Draft offshore wind energy policy, 2013: Will it work?

India currently does not have any commercial offshore windfarms, but with a long coastline, the country has the potential to develop 1 gigawatt of offshore wind capacity, especially in states such as Tamil Nadu, Gujarat, Kerala, Karnataka and Goa.

Although the long-term prospects for offshore wind power are promising, the sector faces many challenges, particularly in terms of technology risk, evacuation risks (i.e. getting the power to a grid for distribution), impact on the local environment, lack of skilled personnel, shortage of appropriate auxiliary services (such as crane vessels), competition with other marine users, and multiplicity of clearances and approvals required from various government agencies. Therefore, if India wants to attract private investment to develop offshore wind power projects, it needs to put in place a robust policy framework that guarantees investor confidence.

This article analyses India’s draft offshore wind energy policy to see if the framework proposed under the draft policy addresses the key issues that investors and project developers assess while considering an investment.

Avirup Nag is a counsel at Trilegal and Kaif Ahmed Siddiqui is an associate. Trilegal is a full-service law firm with offices in Delhi, Mumbai, Bangalore and Hyderabad.