L&T keen on offshore wind foray to expand green energy portfolio

Offshore wind

Larsen & Toubro is keen on offshore wind projects to expand its engineering, procurement and construction (EPC) offerings in the renewable energy space, Subramanian Sarma, president (energy) and whole-time director, told Moneycontrol in an exclusive interview.

The company has started bidding for projects abroad while also preparing for opportunities emerging in India. Despite having a coastline of 7,600 km and significant potential, India doesn’t have the offshore wind energy capacity. In an attempt to boost the offshore wind energy sector, the government approved a viability gap-funding scheme for the sector on June 19.

"We have more than 15 GW of projects in our portfolio and there are many more opportunities. Also, we are pursuing offshore wind farm projects in Europe and the Atlantic. We are hopeful of building this portfolio over the years as it fits into our long-term strategy. We have some upcoming offshore wind farm projects in India as well, though of a smaller scale," Sarma said.

Industry sources said that the company might be gearing up to participate in bids for the offshore wind projects in Tamil Nadu and Gujarat and may tie up with original equipment manufacturers (OEMs) for projects in India and abroad.

Earlier in the year, the government invited bids for the development of offshore wind energy projects with a total capacity of 4 gigawatts (GW). These bids cover four blocks, each with a capacity of 1 GW, to be developed on an open access basis.

India plans to tap offshore wind potential totalling 70 GW along the coasts of Tamil Nadu and Gujarat. Successful bidders for each block will set up 1 GW of offshore wind energy capacity and sell the generated electricity directly to consumers under the open access regime.

Setting up offshore wind energy capacity involves large wind turbines with a foundation that is anchored deep in the seabed. The electricity generated from these turbines is transmitted to the grid or onshore network through undersea cables buried in the seafloor.

The government’s recently approved VGF scheme for offshore wind energy projects has an outlay of Rs 7,453 crore. This includes Rs 6,853 crore earmarked for the installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu), and a grant of Rs 600 crore for the upgradation of two ports to meet logistics requirements for offshore wind energy projects.