priyank jain - wind detailed project report _12 mw
TRANSCRIPT
Detailed Project Report For 12 MW Wind Based Power Project at Station- Kondamithipalli, Andhra
Pradesh
Priyank Jain, Roll No-92, MBA(10th Batch)
Table of Contents PROJECT HIGHLIGHT ............................................................................................................................... 5
1. Introduction .................................................................................................................................... 5
1.1 Overview of proposed project- ..................................................................................................... 7
1.2 Procedure for setting up wind power farm in the state of Andhra Pradesh ................................ 8
2. Demand and supply analysis & justification ....................................................................................... 8
2.1 Power demand and supply analysis .............................................................................................. 8
2.2 Government policy for power generation .................................................................................. 12
Regulation by CERC- .......................................................................................................................... 12
2.3 Wind power scenario .................................................................................................................. 22
Indian scenario- ................................................................................................................................. 24
2.4 Incentives offered to NCES based projects ................................................................................. 30
3. Company Profile ............................................................................................................................ 31
3.1 Company at a Glance .................................................................................................................. 32
3.2 Renewable energy project experience ....................................................................................... 34
3.3 EPC contracting experience ........................................................................................................ 35
3.4 Project financing experience ....................................................................................................... 37
3.5 Contact information .................................................................................................................... 38
4. Locations and site details .............................................................................................................. 40
4.1 Consideration for the site selection ............................................................................................ 40
4.2 Identified site .............................................................................................................................. 44
4.3 Land for the project .................................................................................................................... 54
4.4 Power evacuation plan................................................................................................................ 58
4.6 Environmental aspects ................................................................................................................ 59
4.7 Requirement of inputs and clearances ....................................................................................... 60
5. Construction of Wind Farm ........................................................................................................... 64
5.1 Development of site .................................................................................................................... 65
5.2 Foundation Construction ............................................................................................................ 65
5.3 Tower Construction..................................................................................................................... 67
5.4 Mechanical Completion .............................................................................................................. 69
5.5 Project Completion ..................................................................................................................... 70
6 . Product Technology ......................................................................................................................... 71
6.1 Towers ......................................................................................................................................... 73
6.2 Nacelle ......................................................................................................................................... 74
6.3 Type of Yaw ................................................................................................................................. 75
6.4 Turbine Blade .............................................................................................................................. 76
6.5 Hub .............................................................................................................................................. 78
6.6 Generator .................................................................................................................................... 79
6.7 Drive Trains ................................................................................................................................. 83
6.8 Control Techniques ..................................................................................................................... 85
6.9 Other ancillaries .......................................................................................................................... 85
7. Project implementation and schedule .......................................................................................... 88
FINANCIAL OVERVIEW .......................................................................................................................... 90
1. Introduction .................................................................................................................................. 90
2. Project cost ................................................................................................................................... 91
2.1 Cost of land & civil works ...................................................................................................... 91
2.2 Cost of machinery and auxiliary ............................................................................................ 92
2.3 Cost of transmission and power evacuation ......................................................................... 92
2.4 Misceleneous cost ................................................................................................................. 92
3.Taxes ..................................................................................................... Error! Bookmark not defined.
3.1 Freight ......................................................................................................................................... 94
3.2 MAT ............................................................................................................................................. 94
3.3 Service tax ................................................................................................................................... 94
3.4 Electricity Duty ............................................................................................................................ 94
4. Financing of the Project .................................................................................................................... 94
4.1 Financial parameters ................................................................................................................... 95
4.2 Means of finance ......................................................................................................................... 95
4.3 Assumptions-............................................................................................................................... 95
4.4 Calculation of Tariff, NPV and IRR ............................................................................................... 96
5.CDM Benefits ..................................................................................................................................... 97
5.1 Baseline emission factor of concerned grid ................................................................................ 97
5.2 Net benefits available from CDM ................................................................................................ 98
REQUEST FOR TARIFF ORDER .............................................................................................................. 100
1. Agencies and Regulations involved in Wind Energy Promotion in India- ................................... 100
1.1 Agencies .............................................................................................................................. 100
1.2 Guidelines ................................................................................................................................. 102
1.2.1 MNRE guideline on Wind Energy Generation .................................................................... 102
1.2.2 Central Incentives .............................................................................................................. 106
1.2.3 IREDA's Financing Guidelines for Wind Energy Projects .................................................... 108
1.2.4 C-WET’s Type Approval - Provisional Scheme-2000 .......................................................... 110
1.3 Regulation by state governments ............................................................................................. 111
2. Proposal for issuance of tariff order by CERC ......................................................................... 116
PROJECT HIGHLIGHT
1. Introduction-
Many countries have seen an increase in the number of wind powered energy appliances aimed to produce low-cost,
renewable electricity for more and more people. A wind turbine works by harnessing energy from the wind and turning
this into power. The main advantage of using wind turbines to generate more of our electricity is down to the fact that
wind energy is a totally renewable and clean method for generating electricity. As population levels increase and as we
build more houses/businesses, we need the ability to be able to accommodate the additional energy demand. This is
where many countries have opted for the use of wind turbines, solar panels or geothermal energy systems to give a boost
to their overall energy production capacity. Wind energy has been in use for thousands of years. Our ancestors used the
wind to navigate the seas in exploration and fishing. It is time we learn from this, as the fact is that wind powered energy
has played an important role in supporting many civilizations across the globe. The wind is influenced by solar energy and
will be around as long as we are, so why don't we take advantage of this fact, and begin to introduce wind powered
technologies on a larger scale. These wind powered technologies can be introduced to most homes in areas where a
steady breeze is fairly common, in a bid to boost the home power supply, which in turn will lower your annual electricity
bills. There are many advantages and disadvantages of wind energy, yet we should strongly consider wind powered energy
appliances as a strong contender for future renewable electricity production. The time has come to adopt new strategies
for the many powered appliances which exist in a modern lifestyle. We need to use more renewable energy sources such
as wind, solar, and geothermal energy in an attempt to reduce carbon emissions and other gases which are harmful to our
planet. We are already seeing the effects of global warming, with more freak weather conditions happening at a more
constant rate. Wind powered energy technologies can be very efficient in some locations, so we should strongly consider
the use of the available appliances. Compelling reasons for promoting wind energy in India can be summarised in the
following:
1.1 Overview of proposed project- WindTech has proposed to set up a wind farm project at Kondamithipalli in the
District of Kurnool, state Andhra Pradesh with 12 MW capacity by installing 6 No. of 1500 KW Wind Energy Generator
(WEG). The station is a village belonging to the Kurnool district of AndhraPradesh. It is based at a distance of around 200
km from west to Hyderabad and 75 km north of Kurnool. The Mean Annual Wind Power Density Measured by Centre for
Wind Energy Technology(C-WET), Chennai and NEDCAP, Hyderabad at 50m is 349m/s, which is sufficient to set up a wind
firm. Winds in western AP are influenced by strong south west summer monsoon which starts from May June and weaker
north east monsoon which starts in October. During the period of March to August winds are uniformly strong over the AP
peninsula. Wind speeds during the period November to March are relatively weaker.
Land requirement for the project is 50 acres (considering 4 acres/MW). Most of the land are barren and belong to local
villagers. The project is eligible for a CUF of 27% at which it is likely to generate 28.3 MUs each year. Sale of power will be
through the power purchase agreements (PPA) to the local state utility.
1.2 Procedure for setting up wind power farm in the state of Andhra Pradesh- NEDCAP, which is acting
as a Nodal Agency as per orders of Govt. of A.P. vide G.O.Ms.No.48 dt.11.04.2008 of Energy dept. accords approval up to
20 MW projects in the State for the projects coming up in the private sector. The projects can be set up either for
commercial or for captive generation. The developers who seek the approval for setting up of wind farm may submit the
application form in the prescribed format which is annexed at ‘C’, has to be addressed to the VC & Managing Director,
NEDCAP Ltd, 5-8-207/2, Pisgah Complex, Nampally, Hyderabad-500 001. The project proposals will be evaluated and the
Board of NEDCAP will accord final clearance to set up the projects. The promoters have to apply to Govt. through NEDCAP
for the capacities beyond 20 MW projects. The developer will have to enter into agreement with NEDCAP on allotment
and sanction of the project in the notified areas. On obtaining sanction from NEDCAP, the developer will approach the
district administration for land for advance possession to set up the project and later for alienation of land in their favour.
In case of Forest lands, the developer shall approach Forest department for land allotment, after getting project sanction
from NEDCAP. In case of private lands, the developer shall purchase the same to set up the projects. The developer shall
approach AP Transco / DISCOMs for making arrangements to interface the wind farm with the nearby grid duly providing
the energy meters for import and export. Necessary safety requirements will have to be made before connecting wind
farm to grid.
2. Demand and supply analysis & justification-
2.1 Power demand and supply analysis- The requirement of electricity in a state like Andhra Pradesh has always
outstripped supply. This is due to the increased level of economic activity over the years. The farm sector of Andhra
Pradesh has seen a modest growth of production over the years, as it is a major state in India with agricultural production.
Therefore, the demand for electricity from agricultural sector in Andhra Pradesh is high. The major consumer of electricity
in Andhra Pradesh is the industrial sector which has shown considerable growth over the years. It has shown double digit
growth in the last 5-6 years. Demand from domestic consumers has also increased as the standard of living as well as life
style has also increased. Finally, the demand from commercial sector has also shown improvement because of improved
level of commercial activity in the state. All this factors have led to the increase in demand of electricity in the state
without a corresponding increase in supply. This has resisted in demand supply mismatch, load shedding and poor quality
power supply. These factors in turn have led to the decrease of productivity in all sectors of economy, viz agriculture,
industrial and commercial.
Peak power shortage in the country came down to 7.9 per cent in February, mainly due to improvement in the states,
including Andhra Pradesh, Kerala, Gujarat and Chhattisgarh, according to a latest CEA report.
India recorded a peak power deficit -- shortage in electricity supply when the demand is at its highest -- of 7.9 per cent in
February as against 11.4 per cent in January, according to the latest data by Central Electricity Autority (CEA).
Out of the country''s peak power demand estimated at 1,26,439 MW during February, as much as 1,16,495 MW was met.
