Wind India 2017
Wind India 2017
Estimation of technical and economic potential of offshore wind along the coast of
India
PII: S0360-5442(17)31207-0
DOI: 10.1016/j.energy.2017.07.032
Reference: EGY 11220
Please cite this article as: Nagababu G, Kachhwaha SS, Savsani V, Estimation of technical
and economic potential of offshore wind along the coast of India, Energy (2017), 10.1016/
j.energy.2017.07.032.
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2 coast of India
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4 Department of Mechanical Engineering, School of Technology, Pandit Deendayal Petroleum
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Abstract
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8 India is rapidly growing in the economy and population leading to a continuous increase in
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9 electricity demand. The wind is a better energy source because of its negligible greenhouse gas
10 emissions, cost competitiveness, price stability, and energy security. This paper presents
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11 Geospatial Information System (GIS) based methodology to characterise the offshore wind
12 power potential in the western and the eastern coast of India with technical, economical, and
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13 marine ecosystem consideration. Spatial distribution of levelized production cost (LPC) and cost-
14 supply curves was developed under different ocean conditions (human impact on marine
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15 ecosystem). The influence of project lifetime, discount rate, and assumptions about investment
cost, annual energy production, and availability is presented using sensitivity analysis. Results
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17 show that total potential available along the shallow waters (50 m water depth) of Indian coast is
18 approximately equal to 12.8% and 42% respectively of the existing renewable power and wind
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19 power capacity. In terms of wind resources and economic costs, the shallow waters of Gujarat
20 and Tamil Nadu states are the best suitable regions for offshore wind power development.
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21 Keywords: Offshore wind; India; GIS; Levelized production cost; cost-supply curve
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Nomenclature
a Annuity factor
CA Availability coefficient of turbines
CE Electrical cost (€/MW)
Cf Foundation cost (€/MW)
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CI Total investment cost per unit marine area (€/km2)
COM Annual operation and maintenance cost per unit marine area (€/km2/y)
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COM Operation and maintenance cost (€/MW)
CWT Turbine cost (€/MW)
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d Water depth (m)
DA Array density of turbines (MW/km2)
Di Anthropogenic stressors
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dl The shortest land distance to coast (km)
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dp The shortest distance from service port or harbour (km)
ds The shortest subsea distance to coast (km)
E Energy potential per unit marine area (MWh/km2/y)
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P/A
PWT Rated capacity of each wind turbine (MW)
r Interest rate (%)
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28 1. Introduction
29 Renewable energy (RE) technologies have an ability to significantly reduce carbon emission in
30 the electricity and heat sectors, and contribution to global climate change [1]. India is among one
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31 of the developing countries with lowest per-capita (1010 kWh) power consumption across the
32 globe. Approximately 25% of the Indian populace does not have access to electricity [2].
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33 Contrary to this, China consumes nearly 4000 kWh per person, while the developed nations are
34 having an average per capita consumption of around 15000 kWh [2]. According to latest treaty
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35 agreements at the Conference of Parties (COP-21), Government of India (GoI) plans to diminish
intensity of carbon emissions, mitigating its effect by 33 to 35% below the year 2005 level of
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36 AN
37 country’s GDP and to achieve installed cumulative electric power capacity about 40% from RE
38 by 2030 [3]. In order to make electricity more accessible to everyone and to achieve energy
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39 security, India started taking robust steps for developing its renewable sources of energy. For this
40 purpose, GoI took initiative for offshore wind power development [4].
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41 Significant challenges obstructing for offshore wind power development are offshore
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44 transmission infrastructure, and security [5]. Moreover, along with analysing its technical
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45 feasibility, it is also important to assess the costs to be incurred and commercial viability to be
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46 earned by developing the offshore wind power sector in developing country like India.
47 Researchers have conducted numerous studies across the globe, for assessment of the
48 offshore wind resource available in various countries like China, Brazil, US, Thailand, Portugal
49 and so on [6–10]. On the other hand, researchers have conducted limited studies for estimation
50 of offshore wind resource potential in Exclusive Economic Zone (EEZ) of India. Nagababu et al.
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51 [11] estimated the available offshore wind power potential by utilizing fourteen years ERA-
52 Interim reanalysis wind data, bathymetry, and human impact on marine ecosystem. They found
53 that the available potential was sufficed ten times of the present electricity demand of India.
54 Gadad & Deka [12] estimated the Karnataka state offshore wind potential using 5 MW wind
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55 turbine (WT). They found that 162,170 MW potential is available in the study area. These
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56 studies estimated the only total available potential of the country solely based on technical and
57 spatial constraints. In Indian EEZ, studies to estimate economic potential are still inconclusive.
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58 Considering the environment, offshore wind energy produces low carbon emissions as
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59 compared to other energy sources. Information on local environmental impacts is necessary for
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60 large-scale marine project implementation [13,14]. It can further develop pressure from multiple
61 anthropogenic activities. Impacts on the ecosystem will subsequently influence their services.
