The Indian government has made commendable strides in promoting renewable energy (RE), including setting an ambitious target to auction 37 GW of offshore wind capacity by 2030. Offshore wind—a stable and reliable RE source—holds immense promise for diversifying India’s energy mix. However, achieving this goal will require significant financial and policy support. The upcoming Union Budget 2025 is an opportunity for the government to allocate additional funding and address key challenges to unlock the sector’s potential in India.
Offshore wind energy offers significant advantages beyond diversification of energy sources. With capacity utilization factors as high as 50% off the Tamil Nadu coast—more than double that of solar energy—offshore wind can provide reliable and consistent energy supply. This stability is particularly important as India seeks to address energy demand fluctuations, while reducing fossil fuel dependence.
Furthermore, IISD and CSTEP study highlights that investing in offshore wind can generate INR 15.8 lakh crore in GDP, create 8.2 lakh jobs, and boost public revenue by INR 4.7 lakh crore by 2050, while significantly reducing GHG emissions and air pollution. These benefits justify the initial investment challenges, making it imperative for the government to act decisively.
India’s RE journey has been marked by ambition and achievement. The upcoming Union Budget is a pivotal opportunity for the Government of India to solidify this commitment by extending this legacy to offshore wind and ensure that fiscal policies reflect the scale of the country’s aspirations. The stakes are high, but so are the rewards. With bold and timely action, the government can position offshore wind as a cornerstone of India’s energy transition and a key contributor to its net-zero vision.
Sunil Mani (Policy Advisor, Energy Programme, IISD) co-authored the article.
Cover image by Peter Schmidt from Pixabay
