India-UK Offshore Wind Taskforce
Context
During the Fourth India-UK Energy Dialogue, India and the United Kingdom officially launched the India-UK Offshore Wind Taskforce. Operating under the India–UK Vision 2035 framework, the taskforce aims to accelerate strategic cooperation and execution in the offshore wind sector.
About the India-UK Offshore Wind Taskforce
Definition: A bilateral working mechanism (described by Union Minister Pralhad Joshi as a "Trustforce") designed to provide strategic leadership and coordination. It pairs the UK’s global leadership in scaling offshore wind with India’s massive market scale and long-term renewable energy demand.
Objectives:
- Accelerate Deployment: Move beyond symbolic partnership to achieve time-bound workstreams and measurable milestones.
- Ecosystem Building: Create a comprehensive framework covering policy, infrastructure, and financing to support India's 70 GW potential in offshore wind.
- Energy Transition: Position offshore wind as a strategic pillar for grid stability and industrial competitiveness under Vision 2035.
Key Features:
- Strategic Leadership: Co-chaired by representatives from both nations, with a unique inclusion of a representative from Denmark (a global pioneer in offshore technology).
- Three Priority Pillars:
- Ecosystem Planning & Market Design: Refining seabed leasing frameworks and establishing credible revenue-certainty mechanisms.
- Infrastructure & Supply Chains: Port modernization, local manufacturing (towers, blades, cables), and development of specialized marine vessels.
- Financing & Risk Mitigation: Mobilizing long-term institutional capital and utilizing blended finance models.
- Identified Zones: Initial focus on promising zones off the coasts of Gujarat (36 GW potential) and Tamil Nadu (35 GW potential).
- Financial Support: Integration with the ₹7,453 crore (~£710 million) Viability Gap Funding (VGF) scheme approved by the Union Cabinet to de-risk early projects.
Strategic Linkages
- National Green Hydrogen Mission: Offshore wind is expected to provide steady, high-quality renewable power to coastal industrial and green hydrogen clusters.
- Energy Milestones: The launch coincides with India crossing 272 GW of non-fossil fuel installed capacity (including 141 GW solar and 55 GW wind).
- Grid Stability: Unlike solar, offshore wind offers higher capacity utilization factors (CUF), helping manage grid fluctuations and enhancing energy security.
Challenges in Offshore Wind
- Capital Intensity: Offshore projects are significantly more expensive than onshore wind due to complex seabed foundations and marine logistics.
- Technical Complexity: Requires specialized port infrastructure and specialized vessels for installation and maintenance.
- Tariff Viability: Early projects face high generation costs, necessitating government support through VGF and attractive power purchase agreements (PPAs).
Way Forward
- Execution Focus: The taskforce will meet regularly to convert global lessons into "Indianized" solutions.
- Supply Chain Localization: Building domestic manufacturing capabilities to reduce dependence on imports and lower project costs.
- Grid Integration: Strengthening transmission planning for an initial 10 GW evacuation capacity (5 GW each for Gujarat and Tamil Nadu).
Conclusion
The India-UK Offshore Wind Taskforce represents a shift from high-level dialogue to execution-level collaboration. By addressing structural barriers like financing and specialized logistics, the partnership is set to unlock India's vast maritime wind resources, moving the nation closer to its 2030 renewable energy targets.