India Pauses 1 GW Offshore Wind Tender Amid Global Cost Concerns

India has prepared but not yet launched a 1 GW offshore wind tender after the Solar Energy Corporation of India cancelled two prior tenders totalling 4.5 GW in August 2025 due to a complete absence of bidder interest. A senior Ministry of New and Renewable Energy official told Down To Earth that the government is re-evaluating timing, citing a 40-60 per cent rise in global offshore wind costs since 2020.

The cancelled tenders included a 4 GW seabed lease rights auction off Tamil Nadu issued in February 2024 and a 500 MW ISTS-connected tender off Gujarat issued in September 2024. NIWE has since completed its survey and submitted the report. The MNRE official confirmed on March 11, 2026, that the 1 GW tender is ready but under review. Any government support, if offered, will take the form of capital expenditure support rather than a production-linked incentive, after an earlier PLI scheme failed to generate developer interest. The levelised cost of energy for offshore wind in India stands at Rs 9.7-9.8 per unit against onshore wind at Rs 2.8-2.9 per unit.

The global offshore wind sector faces significant financial headwinds, with project costs rising an estimated 40-60 per cent since 2020 due to inflation and supply-chain bottlenecks according to a McKinsey July 2024 report. Indian tenders require bids within 100-120 days, while European developers need six to seven months for internal approvals, according to the Global Wind Energy Council. Social considerations add complexity: fishing communities often view offshore wind zones as encroachments on traditional grounds. Procedural fragmentation across ministries — with no single nodal authority — further deters international developers.

Despite the setbacks, India plans to auction 37 GW of offshore wind capacity by 2030, and has approved Rs 7,453 crore in viability gap funding for the first 1 GW — 500 MW each in Tamil Nadu and Gujarat. A February 2025 Ocean Energy Pathways analysis identified Tamil Nadu as a potential offshore wind manufacturing hub capable of generating Rs 6,500 billion in economic activity by 2030. Experts note offshore wind projects typically take six to seven years to connect to the grid, making the first-of-a-kind project critical to establishing a domestic supply chain and demonstrating technical feasibility.

Key figure — Rs 7,453 crore viability gap funding approved for India's first 1 GW of offshore wind