Category Archives: Offshore

India will soon launch its first offshore wind energy tender and the government is hopeful that its plan to bid out 37 gigawatts (GW) equivalent of offshore wind projects by 2029-30 will attract enough players to the sector, Dinesh Jagdale, Joint Secretary, Ministry of New and Renewable Energy, told Moneycontrol.

Jagdale, who handles wind and bio energy at the ministry, said the offshore wind seabed lease tender under model 3 is expected to be floated within the next 4-6 weeks. The model 3 will entail the development of offshore projects without any viability gap funding (VGF) from the government. These projects need not sell power to power distribution companies (discoms). The tender for offshore wind projects to be awarded with VGF support from the government will follow soon in 2023-24, he said.

Despite having a coastline of 7,600 km and significant potential, India doesnt have offshore wind energy capacity. The government is trying to push capacity addition by offering tenders through different models that include seabed leasing and offering financial support. Jagdale said he expects the cost of offshore wind projects to decline by the end of the decade such that these projects will become viable even without VGF from the government. Edited excerpts of the interview:

India has offshore wind potential but no capacity to speak of. Now with the offshore wind bid timeline in place, how soon can we see the bids opening?

Over the lastone year or so, we came out with a strategy paper, then we came out with the draft bid and then there were two consultation rounds. The first bid is under model 3 where we are actually leasing out the seabed blocks on a competitive basis. Those who pay the maximum lease and score the maximum points as per the techno-commercial weightage will get the project.

This bid is basically for the people to get the C grade blocks, do the survey, do the detailed project reports, construct the project and then sell the power bilaterally, not to the discoms. They can sell through open access to consumers, industries, exchange mechanisms or any other mechanism that they feel good about. There will be no VGF. We expect to invite bids in four to six weeks; only a few final points are pending. Once we are able to tweak that and satisfy the conditions, we will be able to come out with the tender.

This project is without VGF. So what kind of electricity tariff are you expecting from such projects?

Without VGF, it will go straight to their consumers. Across Gujarat, it will be around Rs 8 per unit. If you go to Tamil Nadu, it will be around Rs 7 per unit. These projects will take probably 7 to 8 years for construction. So these projects are going to be for captive use or for selling to industrial and commercial consumers. Today, the rate for industries is around Rs 8 to 10 (per unit) and for commercial is much more than Rs 10 (per unit). Therefore, when they start selling power in open access by 2030, the cost which may be at Rs 7 (per unit) today will come down to Rs 5 (per unit). At that stage, we will not give any VGF.

What is the status of the offshore wind tender that will be awarded with VGF?

We have in-principle approval from the Ministry of Finance for VGF. Now we will go to the Cabinet for clearance for VGF. As soon as we get that, we will go ahead with the first batch of 1 GW of tender. I am expecting this to happen during this financial year 2023-24.

Offshore wind continues to be expensive. But you mentioned you will not continue with VGF support beyond a point. What is the plan?

In the UK and Denmark markets, cost reduction is happening across the offshore wind supply chain. The turbines are getting bigger, the hardware cost is reducing, the transmission is getting bigger and better leading to cost reduction. The cost was, say, Rs 25 crore per megawatt (MW), now it is around Rs 20 crore. We expect it to reach Rs 15 crore per MW. Once we get to less than Rs 15 crore per MW, with the available wind speeds that we have across Tamil Nadu, we will be able to get tariffs of around Rs 4 to 4.5 per unit, which will be self-sufficient.

But the industry feels that Rs 4 per unit tariff for offshore wind is too ambitious. Your thoughts?

If I release the bid today, it is going to take at least five years to construct the project. So the bids that I am going to support with VGF are going to take time till 2028-29 or 2029-30. By that time, my entire infrastructure supply chain is going to be ready. So the projects that are going to come after 2029-30 will not require VGF. And I say that because by the end of this decade, the volume that is going to go up across the globe is massive, and therefore the cost of turbines will come down.

The government has indicated a bid target of 37 GW for offshore wind by 2030. What would be the timeline for capacity addition?

Projects will be awarded soon. When we talk of 37 GW, that is the bidding trajectory. That is not the completion trajectory. Projects which are awarded in 2023 will probably get commissioned in 2028. Bids will be coming up in batches for the total 37 GW up to 2030.