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62 Ecosystem services provide benefits to humankind in multiple ways from marine ecosystems
63 such as supporting, provisioning, regulating, and cultural activities. [15–17]. One of the
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64 outcomes of monitoring program implemented at Offshore Wind Park Egmond aan Zee (OWEZ)
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65 was that wind farm turned as a new kind of habitat. Further, the area usage by the fish, benthos
66 some bird species and marine mammals were increased [18]. Lillgrund wind farm surveillance
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67 studies revealed that no significant effects on fish diversity and abundance after the
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70 construction, and operational noise will have an impact on marine ecosystems [19]. The
71 construction of wind parks severely affects existing seabed habitats because hard pillar on a soft
72 seabed is introduced. The seabed that is covered by the turbine foundation, scour protection,
73 substations and power cables is directly impacted. However, the footprint of the area that is
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74 directly impacted is less than the entire area of the OWF, and the strategic placement of turbines
75 and other structures can minimize the effects to benthic habitats or species [11,19,20]. During the
76 operational phase, impacts are variable locally. The impacts can be either negative or positive
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78 The majority of studies investigated the effect of an OWF on benthic species and
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79 observed negative impacts such as decrease in population, species richness, biodiversity,
80 functioning, abundance and community structure [15]. However, there are also positive
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81 environmental effects due to OWFs development. The location of WTs provide the possibility
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82 for habitat creation considered as compensation for habitat loss [22]. There are limited numbers
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83 of studies available in the open literature to observe the effect of cumulative human impacts on
84 marine ecosystem. Therefore, there a need to develop and follow reliable integrated approach to
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85 collect the various forms of ecosystem data, before and after the installation of OWF and to
88 economic feasibility of wind farm. For feasible economic OWFs, CF should be more than 0.25
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89 due to the higher construction and maintenance costs compared to onshore [23]. GIS
90 methodology was extensively used for economic assessment of offshore wind resource [24,25].
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91 It can help to describe resources, area restrictions, and costs in the spatially explicit way,
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92 including the relationship among location, project size, and costs. In general, OWF costs can
93 break down into variable and fixed components. Variable components are dependent on location,
94 typically the water depth either the distance from nearest port or grid connection point/shore
96 considered by high capital costs and low operational costs. Policy implications, as well as the
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97 selection of economically viable plant sites, can be derived based on the levelized production
98 cost (LPC). Offshore wind power is a relatively new technology compared to its onshore
99 counterpart. Offshore wind CAPEX is higher than onshore due to complex installation of towers,
100 foundations, and underwater cabling. Expensive crane vessels are required in offshore to perform
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101 repair, which are 5-10 times costlier than onshore wind farms [26]. In Europe, onshore wind is
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102 50% cheaper than offshore wind [10]. This gap might expect to be larger in India due to its
103 nascent stage of development. However, to reduce CAPEX these challenges can be converted
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104 into opportunities through indigenous development of relevant technologies. However, the past
105 studies on offshore energy show the promising results of reduction in cost in long-term stable
106 prospects.
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107 To the authors’ knowledge, the present study for estimation of techno-economic offshore
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108 wind energy potential along the Indian coast has been done first time using a comprehensive
109 GIS-based approach. GIS environment considers various parameters like WT characteristics,
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110 wind resources, economic costs, and human impact on marine ecosystem for evaluating offshore
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111 wind potential in India. Further, the spatial distribution map of LPC is developed. Cost-supply
112 curves of offshore wind energy under different marine conditions are discussed. The influence of
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113 different parameters on LPC is discussed using sensitivity analysis. The present study aims to
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114 give perceptible information for stakeholders and policy-makers about the offshore wind
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115 potential along the Indian coast under present technical, economic, and marine ecosystem
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119 India has 7600 km long seashore for the development of marine energy. Water depth is a key
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120 factor for identifying a suitable foundation technology. It also significantly affects the economics
121 of OWF when establishing the offshore foundation [27]. Gravity foundation technology was
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122 used in first generation OWFs and was used up to 15 m water depth. Monopile foundation
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123 technology is used up to 30 m water depth. Jacket and tripod foundations are commercially used
124 for greater depths up to 50 m. More than 50 m water depth floating foundation technologies are
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125 currently being developed [5,11]. Hence, in the present study, the area having bathymetry depth
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126 less than 50 m in Indian EEZ was considered.
128 In the present study, monthly average ERA-Interim reanalysis data [28] at a spatial resolution of
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129 0.125° (~12.5 km) is retrieved for 14 years (2001 – 2014) from latest ECMWF (European Centre
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130 for Medium-Range Weather Forecasting) global atmospheric reanalysis is used for generating
131 power density map. The reanalysis data is obtained at the height of 10 m above sea level.
