In May 2024, in the temple town of Rameshwaram, a small group of fishermen gathered at their harbour, driven by a wave of anxiety. Their meeting, though sparsely attended, focused on a looming concern: India's first ambitious offshore wind energy project. They discussed the potential impact of the project, including the disruption caused by large turbines and underwater cables that could affect their livelihood. "We know no details, nobody has discussed it with us. We don’t even know when and where it might come, but we are concerned and we are against it, as it would definitely affect us,” said S Emirit, secretary of the Rameshwaram Fishermen Association.
Offshore wind energy projects in India are still in their infancy, with experts suggesting it may take another 8 to 10 years to begin development. However, concerns are mounting over the proposed project in Tamil Nadu because it’s coming up at the Gulf of Mannar, a biodiversity hotspot. And despite the project's promise of advancing renewable energy, local communities and environmental activists worry about the high costs, ecological impacts, and lack of consultation with affected stakeholders.
These concerns arose after the Ministry of New and Renewable Energy (MNRE) sought global bids for the allocation of sea-bed lease rights for 4 gigawatt (GW) offshore wind power projects in February 2024. The bids are for four blocks of 1000 MW each. The lease rental will be ₹1 lakh per sq km per year.
These projects fall under the open access category, selling electricity directly to consumers. Initially the project was not eligible for non-Viability Gap Funding (VGF), a governmental scheme that supports infrastructure projects that are economically desirable but may not be financially viable. These bids are invited under Model B, where the successful bidder has exclusive rights over the seabed during the survey or study.
On June 19, 2024, the Union cabinet approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects with a total outlay of Rs 7,453 crore. This includes Rs. 6,853 crore 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 upgrade of two ports to meet the logistics requirements for offshore wind energy projects.
The offshore wind energy project has seen support and opposition from stakeholders, officials, and activists. A section of officials, including some in the energy sector, have opposed the project, deeming it impractical for the country. They have even predicted that the project will never materialise.
"The offshore wind project will not be successful in India. The first and foremost reason is the high cost of power. Currently, electricity from onshore wind energy projects is sold at around Rs 3.80 per unit, while offshore projects, due to their huge investment, will require charging at least Rs 9 to Rs 12 per unit. When there are cheaper sources, who will opt for high-cost energy?" asks a senior energy sector professional.
He further added, "We already have enough potential on land itself. Why should we pay two or three times more for the offshore? European countries are going into the sea because they don't have the land. Germany, Denmark, etc., are small countries."
Globally, the wind power industry is facing challenges due to high cost, lengthy waiting periods for permits and many projects have been delayed or halted.
Many stakeholders working closely with the government in the energy sector expressed similar opinions but requested anonymity. "The expense offshore is more than double that of onshore. Are we making the right decision to go offshore? About seven or eight years ago, there was an expression of interest for a 1 GW offshore project in Gujarat. There were no developments after that," said another stakeholder. He added that if the government wants the project, it should start it themselves and provide firsthand experience to interested parties. "Let the government build one turbine and try it out. Those interested in the project will gain experience. If it's a success, more players will join in. Otherwise, it is very unlikely to attract interested firms," he said.
A Tamil Nadu state government official emphasised the need to refurbish existing onshore windmills. "We have proven our success in the renewable energy sector. More investment is required in already proven projects now. Tamil Nadu has already initiated the refurbishment of old windmills, which needs more support than spending so much on offshore projects. This will help produce more energy at a much lower expense than offshore," he said. According to him, Tamil Nadu has a potential of more than 7,000 MW through repowering of existing windmills.
The latest MNRE report from March 2024 shows Tamil Nadu’s installed renewable energy capacity is 22,479 MW, the second highest in the country. Gujarat tops the list with a potential of 28,200 MW.
The Gulf of Mannar is a coastal region approximately 365 km long. Around 268 fishing villages depend on fishing in the buffer zone areas of the Gulf of Mannar, where about 1,10,000 families rely on this activity for their livelihood. Among them, 55,000 families live between Rameshwaram and Tuticorin.