One of the biggest challenges in adding renewable energy capacity has been the supply chain issues. We have faced this problem with solar and even thermal power. From our learnings from these sectors, how can we handle offshore wind differently to avoid these issues?

The biggest advantage India has is the existing turbine technology players are already in India. Companies like Siemens Gamesa, GE and Envision already have assembly capacities, design shops, and everything else in-house. They are technically here within India, doing business on onshore projects, they only have to expand their base. For them to change their investment to the requirements offshore is going to be much easier. And that is where we are trying to encash. They are producing a 3.6 MW turbine, now we have to produce 15 MW turbines, for which the government has given trajectory and will be giving the necessary industrial setup near the ports. The state governments are keen to join hands with companies; they have a good workforce that will support their needs. We will create the demand that is required through the bids. What else do we need for industry or for entrepreneurs to put in investments?

The industry said they will invest only when they see a strong pipeline of offshore wind projects

The first tender is coming out soon. We have given 37 GW of trajectory. What else is needed? I think no country has given a trajectory, year-wise break-up for 37 GW. It may go one or two months here and there in the initial setup because that's where every government has its own challenges. But once the first tender comes out, and if we follow this, we will be on track for the 500 GW mission for renewable energy.

NTPC and other local companies have sought a level-playing field for offshore wind projects as they believe that the current bid norms favour international companies which have experience in setting up these projects. What is the ministry doing to address this concern?

We are working on that. Experience is also important; there will be joint ventures and partnerships around that. We will ensure that there is a larger participation and there are serious participants. We have already received feedback on one or two issues. We already have a consultation paper and we are going to get into the details.

Globally, gas-based power and hydropower are used as backups to complement intermittent renewable energy. Gas and hydro projects in India are a challenge. The other way to ensure round-the-clock power is through storage battery and pump storage but we are still in the early stages of developing that. How can this be expedited?

Battery storage is going to play a critical role and pump storage too. PLI (production-linked incentives) and VGF will support them.

But have we reached a stage where we have substantial renewable energy capacity but not enough backup power? Would this lead to disruptions?

I don't think that we have come to that stage. There is some elasticity in the grid, which we'll adapt as we go forward. We are not at that stage where the grid will collapse. But we have to start now. We have scaled it (backup power) up, and we will be able to support it. But if we don't start now, then we will be in trouble, so therefore we have started working on it.

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Offshore wind may not need govt financial support beyond 2030 as project cost may decline: MNRE Joint... - Moneycontrol

The Government has said that the new Maritime Area Regulatory Authority (MARA) will be established on July 17.

The announcement was made by the Minister for Housing, Local Government and Heritage, Darragh O'Brien, who also confirmed Laura Brien has been appointed the Chief Executive Officer of the new body.

Ms Brien is currently the CEO of the Health Insurance Authority.

The agency will be responsible for assessing applications for Maritime Area Consents (MACs) permits required before offshore wind developers and those behind other projects in the maritime area can make a planning application.

It will also be responsible for granting licences for certain activities in the maritime area.

"I am very pleased to be taking up the role of Chief Executive of MARA and working with the team to build the skills and expertise to deliver on MARAs mandate," said Ms OBrien.

"MARA will be a key enabler supporting delivery of projects of strategic importance including offshore renewable energy, ports development, cabling and telecoms projects, and many uses of the maritime area."

The development was welcomed by both Minister OBrien and the Minister for the Environment, Eamon Ryan.

"In recent months we have seen the introduction of a robust policy framework for offshore wind, which has given investors confidence, as demonstrated by last weeks excellent result of the first offshore renewable energy auction," he said.

"MARA will play a critical role from its beginnings and I look forward to our offshore renewable targets being met, and to a clean energy transformation for the health and economic prosperity of our citizens."

Ms Brien has spent two and a half decades in the area of regulation.

She is a former Director of the Commission for the Regulation of Utilities and was previously also a senior economic advisor at telecoms regulator Comreg.

Earlier in her career she also advised regulators, utilities and governments in the energy sector around the world.

Last week the results of the State's first offshore wind energy auction were announced, with four projects winning over 3GW of capacity at an average cost of 86.05 per mega watt hour.

SSE was among two developers that failed to win out in the auction.

Today it said that while it was disappointed with the auction result, its Arklow Bank Wind Park II is a hugely important project in its offshore pipeline and it remains committed to its delivery.

