The Ministry of External Affairs (MEA) has notified offshore wind energy lease rules, 2023. With regard to grant of lease, the central government has the option to grant leases for offshore areas located within the exclusive economic zone for projects related to offshore wind energy and offshore wind transmission. The Ministry of New and Renewable Energy (MNRE) will designate the offshore region for the lease through an evaluation of wind resource and subsequent marine spatial planning. The party leasing the area must engage in an agreement with the MNRE for the lease grant and the establishment of wind energy capacity, in accordance with the guidelines provided by the government of India.
The specific area under the lease will be defined, and the lease itself will remain valid for three years, allowing for resource measurement and related study or survey activities. If necessary, it can be extended for an additional two years with valid reasons. Following the completion of this five-year term, the lease concludes, necessitating lessees to submit their data to the National Institute of Wind Energy unless they initiate the establishment of wind energy capacity. The lease will be prolonged to thirty-five years for the construction and operation of the offshore wind energy project. Further extensions beyond this period will be considered on a case-by-case basis, contingent upon the functional viability and safety of the project. Typically, the leased area will range from twenty-five square kms to five hundred square kms, with potential variations based on the project’s size.
The obligations of the lessee encompass a refundable security deposit of Rs 100,000 per MW for wind energy projects and Rs 50,000 per MW for wind transmission projects. This deposit will be reimbursed to the lessee upon the successful operation and decommissioning of the project. Within three months of the lease becoming effective, the lessee is required to install notices, floaters, signage, or indicators at noticeable locations throughout the leased area to clearly mark its boundaries. Throughout the lease period, the lessee must consistently uphold and maintain these markers to the satisfaction of the MNRE and other stakeholders, including state governments, the coast guard, and the Indian navy. The government has the authority to establish regulations regarding the spacing of turbines, the distance between substations, and the minimum distance of turbines from the boundaries of the lease.
Power developers holding the lease are not allowed to cease regular operations, halt power exports, abandon projects, exceed the sanctioned project capacity by more than five per cent during the re-powering of the offshore wind farm, or resume operations after suspension without providing a 15-day notice and obtaining approval from the MNRE, which has the authority to appoint or establish a suitable agency to monitor and enforce these leasing regulations.
