SECI Cancels Both Of India's Offshore Wind Projects Of 2024

The Solar Energy Corporation of India (SECI) has recently cancelled two offshore wind energy projects more than a year after issuing tenders for them. The move is not entirely unexpected, considering the poor response it received for the tenders. 

The move comes despite the government’s push in September 2024 through Viability Gap Funding (VGF) support to boost offshore wind projects, and after extending the deadlines for the two tenders.

SECI issued the tenders for sea-bed lease rights for the 4 GW projects on Feb. 2, 2024, and for the 500 MW offshore wind project on Sept. 13, 2024. SECI's latest announcement came after it last extended the bid submission deadline for 4 GW offshore wind power projects to Aug. 5, 2025, and for the 500 MW Offshore Wind Power Project (Tranche-I) to June 17, 2025. The move will disappoint many hoping to see India's first offshore wind projects in place before 2030, a target date that looks increasingly challenging, other than for a token small small-sized projects perhaps. Rising costs and project complexity have become a major factor, a double blow in a price-sensitive market like India, with a lack of personnel for the sector as well. The sustained low prices for solar have also not helped, weakening the case for adding relatively expensive offshore wind energy that is expected to cost upwards of Rs 7-8 per unit at the very least in India.  

Global Backlash Against Wind Projects

The SECI decision comes even as Offshore wind firms find themselves struggling globally, due to many reasons, including the absolute antipathy of the Trump administration in the US to offshore wind. So much so that Danish developer Ørsted decided to discontinue the 2,400 MW Hornsea 4 project in the UK in its current form after winning a Contract for Difference (CfD) in allocation round 6 in September 2024. The project was hit by rising supply chain costs, higher interest rates, and increased construction and operational risks.

Similarly, in the United States, in June 2025, the US Bureau of Ocean Energy Management (BOEM) officially rescinded all federally designated Wind Energy Areas (WEAs) on the Outer Continental Shelf, removing over 3.5 million acres previously identified for offshore wind development, including large tracts off California’s coast.

Germany also saw a similar trend recently in its offshore wind auction earlier this year. The auction for 10.1 gigawatts (GW) of offshore wind capacity in the German North Sea ended without a single bid. The German Offshore Wind Energy Association (BWO) has called the outcome an “alarming signal” and urged the federal government to overhaul its auction framework. Moreover, Germany’s offshore wind capacity stood at 9.2 GW as of June 30, 2025, unchanged from the end of 2024, signalling stagnation. 

Chinese Wind Firm

Chinese companies, meanwhile, are expanding their dominance. A Wood Mackenzie report said Chinese wind turbine original equipment manufacturers (OEMs) led the global market in 2024, with Goldwind, Envision, and MingYang taking the top three spots for the first time.

However, profitability remains a concern. The report noted that Chinese firms agreed late last year to avoid undercutting each other in a bid to stem losses. Despite record installations and strong demand, intense competition and an oversupply of components squeezed margins. The price agreement helped trigger a rebound in the fourth quarter of 2024.