Demand in January was 1,32,948 MW, of which 1,17,790 MW was met, according to the data.This correction mainly
happened as electricity supply situation in the power-starved southern region upgraded.Southern region, which includes
states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu, registered a peak power deficit of 20.4 per cent (7,620 MW)
in January and 13.1 per cent (4,712 MW) in February this year, the CEA data showed.
Western region, comprising Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Daman & Diu, Dadra and Nagar Haveli
and Goa, also recovered from a deficit of 5.8 per cent (2,313 MW) in January to 2.6 per cent (961 MW) in
February.However, no concrete reasons could be established for this improvementNorth-eastern region -- Assam,
Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura -- also recorded lesser peak power deficit (4.6
per cent) in February than (6.6 per cent) in January, according to the data.The total demand of the region during February
stood at 1,934 MW of which 1,845 MW was met.There was slight improvement in the Northern region as the peak power
deficit in the states, including Punjab, Haryana, Rajasthan and Himachal Pradesh was 9.3 per cent (3,429 MW) in February
as against 10.9 per cent (4,344 MW) in January, it noted.
However, the peak power deficit in the eastern region comprising Bihar, West Bengal, Odisha, Sikkim and Andaman and
Nicobar Islands remained the same at 5.3 per cent in both the months. The region witnessed a shortage of 753 MW in
January as well as February.
2.2 Government policy for power generation- A capacity addition of 10,500 MW from wind power has been
planned in the country during the 11th Plan period i.e. 2007-2012. This shows the increased promotion of wind capacity
addition in the country, the favourable investment climate for investing in wind energy and the thrust on renewable
energy production for mitigating the adverse effects of climate change.
In India CERC is the central authority to make policy, framework and regulations for promotion of renewable energy in
India.
Regulation by CERC-
CERC has recently announced Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination
from Renewable Energy Sources) Regulations, 2009.
The Eligibility Criteria for Wind power projects under these regulations are those which are located at the wind sites
having minimum annual mean Wind Power Density (WPD) of 200 Watt/m2 measured at hub height of 50 meters and
using new wind turbine generators. The summary of the general principles of these regulations are outlined below:
� The Control Period or Review Period under these Regulations shall be of
.
� The Tariff Period for this wind Energy power projects shall be thirteen (13) years.
� Moreover, the Commission shall determine the generic tariff on the basis of suo-motu petition at least six months in
advance at the beginning of each year of the
Control period for renewable energy technologies for which norms have been
specified under the Regulations.
� The tariff for renewable energy technologies shall be single part tariff consisting of the following fixed cost
components:
a. Return on equity;
b Interest on loan capital;
c. Depreciation;
d Interest on working capital;
e. Operation and maintenance expenses;
� The generic tariff shall be determined on levellised basis for the Tariff Period. For the purpose of levellised tariff
computation, the discount factor equivalent to weighted average cost of capital shall be considered.
� Levellisation shall be carried out for the ‘useful life’ of the wind Energy project while Tariff shall be specified for the
period equivalent to ‘Tariff Period’.
� All wind energy power plants shall be treated as ‘MUST RUN’ power plants and shall not be subjected to ‘merit
order despatch’ principles.
The summary of the financial principles of these regulations are outlined below:
� The Debt Equity Ratio to be considered For determination of generic tariff based on suo motu petition shall be 70:
30.
� For the purpose of determination of tariff, loan tenure of 10 years shall be considered. The normative interest rate
shall be considered as average long term prime lending rate (LTPLR) of State Bank of India (SBI) prevalent during the
previous year plus 150 basis points.
� The Salvage value of the asset shall be considered as 10% and depreciation shall be allowed up to maximum of 90%
of the Capital Cost of the asset.
� The depreciation rate for the first 10 years of the Tariff Period shall be 7% per annum and the remaining
depreciation shall be spread over the remaining useful life of the project from 11th year onwards.
� The value base for the equity shall be 30% of the capital cost or actual equity
� The normative Return on Equity shall be:
Pre-tax 19% per annum for the first 10 years.
Pre-tax 24% per annum 11th years onwards.
� The Working Capital requirement in respect of wind energy projects shall be computed in accordance with the
following :
a. Operation & Maintenance expenses for one month;
b. Receivables equivalent to 2 (Two) months of energy charges for sale of
electricity calculated on the normative CUF;
c. Maintenance spare @ 15% of operation and maintenance expenses
� ‘Operation and Maintenance or O&M expenses’ shall comprise repair and
� maintenance (R&M), establishment including employee expenses, and
� administrative and general expenses.
� The normative O&M expenses’ for wind power plants will be Rs 6.5 lakhs/MW/annum.
� Normative O&M expenses allowed during first year of the Control Period (i.e. FY 2009-10) under these Regulations
shall be escalated at the rate of 5.72% per annum over the Tariff Period.
� For payment of bills of the generating company through letter of credit, a rebate of 2% shall be allowed.
� Where payments are made other than through letter of credit within a period of one month of presentation of bills
by the generating company, a rebate of 1% shall be allowed.
� In case the payment of any bill for charges payable under these regulations is delayed beyond a period of 60 days
from the date of billing, a late payment surcharge at the rate of 1.25% per month shall be levied by the generating
company.
� The proceeds of carbon credit from approved CDM project shall be shared between generating company and
concerned beneficiaries in the following manner, namely
a. 100% of the gross proceeds on account of CDM benefit to be retained by the project developer in the first year after
the date of commercial operation of the
generating station;
b. In the second year, the share of the beneficiaries shall be 10% which shall be progressively increased by 10% every
year till it reaches 50%, where after the proceeds shall be shared in equal proportion, by the generating company
and the beneficiaries.
� The capital cost for wind energy projects shall be Rs.515 Lakhs/MW (FY 2009-10 during first year of Control Period)
and shall be linked to indexation formula.
� The following indexation mechanism shall be applicable in case of wind energy projects for adjustments in capital
cost over the Control Period with the changes in Wholesale Price Index for Steel and Electrical Machinery.
CC(n) = P&M(n)* (1+F1+F2+F3)
P&M(n) = P&M(0) * (1+d(n))
d(n) = [a*{(SI(n-1)/SI(0))– 1} + b*{(EI(n-1)/EI(0)) – 1}]/(a+b)
Where,
CC (n) = Capital Cost for nth year
P&M (n) = Plant and Machinery Cost for nth year
P&M (0) = Plant and Machinery Cost for the base year
Note. P&M (0) is to be computed by dividing the base capital cost (for the first year of the control period) by
(1+F1+F2+F3) i.e. Rs. 515 lakh per MW / 1.25 =Rs 412 Lakh per MW.
d (n) = Capital Cost escalation factor for year (n) of Control Period
SI (n-1) = Average WPI Steel Index prevalent for calendar year (n-1) of the Control Period
SI (0) = Average WPI Steel Index prevalent for calendar year (0) at the
beginning of the Control Period i.e. January 2008 to December 2008.
EI (n-1) = Average WPI Electrical Machinery Index prevalent for calendar year (n- 1) of the Control Period
EI(0) = Average WPI Electrical and Machinery Index prevalent for calendar year (0) at the beginning of the Control
Period i.e. January 2008 to December 2008
a = Constant to be determined by Commission from time to time,
(In default it is 0.6), for weight age to Steel Index
b = Constant to be determined by Commission from time to time,
(In default it is 0.4), for weight age to Electrical Machinery Index
F1 = Factor for Land and Civil Works (0.08)
F2 = Factor for Erection and Commissioning (0.07)
F3 = Factor for IDC and Financing Cost (0.10)
� CUF norms for this control period shall be as follows:
Annual Mean Wind Power CUF
Density (W/m2)
200-250 20%
250-300 23%
300-400 27%
> 400 30%
� The annual mean wind power density specified in sub-regulation (1) above
shall be measured at 50 meter hub-height.
� For the purpose of classification of wind energy project into particular wind zone class, the State-wise wind power
density map prepared by Centre for Wind Energy Technology (C-WET) and enclosed as Schedule to these
Regulations, shall be considered.
Regulation by state governments-
ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION IN ITS ORDER, VIDE NO- 9 of 2005, Dated: 27-09-2005
Has specified the percentage of non-conventional energy to be purchased by state DISCOMs, captive power producers and
open access consumers. The salient points of the order are summarised below:
o Every person to whom this Order applies, shall purchase not less than five per cent (5%) of his consumption of
energy from NCE sources under RPPO during each of the years 2005-06 to 2007-08 (each year commencing on 1st
April of the calendar year and ending on 31st
March of the subsequent calendar year).
� One-half of one percentage point out of the RPPO specified hereinabove (one-half of one per cent of total
consumption) shall always be kept reserved by the distribution licensees for procurement of Wind-based
energy and shall be diverted, if necessary, to other NCE, only on a temporary basis, and also that all energy
available from this source shall be purchased until it reaches the aforementioned one-half of one percentage
point even if consequently, the total NCE purchase exceeds the total RPPO considering the NCE power
purchase commitments made under the power purchase agreements (hereinafter, “the PPAs”) already
entered into and consented to by the Commission:
� Further, such obligation to purchase NCE shall be inclusive of the purchases, if any, from NCE sources already
being made by concerned Distribution Licensees, etc:
� Subject to the provisions of paragraph 20, such purchase of power to comply with this Order shall be made
from amongst the categories specified in paragraph 19, from generating stations located within the State:
� Distribution Licensees shall make all purchases, other than those committed to be made under the PPAs
already entered into with the consent of the Commission, in accordance with the provisions of paragraphs 21
and 22.
� The power purchases under the PPAs for the purchase of NCE already entered into by the distribution
licensees and consented to by the Commission shall continue to be made till their present validity, even if the
total purchases under such PPAs exceed the percentage as specified hereinabove.
� Applicability of Renewable Power Purchase Obligation (RPPO)
� Every Distribution Licensee, captive power consumer open access consumer and scheduled consumer (to the
extent of power availed through open access) shall be required to purchase electricity at the percentage
specified hereinabove of his total consumption of electricity within the area of a distribution licensee from
non-conventional energy sources.
� Any procurement of energy for sale or otherwise transmission / wheeling to places outside the State shall be
excluded while computing the quantum of the total energy under paragraph 16, while any procurement of
energy from outside the State but for use within the State, shall be included.
