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A Snapshot
Contents
Basics – Wind power & industry
Way forward – Opportunity for Soma, contacts, tentative costs (initial budget)
Basics
Wind Power & Industry
• Wind is the natural movement of air across land or sea, caused by uneven heating
and cooling of the earth's surface and by earth's rotation
• Wind electric generator converts kinetic energy available in wind to electrical
energy by using rotor, gearbox and generator
• Wind power is one of the fastest growing energy sources in the world
• Cleanest and most practical option, for power generation
• Global warming forcing countries
to generate clean power
• Regulatory policies at central and
state level are shaping towards
promoting clean power generating
• Even international are being
framed towards supporting and
sustaining greenl projects
Quick facts
Indian Wind Power Industry
• Expected to deliver at least 10% of the world’s energy production by 2020
• Potential of 48561 MW across India considering only 1% of land availability
• Wind installed capacity, over 14000 MW till date (fifth in the world)
• Only country in the world to have a dedicated Ministry of New and Renewable
Energy (MNRE)
• Fairly evolved processes and policy framework
• Several established turbine manufacturers, consultants functioning in India.
• Turn-around time of less then one year from concept to commission
Regulatory Framework
Indian RE Power Industry
• Ministry of New and Renewable Energy (MNRE) – Central authority for all policies,
regulations and approvals relating to renewable energy.
• Central Electricity Regulatory Commission (CERC) - deals with the national grid and
inter-state transfer/trading of power,
• C-WET – center for Wind Energy Technology – entrusted with carrying out Research
and development in the field of wind power
Benefits - general
• The state Government has permitted DISCOMs to offer Rs.3.50 / KWH for wind
power projects for 10 years from the date of commissioning of the projects, subject
to obtaining the consent of AP Electricity Regulatory Commission. The tariff for the
period 11th year to 20th year shall be as fixed by APERC.
• The DISCOMS (distribution companies) shall have the first right of refusal on Power
Purchase if the Plant continues to operate after the 20th year of operation from
COD. The tariff beyond 20th year shall be as mutually agreed by both the parties
(company & discom).
Incentives
State Government (All States)
State Incentives -
Wind Power
Wind Power as a Business
Potential Revenues
• Tariff –
– Varies from state to state (generally ranges from INR 3 to 5 per KWH
– Tariff regulated for at-least 10 years from date of commissioning by a Power Purchase
Agreement (PPA)
– Higher tariff could be charges in case of merchant selling of generated power
• Generation based incentive
– It is INR 0.50 per KWH
– Applicable only to generating companies who do not claim the accelerated depreciation
of 80%
• REC –
– It is approximated at INR 1.5 per KWH (not yet finalized)
– It is applicable in case state tariff are not followed
• CER –
– It is approximately EURO 8 per CER (Approximate)
– One CER is awarded for 92% of each MW power sold (Approximate)
Wind Power as a Business
Business Model
Cost of setting
up wind power
projects cost in
the range of
INR 7 to 8 Crore
per MW
Wind Power
GENERATION (MW)
Generation in India
YEAR
Wind Power as a Business
Concerns
• Clarity in Grid Code yet to be achieved. Leading to difficulties in integrating
wind power efficiently with the grid, resulting in low capacity utilization factor.
• Many people find them loud and unsightly.
• Even the most advanced turbines can extract only a maximum of 45 percent of
the wind’s energy.
• Major reliability on unpredictable source of power makes it difficult to rely on
power availability and hence asks for large capacities of stand-by power
• Land acquisition, costly and complicated
VIKRAM PAREKH
vvparekh@gmail.com