According to Sameer Jain, Managing Director at Primus Partners, a management consultancy with expertise in public policies, the relationship between offshore wind projects and fishing communities is complex, as these projects can cause ecological and economic impacts on the community.
Offshore wind projects have sparked tensions in various countries, especially in Europe and the United States, where fishing industries have been significantly impacted. Reports indicate that fishermen in European countries often had to relocate or find new fishing grounds due to wind farms. Similarly, for the last few years the Jersey shore in the United States have seen protests against offshore wind projects.
TNM visited Rameshwaram, where fishing communities expressed deep concerns upon learning that tenders were called for the offshore project.
“Coastal regions close to the Gulf of Mannar are heavily populated, and people here rely solely on the fishing industry. Almost everyone is involved in fishing-related work. This region is narrow, ecologically fragile, and lacks space. We don’t know the exact impact, but we know that huge turbines in the sea will make us jobless,” Emirit from the Rameshwaram Fishermen Association told TNM. “We’ve heard about underwater cables that can damage our fishing gear and disrupt fish populations. So, even after construction, it won’t be easy for us,” he added.
According to him, fishers from Rameshwaram and Pudukottai currently have only about five nautical miles available for fishing. “Some areas are rocky, where we cannot lay nets, and if we accidentally go beyond that, we get arrested by the Sri Lankan navy. A week ago, 22 fishers were arrested. In this limited space, if we are further restricted, where will we go?” Emirit asked.
Most of the fishermen TNM met in Rameshwaram were unaware of the proposed project off their coast. However, some association leaders were aware and expressed their concerns.
“There should be proper discussions with the community. We cannot be deceived or kept in the dark about such a huge project,” said Sesuraj, a community leader.
Activists have also raised concerns about the already vulnerable ecology of the Gulf of Mannar. The Gulf of Mannar Biosphere Reserve (GoMBR) includes a chain of 21 islands (two of which have already submerged) and adjoining coral reefs off the coasts of Ramanathapuram and Tuticorin districts, forming the core zone. The Marine National Park and the buffer zone encompass the surrounding seascape and a 10 km strip of the coastal landscape, covering a total area of 10,500 sq km across the Ramanathapuram, Tuticorin, Tirunelveli, and Kanyakumari districts, with a long coastline of 364.9 km.
With its rich biodiversity of about 4,223 species of flora and fauna, the part of the Gulf of Mannar between Rameshwaram and Tuticorin, including 21 islands and surrounding shallow waters, was declared a Marine National Park in 1986 by the Tamil Nadu government and later the first Marine Biosphere Reserve of India in 1989 by the Indian government. However, the region's flora and fauna are under severe threat due to various factors.
"Reefs in tropical waters are an important component of marine wealth. It is a flawed idea to set up an offshore wind energy project in tropical waters," says G Sundarrajan, Poovulagin Nanbargal, an environmental organisation in Tamil Nadu.
“Currently, we have no idea how the offshore project will impact the ecologically rich Gulf of Mannar. Only a few fishermen use big boats; most use small boats and traditional fishing methods. Deep-sea fishing is not feasible for fishermen from Rameshwaram. The Gulf of Mannar is a rich habitat for many endangered species, including turtles, sharks, whales, and coral reefs. Any project beneficial to the fishing community and the environment is welcome,” said Gayathri Usman, Station Head at Kadalosai, a community radio station for fishermen in Rameshwaram and an environmental activist focusing on the Gulf of Mannar.
Helmholtz-Zentrum Hereon, a research organisation based in Germany, has found that "large-scale wind farms can strongly influence marine primary production as well as the oxygen levels in and beyond the wind farm areas." A study by them, published in the journal Communications Earth & Environment, says that such projects can impact the spatial distribution of marine ecosystem components, including nutrients, phyto- and zooplankton, and sediment biomass, which serve as the food basis for many bottom-dwelling organisms. The researchers also found that "the amount of biogenic carbon in the sediment would increase locally by 10% and the oxygen concentration, in an area where it is already very low, could decrease even further."