� The consumption of a Rural Electricity Supply Co-operative Society shall constitute a part of Distribution
licensee’s consumption and the corresponding RPPO shall be discharged by the distribution licensee in whose
overall area of supply, such Society is located.
� Sources of Non-conventional Energy
� The sources of energy for the purpose of complying with the percentage of NCE procurement shall be
� Cogeneration (from renewable sources of energy like bagasse);
� Mini-Hydel;
� Wind;
� Municipal waste;
� Industrial waste; and
� Biomass
� In view of the NEDCAP having already issued a large number of sanctions for setting up of biomass-based
power plants, no further biomass-based power shall be purchased by the distribution licensees than that
already committed through the PPAs already entered into and consented to by the Commission.
� Procedure of procurement of electricity from NCE sources :
� Up to and including the level of percentage specified in paragraphs 10 and 11 above, the distribution
licensees can enter into long-term PPAs with the NCE developers of relevant category. The ceiling for the
tariff of such purchases shall be as per order dated 20-03-2004 in R.P.No.84 of 2003 in O.P.No.1075 of 2000,
as amended. In case of purchase of electricity other than through long-term PPAs, the ceiling tariffs shall be
the total tariffs (fixed plus variable), as worked out for each source of energy (Co-generation, Mini-Hydel etc.)
on the basis of aforementioned order of the Commission.
� A distribution licensee shall be at liberty to procure NCE from other distribution licensee(s) within the State at
the weighted average cost of the latter’s purchase of NCE during the year.
� Reporting requirements: Every person requiring to purchase power from NCE sources under this Order shall
file before the Commission annually, by 30th
November, the details of total requirement of power under RPPO
in the ensuing financial year, power presently being purchased from such sources, additional power required
to be purchased from such sources to comply with this Order and action being taken to procure such power.
� Effect of default
o Where any person though required to comply with this Order fails to purchase the required percentage of
power from NCE sources, he shall be liable for penalty as may be decided by the Commission under section
142 of the Act. No penalty shall however be levied if such defaulter proves to the satisfaction of the
Commission that there is no availability of NCE power within the State for purchase within the ceiling rates
specified in paragraph 21 in spite of his best endeavours to procure it:
o The penalty if any levied under paragraph 24 shall be placed at the disposal of NEDCAP, or any other entity /
entities nominated by the Government of Andhra Pradesh with the consent of the Commission for utilization
towards promotion of cogeneration and generation of electricity from renewable sources of energy as also
for conservation of electricity.
The various provisions made by different SERCs including APERC are shown below:
The Indian wind energy sector has an installed capacity of 17,365.03 MW (as on March 31, 2012). In terms of wind power
installed capacity, India is ranked 5th in the World. Today India is a major player in the global wind energy market.
The potential is far from exhausted. Indian Wind Energy Association has estimated that with the current level of
technology, the ‘on-shore’ potential for utilization of wind energy for electricity generation is of the order of 102 GW. The
unexploited resource availability has the potential to sustain the growth of wind energy sector in India in the years to
come.
2.3 Wind power scenario- It is learnt that worldwide wind power installed capacity by the end of 2013 has
reached to 1, 57,899 MW. China has stepped ahead by acquiring 3rd position leaving behind Spain.
The first five countries are:
US 35,159 MW
Germany 25,777 MW
China 25,104 MW
Spain 19,149 MW
India 10,926 MW
The salient features of wind energy development throughout the world are shown below:
� Wind energy continued its growth in 2008 at an increased rate of 29 %. � All wind turbines installed by the end of 2008 worldwide are generating 260 TWh
per annum, equalling more than 1,5 % of the global electricity consumption. � The wind sector became a global job generator and has created 440’000 jobs
worldwide. � The wind sector represented in 2008 a turnover of 40 billion !. � For the first time in more than a decade, the USA took over the number one
position from Germany in terms of total installations. � China continues its role as the most dynamic wind market in the year 2008, more
than doubling the installations for the third time in a row, with today more than 12 GW of wind turbines installed.
� North America and Asia catch up in terms of new installations with Europe which shows stagnation.
� Based on accelerated development and further improved policies, a global capacity of more than 1’500’000 MW is possible by the year 2020.
Indian scenario-
Presently India ranks fifth in terms of wind installed capacity in the world and the third country after china and US in terms of new
capacity addition. The total installed capacity in India by end 2013 was 10926 MW. The sate wise installed capacity of wind firms till
2013 Feb is shown in next page.
Andhra Pradesh Scenario-
Based on the studies conducted through wind monitoring exercise, it is found that the southern part of Andhra
Pradesh has got wind potential for setting up of wind farms. The areas in Anantapur, Cuddapah, Kurnool and parts of
Nellore and Chittoor district have relatively better potential sites to set up wind power projects. The master plan has
been prepared to assess the potentiality in southern part of A.P. and it is estimated that there is a potential of about
2100 MW capacity. As per the assessment of MNRE, the estimated gross potential is 8,275 MW in A.P. and whereas
the technical potential is 2100 MWs. 2.00 MW demonstration project was set up by AP Genco, at Ramagiri in
Anantapur district. NEDCAP has established 2.25 MW wind farm project at Kondamedapally, Kurnool dist. and 2.50
MW wind farm at Narasimhakonda, Nellore district under demonstration scheme of MNRE With a view to encourage
investment and to promote wind power projects in Andhra Pradesh, the Govt.of Andhra Pradesh has announced a
comprehensive policy and incentives to set up wind power projects in private sector. NEDCAP is the single window
clearance agency to sanction projects up to 20 MW capacity in the State and so far 100.12 MW capacity of projects by
30 developers at Ramagiri, Kadavakallu, Tallimadugula in Anantapur District and on Tirumala Hills, Chittoor district,
was commissioned. The total installed capacity is 107.37 MWs as on March, 2008
WIND SURVEY-
a) Wind Mapping Project :
NEDCAP installed 50 wind-mapping stations at different places with the financial support of MNRE and the State Govt.
with the technical support of C-WET, Chennai. This project aims study to measure wind flow at a particular location at
5-mtr level from the ground. The studies helped to prepare “Wind Atlas of A.P” which helped to identify some sites
for wind monitoring stations and to identify sites for various other applications. These studies were conducted for a
period of 3 years at each location.
b) Wind Monitoring Project:
This programme involves identification of the locations with strong winds, which are close to State Electricity Grids
having adequate land for wind farms and to process time series data of wind speed and direction at 10 metres and at
20/25/50 metre levels for periods of 1,3,5 years at these locations. The sites for wind monitoring are selected after
extensive survey, considering topographic features and considering other factors. Under this programme winds are
measured at 2 levels i.e., at 10 metres, at standard height for wind measurement at meteorological observations and
at 20/25/50 metres level from ground level. The data logging system consists of two or three pairs of wind speed and
direction sensors and data logger. The data collected is stored in a removable EPRON chip. The output from these
anemometers and wind vanes are processed and the following parameters are computed. At present 50 Mr. level met
masts are only being installed.
The list of sites, where the wind monitoring exercise is completed is as follows: THE DETAILS OF POTENTIAL SITES FOR
WIND POWER PROJECTS IN
ANDHRA PRADESH AS (Notified by MNRE)
S.No. Name of the Station District
Annual mean wind speed in (KMPH) Measured at 20/25 metres
Annual Mean Wind Power Density (W/Sq.M) at 50 metre
1 BADHRAMPALLI KOTTALA
Anantapur 21.30 277
2 BANDARLAPALLI Anantapur 20.79 320
3 KADAVAKALLU Anantapur 22.10 325*
4 KAKULAKONDA (TTD) Chittoor 23.10 541*
5 KONDAMITHEPALLI Kurnool 21.22 349*
6 M.P.R.DAM Anantapur 19.90 269
7 MUSTIKOVALA Anantapur 20.20 237
8 NALLAKONDA Anantapur 22.80 324
9 NARASIMHA KONDA Nellore 20.10 403*
10 NAZEERABAD Rangareddy 21.00 232
11 PAMPANOOR THANDA Anantapur 19.60 232
12 PAYALAKUNTLA Cuddapah 20.10 257
13 RAMAGIRI I Anantapur 19.50 308*
14 RAMAGIRI III Anantapur 19.40 246*
15 SINGANAMALA Anantapur 23.80 392
16 TALLIMADUGULA Anantapur 22.20 288*
17 TIRUMALA Chittoor 20.40 374
18 VAJRAKARUR Anantapur 19.46 243
19 BORAMPALLI Anantapur 19.40 219
20 BURUGULA Kurnool 18.40 216
21 CHINNABABAIYAPALLI Anantapur 18.50 206
22 JAMMALAMADUGU – I Cuddapah 17.50 265
23 JAMMALAMADUGU – II Cuddapah 18.60 248
24 KODUMURU Kurnool 20.83 270
25 KORRAKODU Anantapur 18.67 220
26 MADUGUPALLI Anantapur 18.70 266
27 TALARICHERUVU Anantapur 18.11 298
28 TIRUMALAYAPALLI Anantapur 19.00 285
29 ULINDAKONDA Kurnool 17.54 225
30 ALANGARAPETTA Anantapur 20.76 272
31 SIDDANAGATTA .DO. 17.90 231
32 Bheemunipatnam Visakhapatnam 19.11 282
Winds in India are influenced by strong south west summer monsoon which starts from May June and weaker north east
monsoon which starts in October. During the period of March to August winds are uniformly strong over the Indian
peninsula except the eastern coast. Wind speeds during the period November to March are relatively weaker .C-WET
brings out a hand book on wind data on the analysis of the information and data available from the Net work of
meteorological observations. This forms basis to assess the potential and to identify windy sites suitable for power
generation. The list of sites will be notified by Ministry of New and Renewable Energy and based on such studies it is
estimated that the gross potential of 8275 MW and technical potential of 2100 MW can be exploited in Andhra Pradesh,
assuming 1% of availability of land and 20% grid penetration. POTENTIAL IN ANDHRA PRADESH Based on data collected
from the wind monitoring stations and from the analysis made by C-WET, the list of potential sites for wind power projects
in Andhra Pradesh having more than 200 watts per sq. metre wind power density at 50 metre level is given above.
2.4 Incentives offered to NCES based projects-
A. BY GOVT. OF INDIA
1. Under the Income Tax Act, the Govt. of India is allowing 80% Accelerated Depreciation on specified Non
Conventional Energy Devices / Systems (including wind power equipment) in the first year of installation of
the projects.
