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EU firms looking to boost offshore India wind

India environment is encouraging companies to explore India’s offshore wind potential

EU firms are looking to boost offshore wind power in India
EU energy firms are looking to boost offshore wind power in India

EU firms are looking to boost wind power in India. Energy firm Areva, Siemens and GE are queuing up to explore offshore wind opportunities in the country, according to reports.

A long coastline, low installation cost and ready local availability of key raw materials have made India a favoured destination for offshore wind power for such companies.
 
The Economic Times (ET) said high profile investors such as Vinod Sethi, private equity major Blackstone and new clean technology funds have already invested in offshore wind energy companies planning for India, mainly as this sector is expected to offer electricity tariffs at 40 per cent less cost than that from traditional sources.

“Offshore wind is the new growth area and has immense opportunities in India due to cheaper costs," Areva Renewables global CEO Anil Srivastava told ET. "Faster project building time and lower costs will make it an attractive option in India," he said, adding that his company was currently studying the possibilities for such a venture in India.

Areva, the world's largest nuclear plant builder, has already built 600 MW of offshore wind projects in Europe and has estimated that installation costs in India could be 30-40 per cent less than that in Europe, where it is about USD 2.2 for every MW of offshore wind built.

Like Areva, other majors such as Siemens and GE too have been exploring similar opportunities in the country, ET said. Cheaper tariffs will be the driving force for building offshore wind projects as prices of electricity are expected to grow due to tight coal supplies and surging demand. Spot rates for electricity have more than doubled to about Rs 10 per kilowatt hour, compared to Rs 4, last year.