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132 Bathymetric data is taken from the General Bathymetric Chart of the Oceans (GEBCO)
133 [29], and human impacts on marine ecosystem data are taken from the National Centre for
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134 Ecological Analysis and Synthesis (NCEAS) [30]. The spatial resolution of these data’s is
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136 3. Methods
137 GIS software is used to evaluate technical and economic offshore wind potential. The main aim
138 of the GIS-based model is to display the spatial distribution of offshore wind resource and its
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139 potential, LPC and the suitable locations for OWF development. The methodology implemented
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142 Technical potential of offshore wind energy is estimated using wind power density (WPD), WT
143 specifications, and a park configuration, which results in a wind energy potential map. The study
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144 area is filled with OWF capacity of 200 MW. OWF consists of 40 turbines with a capacity of 5
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145 MW each has been considered. From the study of Nagababu et al. [11], G128 WT exhibited
146 better output in Indian exclusive economic zone (EEZ). Hence, in the present study, Gamesa
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147 G128-5 MW WT (G128 WT) [31] is considered to estimate the energy potential. The layout of
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148 each OWF is one of the important factors responsible for optimizing wind farm technology. The
149 wind turbines are spaced apart so turbines do not suffer fatigue due to turbulence induced in
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150 turbine wakes and capture the maximum amount of energy. For the present case, all turbines are
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151 configured in the 8x5 array, with downwind, and crosswind spacing factors are 10 and 5 rotor
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153 order to reduce wake effects [10,24]. Based on wind farm size, array spacing and wake buffer
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155 Wind power assessment has been carried out at a hub height of 80 m. Hence, the ERA-
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156 Interim winds (at 10 m) were extrapolated to required height (at 80 m) for estimation of wind
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157 power potential. For this purpose, log-law has been used which is given by
V ( z) ln(z / z o )
= (1)
V ( z ref ) ln(z ref / z o )
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158 where V(z) is the wind speed at a required measurement height z, V(zref) represents the wind
159 speed at measured height zref and zo denotes the roughness length which varies according to the
160 type of terrain over which the wind flows. A power curve is required in order to estimate a
161 representative energy density of typical OWTs. A typical G128 WT power curve is presented in
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162 Fig.2. A mathematical relationship developed for G128 WT power curve is given by Eq. (2). In
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163 a power system with a number of wind turbines interconnected, smoothing effects are of
164 great importance for evaluating their output fluctuation. The variability of the wind speed can
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165 cause significant fluctuations in the power generated by large grid connected wind farms.
166 Smoothing effects largely depend on local topography as well as the meteorological conditions
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of a region. In case of offshore, the local topography/surface roughness of water depends on the
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168 wave field, distance to coast (fetch), etc. For simplicity, constant sea surface roughness (zo =0.2
mm) [12,33,34] which is recommended for ocean surface and neutrally stable atmosphere are
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169
170 assumed.
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0 Vi < 2
P = − 0.2154Vi + 60.52Vi − 223.3Vi + 277 2 ≤ Vi ≤ 10
3 2
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(2)
13.06Vi 3 − 553.1Vi 2 + 7896Vi − 32860 10 < Vi ≤ 13
5000 13 < Vi ≤ 16.5
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171 Wind energy potential Ed (MWh/y) is estimated by multiplying electric power generation
172 with 8670 hours. Furthermore, wind turbine cannot operate in wind speeds above a certain limit
173 and it requires scheduled maintenance, unplanned shutdowns maintenance etc. which counts
174 against its availability coefficient. The availability coefficient (CA) and wake loss rate (Lw) are
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175 assumed as 95% [12,32,35] and 10% [12,32] respectively in the present study. Energy potential
176 per unit marine area E (MWh/km2/y) within the study area is estimated based on Eq. (3) [10]:
DA × (1 − Lw ) × CA × Ed
E= (3)
Y
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177 where DA is the array density of turbines (MW/km2), LW is the wake loss rate, CA is the
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178 availability coefficient of turbines, and Y is the capacity of individual WT (MW).
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179 3.2. Estimation of economic potential
181
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The levelized production cost is a useful economic metric for comparing the cost of different
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182 generation types, measured in terms of cost per unit energy output (€/MWh) [36]. LPC is the
183 minimum cost of one unit of electricity (MWh) produced by OWF averaged throughout the
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184 useful life span which is estimated based on Eq. (4) [24].
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C I C OM
LPC = + (4)
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aE E
185 where CI is the total investment cost per unit marine area (including cost of turbine, grid
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186 connection, turbine foundation and installation costs) in €/km2, COM is the annual operation and
187 maintenance cost per unit marine area in €/km2/y and a is the annuity factor as given by Eq. (5)
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188 [24].
