ENA Sectors 2024-06-20 14:11:40 <p><span style="font-size:14px"><strong>New Delhi, Jun 20 (KNN)</strong> In a significant boost to India's renewable energy ambitions, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the Viability Gap Funding (VGF) scheme to support development of offshore wind power projects in the country.</span></p> <p><span style="font-size:14px">The Rs 7,453 crore scheme aims to unlock the vast offshore wind potential in India's exclusive economic zone. It provides for central financial assistance of Rs 6,853 crore for installation of 1 gigawatt (GW) of grid-connected offshore wind power plants - 500 MW each in Gujarat and Tamil Nadu.</span></p> <p><span style="font-size:14px">An additional Rs 600 crore has been earmarked for upgrading logistics infrastructure at two ports to support movement of large wind turbine equipment. The ports will be identified and upgraded by the Ministry of Ports, Shipping and Waterways.</span></p> <p><span style="font-size:14px"> The VGF support from the government will reduce the cost of electricity from these projects and make offshore wind power viable for distribution companies to purchase, said a senior official.</span></p> <p><span style="font-size:14px">While the wind power plants will be set up by private developers through competitive bidding, the evacuation infrastructure including offshore substations will be constructed by the state-run Power Grid Corporation of India Limited (PGCIL).</span></p> <p><span style="font-size:14px">Welcoming the decision, renewable energy analysts highlighted the advantages of offshore wind over onshore wind and solar projects - higher efficiencies, lower storage needs, and greater employment generation potential.</span></p> <p><span style="font-size:14px"> Successful commissioning of the 1 GW initial capacity will produce over 3.7 billion units of clean electricity annually, offsetting nearly 3 million tonnes of CO2 emissions, said Chetan Bundle, Head of Research at EquiRen Advisory.</span></p> <p><span style="font-size:14px"> More importantly, it will create an offshore wind ecosystem in India capable of supporting 37 GW of projects at an estimated investment of Rs 4.5 lakh crore in the future, he added.</span></p> <p><span style="font-size:14px">The New and Renewable Energy Ministry will coordinate implementation of the scheme with other ministries. India aims to have 30 GW of offshore wind installations by 2030 as part of its energy transition goals.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 38281 https://knnindia.co.in/news/newsdetails/sectors/cabinet-approves-viability-gap-funding-scheme-for-offshore-wind-power-projects-in-india 2024-06-20 14:11:40 knnindia.co.in