Sameer Jain, said, “Turbines can generate electromagnetic fields that interfere with communication systems used by fishermen, making it harder to locate fish and navigate safely.”
He also suggested solutions to address potential negative impacts on the fishing community. “Involving fishermen in the decision-making process during spatial planning is crucial. This means prioritising the location of wind farms away from key fishing areas and migratory routes. Another solution would be to establish designated corridors for fishing vessels within the wind farms,” he said.
“Noise reduction technologies, such as quieter piling techniques and turbines, should be employed to minimise underwater noise pollution. Additionally, designing wind farm structures to incorporate features like artificial reefs can attract fish and restore marine life, offsetting potential habitat alterations,” he added. He suggests income support programs for fishermen communities during reduced catches and for temporary displacements.
The initial document of lease rules for the offshore wind project stipulate, “Every lessee shall have the right to restrict:
a. the entry into the Designated Lease Areas for such periods as notified by the Central Government for the purpose of construction or operation and maintenance of the offshore wind farm;
b. the navigation of boats, ferries, and ships obstructing the operation of the project site.”
This has raised concerns among the local fishing community. Sesuraj wonders how someone else can dictate a fisherman’s fishing routes. “How can outsiders control our fishing routes? Only we know about fish availability in the region,” he says.
The initial lease document stated, “Provided that activities such as fishing for the purpose of livelihood and other activities that may coexist with the offshore wind energy farm in the interest of the common public shall be permissible if they do not affect the normal working of the offshore wind energy farm.”
However, in the latest lease rules from February 2024, it was amended to, “Provided, however, that, in the interest of the common public, the Lessee shall permit activities such as fishing for the purpose of livelihood and other activities that may coexist with the Permitted Activities if they do not affect the normal working of the Permitted Activities. The Lessee shall organise its activities such that they do not unreasonably affect commercial fishing.” There is a lack of clarity on what permitted activities are.
Furthermore, the new lease rules also emphasise that no activities should harm or damage the environment and marine ecology. But with the bidder having exclusive rights over the seabed no one knows how such rules can be enforced.
Sameer Jain, said that although the “Offshore Wind Energy Lease Rules, 2023” have been notified to regulate the allocation of offshore wind sea blocks to developers, there still needs to be more clarity on the permits and approvals required for project development.
In January 2024, TRB Rajaa, Minister for Industries and Investment Promotion, Tamil Nadu, expressed support for the state's offshore wind energy project at the Envision Energy Festival held at IIT-Madras Research Park. He acknowledged the project's potential impact on the fishing community and emphasised the need to address their concerns.
"We are not claiming 100% perfection or a damage-free project. But this is a green energy initiative, and compromising ecology and the marine environment will not be part of it. We should seek expertise that can minimise damage to coral reefs and the region's flora and fauna. The technology exists," said a state government source.
Proponents of the offshore project argue that the significant investment will yield substantial benefits. "Offshore wind turbines, ranging from 5 to 10 MW each, are significantly larger than the 2-3 MW onshore turbines. Although the cost per MW is higher for offshore turbines due to the need for more robust structures and foundations in a marine environment, they will also produce a large quantity of energy," he added.
Another advantage is that offshore projects can save on land cost. "It is not that we have plenty of land; there is increasing competition for space onshore, and land prices are going up. For offshore projects, we don’t have to pay for land," he added.
Francis Jayasurya, India Director of the Global Wind Energy Council, highlighted Tamil Nadu's significant potential for offshore wind energy. “Tamil Nadu has wind speeds of about 10 km/hr, which is favourable for offshore projects by international standards. There is strong interest from developers, with major international players showing enthusiasm. These turbines will be installed approximately 200 km offshore, not near the coast,” he explained.
“In Denmark, fishermen have benefited from such projects. Ports were developed, and they gained private jetties. Fishermen can be incorporated and trained within the system,” he added.