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1 − (1 + r ) − n
a= , (5)
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189 Where n is wind farm life span in years and r is the interest rate. The following assumptions are
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191 • Cost parameters include investment costs, operation, and maintenance costs. Further,
192 investments comprise of costs incurred for foundations, grid connections as well as
194 • Twenty years of technical and economic lifetime (n) is assumed [10,24,25].
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195 • 12% annual discount rate (r) is adopted [37].
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196 For any energy source, the cost of generating electricity depends on several parameters including
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197 capital investment, fuel cost, O&M costs, financing cost, the overall efficiency, and operational
198 life of the plant. In the case of wind farms, the fuel cost is eliminated. Consequently, once the
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199 wind farm is up and running, the energy cost is mostly fixed and is slightly affected by the
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200 recession.
202 When working with LPC, it is important to realise that difficulty to obtain precise costs for
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203 individual existing or planned wind farms due to commercial sensitivities. The cost function of
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204 several parameters like turbine cost, foundation cost, electrical grid connection cost, and O&M
205 cost has been derived from various sources available in open literature. Total investment cost
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206 equal to the summation of the capital cost of each item, calculated as suggested by Hong and
207 Möller [10], Dicorato et al. [38], and Möller et al. [24].
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209 Turbine cost for rated capacities of WT in the range of 2 – 5 MW is obtained from Eq. (7) which
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211 where PWT is the rated capacity of each WT and CWT is the turbine cost in €. An increase of 10%
212 of the commercial WT cost is assumed for installation and transportation cost[38].
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213 b. Foundation cost
The present turbine foundation technology has some technical issues like unpractical for deep
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214
215 waters and high installation costs. Hence, only the area having bathymetry depth less than 50 m
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216 in Indian EEZ is considered in the current study. A cost function for foundation cost has been
217 derived from different sources [24,40,41] and expressed in terms of water depth as a linear
218
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function. Foundation cost consists of manufacturing cost, estimated by Eq. (8) [24]
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Cf = −14557× d + 270667 (8)
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219 where d is water depth, and Cf is foundation cost in €/MW. An increase of 50% of foundation
c. Electrical cost
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221
222 There are two main technologies to transmit power to the grid onshore i.e., alternating current
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223 (AC) and direct current (DC). Currently, high voltage AC (HVAC) cables are used to link
224 turbines to an offshore substation, with power clean up at each turbine. The AC topology is
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225 dominant technology for offshore wind transmission as it is a cost effective solution for near
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226 shore generation [42]. Traditionally, HVAC has been the technology of choice due to its existing
227 large-scale developments and low development risks in comparison with a more recent
228 technology such as HVDC. Most of the wind farms are located within the 20-60 km from shore.
229 As development of offshore wind moves further offshore with longer cables, HVDC becomes a
230 viable alternative due to the lower energy losses. While HVDC transmission line costs less than
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231 an AC line for the same transmission capacity, the terminal stations are more expensive because
232 they must perform the conversion from AC to DC and back again. For offshore wind farms, the
234 depending on the distance to shore [25]. The present study area contains water depth less than 50
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235 m and maximum distance is 60 km from shore. Electrical costs are estimated using the shortest
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236 distance between OWF and access point of high voltage (HV) grid on land. In order to connect
237 the OWF and HV grid, it requires two types of cables that are land cables and subsea cables. In
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238 the present study, the shortest distance to the grid cell of each site from the coastline was
239 considered as subsea cable length, and shortest distance to the coastline from the HV grid was
240
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considered as land cable length [5,10,38]. A cost function for the electrical cost has been derived
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241 from different sources [24,40,41] and expressed in terms of shortest subsea distance to coast and
242
( 0 .38 d s + 0 .4 d l + 76 . 6 ) × 10 6
CE =
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(9)
200
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243 where CE is electrical cost in €/MW, ds is the shortest subsea distance to coast in km and dl is the
246 O&M costs are assumed highly depends on distance to harbour. Short distance from harbours of
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247 adequate tonnage capacity to OWF is essential during installation as well as operation and
248 maintenance. The cost function used is based on [41] and expressed in terms of distance to
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250 where COM is operation and maintenance cost in €/MW, dp is the shortest distance from service
251 port or harbour in km. The labour force in developing countries like India and China is cheaper
252 as compared to European countries. In the case of China, Hong and Möller [10] considered 40%
253 cheaper. Hence, the same value is assumed for Indian scenario.
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254 e. Other Costs
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255 As per the reports, around 90% of the total investment cost is shared by turbine cost, foundation
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256 cost, electrical cost, and their installation costs. Whereas the share of other costs is not more than
257 10% as discussed in reports [1,10,40,43]. Hence, in the present study, 10% of investment cost
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258 was considered as other costs.