2. A ten year tax holiday has been allowed in respect of profits and gains of new industrial undertakings set up
anywhere in India for either generation or for generation and distribution of power.
B. BY THE STATE GOVERNMENT:
1. Each Eligible developer may be allocated available Govt. land to harness up to a maximum of 200 MW of wind
power initially. After commissioning of 100 MW capacity Wind farms in 1st stage in the allocated Govt.land,
the Government may allocate land for another 100 MW capacity Wind Farms. The application from the
developers for Government land will be considered on a first-cum-first-served basis.
2. 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.
3. The DISCOMS 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.
4. Wheeling charges will be at as per the orders of A.P.Regulatory Commission and as per the Open Access
policy. The concessional wheeling and transmission charges for captive use or 3rd party sale may be in kind at
5% of energy delivered into the grid (which includes transmission and distribution losses). the concession
wheeling and transmission charges will be subject to the approval of the AP Electricity Regulatory
Commission. However, the third party sale is permitted only to the HT- I category consumers as categorized in
Tariff Orders by the commission from time to time .
5. The Wind Power Projects are not eligible for Banking of Energy. The Energy generated by captive generating
plants, if not consumed during the billing month, would be deemed to have been sold to respective DISCOM
and the DISCOM may pay for such un-utilized Energy at the rate of 85% of the tariff.
6. Technical Consultancy Services through NEDCAP .
3. Company Profile-
Conceived in 1995 with just 20 people, WindTech is now a leading wind power producer with:
• Over 14,000 people in 21 countries
• Operations across the Americas, Asia, Australia and Europe
• Fully integrated supply chain with power production facilities in 3 continents.
• Sophisticated R&D capabilities in Denmark, Germany, India and The Netherlands
• Market leader in India and 3rd
largest wind power producer in Asia.
3.1 Company at a Glance -
Founded:1995
Headquarters: Mumbai, India
Presence:21 countries: Australia, Belgium, Brazil, Canada, China, Denmark, Germany, Greece, India, Italy, New Zealand,
Nicaragua, Portugal, Romania, Spain, Sri Lanka, The Netherlands, Turkey, Ukraine, UK, USA
R&D:Denmark, Germany, India, The Netherlands
KWh Market Share:9% of the Asia wind energy market, 3rd largest wind power producer in Asia
Employees: 14000+ [23 nationalities]
Listing:BSE and NSE (India), part of S&P CNX Nifty Index
Vision-
• To be a technology leader in the wind industry
• To be among the top three wind energy companies in the world
• To be the most respected brand
• To be the best team and place to work at
• To be the fastest growing and most profitable business
Philosophy & Strategy-
Philosophy
• To be a company that serves society with sustainable wind-power on a commercial scale with a focus on
continuously increasing efficiency and reliability of WindTech’s wind turbines.
• To always be committed to a life-long relationship with customers and work towards total customer satisfaction.
• To lay importance on bettering WindTech’s quality, safety and environmental standards.
• To build partnerships with all stakeholders; employees, customers, vendors, service providers, local communities
and governments.
• To conduct business only with the highest standards of ethics.
• To contribute to the reduction of use of fossil fuels by reducing WindTech’s carbon footprint in all WindTech’s
operations.
Strategy
WindTech as a group aims to provide a strong renewable energy platform thereby promising to power a greener
tomorrow, today. Together with its subsidiary TEpower, WindTech has grown to be the 3rd largest wind power
producer in the Asia ensuring it builds a strong and futuristic path for the wind energy sector. From initiating a wind
power project, till completion and even beyond, WindTech ensures that nothing stands in the way of it serving its
purpose.
This is with the support of its key differentiators, it is the very philosophy of questioning WindTech’sselves at every
step that has helped us sustain WindTech’s vision. WindTech’s approach, insight, objectives and WindTech’s reports
stand testimony to that
Genesis & Growth-
The seeds of WindTech were sown by Mr. K Lohia’s venture into the textile industry. Faced with soaring power costs
and the infrequent availability of power, he looked to wind energy as an alternative. Beginning with a wind farm
project in the Indian state of Gujarat in 1995, with a capacity of just 3 MW - he set forth to acquire the basic
technology and varied expertise to set up WindTech Energy Limited - India’s first home-grown wind technology
company.
Milestones-
- Harvard Business School concludes a case study on WindTech - 'The WindTech Edge'
- Hon'ble Michael Rann, Premier, South Australia, inaugurates AGL Hallett wind farm
- WindTech Energy Ltd is certified ISO/IEC 27001:2005 compliant by Bureau VERITAS Certification (India) Pvt. Ltd.
3.2 Renewable energy project experience-
WindTech Energy Ltd has a no of operational wind firms across the country. These firms have long term PPAs signed with
the state utilities, captive consumes and industries procuring power through open access. Various operational plants
across the country are:
Location Year of Establishment Capacity
Pondicherry 2003 924 MW
Coimbatore 2008 3000 MW
Padubidri 2008 1500 MW
Chakan 2004 2000 MW
Dhule 2005 450 MW
Daman 2005 1200 MW
In addition to the operational plants, WindTech Energy Ltd has a no of ongoing projects under implementation at a no of
locations. These projects are expected to be commissioned in future. The Power Purchase Agreements have been signed
for these wind firms with state utilities, captive consumes and industries procuring power through open access. These
projects are listed below:
Location Expected Year of Commissioning Capacity
Vadodra 2010 4700 MW
Gandhidham 2011 1350 MW
Bhuj 2010 450 MW
3.3 EPC contracting experience-
WindTech’s turnkey services range from complex front-end engineering design, construction, installation and
commissioning to long-term operations and maintenance as well as the length, breadth and depth of customer
requirements across the wind energy value chain. WindTech’s key differentiator is having both strong front-end
engineering and the benefit of local experience, interface management and construction know how.
Key benefits we offer clients range from development, to construction to operations. Manufacturing-driven supply chain
strengths and global expertise help offer customers the best in quality services. WindTech is well placed to assist clients in
overall wind power project delivery. The major sections of the delivery process where WindTech can add value are
Micrositing, Grid Connection, HV/ Substation creation, Electrical (Reticulation), Laying Roads and Foundations and Project
Scheduling. WindTech also offers end-to-end solutions in select geographies whenever required. In India WindTech’s end-
to-end solutions start at wind mapping and land sWindTech’scing, and extend right across the entire value chain.
Project Services- WindTech focuses on providing a complete range of efficient, cost effective wind energy solutions. Using
the support and talent of WindTech’s multi-cultural, multi-ethnic global workforce, we have successfully constructed and
managed customized wind farms in varied geographic areas and climatic conditions.
WindTech’s wind farms of a total capacity of 400 MW, in the Pacific Northwest of the U.S., stretch across 50 miles of
rugged terrain above one of the country's largest river gorges, and robustly power U.S. homes. These wind farms were
built in less than six months and feature over 200 units of S88-2.1 MW.
WindTech’s wind farms at Sankaneri, Tamil Nadu, with a planned capacity of over 600 MW, have already reached 599.4
MW as of January 2008; Dhule, Maharashtra, with a planned capacity of over 1,000 MW, and WindTech’s Kutch wind farm
with a planned capacity of 1500 MW, is arguably Asia’s largest wind farm project and amongst the biggest in the world.
Vertical Integration- WindTech’s vertical integration has been its success driver. Foresight of the current economic
challenge and adopting a visionary strategy has set us forth to become the most vertically integrated wind turbine maker
in the world. We embarked on a jWindTech’sney to develop leading edge technology and build manufacturing capability
for all key components in the wind power domain.
The Wind Industry’s supply chain experiences the critical bottleneck of a long production lead time for key components
such as Bearings, Gearboxes, Forging materials etc. However, WindTech has gained the critical competitive advantage
with:
• Better control over time, cost & quality
• Long-term service support to customers
• Turbine technology integration
• Faster product rollout
Global Integration- WindTech’s ‘global experience, local expertise’ approach to talent capital has ensured a 23-
nationality multi-faceted talent pool that goes wide and deep. This gives us the advantage of leveraging local talent and
creating a truly global expert workforce. WindTech’s continuing growth in WindTech’s operations in all key international
wind energy markets and presence in all emerging markets is further strengthening WindTech’s global integration.
Currently, we do aerodynamics research in The Netherlands, develop wind turbines and components in Germany, and
optimize gearboxes in Belgium. WindTech’s manufacturing footprint spans 3 countries: China, India and USA, and
WindTech’s 13 units make all key components of wind turbines. This is a testimonial to WindTech’s focus on global
integration and WindTech’s passion to make WindTech a company as global as the wind.
3.4 Project financing experience- WindTech has successfully achieved financial closure for all its wind power
projects in the past. The project financing was done on the basis of the company balance sheet. WindTech is recognised as
a creditworthy organisation by all the banks and financial institutions in India as well as in international market. It is
because of this reputation that it hastier up funds for its projects on time and without much delay. It has a dedicated team
for evaluating financial aspects of the project. All possible steps will be taken to reduce the cost of capital so as to reduce
the project cost and the subsequent tariff. As per regulations, the project developer should make every effort to
reconfigure the debt and the equity portion of the project to reduce the cost of debt and cost of equity. The benefits due
to the reduction in cost of capital have to be shared equally between the project developer and the consumers. WindTech
has successfully fine-tuned its portfolio of debt during construction and during operation of almost all wind firm projects
to bring about the benefits of reduced cost of capital. A look into the financial particulars of WindTech is shown below:
Performance FY10 FY09
Net Fixed Assets 4,920.40 3,771.20
Net Working Capital 5,016.80 3,071.00
Total Asset 21,307.70 13,582.90
Net Debt 8,884.80 6,289.70
Shareholders' Funds 8,178.70 3,651.10
Net Debt / Equity Ratio 1.09 1.76
It can be that the debt equity ratio is nearer to unity, which signifies that there is significant amount of leverage available
with the company. The company is in a comfortable position to raise additional capital in the form of debt and service it
through the revenues to generate after successful completion of the project. Moreover, wind turbine generators have a
low gestation period for installation, which will be an added attraction for financing the project.
3.5 Contact information-
WindTech Energy Ltd. - New Delhi
9th Floor, Eros Corporate Tower
Nehru Place
New Delhi 110 019,
India.