Denmark, the first country to install a commercial offshore wind park in 1991, aims to produce 300 GW from offshore wind by 2050. According to an Associated Press report from June 21, researchers have successfully grown seaweeds and seafood beneath wind turbines. This project, a collaboration between Swedish state-owned power firm Vattenfall and Denmark’s Aarhus University, began in 2023 at Scandinavia’s largest wind farm, Kriegers Flak. The successful cultivation of seaweed and mussels beneath the turbines points to potential alternatives for fishing communities to coexist with offshore projects.
“Initial costs for offshore wind energy projects will be high, but without land costs, prices will decrease once the setup is complete. The market will ultimately decide feasibility, so premature judgments should be avoided. The turbines require significant amounts of steel, making the initial phase challenging. Maintenance and design will not be inexpensive, but costs are expected to decrease once established,” Jayasurya said. The project will also help generate local employment, according to him.
"You can't transport fully assembled wind turbine parts to Tuticorin. Small components should be assembled locally, which will generate significant employment opportunities. Factories will come up locally and engineers will be in demand fostering expertise in offshore turbine construction, welding, and assembly," he added. "Offshore projects are going to bring significant development to the country."
Vibhuti Garg, Director, South Asia, Institute for Energy Economics and Financial Analysis, said offshore wind energy is viable in India and every country that has adopted offshore wind faced similar challenges initially. “In India, we've had success with onshore wind, and offshore wind offers higher utilisation factors, around 50-55%, due to higher wind speeds," she said.
According to Sameer Jain, despite challenges, strategic planning, technological advancement, and strong policy support can pave the way for a cleaner, more sustainable energy future in the country. “With India's energy demand expected to increase by 2.5 times by 2047, the country must expand its renewable energy capacity by incorporating a variety of renewable sources,” he added.
India began discussing offshore wind energy projects over a decade ago, and in October 2015, the government notified the National Offshore Wind Energy Policy. This policy aims to develop offshore wind power up to 200 nautical miles from the coast. The Indian government expects that 1 GW of offshore wind projects will produce about 3.72 billion units of renewable electricity annually, reducing CO2 emissions by 2.98 million tons over 25 years. The initial phase plans for 37 GW of offshore wind energy, requiring an investment of approximately Rs. 4,50,000 crore.
The Global Wind Energy Council's Global Wind Report 2024 emphasises that India must overcome key barriers to progress in offshore wind installation. These include readiness of ports and grid infrastructure, availability of vessels, supply chain strategies, assurance of offtake agreements, streamlined permitting processes, clearances, community engagement, and the availability of a skilled local workforce. Experts also raised concerns over high import taxes affecting the industry.
Vibhuti Garg advocated for lowering GST for wind projects and extending transmission charge waivers until 2030 for offshore wind projects, noting their current extension only until 2025. She highlighted the inadequacy of evacuation infrastructure and stressed the urgent need for additional transmission capacity.
Garg suggested implementing a Production-Linked Incentive (PLI) scheme for turbine manufacturing, similar to solar modules, to bolster offshore wind energy. She noted Gujarat's stronger confidence in the project compared to Tamil Nadu and urged proactive signing of Power Purchase Agreements (PPAs) in Tamil Nadu to instil investor confidence despite initial high costs.
Experts also stressed the need for enhanced coordination between the Union and state governments.
"In light of India's land constraints and rising energy demand, renewable energy sources are critical," says Garg. "Immediate action on infrastructure and policy is crucial, as these projects require substantial lead time. Delaying now risks missing vital opportunities for the future."
Francis Jayasurya proposed establishing offshore cells at both levels, advocating for a seamless single-window system to streamline project approvals. He underscored the importance of proactive engagement with coastal communities, citing successful socioeconomic programs elsewhere that build community support.
Jayasurya echoed these sentiments, urging the Tamil Nadu government to adopt proactive communication strategies with coastal communities. "Socioeconomic programs that engage with local communities are essential," he says, pointing towards the need for a proactive rather than reactive approach to challenges.
This story was produced under the Renewable Energy Reporting in India Fellowship, of Earth Journalism Network.