manufactured at various facilities and transported to the marshaling harbor for assembly.

Foundations for wind turbines are stored at the dock. Photo by Aerovista Luchtfotografie/Shutterstock.
Foundations for wind turbines are stored at the dock. Photo by Aerovista Luchtfotografie/Shutterstock.

Construction phase (2 years): The construction phase begins with the installation of the foundation, which includes the monopile, jacket or floating foundations, depending on the seabed conditions. Once the foundation is in place, turbines are mounted with cranes and specialized equipment. The electrical and mechanical components, such as cabling, transformers, and control systems, are connected to ensure that the turbine generates electricity and communicates with the onshore grid. Testing, including functional tests, performance tests and safety checks, is mandated to ensure that all systems are functioning seamlessly.

Main parts of an offshore wind turbine. Graphic by CW craftsman/Shutterstock.
Main parts of an offshore wind turbine. Graphic by CW craftsman/Shutterstock.

Commissioning, operation and maintenance (O&M) phases (25-30 years): After the turbines are installed and connected to the grid, testing and performance assessments are conducted. The wind farm is then commissioned, allowing it to generate electricity. This phase also involves routine inspections and maintenance of components like blades and gearboxes, as well as data collection through Supervisory Control and Data Acquisition (SCADA) systems and online condition monitoring of assets.

Decommissioning phase: After 25-30 years of operation, developers have the choice to either decommission or repower an offshore wind farm. Decommissioning involves dismantling wind turbines and associated infrastructure and restoring the seabed. The process typically occurs at the end of the project’s operational life or when a project is repowered, which entails replacing older turbines with more efficient models.

Each phase is interconnected, meaning delays in any one can impact the overall project timeline. This makes meticulous planning, overall coordination and risk management essential during the installation and commissioning process.

Different types of structures at varying depths. Graphic by mentalmind/Shutterstock
Different types of structures at varying depths. Graphic by mentalmind/Shutterstock

Factors Influencing Costs 

Developing offshore wind projects is capital intensive, with costs averaging ₹ 18-20 crore/MW (2.0 to 2.2 million €/MW) compared to ₹ 7-8 crore/MW (0.77 to 0.87 million €/MW) for onshore wind projects. Several factors can influence these costs in various ways.

Geographical location: Water depth, seabed conditions, wind and wave conditions, and proximity to the shore can affect impact installation complexity. Additionally, the location influences the costs of vessels required in developing offshore wind projects.

Assembly and installation of equipment: Equipment involved in the logistics includes crane barges, jack-up vessels and lifting equipment. Its availability can also increase costs, particularly in harsh environments where harboring material beyond accepted terms may increase in storage rents. Larger turbines generally require bigger installation vessels and equipment. Transporting turbine components from manufacturing facilities to the marshaling harbor, and then to the installation site, can also add to the costs.

Different vessels employed for the development of offshore wind energy plants seen below.

Tugboat. Photo by Dennis MacDonald/Shutterstock.
Tugboat. Photo by Dennis MacDonald/Shutterstock.
Heavy lift vessel. Photo by Kevin Shipp/Shutterstock.
Heavy lift vessel. Photo by Kevin Shipp/Shutterstock.
A transport ship and crane. Photo by  corlaffra/Shutterstock.
A transport ship and crane. Photo by corlaffra/Shutterstock.
 Windfarm under construction. Photo by thelamephotographer/Shutterstock.
Windfarm under construction. Photo by thelamephotographer/Shutterstock.
Offshore windfarm installation vessel. Photo by  TwiXteR/Shutterstock.
Offshore windfarm installation vessel. Photo byTwiXteR/Shutterstock.
Loading of the wind blades on the offshore construction vessel. Photo by I am from Mykolayiv/Shutterstock.
Loading of the wind blades on the offshore construction vessel. Photo by I am from Mykolayiv/Shutterstock.

Skilled labor: Offshore wind projects require specialized technicians, engineers and project managers adding to project costs.

Weather conditions: Delays and downtime caused by poor weather can extend the project schedule, leading to higher costs.

Regulatory compliance: Installation activities must comply with regulatory guidelines to ensure safety. As mandated by the offshore oil and gas sector, the planning and execution of these installations should consider factors such as risk management, operational criteria, weather forecasts and structural integrity.

The Role of Environmental Impact Assessment (EIA)

The environmental impact assessment (EIA) must evaluate the direct and indirect environmental impacts of a proposed project, including its potential effects on the physical, biological and human environments. EIAs help minimize environmental harm and maximize benefits for the local communities by evaluating potential impacts, identifying areas for policy improvement and encouraging public participation.

As India moves forward in offshore wind development, costs associated with these compliances and other permitting fees must be factored in. Additionally, economic factors such as inflation, interest rates, exchange rates and project financing terms can also influence the financial viability of these projects.

Ensuring the Efficiency of Offshore Wind Projects

Given the complex and expensive nature of offshore wind projects, optimizing the assembly, installation and commissioning is important. Several strategies can enhance the efficiency:

Standardization of components: Uniform turbine designs and components can streamline assembly, installation and commissioning processes.

Advanced technology solutions: Using digital twin simulations, drones and autonomous vessels can optimize logistics, enhance safety and reduce downtime.

Pre-assembled components: Modular designs that allow components to be assembled onshore can reduce installation time and costs.

Skilled labor training: Collaborating with experienced contractors, suppliers and industry partners can optimize the installation processes. Further, investing in training and skill development programs can improve competency and efficiency.

Efficient logistics: Supply chain management is critical for timely delivery of components and equipment. Optimizing transportation routes, coordinating vessel schedules and minimizing inventory lead times can help reduce costs and improve efficiency. Further, flexible scheduling, contingency planning and real-time monitoring of weather patterns can help minimize downtime and delays. 

Fostering a culture of continuous learning and improvement can support the deployment of offshore wind projects. By conducting post-project reviews, documenting lessons learned and streamlining project approvals, developers can enhance future installations, making offshore wind farms more reliable and cost-effective.

Converting the assessed potential into installed capacity will be challenging, considering the high capital cost of the technology, lack of domestic supply chains, and absence of turbine models suited to Indian wind regimes and unavailability of resource-related datasets. However, there exists an immense opportunity for employment and revenue generation.

Considering that the electricity demand is estimated to increase by around 5% per year until 2040, offshore wind, if harnessed properly with due consideration to socio-environmental factors provides essential avenues for India to succeed in its energy transition. With a coastline of 7,600 km, India is well-positioned to leverage this technology, paving the way for a cleaner future.