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259 3.2.3. Estimation of ocean conditions
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260 OWF development requires a spatial data of current effects on marine ecosystem. A global
261 human impact on marine ecosystem map was developed by Halpern et al. [44] by considering
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262 seventeen anthropogenic stressors (Di) and twenty marine ecosystem types (Ej). The outline for
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263 estimating cumulative impact score (I c ) was described in Halpern et al. [44]. Concisely, the
264 cumulative impact model requires spatial distribution map of marine ecosystems, the spatial
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265 distribution of human stressors intensity and ecosystem by stressor vulnerability scores that
essentially act as spatial weighting factors. The impact score (I c ) was calculated for each pixel
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266
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267 as [44]
n
1 m
Ic = ∑ ∑ Di ∗ E j ∗ µij (11)
i =1 m j =1
268 where µij is the impact weight for anthropogenic driver i and the ecosystem j, and 1/m produces
269 an average impact score across ecosystem. They classified the whole region into six ocean
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270 conditions based on cumulative impact score and presented in Table 1. Human impact on marine
271 ecosystem data has been processed over study area and presented in Fig. 3. Six classified ocean
272 conditions will helpful for identifying the regions that are highly impacted or pristine and also
273 for the spatial planning process, biodiversity conversation, and threat mitigation.
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274 3.2.4. GIS and spatial interpolation
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275 GIS software has been used to create a spatial model of associated LPC. Ordinary kriging with a
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276 spherical variogram is an interpolation method applied to wind speed data. Interpolating the
277 point data provides homogeneous data density over the study area enabling continuous spatial
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278 analysis. A continuous spatial function for total investment and O&M cost can be calculated,
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279 similar to wind speed. For every grid point, sea depth and relevant distances to infrastructures
280 (coastline, ports, and substation) can be calculated in Arc GIS software.
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282 This section presents the results of the technical and economic potential of offshore wind for the
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283 two study areas classified as the eastern coast (EC) and western coast (WC) of India. First,
284 estimated available offshore wind technical potential based on methodology explained in the
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285 Subsection 3.1 and LPC calculations followed by estimation of the economic potential based on
286 methodology explained in the Subsection 3.2. Further, developed cost-supply curves drawn to
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287 show the variation of costs with the effective potential. Finally, the impact of different
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289
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291 The extrapolated ERA-Interim wind speeds are used to develop the spatially interpolated map
292 with a spatial resolution of one square kilometre using the Kriging technique. WPD is
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293 independent of turbine characteristics. It is useful to estimate the accessible wind resource at a
294 specific location. Theoretical WPD over WC and EC of India, at 80 m height and 50 m water
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295 depth is shown in Fig. 4. According to Fig. 4(a), average WPD varies between 13 – 294 W/m2
296 over the WC of India. Similarly, over the EC of India (Fig. 4(b)), the WPD varies between
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297 63−393 W/m2. Good wind resources (WPD> 200 W/m2) are distributed predominately in the
southern part of EC (Tamil Nadu) and north region of the WC (Gujarat). On the other hand, the
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299 southern part of the WC and northern part of the EC are having relatively poor and average wind
300 resources.
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301 The efficient turbine rotor can affect the actual wind power production. For calculating
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302 wind energy potential, it is essential to combine wind speed with a specific type of OWT. Wind
energy potential (E) is estimated by using Eq. (3) and presented in Fig. 5, which describe the
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304 spatial distribution of annual wind energy potential per unit marine area in MWh for the WC and
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305 the EC of India respectively. The annual wind energy potential in the WC and the EC are in the
306 range of 54 – 823 MWh/km2 and 107 − 1117 MWh/km2 respectively. Average wind energy
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307 potential map shows the trend similar to power density map. From Fig. 5, it can be observed that
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308 top region of the WC of India (Gujarat) and bottom region of the EC of India (Tamil Nadu) in
309 particular have considerable potential for wind power development. Table 2 shows the available
310 technical offshore wind energy potential in different water depth ranges. From Table 2, it can be
311 observed that 65% of technical potential is available over 0 – 30 m of shallow waters. Further,
312 60% of potential is observed in the WC of India. If 5 MW WTs installed in water depth up to 50
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313 m along the Indian coast, then the annual energy yield from wind energy is to be 97 TWh or
314 11.07 GW. The Indian renewable energy sector is sharing 86 GW (including large hydro) out of
315 total power generation of 302 GW. Onshore wind energy has an installed capacity of 26.7 GW as
316 of April 2016 (Central Electricity Authority from the Government of India, 2016). It is nearly
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317 equal to 12.8% and 42% of the existing RE and wind power capacity in India.
