Business Line : Companies News : ‘India's coastline offers enormous potential for offshore wind farms'

VIDYA BALA

BL RESEARCH BUREAU

 

Mr V. Vasantha Kumar, DGM - Corporate Planning, Chennai Petroleum Corporation Ltd.

India's coastline offers tremendous potential for offshore wind farms feels Mr V. Vasantha Kumar, DGM - Corporate Planning, Chennai Petroleum Corporation Ltd. Mr Kumar is responsible for strategic planning and diversification options for the company in fields such as renewable energy. While the prohibitive cost of setting up an offshore wind farm may not be financially viable for the likes of CPCL at present, Mr Kumar discusses the huge potential that this segment has to offer for serious players in the independent power producing space and oil and gas companies. Excerpts:

How big is the offshore wind market globally and what is the growth expected?

It is expected that by 2030, 40 per cent of global wind farm shall be offshore with an annual expected growth rate of 32 per cent. The total business potential is expected to be in the range of $200 billion from now on till 2030.

The global offshore wind farm capacity is expected to be 55,000 MW by 2020, as against 3,150 MW (as of October 2010).

Why are oil companies scouting for offshore wind opportunities?

Global oil companies, particularly those with focus on upstream sector as well as service providers such as rig and ocean going vessels, do look for opportunities in offshore wind energy as it brings in certain synergy with respect to engineering, execution and operations, similar to handling offshore structures of oil assets. Denmark-based oil exploration and production company and power generator Dong Energy is one such company. Handling of oil assets is otherwise different from running a wind farm.