India Unveils Offshore Wind Power Leasing Rules

The lease terms empower the Centre to lease out offshore areas within the Exclusive Economic Zone (EEZ) for both offshore wind energy and transmission projects.

December 21, 2023. By Abha Rustagi

In a move towards expanding its renewable energy portfolio, the Ministry of External Affairs (MEA) has announced the formalization of rules governing the leasing of the seabed for offshore wind power projects in India.

The rules stipulate a three-year lease for resource measurement, extendable for an additional two years, while the construction and operation of offshore wind energy farms will be granted a 35-year lease, subject to case-specific extensions. This notification asserts that no individual or entity may install offshore wind energy or transmission projects without obtaining a lease under these newly established regulations.

The lease terms empower the Centre to lease out offshore areas within the Exclusive Economic Zone (EEZ) for both offshore wind energy and transmission projects. The identification of the lease area will be based on wind resource assessment followed by marine spatial planning.

The lessee selection process will adhere to the National Offshore Wind Energy Policy, requiring clearances from various ministries, including Defence, Home Affairs, External Affairs, Environment, Forest and Climate Change, Space, and Ports, Shipping, and Waterways, before the lease is granted.

The lessee, as outlined in the notification, will have exclusive rights within the lease area to conduct activities related to offshore wind energy and transmission, including studies and surveys. Additionally, they will possess the right to use waterways for project-related work and can restrict navigation in the project area to ensure smooth project operations.

Project timelines are specified in the rules, with the lease for resource measurement being valid for three years, and extendable for an additional two years for adequate reasons. Following the expiration of this five-year period, the lease will expire, and all clearances will be withdrawn unless the lessee has commenced work to set up wind energy capacity as per the terms.

The specified lease area is expected to range from 25 sq km to 500 sq km, varying depending on the project's size, as outlined in the notification.

Tags:

Policies & Regulations

Offshore wind power

India

Exclusive Economic Zone

EEZ

Ministry of External Affairs

MEA

National Offshore Wind Energy Policy

Wind sector

Wind power

Renewable energy