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318 4.2. Economic Potential
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319 Fig.6 shows the spatial distribution of LPC over the WC and the EC of India. The feed-in tariff
320 (FIT) system successfully implemented to promote offshore wind energy with some variations in
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321 European countries such as Denmark, Spain and Germany [40]. In India, the FIT system
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322 implemented for RE sources (solar photovoltaic, solar thermal and onshore wind) but there is no
323 specific policy exists with appropriate FIT related to offshore wind energy. The FIT per kWh for
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324 RE sources in India varies from INR 3.51 (0.0468 €) to 17.91 (0.238 €) [45]. If the calculated
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325 LPC of a grid cell is lower than the currently guaranteed FIT, it is economically viable for an
investor to install a WT. LPC of offshore wind is highly influenced by water depth and wind
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326
327 resources. Accessible offshore wind energy’s economic potential in various FIT standards in the
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329 Minimum LPC calculated for the WC is 123 €/MWh. Further, minimum average LPC for
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330 the EC of India ranges from 82 to 120 €/MWh. Regions locate in the 0 – 50 m waters of the
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331 southern part of Tamil Nadu is a least cost area (<120 €/MWh) for developing OWFs. In this
332 cost category, the available potential is 3.5 TWh, which is approximately 4% of the technical
333 potential of Indian EEZ for 50 m depth of water. The cost of energy between 120 to 200 €/MWh
334 are mostly found within 0 – 30 m waters of the southern part of Tamil Nadu and West Bengal,
335 and 0 – 50 m waters of Gujarat. The available energy in this cost range is 39 TWh, about 40%
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336 of available energy using present foundation technology. Out of that, 64% of energy is available
337 in WC of India. About 20% of accessible energy, costs in between 200 to 240 €/MWh, which is
338 20 TWh. The cost of energy more than 280 €/MWh is considered as a most expensive energy,
339 located in the southern part of WC (Maharashtra, Goa, Karnataka, Kerala) and some parts in the
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340 EC (Andhra Pradesh, Odisha). The estimated potential in this cost category is 21 TWh (20% of
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341 available energy).
342 Estimated economical potential signifies the spatial potential that can be identified below
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343 FIT in the light of expected future cost of energy plus internal rate of return (IRR). Onshore wind
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344 energy in India has attractive IRR (16.5 − 18% range) because of encouraging state government
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345 policies, including a favourable FIT [46]. IRR of 18% is assumed in the present calculations. The
346 economic potential for a 5 MW WT in the EC of India grows nearly 211% as FIT rises from 120
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347 to 160 €/MWh. Further increase of FIT, the potential falls to 86%, 107%, 89% respectively for
348 FIT increase from 160 to 200 €/MWh, 200 to 240 €/MWh and 240 to 280 €/MWh. Along WC of
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349 India economic potential for the selected WT grows nearly 225% as FIT rises from 160 to 200
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350 €/MWh. Further increase of FIT, economic potential falls to 76% and 48% respectively for FIT
351 increase from 200 to 240 €/MWh and 240 to 280 €/MWh. Offshore wind energy development
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353 Cost-supply curves represent the costs variation with the utilized potential. Marginal
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354 production cost plays an important role in the economic theory that proves a competitive market
355 is efficient. The marginal production cost is defined as the cost of generating an additional unit
356 of energy, over and above the fixed costs associated with the initial investment and operation
357 [47]. Fig. 7 shows the marginal production cost of cumulative power production curve, to
358 compare the WC and EC of India. It can be concluded that EC has a lower marginal production
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359 cost of wind energy than WC of India up to a break-even at 13 TWh/year is achieved. The
360 steeper trend suggests that cost variation is more sensitive in the EC while comparing with the
361 WC of India. The economic potential shows the rate of growth as FIT rises to 160 €/MWh and
362 200 €/MWh respectively in the EC and the WC. Further, the average value for the rate of growth
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363 of potential in the EC and the WC of India are 83% and 98% respectively.
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364 Indian coastline contains an abundant variety of ecosystems for example beach,
365 mangrove, coral reef, estuary, island, coastal wetland, etc. Erecting OWTs will affect the ocean
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366 condition. Marginal production costs of different ocean condition in the WC and the EC of India
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367 are reflected in Fig. 8, which can help policy makers to have relative priorities for erecting
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368 OWTs. Fig. 8(a) shows that very low, very high, and high impact zones are more sensitive to
369 variations in cost for the WC region. Further, in the WC of India, the maximum available energy
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370 which costs less than 280 €/MWh are mainly located within low impact region (17.07 TWh),
371 followed by medium high impact region (12.27 TWh). Moreover, the rate of growth of economic
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372 potential increases as FIT increase up to 200 €/MWh in these ocean conditions, further increase
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373 of FIT slows down the rate of growth of potential in the WC of India. The average rate of growth
374 in all ocean conditions is different. FIT increases from 0 to 280 €/MWh, on an average the rate of
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375 growth in medium-high impact region by 210%. Further, in the high, medium, and low impact
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376 regions have an average rate of growth of 141%, 127% and 61% respectively. However, the total
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377 potential available in low impact region is high compared to high and medium impact regions.
