Government Mulls Higher Offshore Wind Subsidy
ECONOMY & POLICY

Government Mulls Higher Offshore Wind Subsidy

The government is considering higher incentives for offshore wind and has asked the World Bank (WB) and KPMG (KPMG) to review options for increasing viability gap funding. Officials view the review as a step to accelerate deployment of large offshore wind projects and to make them more bankable for domestic and international investors. The exercise will examine financial structures, tariff support mechanisms and enhancements to existing subsidy frameworks to lower upfront capital costs and improve project viability.

Raising incentives is intended to bridge the cost differential between offshore and onshore generation and to attract long term capital into the sector. The review will consider how viability funding might be structured to reduce revenue risk for developers while protecting taxpayer value. Analysts expect that alignment with national net zero and renewable energy targets will guide recommendations and that careful calibration will be necessary to avoid market distortions.

Industry participants are likely to engage with the WB and KPMG to provide data on cost curves, supply chain constraints and grid integration challenges. Developers will outline financing needs and timelines while financiers may present views on credit enhancement and long term offtake arrangements. Officials may also assess the role of domestic manufacturing incentives, port infrastructure upgrades and workforce development in lowering costs over time.

Final recommendations are expected to inform policy decisions and budgetary allocations and to set out a roadmap for scaling up offshore wind capacity in alignment with national energy goals. The timeline for completion of the review was not specified but officials indicated that findings will be used to shape forthcoming tender rounds and viability funding windows. Stakeholders will monitor the process for signals on how the government intends to balance fiscal prudence with the need to mobilise investment in clean energy. The outcome may influence investor sentiment and the pace of project execution across coastal regions.

The government is considering higher incentives for offshore wind and has asked the World Bank (WB) and KPMG (KPMG) to review options for increasing viability gap funding. Officials view the review as a step to accelerate deployment of large offshore wind projects and to make them more bankable for domestic and international investors. The exercise will examine financial structures, tariff support mechanisms and enhancements to existing subsidy frameworks to lower upfront capital costs and improve project viability. Raising incentives is intended to bridge the cost differential between offshore and onshore generation and to attract long term capital into the sector. The review will consider how viability funding might be structured to reduce revenue risk for developers while protecting taxpayer value. Analysts expect that alignment with national net zero and renewable energy targets will guide recommendations and that careful calibration will be necessary to avoid market distortions. Industry participants are likely to engage with the WB and KPMG to provide data on cost curves, supply chain constraints and grid integration challenges. Developers will outline financing needs and timelines while financiers may present views on credit enhancement and long term offtake arrangements. Officials may also assess the role of domestic manufacturing incentives, port infrastructure upgrades and workforce development in lowering costs over time. Final recommendations are expected to inform policy decisions and budgetary allocations and to set out a roadmap for scaling up offshore wind capacity in alignment with national energy goals. The timeline for completion of the review was not specified but officials indicated that findings will be used to shape forthcoming tender rounds and viability funding windows. Stakeholders will monitor the process for signals on how the government intends to balance fiscal prudence with the need to mobilise investment in clean energy. The outcome may influence investor sentiment and the pace of project execution across coastal regions.

Next Story
Infrastructure Urban

Lemon Tree Hotels Signs Resort In Lonavala Maharashtra

Lemon Tree Hotels Limited (LTHL) has signed a licence agreement for Lemon Tree Resort in Lonavala, Maharashtra, with the asset to be managed by Carnation Hotels Private Limited, a wholly owned subsidiary of LTHL. The resort will offer 50 well appointed rooms and will include a restaurant, banquet, meeting room, swimming pool, spa and fitness centre. The company described the addition as part of its strategy to expand branded resort offerings in key getaway destinations. Lonavala, located in the Sahyadri hills, is a popular leisure destination in western India known for scenic landscapes and a ..

Next Story
Infrastructure Urban

Kalai Chettinad Art And Architecture Festival At The Lotus Palace

The Lotus Palace Chettinad will host Kalai, the Chettinad Art and Architecture Festival, a four-day, three-night immersive celebration of the artistic legacy of Chettinad from three to six April 2026. The event has been organised by Apeejay Surrendra Park Hotels Limited (ASPHL) and will take place across restored heritage properties in Chettinad. It will be designed to offer guests a layered experience of place, structure and story that connects art, architecture and living traditions. The festival aims to present a confluence of global influences and local aesthetics. Kalai has been curated i..

Next Story
Infrastructure Energy

SJVN Reaches One bn Units At 1,000 MW Bikaner Solar Project

SJVN Limited (SJVN) has reached a milestone with its 1,000 megawatt (MW) Bikaner Solar Power Project by generating one bn units of electricity on 20 March 2026. The achievement underscores the company's role in supplying clean and sustainable energy to the national grid. The generation milestone was recorded within months of the project commencing operations and highlights rapid performance from the new facility. The Bikaner project, located in Bikaner district of Rajasthan, has been developed and implemented by SJVN Green Energy Limited (SGEL) under the Central Public Sector Undertaking Schem..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement