SECI cancels two major offshore wind energy tenders in India, totalling 4,500 MW. Discover why, what it means for developers, and the future of India’s offshore wind sector.
Table of Contents
- Introduction
- What Exactly Happened?
- Why Developers Backed Out
- Impact on India’s Offshore Wind Goals
- Lessons Learned from the Cancellations
- What Could Revive Developer Interest
- The Road Ahead for Offshore Wind in India
- Conclusion
1. Introduction
The India Offshore Wind Tender Cancellations have sent ripples through the renewable energy industry. The Solar Energy Corporation of India (SECI) recently cancelled two major offshore wind tenders:
- A 500 MW Viability Gap Funding (VGF) project
- A 4,000 MW seafloor lease rights auction
Both were scrapped due to a lack of developer interest, raising important questions about the future of offshore wind in India.
2. What Exactly Happened?
SECI, the government body responsible for implementing large-scale renewable projects, had planned to launch India’s first commercial offshore wind ventures in Gujarat and Tamil Nadu.
However, despite favourable wind resource assessments and policy incentives, the tenders failed to attract competitive bids. With no viable participants, SECI officially cancelled both processes.
3. Why Developers Backed Out
Industry insiders cite several reasons for the muted response:
- High Capital Costs: Offshore wind is 2–3 times more expensive than onshore wind or solar in India.
- Infrastructure Gaps: Lack of dedicated port facilities, subsea cable networks, and installation vessels.
- Policy Uncertainty: Developers were concerned about offtake guarantees and long-term tariff stability.
- Limited Supply Chain: India’s offshore wind manufacturing and service supply chain is still underdeveloped.
4. Impact on India’s Offshore Wind Goals
India has an ambitious 30 GW offshore wind target by 2030. The cancellation of these initial 4,500 MW projects could delay progress and shake investor confidence.
It also risks slowing diversification in India’s renewable portfolio, which currently relies heavily on solar and onshore wind.
5. Lessons Learned from the Cancellations
The India Offshore Wind Tender Cancellations offer five important lessons:
- Early Infrastructure Investment is Crucial – Ports, grid connections, and logistics must be ready before tenders launch.
- Tariff Structures Must Reflect Risk – Offshore wind requires higher initial support, similar to Europe’s early subsidies.
- Stakeholder Engagement is Key – Developers need policy clarity and bankable contracts.
- Supply Chain Development Takes Time – Domestic capabilities must grow alongside project tenders.
- Global Partnerships Can Bridge Gaps – Collaborations with experienced offshore wind nations could accelerate readiness.
6. What Could Revive Developer Interest?
To turn things around, India could:
- Offer longer power purchase agreements (PPAs) with guaranteed tariffs
- Provide increased VGF support in early phases
- Set up special offshore wind zones with pre-built transmission and port access
- Encourage joint ventures between Indian and global offshore players
7. The Road Ahead for Offshore Wind in India
Despite the setback, offshore wind remains a key opportunity for India. The nation’s 7,600 km coastline offers immense potential for stable, high-capacity factor renewable energy.
Government agencies are already reviewing tender structures, financing models, and infrastructure readiness before relaunching projects in the coming years.
If addressed strategically, India could still achieve significant offshore capacity by late 2020s, albeit at a slower pace.
8. Conclusion
The India Offshore Wind Tender Cancellations highlight the complex challenges of pioneering new renewable technologies in emerging markets. While the decision halts near-term progress, it also provides a roadmap for better-prepared future tenders.
With robust policy support, infrastructure readiness, and global partnerships, India’s offshore wind sector can still become a cornerstone of its clean energy transition.
🔗 Related Read: SECI’s 2 GW Solar + 4 GWh Storage Tender: India’s Bold Leap Towards 24/7 Renewable Energy