378 From Fig. 8(b), it can be observed that very low, very high, medium, and high zones are
379 more sensitive to cost variations in the EC of India. Further, in the EC, the maximum available
380 energy which costs less than 280 €/MWh are mainly located within low impact region (11.54
381 TWh), followed by medium-high impact region (7.36 TWh). Moreover, the rate of growth of
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382 economic potential rises with FIT up to 160 €/MWh in all ocean conditions, further rise of FIT
383 slows down the rate of growth of potential in the EC. The rate of growth of potential in low
384 impact regions slow down as FIT increase up to 280 €/MWh. On an average, the growth rate as
385 FIT increases from 0 to 280 €/MWh in low impact region is 195%, followed by medium impact
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386 region with 101%. However, the total potential available in medium high impact region is 1.5
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387 times higher than medium impact region. The present study shows that offshore wind power
388 generation is highly sensitive to investment cost and wind energy potential. Sensitivity analyses,
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389 therefore, has been carried out and described in next section.
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390 4.3. Sensitivity analysis
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391 Investment costs of OWF are more sensitive due to demand, higher commodity prices or
392 expectations to profit. The cost of offshore wind power generation increases with increase in
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393 investment cost and decrease in wind energy potential. In order to understand the how effectively
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394 individual parameter influences the LPC result, this section discusses the results of sensitivity
analysis. Table 4 shows the sensitivity ranges of cost parameter applied to test base case model.
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397 For the offshore wind LPC across different water depth regions, the sensitivity analysis
398 has been performed along the WC of India and is depicted in the Fig. 9(a). The averaged LPC in
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399 0 – 30 m and 30 – 50 m water depth regions over the study area are evaluated 308 and 334
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400 €/MWh respectively. The increase of availability, annual energy production (AEP), and lifetime
401 parameters showed a reduction in resulting LPC. Similarly, increase in investment cost and
402 interest rate showed an increase in LPC. The parameters such as investment cost, availability,
403 and annual energy production exhibited similar variations of LPC of about 14 and 16 €/MWh in
404 0 – 30 m and 30 – 50 m water depth ranges across the WC of India. LPC is more sensitive to
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405 interest rate. The variation of 2% (increase or decrease) of interest rate ensuing a change of 35
406 and 39 €/MWh for 0 – 30 m and 30 – 50 m water depth ranges respectively. A lifetime of WT is
407 restricted to 15 years, adding 28 €/MWh and 30 €/MWh respectively for 0 – 30 m and 30 – 50 m
408 water depth to LPC. Similarly, the lifetime of WT extended to 25 years give the benefit of 14 and
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409 15 €/MWh in 0 – 30 m and 30 – 50 m water depth ranges respectively. Thus, shorter life span is
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410 more sensitive as compared to extended one for the same duration. AEP has a greater effect on
411 the LPC. In India, the high LPC value is in the 30 – 50 m water depth region when compared
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412 with that of 0 – 30 m water depth region, due to large percentage of locations being near the
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414 For the offshore wind LPC across different water depth regions, the sensitivity analysis
415 has been performed along the EC of India and is depicted in the Fig. 9(b). The averaged LPC in
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416 0 – 30 m and 30 – 50 m water depth over the study area are evaluated 231 and 262 €/MWh
417 respectively. With increase or decrease of 2% interest rate ensuing in a change of 27 and 31
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418 €/MWh for 0 – 30 m and 30 – 50 m water depth ranges respectively. A lifetime of WT restrict to
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419 15 years, adding 21 and 24 €/MWh to the LPC for 0 – 30 m and 30 – 50 m water depth ranges
420
422 In the wind energy sector, the details of the cost are limited and to forecast the
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423 advancements related to future technologies is difficult. Some of the possible ways of cost
424 reduction may include foundation types being standardised and high-voltage direct current
425 (HVDC) development. HVDC can also reduce long distance transmission losses. Installation
426 cost can be further reduced by increasing power rating and size of turbine. Overall, the cost of
427 offshore wind energy technologies can be expected to reduce along with a learning curve as
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428 more units are installed and manufactured. An efficient and optimised use of the natural
429 resources of marine energy can help their development in sustainable manner [48]. The
430 advantages of combine wave and offshore wind energy are not only the cost reductions that
431 would ensue but also the synergies between these technologies. Present analysis and maps can be
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432 helpful for identification of best suitable regions for initiating OWF development in terms of
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433 technical, economic and environment considerations and policy implications along the coast of
434 India.
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435 5. Conclusions
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436 A GIS-based model is used for assessment of offshore wind resource and their potentials, and
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437 costs. It can be helpful to estimates the energy potential, levelized production cost and the
438 availability of a selected area in a spatially continuous and grid cell by grid cell manner by using
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439 the wind data, technology parameters and their costs. Further, the spatial distribution of wind
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440 speed, WPD, energy production and LPC maps have been developed up to 50 m water depth
along the western and the eastern coast of India. The present analysis and maps can help for
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441
442 initiating OWF and policy reform. The following conclusions are drawn from the results:
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443 • WPD ranges for the western coast and eastern coast of India are 13 – 294 W/m2 and
444 63−393 W/m2 respectively. The southern part of the eastern coast of India (Tamil Nadu)
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445 and the northern part of the western coast of the India (Gujarat) are identified as potential
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446 regions.
