The winners of the offshore wind energy blocks will lose their contracts if they fail to start commercial production within a specified time frame from date of signing the contract. This has been stipulated in the National Offshore Wind Energy Policy.
The policy, to be notified shortly, has authorised the National Institute of Wind Energy (NIWE) to conduct the auction. The policy was approved by the Cabinet last month and the details have been put up on the Ministry of New & Renewable Energy’s website on Thursday.
Oil & gas exploration firms, sea-bed mining firms and others who have existing leases on offshore blocks can participate in installation of wind farms on their existing acreages. However, such lease holders would need to route their proposals through NIWE, which will be nodal agency for development of offshore wind energy.
The blocks will be leased out through an international competitive bidding mechanism which is yet to be finalised. NIWE will also be the sole facilitator for obtaining clearances and no-objection certificates for such offshore blocks.
“NIWE will enter into contract with the successful bidder/the developer of offshore wind energy power project and collect lease fee from the developer during survey, construction and operation phases,” the policy states.