SECL seeks 500 wind farms off Gujarat coast

16 Sep 2024 , 01:09 PM

Using viability gap funding (VGF), the state-run Solar Energy Corporation of India (SECI) has opened bids for the establishment of 500 wind power projects off the coast of Gujarat.

A VGF proposal for 1,000 MW of offshore wind projects in Tamil Nadu and Gujarat was authorized by the Union Cabinet in June.

According to the proposed bidding criteria released last week, the winning bidder or bidders will be need to sign a power purchase agreement for Gujarat at a set rate of ₹4.5 per unit.

Technical and financial bids must be submitted by the bidders, with the maximum capacity going to the lowest quoted VGF. A greenshoe option will also be available for the allocation of up to 50 MW of extra capacity, with a maximum capacity of 550 MW overall.

A greenshoe option is a clause in a tender that permits competitive bidding to be used to obtain additional power capacity.

Regarding the offshore wind capacity, the Union government’s 100-day milestone includes the VGF plan. The program is an initial step towards putting the 2015 National Offshore Wind Energy Policy, which explores wind energy potential within India’s exclusive economic zone, into practice.

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