Speaking at the Wind Energy Ireland Offshore Conference, Maria Ryan, Director of Offshore Development of SSE Renewables said the company is now taking time to assess the outcome of this result and the options available to it to secure a route to market.

She said SSE believes that Arklow Bank has a critical role to play in contributing to Ireland's climate action targets, to Irelands homegrown energy security and to the national and regional economy.

She added that the company will continue to progress the Arklow Bank project and work towards the preparation of a planning application which it will submit later this year.

"With this in mind, setting the planning system up for success will be essential," she said.

"Ensuring sufficient resources are in place across planning and consenting to support projects to go through the process, in a fair and thorough manner, but at pace."

She also called for stepping-stone targets to set a path out to the country's 2050 renewables target of 37GW.

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Maritime regulatory agency to be established on June 17 - RTE.ie

As SBM Offshore (AMS:SBMO) rallies 3.8% this past week, investors may now be noticing the company's three-year earnings growth  Simply Wall St

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As SBM Offshore (AMS:SBMO) rallies 3.8% this past week, investors may now be noticing the company's three-year earnings growth - Simply Wall St

An offshore wind project being built with union labor could be exactly what energy workers need  Fortune

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An offshore wind project being built with union labor could be exactly what energy workers need - Fortune

The nonprofit that works to boost offshore wind power in the US  Jefferson Public Radio

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The nonprofit that works to boost offshore wind power in the US - Jefferson Public Radio

The OPITO-approved BOSIET (Basic Offshore Safety Induction and Emergency Training) with Compressed Air Breathing System (CA-EBS) course provides the delegate with a range of knowledge and skills relevant to travelling offshore by helicopter and working offshore, including safety induction, fire safety and basic firefighting; first aid; using a CA-EBS; helicopter safety and escape; and survival at sea.

The aim of the BOSIET (with CA-EBS) is to introduce delegates to the specific safety issues and regimes relevant to offshore installations, and to equip them with the basic emergency response knowledge and skills for travelling to and from offshore installations by helicopter.

The objectives of the BOSIET (with CA-EBS) Training are that delegates will be able to:

(a) Identify the generic hazards which are specific to offshore oil and gas installations, potential risks associated with those hazards, and how controls are put in place to eliminate or reduce risks.

(b) Identify key offshore related safety regulations and explain the basic safety management concepts

(c) Demonstrate, in a simulated environment, that they can use the safety equipment, and follow procedures in preparing for, and during helicopter emergencies with particular focus on escaping from a helicopter following ditching

(d) Demonstrate sea survival and first aid techniques

(e) Demonstrate that they can effectively use basic firefighting equipment, and practise self-rescue techniques in low visibility situations, to include smoke filled areas.

This training programme is designed to meet the initial offshore safety and emergency response training requirements for personnel new (or returning) to the offshore oil and gas industry who will be supplied with a compressed air emergency breathing system (CA-EBS) during offshore helicopter travel.

No training pre-requisites are required.

4 years

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Basic Offshore Safety Induction and Emergency Training (BOSIET) with ...

A big win for Staten Island: Proposed offshore wind industry project that will dismantle LNG tanks | Our Opin  SILive.com

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A big win for Staten Island: Proposed offshore wind industry project that will dismantle LNG tanks | Our Opin - SILive.com

Boaters missing from N.J. rescued 200 miles offshore by crew of oil tanker, Coast Guard says  NJ.com

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Boaters missing from N.J. rescued 200 miles offshore by crew of oil tanker, Coast Guard says - NJ.com

1. Offshore Drilling Operations Vulnerable to Cyberattacks, Watchdog Warns  Nextgov
2. US offshore oil and gas rigs at significant risk of cyberattacks, warns government watchdog  TechCrunch
3. Report warns of urgent need to address cybersecurity in offshore oil and gas infrastructure  SiliconANGLE News
4. Offshore oil and gas rigs could be targets of another cyberattack  Washington Times
5. Offshore Oil and Gas: Strategy Urgently Needed to Address Cybersecurity Risks to Infrastructure  Government Accountability Office
6. View Full Coverage on Google News

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Offshore Drilling Operations Vulnerable to Cyberattacks, Watchdog Warns - Nextgov

Worlds Biggest Floating Offshore Wind Farm Is Powering Oil & Gas Platforms In The North Sea  CleanTechnica

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Worlds Biggest Floating Offshore Wind Farm Is Powering Oil & Gas Platforms In The North Sea - CleanTechnica