Tel.: +91-11-4180 5501 / 4180 5502
E-mail: [email protected] &
WindTech Energy Ltd. - Mumbai
Fortune 2000, A1, 1st Floor
A wing, G Block, Bandra-Kurla Complex
Bandra (East), Mumbai - 400 051.
India.
Tel.: +91-22-26543700
E-mail: [email protected] &
WindTech Energy Ltd. - Chennai
10, 3rd Floor, Wellington Plaza
90, Anna Salai
Chennai 600 002,
India.
Tel.: +91-44-2860 6006 / 4352 0353
E-mail: [email protected] &
WindTech Energy Limited.
One Earth,
Opp. Magarpatta City,
Hadapsar
Pune 411 0028
India.
Tel.: +91-20-4012 2000
Fax: +91-20-4012 2100 / 4012 2200
For Media and communications contact [email protected]
4. Locations and site details-
4.1 Consideration for the site selection-
Selecting a wind farm site is complex, time consuming, and involves multiple disciplines working on parallel paths.
Financing, government permits, meteorological studies, land use restrictions, and design has to be completed or well
along before a site is approved and before construction can begin. However, it is imperative in all of the above-referenced
steps that construction expertise be involved and consulted to achieve maximum use of the approved site. There are three
principle sources of construction expertise generally participating in wind farm projects. They are the design team
responsible for conceptual and eventual site design, the developer or construction manager of the project, and the wind
turbine generator contractor.
Wind farm developers should include on their initial concept and development team people with expertise in site design
and wind farm construction, regardless of whether those people ultimately end up working on the wind farm
construction. After conceptual approval and financing, expertise should be added to the team regarding the selection and
operation of wind turbine generators. This expertise will allow the non-construction professionals on the project team to
understand the limitations of various wind turbine designs, the site specific issues that may affect the layout and
operation of the wind farm, and the scheduling, civil engineering, and electrical issues that will affect actual wind farm
construction.
Wind is big and wind is heavy. These two factors introduce unique considerations to the construction of a wind farm
that differ from the construction of other power generation facilities. Big and heavy will contribute to the determination
of an appropriate site, will determine the schedule for constructing the wind farm, and will contribute additional costs to
transportation, site preparation, construction, and commissioning.
When selecting the appropriate site for construction a wind farm, scheduling consideration should be given to
accessing the site and to constructing the site. Integral to both of these site selection concerns is the preoperational
project schedule. Development of a wind farm generally takes from 2 to 5 years with construction taking more or less than
a year depending upon decisions made in the development phase. One of the key decisions that can affect the
construction schedule would be the lead time in ordering the wind turbine generators selected for the project. To the
layperson, all wind turbines may look the same, but that is not reflective of reality. Turbine design, turbine dimensions,
turbine weights, and turbine manufacturing locations all affect the construction of a wind farm.
Another unique factor affecting project schedule and costs is the transportation and road system that exists between the
wind turbine generator manufacturing point and the wind farm site. The excessive weight of a wind turbine nacelle and
the excessive lengths of the wind turbine blades and tower segments require special attention to transporting the wind
turbine generator to the wind farm site. Special vehicles are required to transport wind turbine components. Roads have
to be selected that can adequately bear the load of wind turbine parts. The transportation route has to be selected with
adequate turning radii to accommodate the wind turbine part dimensions and with adequate vertical clearances to allow
wind turbine parts to pass under bridges, signs, power lines, and other overhead obstacles.
These transportation concerns are generally addressed in the site selection and design process and any associated
roadway improvement costs are the equivalent of preparation costs often borne by the project owner or developer. The
wind turbine generator manufacturer can provide assistance in analyzing the suitability of the transportation to the
project site as can an Engineering, Procurement, and Construction (EPC) contractor.
Site soil composition and the presence of rock are issues that will affect construction methods and costs. Site soil
composition has to be reviewed to determine its tolerance for placement of tower foundations, roads, and crane pads.
Rock located on the wind farm site needs to be evaluated to determine if it is suitable for use as aggregate for foundations
of roadways and crane pads on the site. The availability of aggregate onsite and the ability to quarry the aggregate for
onsite construction purposes eliminates costs associated with both acquiring quarry from another location or entity and
transporting that aggregate to the site. However, the location of suitable aggregate may otherwise impede construction
by restricting or limiting access to the jobsite. Thus, the soil condition and availability of aggregate on a wind farm site may
trigger construction costs of compensating for inadequate soil, purchasing necessary aggregate, or overcoming potential
delays or inefficiencies in the actual construction attributable to mining and moving aggregate onsite.
Electrical issues are also different in the construction of a wind farm. An electrical substation is required to receive
power from each tower and then to step up the wind generated voltage to match the voltage in the power grid.
Substation placement optimally should be central to the majority of towers on the site. Underground wiring should be
used to connect each tower to the substation. The underground power systems should be designed to dissipate heat
build-up so as not to damage the cables or affect their design life during transmission of the wind generated power to the
substation. Also, cables to monitor individual tower performance and any other tower control cables should be trenched
where possible between each tower and the wind farm operational control building. Site configuration will determine
where to place the operational control building, but it is normally placed near the main entrance to the wind farm.
It is important at this point to distinguish in the construction process between the wind turbine generator and the
civil and electrical works. In the construction process, the supplier of the wind turbine generator is responsible for
providing the tower, the blades, the hub, the nose cone, and the power unit. The supplier of the wind turbine generator is
also usually responsible for the Supervisory Control and Data Acquisition (SCADA) system and can also be responsible for
the provision of an initial spare part inventory and the possible design of any desired maintenance facilities.
The wind turbine supplier is also usually responsible to commission the operation of the wind turbines to demonstrate
achievement of the stated performance criteria. It is important to point out that there is no standard definition of
commissioning except for what is provided by contract or by technical data sheet provided by the wind turbine supplier.
However, the electrical infrastructure can be tested by reliance on standard electrical tests recognized in the industry or
required by applicable codes. Commissioning is necessary to commence the wind turbine warranty. Warranties generally
run from two to five years and cover lost revenue, downtime to correct faults, and an evaluation of the power curve. A
wind turbine power curve is a graph indicating the individual turbine’s electrical power output for operation at different
wind speeds. The power curve is generally determined by local wind field measurements. Failure to achieve power curve
standards is often addressed in a contract by the imposition of liquidated damages.
The wind farm civil works and electrical works are usually referred to as the Balance of Plant (BOP) and are provided
by a contractor different from the wind turbine supplier. BOP civil engineering scopes of work include roads and drainage,
crane pads, turbine foundation, meteorological mast foundations, and buildings for electrical switch gear, SCADA
equipment, and a maintenance/spare part facility. BOP electrical work scopes include point of connection equipment to
feed the wind farm’s power generation into the electrical grid, underground cable networks and overhead transmission
lines, electrical switch gear to protect and/or disconnect turbines or other equipment from the system, transformers and
switches for individual turbines unless located within the turbine and provided by the turbine supplier, and grounding and
connections for control rooms, maintenance facilities, and any other buildings onsite.
This difference in responsibility between the wind turbine supplier and the BOP contractor is the topic of some
debate regarding selection of the proper project delivery system for a wind farm. Project developers generally use EPC
contractors as the entity to design a wind farm project and manage construction through the commissioning phase. The
EPC contractor would be responsible for contracting with the wind turbine supplier and with any BOP contractors.
However, this arrangement exposes the EPC contractor to damages should the wind turbine fail from a performance or
delivery perspective. Additionally, the wind turbine generator represents a high percentage of project costs without
provision of an appropriate markup available to the EPC contractor. That is because the wind turbine is commonly
shipped, erected, and commissioned by the wind turbine supplier and not by EPC contractor personnel. Thus, EPC
contractors have begun to perceive a disproportionate risk/reward ratio in contracting with the turbine supplier,
encouraging some movement to a project delivery system where the developer contracts with the wind turbine supplier
directly, instead of through the EPC contractor.
Construction issues related to wind farm site selection are also affected by other issues unique to the selected
parcel. Construction may be affected by land use restrictions or zoning issues, such as hunting rights, grazing rights, and
cultural issues. Additionally, wildlife issues may restrict construction due to bird or bat migration, wildlife migration,
spawning issues, wetlands and surface water issues. Last, noise or visual obstruction restrictions may affect placement of
turbines or hours of construction operation.
Construction of wind turbine farms is greatly affected by site selection. Though these issues are relatively new in the
United States, there are well developed practices within the wind turbine and wind farm industries developed in other
countries and adopted within the United States to address constructability concerns. So, despite all of the publicity related
to wind farm site selection regarding zoning, permitting, environmental concerns, and community reaction, the
construction industry is capable of constructing a wind farm in the face of multiple site specific issues.
4.2 Identified site- WindTech has proposed to set up a wind farm project at Kondamithipalli in the District of Kurnool,
state Andhra Pradesh with 12 MW capacity by installing 6 No. of 1500 KW Wind Energy Generator (WEG). The station is a
village belonging to the Kurnool district of AndhraPradesh. It is based at a distance of around 200 km from west to
Hyderabad and 75 km north of Kurnool. The Mean Annual Wind Power Density Measured by Centre for Wind Energy
Technology(C-WET), Chennai and NEDCAP, Hyderabad at 50m is 349m/s, which is sufficient to set up a wind firm. Winds in
western AP are influenced by strong south west summer monsoon which starts from May June and weaker north east
monsoon which starts in October. During the period of March to August winds are uniformly strong over the AP peninsula.
Wind speeds during the period November to March are relatively weaker.
The site specifications are shown below:
Station- Kondamithipalli
District- Kurnool
Elevation m.a.s.l. 440mtr
Mean Annual Wind Speed (m/s) Measured at 20/25/30m 5.73
Latitude-
Deg. 15 Min3
Longitude-
Deg. 78 Min3
Mean Annual Wind Power Density Measured at 20/25/30m 252m/s
Mean Annual Wind Power Density Extrapolated / Measured at 50m 349m/s
(Source- CWET,Chennai).
The station is based at a distance of around 200 km from west to Hyderabad and 75 km north of Kurnool. Most of the land
is arid and non-fertile, belonging to local villagers. The nearest railway station to this site is Kurnool and nearest bus stand
is Kolimigundla. Approach road to the site is not available.
