The Government of India has approved the implementation of the Viability Gap Funding (VGF) Scheme for offshore wind energy projects. This scheme aims to commission 1000 MW of offshore wind energy capacity by the financial year 2031-32. The scheme guidelines were published on September 9, 2024.
The scheme has an outlay of Rs. 6853 crore. The Solar Energy Corporation of India (SECI) will oversee the implementation of the scheme.
The expenditure for the scheme will be covered by the budget provisions allocated for offshore wind energy development.
The guidelines cover the commission of 1000MV of offshore wind energy projects. The guidelines state that the first offshore wind project site of 500 MW capacity off Gujarat coast has been identified. The site for 500 MW capacity off Tamil Nadu coast will be finalised once study or survey for the same is completed by the National Institute of Wind Energy (NIWE).
The VGF scheme will be implemented through a transparent process and will provide financial support to developers and help make offshore wind energy projects more economically viable.