447 • The annual wind energy potential in the WC and the EC are in the range of 54 – 823
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449 • The estimated offshore wind energy’s technical potential is 38.7 TWh and 58.4 TWh in
450 the coasts of east and west India respectively. The total potential is nearly equal to 12.8%
451 and 42% respectively of the existing RE and wind power capacity in India.
452 • Approximately 40% of the technical potential of offshore wind up to water depth 50 m
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453 would be economically competitive with the existing RE sources under the FIT of 200
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454 €/MWh in the west and the east coast of India.
455 • The present study identifies the shallow waters of Gujarat and Tamil Nadu states as best
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456 suitable regions for offshore wind development in terms of wind resources and economic
457 costs.
458 •
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Wind energy in the EC has the lower marginal cost of production than WC of India up to
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459 a break-even at 13 TWh/year.
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460 • Very low, very high, and high impact zones are high sensitive to cost variations in the
462 • The average energy cost in water depth regions of 0 – 30 m and 30 – 50 m, over the east
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463 coast of India are 231 and 262 €/MWh and over the west coast of India are 308 and 334
465 • Sensitivity analysis shows that the interest rate is an important and influential parameter
in calculating the LPC. Further, the lifetime of WT is relatively less influential to LPC.
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466
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Table 1 Classification of ocean condition categories and the range of cumulative impact score associated with
each category
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Medium impact 4.95 - 8.47
Low impact 1.42 -4.95
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Very low impact < 1.42
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Western Coast 34.9 23.5 58.4
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Table 3 Economic potential of offshore wind (TWh) under different FIT standards
Zone 120 €/MWh 160 €/MWh 200 €/MWh 240 €/MWh 280 €/MWh >280 €/MWh
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Total 3.5 15.0 23.5 20.0 12.7 21.5
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Investment cost (CI) ±5%
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Wind speed
Bathymetry up to
Wind farm capacity (10 m height) Substations
50 m
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Array density of 5 MW
Wind energy Turbine
array turbines
potential
spacin (20 km buffer)
Turbine
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potential per ocean effect &
area
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annutiy
factor
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5000
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Power (kW)
3000
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2000
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1000
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Wind Speed (m/s)
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Gamesa G128-5.0 MW
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Fig. 2 Turbine power curve for Gamesa G 128-5.0 MW
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(a) (b)
Fig.3 Classification of Indian EEZ based on cumulative human impact (various ocean conditions) on marine ecosystem (a) the western coast of India, and (b) the eastern
coast of India. The red colours show areas of potential impact of anthropogenic pressures; the higher the number the greater the impact. The map is constituted of seventeen
anthropogenic stressors on twenty marine ecosystem types.
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(a) (b)
Fig. 4 Spatial distribution of wind power density over study area in W/m2 (a) the western coast of India, and (b) the eastern coast of India. A high value illustrated by blue
colours, indicates that there is high wind speeds exists. A low value is illustrated by red colour, indicates the presence of low wind speed zones.
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(a) (b)
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Fig. 5 Energy potential over study area in MWh/km /year (a) the western coast of India, and (b) the eastern coast of India.
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(a) (b)
Fig. 6 LPC distribution over study area (a) the western coast of India, and (b) the eastern coast of India. A high value illustrated by blue colours, indicates that there are low
wind speeds and high investment cost exists. A low value is illustrated by red colour, indicates the presence of high wind speeds with low investment cost zones.
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Marginal levelized production costs (€/MWh)
320
280
240
200
160
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80
40
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Cumulative wind power production capacity (TWh)
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280
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Very high
240
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Medium high
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Medium
Low
160
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120
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High
200
Medium high
160 Medium
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120
Very low
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Cumulative wind power production capacity (TWh)
Fig. 8 Marginal production costs of offshore wind under different ocean conditions (a) western coast of India,
(b) eastern coast of India.
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0 - 30 m 30-50 m
AEP AEP
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Investment cost Investment cost
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availability availability
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lifetime lifetime
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Interest rate Interest rate
250 280 310 340 370 400 250 280 310 340 370 400
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Levelized production cost (€/MWh) Levelized production cost (€/MWh)
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AEP AEP
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lifetime lifetime
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Interest rate Interest rate
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200 230 260 290 200 230 260 290 320
Levelized production cost (€/MWh) Levelized production cost (€/MWh)
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different water depth regions over the study area of (a) western coast of India, (b) eastern coast of India. For base case scenario, interest rate, lifetime of wind turbine and
availability are 12%, 20 years and 95% respectively has been considered. The red colour bar show variation of LPC with reduction of parameter and green colour bar show
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