Mean Annual Wind Power Density Measured at 20m or 25m or 30m 252m/s and at 50m is 349m/s.As per CERC guidelines,
sites having a wind speed potential in the range of 300 to 400 m/s are eligible for a CUF of 27%. At this level of installed
capacity and CUF, a total of annual energy 28.3824 MU can be produced, which will be sufficient for viability of the
project. Moreover, wind velocity is considered quite consistent and also flow major part of the year .We expect better
generation at this location and also better realization by way of sale of power.
Land requirement for the project is 50 acres( considering 4 acres/MW). Most of the land are barren and belong to local
villagers. About 12 acres is classified as Forest land and forest clearance is to be taken for initiation of the project. The
satellite map of the site is shown below:
Figue-1:Kondamithipalli Nearest Bus stop: Komiligundla District: Kurnool, AP.
Figue-2:Kondamithipalli Nearest Bus stop: Komiligundla District: Kurnool, AP.
Figue-3:Kondamithipalli Nearest Bus stop: Komiligundla District: Kurnool, AP.
Figue-4:Kondamithipalli Nearest Bus stop: Komiligundla District: Kurnool, AP.
Figue-5:Kondamithipalli Nearest Bus stop: Komiligundla District: Kurnool, AP.
Figue-6:Kondamithipalli Nearest Bus stop: Komiligundla District: Kurnool, AP.
Figue-7:Kondamithipalli(Terrain Map) Nearest Bus stop: Komiligundla District: Kurnool, AP.
Location Characteristics:
• Nearest Bus stop: Komiligundla.
• Nearest Railway Station: Kurnool.
• Mode of communication to the site: Road Transport
• Location of the site from the nearest Road: 1KM to the North.
• Approach to the site from the nearest road: Through kaccha road/Pagdandi made spontaneously by villagers.
• Amount of land available: 50 acres(appox)
• Type of land: About 40 acres Arid/Barren, mostly used for grazing by local cattle belonging to local population. Rest
belongs to forest Department. No tree cover available as of now.
• Cost of land: Rs 20000/acre(approx) for private land.
• Compensation for loss of forest land: Rs 1.5 lakh/acre(approx) and additional compensation of Rs 50000/acre for
reforestation elsewhere.
Other data from Census’2001-
• Hamlet Name: Kondamithipalli
• Block: Komiligundla.
• District: Kurnool, AP.
• JL No: 225/2001
• Village Population: 1000(approx)
• Livelihood of villagers: From cattle, trading forest products, day labours.
• Male Female ratio: 10:9.1
• Working population: 60.5%
• Median Income per family: Less than Rs 10,000/- per month.
4.3 Land for the project- The following factors are generally considered for selection of land for setting up a wind
power farm.
Proximity to Transmission Lines (Grid Accessibility) and Required
Transmission Upgrades
Having a good wind energy resource will only be beneficial to a project’s developers if the
energy generated by the project can be delivered to the purchaser in a cost-effective manner.
It is usually physically possible to interconnect a site to a transmission system. However, the
costs of such interconnections can be prohibitive. Maps of the Philippine transmission system
should be overlaid on the wind resource maps to identify areas where there is a wind resource, proximity to the
transmission system, and capacity on the transmission system to take the energy from a wind project to the loads. Other
factors to consider in the evaluation of transmission options include whether or not transmission lines with insufficient
capacity to support a project can be upgraded through the use of new conductors, or if alternative transmission paths can
be arranged to open space on the lines. The stability of the transmission system at the project interconnection point also
needs to be considered. If the grid is subjected to frequent outages or voltage/frequency excursions, then the energy
production from the site will be reduced. Ultimately, it may be necessary to conduct a complete load flow study of the
wind energy project interconnected to the transmission system, but this is not needed until later in the process of
finalizing site selection.
Site Terrain, Accessibility, and Complexity
The more remote and/or complex the terrain, the higher the development cost is likely to be.
This is because more complex terrain will require more grading and earth movement than less
complex terrain. Complex terrain may also limit the size of turbines that can be installed due to limitations in the ability to
get the turbines or cranes to the site or to create sufficient lay-down areas for site construction. It can also lead to less-
than-optimal turbine siting because terrain features affect the project layout. The proximity of the site to access roads is
also a consideration. Construction of access roads suitable for installation of a wind power plant can be expensive if long
sections of new road are required or if the terrain is highly complex.
Terrain Orientation to Prevailing Wind
The orientation of the terrain features relative to the prevailing wind directions will heavily affect the site’s capacity
potential as well as its energy production. If the terrain features are conducive to a project layout that maximizes the
number of turbines exposed to the prevailing winds while minimizing the array loss effects, then the site will have greater
capacity and energy production than would otherwise be possible. For example, ridgelines that are perpendicular to the
prevailing wind direction are preferred to ridgelines that are parallel to the prevailing wind direction. At sites with no clear
prevailing direction, ridgelines limit the capacity that can be installed due to larger turbine-spacing requirements than for
sites that have a prevailing wind direction. Wind turbines are typically arranged in rows perpendicular to prevailing winds.
Within rows, the spacing can vary from 1.5 to 5 times the rotor diameter. Row-to-row distances typically vary from 10 to
20 times the rotor diameter. If the wind is consistently from one direction (or the opposite compass direction), then
within-row spacing is less and row-to-row spacing is greater. For sites that have energetic winds from multiple directions,
the row-to-row spacing and within row spacing are similar.
Landowner Concerns and Social Acceptability of Wind Energy Development
If the landowners for the site under consideration, or the owners of adjacent land, are opposed to wind energy
development on the site, the costs of development may increase significantly and the time required for project
completion can also increase. Frequently, opposition to wind
project development is based on incorrect information concerning the technology and when fully and accurately
informed, development opponents become project supporters. The use of open forum informational meetings to obtain
public input is suggested.
Cost of Land
Developing a project depends on having the rights to install turbines on the land. Land control usually is either obtained
through a land lease agreement or outright purchase of the land. The relative costs of land control must be considered
when comparing project sites.
On-Site Vegetation
Vegetation increases the turbulence intensity at the site and decreases the wind speeds. While
modern wind turbine towers are on the order of 50 m (164 ft) in height, the blade passage height can be 25 m (82 ft) or
even less. To place the turbines in areas with substantial vegetation over 10 m (33 ft) in height increases the risk of
turbulence-induced damage to the turbines or increases project development cost and the environmental impact of the
project.
Soil Conditions
Wind turbine foundations are typically reinforced concrete blocks or cylinders. The most cost-effective designs typically
require excavations 10-15 m (33-49 ft) deep. In addition, wind energy projects require roads and equipment pads
sufficient to get the turbines to the sites and
accommodate the cranes required to install the turbines. Soils that are not readily excavated or graded can significantly
increase project costs. An additional consideration when examining site soil conditions is erosion. Controlling erosion will
be more difficult for some combinations of soils, weather conditions, and terrain than others.
Exposure to Extreme Wind Speeds (Storms) or Other Climatologically
Events
While wind turbines are normally designed to withstand the extreme wind speeds associated with Storms, multiple
exposures to these wind speeds are not usually part of the turbine design criteria. Therefore, sites with a relatively low
incidence of strong Storm-induced winds are preferred.
Density and Frequency of Flying Insects
Insects will affect the leading edge of the wind turbine blades, reducing the performance of the turbines. Insects can be
removed from the blades by washing or during rainstorms when the turbines are operating. However, insects will cause a
decrease in performance and increase maintenance costs if the blades must be routinely washed. Often, little is known
about the insect population at a wind energy site. Conversations with local residents and biologists familiar with the area
can provide useful information concerning such factors as seasonal patterns of insect hatching, type of insect, and density
of groupings.
Cultural and Environmental Concerns
Protected or endangered flora and fauna can increase the costs of wind energy project
development. Projects usually can be built in a manner that minimizes their effect on these
species; however, this takes time and money. All other factors being equal, sites with no
endangered or protected species are preferred to sites containing endangered or protected
species. Development of sites that have cultural significance may be offensive to some parties. These concerns can also
increase costs or delay a project and should be considered in the site selection process. Examples of cultural significance
include burial, religious, historical, or archaeological sites.
Aviation/Telecommunications Conflicts
Sites located close to airports or telecommunications facilities must be installed in a manner that accommodates these
activities.
Site Capacity
The ability of the site to accommodate the planned project size and potential future expansion
must be considered. This is particularly true if a significant investment in transmission system upgrades is required to
deliver energy from the project to the site. The site’s capacity must be determined using turbines that can be transported
to and erected on the site. Typically, more complex terrain will be more optimally developed with relatively smaller
turbines because larger cranes and trucks are needed for larger turbines. Capacity is usually affected by the amount of
terrain that is relatively high compared to the surrounding area, such as long ridgelines or plateaus. Areas with more
isolated hilltops offer less ideal locations for turbines hence may hold less capacity.
The site at Kondamithipalli fare well in most of the factors enumerated above. Therefore, it is a suitable site for the wind
power farm. The land requirement for a wind powered plant is approximately 4 acres per MW. Total land requirement for
a 12 MW power plant is 48 MW. From the site visit, it was found that adequate land is available for the project.
Approximately, 50 acres of land is available at Komiligundla adjacent to the living area of the village. A portion of this
belongs to the local population. The rest belongs to the state forest department. Most of the land are barren and belong
to local villagers. About 12 acres is classified as Forest land and forest clearance is to be taken for initiation of the project.
The land characteristics are as shown below:
• Amount of land available: 50 acres(appox)
• Type of land: About 40 acres Arid/Barren, mostly used for grazing by local cattle belonging to local population. Rest
belongs to forest Department. No tree cover available as of now.
• Cost of land: Rs 20000/acre (approx) for private land.
• Compensation for loss of forest land: Rs 1.5 lakh/acre (approx) and additional compensation of Rs 50000/acre for
reforestation elsewhere.
4.4 Power evacuation plan- The power generated through wind farm at Kondamithipalli has to be evacuated as and
when adequate wind speed is available for conversion of wind energy to electrical energy. For evacuation purpose, the
transmission infrastructure has to be built. As per guidelines of NEDCAP, Hyderabad, the developer shall approach AP
Transco / DISCOMs for making arrangements to interface the wind farm with the nearby grid duly providing the energy
meters for import and export. Necessary safety requirements will have to be made before connecting wind farm to grid.
