Key Takeaways

• The Solar Energy Corporation of India (SECI) has canceled two offshore wind energy tenders due to inadequate developer interest.
• The canceled projects included a 500 MW offshore wind project in Gujarat and a 4,000 MW seabed lease rights allocation.
• SECI may consider issuing a revised tender to attract more developers for these projects.

Details on Tender Cancellations

The Solar Energy Corporation of India (SECI) has announced the cancellation of two significant offshore wind energy tenders. The projects include a 500 MW initiative under the viability gap funding scheme and a 4,000 MW seabed lease rights allocation. The decision to cancel these tenders stemmed from a “lack of response from developers,” according to sources familiar with the situation.

The 500 MW offshore wind project was intended to be built in Gujarat, established on a build-own-operate basis. Under this arrangement, SECI planned to enter into a power purchase agreement for a duration of 25 years with the successful bidder. To ensure the robustness of the project, the successful bidder was required to conduct extensive surveys of the seabed and other associated activities to validate available data sets essential for achieving financial closure.

Despite the ambitious goals, the level of interest from developers has fallen short. This has been noted as an issue, particularly given that it is the first significant attempt to implement offshore wind energy projects in the region. The technology involved is recognized as complex and capital-intensive, which might deter potential developers from engaging.

Although the current tenders have been withdrawn, there is a possibility that SECI will issue a revised version to encourage more proposals. One source mentioned, “There may be some changes. The idea is not off.” This indicates that SECI remains committed to exploring opportunities within the offshore wind sector, despite the challenges faced.

The 500 MW offshore wind energy project tender was initially released in September of the previous year, with a final bid closing date set for August 4 of this year for offline submissions. The lack of participation reflects broader market challenges in capitalizing on offshore wind potential, which remains a frontier in renewable energy development.

In summary, while SECI’s cancellation of the tenders indicates current obstacles, the corporation’s intention to possibly revise and re-attempt the tender issuance suggests a continued effort to bolster the offshore wind energy landscape in India.

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