The power generated through annular generators of the wind farm is generally at a voltage level of 11.25 KV. This has to
be stepped up to 132 KV or 220 KV for connectivity to the grid. The nearest transmission sub-station available for
connectivity to the state transmission grid is Komiligundla 150 MVA, 220KV/132KV/33KV sub-station belonging to AP
Transco. The approximate distance of the sub-station from the proposed wind farm at Kondamithipalli is one (1) km. The
cost of setting up the transmission infrastructure will be borne by AP Transco or the DISCOMs as proposed under the
guidelines by NEDCAP. The salient features for power evacuation plan are enumerated below:
1. Voltage level at which power is generated: 11.25 KV.
2. LENGTH OF THE LINE-1 km.
3. Name of the sub-station- Komiligundla
4. Mva capacity of the S/ATN- 150 MVA
5. Voltage level at which connectivity is proposed to the grid- 220KV/132 KV.
6. Conductor to be used: Moose/Lark.
7. Type of towers to be used: one D type, two A type and one B type.
8. Type of sky wire to be used: Guinea.
9. Type of conductor to be used in bus-bar for in-house S/STN: Zebra/Panther.
10. Type of disc insulators to be used: Porcelain/Glass.
11. Step up transformer to be used: 11.25KV/ 132 KV or 220 KV.
4.6 Environmental aspects- In light of the threefold global crises mankind is facing currently – the energy crisis, the
finance crisis and the environment/climate crisis – it is becoming more and more obvious that wind energy offers
solutions to all of these huge challenges, offering a domestic, reliable, affordable and clean energy supply.
Thus wind power represents a domestic source of energy, unlike power from fossil fuel sources, for which the country is
dependent on other countries. Apart from the fact that the energy needs of the country can be met through wind power,
it represents a clean form of energy where no greenhouse gases are produced. It is also a form of renewable energy as
wind is regenerative in nature. It is for this beneficial nature of renewable power in general and wind power in particular,
that Clean Development Mechanism (CDM) benefits are given to wind power farms.
However, wind power production is intermittent in nature. Power can be generated from a wind farm as and when
sufficient wind speed is available. Proper scheduling and despatch mechanism is required to be performed by the
coordination among the wind farm operators and the state sldc personnel. SO it is evident that wind power generation is
very much dependent on environment. Also there is a cut off speed for the WEGs to function. If the wind speed is more
than the cut off speed, WEGs will not be ablr to generate power.
There are also negative aspects of wind power, as wind power generators(WEGs) cause noise pollution. This disturbs the
local population residing nearby. Usually, the greater is the wind speed, the greater is the noise.
4.7 Requirement of inputs and clearances- For setting up a wind power farm in the state of AP, No Objection
certificate(noc) has to be taken from the state nodal agency(SNA). NEDCAp has been designated as the SNA in case of AP.
The address of NEDCAP is:
NON-CONVENTIONAL ENERGY DEVELOPMENT CORPORATION OF ANDHRA PRADESH LIMITED
Regd.Office: 5-8-207/2,
Pisgah complex, Nampally,
Hyderabad - 500 001. India
Tele: Off: 3202391/3203692 Grams: "NEDCAP"
Fax:040-23201666
Web: www. nedcap.gov.in.
An application has to be filed to NEDCAP for obtaining NOC along with the following documents:
1.A certified copy of partnership deed.
2.A certified copy of the Registration Certificate of the Registration, if the
partnership is registered.
3.A certified copy of the bye-laws of the Co-operative society and also certified
copy of Registration if applicable.
4.Certified copy of Memorandum of Articles of the Public/Private Ltd. Company
and also copy of Registration Certificate.
5.Certified copy of the Authority conferring powers on the person(s) who are
competent to execute the agreement with the NEDCAP, AP Transco / DISCOM,
furnished on the stamp paper of Rs.50/-.
6.Project profile in three copies covering all aspects of site location, selection of
equipment, capital cost, cost of generation, performance etc. Format for
submission of project profile is given below.
NEDCAP will facilitate obtaining all statutory/non-statutory clearances from all local/civic bodies required for setting up a
wind farm in AP.
Other clearances required for wind power plants are:
Sl No clearances Authority
1 Pollution (water and air)
State Pollution Control
Board
2 No Objection Certificate for setting
up the facility
State Pollution Control
Board
3 Consent for Operation
State Pollution Control
Board
4 Environmental Clearance
Ministry of Environment &
Forest
5 NOC for Tallest Structure National Airport Authority
of India, New Delhi
6 Land Availability
State Gov./Private Land
7 Real State, Right to access and use of
site including right of way for all
corridors to the facility
State Gov.Concerned
Authorities
8 (a) During Guarantee Collection,
Storage and Disposal of Waste
State Pollution Control
Board
9 Approval of Fire Protection Scheme
Authorised Agencies
approved by Insurance
Regulatory Development
Authority, New Delhi
10 Allocation and Approval of Electric
Supply for Construction Power
State Electricity distribution
Company
11 Carriage entrance to property
Municipal Corporation,
Assistant Engineer, Roads
or concerned authorities
12 Approval of Building proposals and
layout
Municipal Corporation,
Executive Engineer,
Building Proposal or
concerned authorities
13 Approval of building layout with fire
safety concerns and receipt of NOC
Municipal Corporation:
Chief Fire Officer or
concerned authorities
14 Approval of reinforced cement and
concrete design calculation
Municipal Corporation:
Executive Engineer,
Building Proposals or
concerned authorities
15 NOC for plant layout with regard to
electrical equipment, operational
safety
Chief Electrical Engineer of
state
16 NOC for Storage of construction
Materials and chemicals
Factory Inspector
17 NOC for road opening and asphalting
work including traffic work Municipal Corporation/Local
Bodies
18 Local Approval of Architectural plans
for township
Municipal Corporation/Local
Bodies
19 Local Approval of other Architectural
plans
Municipal Corporation/Local
Bodies
20 Commencement Certificate up to
Plinth
Municipal Corporation/Local
Bodies
21 Commencement Certificate up to Full
Height
Municipal Corporation/Local
Bodies
22 Consent under the Factories
ACT,1948 relating to fire fighting
capacities
Directorate of Town and
Planning of State Gov.
23 Clearance of Lifts Inspector of Lifts, State Gov.
24 Approval/ Clearances for labour /
man power like License from Labour
commissioner for construction
labour, Registration of Workers or
exemption to be claimed if group
insurance taken for some, etc
Concerned Authorities
25 All Other clearances Appropriate Authorities
26 Export / Import Authorisation
(Export/ Import license )
Appropriate Authorities of
exporting country
5. Construction of Wind Farm- This is the stage when the project gets its green light. Everything goes
into final design and construction. The service roads are built, foundations are prepared, turbines are shipped to
the site and the construction crews install the equipment. The costs of construction and, more significantly, the
turbines themselves make up the majority of costs at this stage. There will be ongoing operations and
maintenance costs to consider as well. However, unlike some forms of conventional energy, wind energy doesn’t
incur ongoing fuel costs – a contributing factor towards its economic viability and competitive edge.
The value chain for production of wind energy consists of the following steps:
• Wind resource mapping across the region
• Identifying suitable sites for wind farms
• Planning, Designing and implementation of plans
• Coordinating with its associate companies for acquisition and development of sites and WTG installation along with
the installation of all auxiliaries.
• Connectivity to the grid for necessary evacuation of power.
• Operations & maintenance
5.1 Development of site: Development of site will consist of several activities, which are required before the actual
construction could begin. These consist of:
• Building an approach road to the site
• Levelisation of the site and cleaning up from all trees, plants and bushes.
• Construction of temporary site office for supervision purpose.
• Making arrangements for power for development activities.
• Installation of necessary equipments like telephone, fax, and other communication devices.
5.2 Foundation Construction- A very critical component of the wind power plant system, the foundation, plays a
major role in providing a serviceable life of 20 years to the Wind Turbines. Wind Turbines foundations are constructed on
a variety of terrains under challenging soil and environmental conditions.
Foundations are classified into different types for engineering purposes:
• Raft foundations
• Pile foundations
• Well foundations
The most popular type is the raft footing in different shapes, which varies as per:
• Wind Class
• Type of Tower (Lattice/ Tubular)
• Capacity of WTG
5.3 Tower Construction- The towers:
• Are constructed of structural/ alloy steel and surface
• Are protected to withstand extreme operating conditions according to EN standards
• House the WTG at heights decided for power generation
• Remain sustainable under extreme wind load conditions
• Provide stability for the WTG at operating loads
• Provide ease during turbine maintenance and operation
• Feature standard internals/ accessories and a safe access system
• Are optimized to provide the best cost/ kWh and modular design
Installation of Tubular Steel Towers is classified into the following:
Foundation Preparation & Crane Assembly
Typically a foundation for a Tubular Tower has to be prepared to receive the tower/ WTG structure. This involves critical
processes
• The anchor studs are cleaned, checked and lubricated
• The concrete surface is prepared to provide a hard and levelled surface
Shims are used to precisely level the tower bottom
Power cables are laid between the tower panels and the outdoor transformer
The bottom panels of the Tower are installed in position
Main Crane’s boom assembly and load lifting trials are carried out
Building in Sections
The Rotor is made by assembling the three blades to the hub and fitting the accessories on site
The steel Tubular Tower is in 3 or 4 sections, depending on hub height
It is prepared for erection and is lifted by cranes using Jigs & Wire rope slings
Two cranes are used in tandem for safe installation
5.4 Mechanical Completion-
Nacelle, which is the wind turbine itself, is prepared for installation on the erected tower.
• The nacelle is lifted with cranes
• The last stage is the installation of the assembled Rotor with precision lift
• The whole process is carried out under strict supervision and prescribed tolerances
• Transmission lines, wind turbine switch yards, and pooling stations are constructed
• Post mechanical completion, tower & wind turbine cabling and pre-commissioning are done
5.5 Project Completion -
The wind turbine is put into test run after going through the commissioning process.
Operations & Maintenance Services-WindTech’s operations and maintenance teams are committed to extracting longer
life spans and higher returns from every wind turbine we manufacture, which is why we offer a comprehensive range of
value-added services and solutions. WindTech’s operations and maintenance efforts ensure energy yield optimization in
accordance with onsite climate and grid conditions. We also provide detailed monitoring services for every wind turbine
erected. This combined synergy of WindTech’s business units and customer support network succeeds in providing
WindTech’s customers with benefits that help satisfy their expectations of a global wind energy solutions provider.
6 . Product Technology-
The Wind Electricity Generators (WEGs) are broadly divided into three parts:
• Tower - supports the Nacelle and Rotor
• Nacelle - contains the key components of the wind turbine
• Rotor - converts kinetic energy into electrical energy
The different parts of the wind energy generator are shown in the figure below:
6.1 Towers- They are of Monopole type. It is a tubular structure made of steel.
6.2 Nacelle- The generator, along with its associated components is housed in a common enclosure, called the nacelle.
6.3 Type of Yaw – It is a drive to point the rotor towards the direction of the wind.
– Anemometer on nacelle tells controller which way to point rotor into the wind
– Yaw drive turns gears to point rotor into wind
6.4 Turbine Blade:
A modern wind turbine blade is a hollow cantilever structure with very high load bearing capacity. The blade is usually
made of fibre-glass reinforced plastic (FRP) or wood epoxy laminates. The design is based on the aerodynamic principles
developed for aeroplanes and helicopters, but has been adopted with modifications to cope with the specific properties of
wind as seen in its changing speed and directions. The geometric shape of a turbine blade is such that the air moving
across its upper surface is faster than that traversing its lower part. As a result, the pressure is lower on the upper surface
creating an upward thrust. This is the lift phenomenon, which drives the blades through the air. Opposite to lift is drag.
This is due to the air resistance which occurs when the areas of the blade facing the direction of motion is increased. A
correct balance between these two phenomena is needed for optimum use of the wind power.
Typical characteristics of turbine blade are:
Lightweight, strong, inexpensive, good fatigue characteristics
• Variety of manufacturing processes
– Cloth over frame
– Pultrusion
– Filament winding to produce spars
• Most modern large turbines use fibreglass
6.5 Hub- Blades are attached to the hub. It should have a rigid attachment and flexible pitch drive.
6.6 Generator-
Two basic types of generators are used for the WEGs. These are: synchronous and
asynchronous. The latter is more commonly known as induction generator, and mostly used
because of robustnesss of construction (using ‘squirrel cage’ rotating part) and cost
economy.
In both these options, there is a cylindrical shaped ‘stator’ (so called because it doesn’t
rotates) inside which a rotor is placed. The stator is essentially the same for both types of
machines. The windings embedded in the stator are connected to three-phase supply.
The generators feature:
• Vacuum / air circuit breakers
• Lightening arrestors
• Earth fault protections
• Under / over voltage protections
• Under / over frequency protections
• Over load protections
Squirrel-cage induction generators are more commonly used in WEGs. These however draw
reactive power from the supply grid, which is not desirable especially in weak network. The
reactive power consumption is compensated by providing capacitor banks.
Induction machines :
• Are most compact
• Operate as induction motors or generators
• Draw electrical power
• Deliver mechanical power
The generator typically has 4 parts:
General
Stator
Rotor
Control System
General- The 1500 kW generators are:
Designed for 4 poles, 50 Hz, 1500 rpm (synchronous speed) with wound rotors
Called slip ring generators
Stator- The stator windings of Cage and Slip Ring Induction Generators are similar.
• It is wound for the fWindTech’s pole/ six pole, three phase configurations as per design requirements
• Special silicon steel laminations are used in the stator stacks to minimize the losses of the generator
• Adequate cooling ducts are provided in the stator stack, to achieve the allowable temperature
• Windings are fitted with Resistance Temperature Detectors (RTDs) of PT - 100 type
Rotor-
In case of squirrel cage rotor construction: The copper bars are used in the rotor slots
• They are circuited at the ends by short circuit rings
• They can be used for dual speed operation
In the case of wound rotor construction- The rotor is wound similar to stator windings
• The windings are brought out to terminals through slip rings
• They are balanced to get reduced vibration levels of the generator
Control System-
They are provided with vacuum circuit breakers/air circuit breakers, lightening arrestors, earth fault protections,
under/over voltage protections, under/over frequency protections, over load protections etc. to enable tripping of the
wind turbine in case of any abnormalities, thus safe guarding the grids from the wind turbines. The effects of wind
fluctuations/gusts on power outputs are damped by means of high slip arrangements provided in the respective wind
turbine generators/systems.
6.7 Drive Trains- Drive Trains transfer power from rotor to the generator. This is done through mechanical
transmission. Different options for fixed speed and variable speed operations are briefly mentioned below:
(a) Fixed Speed Drive
It uses squirrel-cage induction generator, in either single-speed or dual-speed version, connected to the supply grid via a
gearbox. This arrangement is commonly referred to as a fixed speed drive though the speed is not exactly constant but
changes marginally due to change in generator slip with power generation. The advantage of fixed speed drive lies in its
relatively simple construction, but has to be quite robust to withstand the fluctuating wind load since variation of wind
speed directly transferred into the drive train leading to structural stress. Depending on the strength of the grid, the
resultant power fluctuation may cause undesired ‘flicker’.
(b) Semi-variable Speed Drive
So called since the speed range is marginally variable in 1.1 to 1 ratio. Here, the
‘variable slip’ concept is advantageously used by introducing a resistance in series with the rotor resistance of the
induction generator by using fast-acting power electronics. This concept has been successfully commercialized by Vestas
under their ‘optislip’ trade name. A number of WEGs ranging from 600 kW to 2.75 MW have been equipped with this
system. This is a cost effective option though the operation is limited to a narrow variable speed.
(c) Variable Speed Drive
This can be achieved by decoupling electrical grid frequency and mechanical rotor frequency. To this end, power
electronic converters are used, such as AC/DC/AC converter combined with advanced control systems. In ‘double-fed’
induction machines the stator is directly connected to the grid as in case of fixed-speed machine, but the rotor winding is
fed at variable frequency via. A electronic converter which makes variable speed operation possible. The range is about
1.5 or 2 to 1 and only to part of the output power flows through the frequency converter (typically 25 or 30%). One
advantage of the design is the use of the type of generator, which is a standard market product. It also requires a smaller
converter with favourable cost factor. There is however the need of a rather maintenance-intensive gearbox in the drive
train. The wide range variable speed drive (speed variation in 2.5 to 3.0 to 1 ratio) provides maximum flexibility in WEG
operation. The gearbox is still needed. The size of power electronic converter is also bigger with higher cost. Both
induction and synchronous generators could be used. The energy generation pattern of variable speed drive shows
significantly less fluctuation than from fixed speed system. This is mainly due to rotor inertia, which does not response
immediately to minor and/or transient variation of wind speed bringing in a stabilizing effect on generated power.
(d) Direct Drive
With no gearbox used, all direct drive WEGs are variable speed. The generator is directly engaged with the rotor and
rotates at low rpm ached by adopting multi-pole design (ring-shaped) synchronous generator, which could be both
permanent magnet or would rotor type. The variable speed is possible due to power electronic converter for change of
frequency before connecting the generator to the fixed frequency supply grid. The drawbacks of direct drive design are
use of large and complex ring generator and large electronic-converter through which 100% of the power generation has
to pass.
6.8 Control Techniques-
Several control techniques have been developed which are based on two distinct
approaches. These are:
(a) Stall Control
(b) Pitch control
In stall control, the rotor blades are fixed at an angle. The blade profile is shaped such that at high wind speed turbulence
is created to cause a collapse in aerodynamic efficiency to limit the power output. This behaviour is intrinsic to the blade
design without separate control system to maintain output from the turbine blades constantly close to the rated value
beyond the rated wind speed.
6.9 Other ancillaries – Other ancillaries for a wind power firm are shown below:
ELECTRICAL ITEMS
1. Power, Control & Communication cable
2. Cable Lug & Gland
3. Communication Cable Connector (48 Pin Plug & Socket Assembly)
4. Control Transformer
5. Current Transformer & Potential Transformer for (415V/690V) Power Panel
6. Earth Leakage Relay
7. Generator
8. HRC Fuse
9. MCCB/ACB & Measuring Instruments
10. Power Factor Improvement Capacitor (415V/690V)
11. Reactive Power Compensation System/ Scheme
12. Slip Ring Assembly (Power supply to Rotor)
13. Surge Arrester
MECHANICAL & HYDRAULIC ITEMS
1. Adhesives & Sealants
2. Accumulator
3. Anti Vibration Mount (AVM)
4. Bearings
5. Blades for Rotor
6. Blade Hydraulic Unit
7. Blade Extender
8. Brake Caliper
9. Brake Pads
10. Brake Disc
11. Brake Hydraulic Unit
12. Burst Disc
13. Disc Spring
14. Flexible Coupling
15. Gear Box
16. Gear Box Rubber Suspension
17. Gear Oil Filtration Unit
18. Hoses
19. Hub & Hub Extender
20. Main Shaft
21. Nacelle Door Damper
22. Nacelle Frame & Cover
23. Nose Cone
24. Oil Seals & 'O' Rings
25. Rotating Union
26. Shrink Disc
27. Tower
28. Tower Extender
29. Yaw Assembly
30. Yaw Brake Assembly
31. Yaw Brake Friction Plate
32. Yaw Brake Pad
33. Yaw Gear
ELECTRONICS ITEMS
1. Bridge Rectifier
2. Electronic Cards
3. Thyristors
4. Variable Frequency AC Drives
5. Various Electronic Components like IC's, Transistors, Optocouplers, Resistors, Capacitors etc.
6. WEG Controller
SENSORS & DATA LOGGERS
1. Anemometer
2. Inductive Proximity Switch (for rpm sensing and yaw pulse sensing)
3. PT 100 Sensor
4. Pressure Switch
5. Pull Cord Switch
6. Vibration Sensor
7. Windvane
8. Wind Measuring Instruments & Data Loggers
7. Project implementation and schedule-
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Zero Date for Project
Geotechnical Investigation & Topo. Survey& trial pipe testing
Site Mobilization
construction
Basic Engineering
Detailed Engineering, Procurement-Delivery
Construction, Erection & Commissioning
Switchyard
Basic Engineering
Detailed engineering, Procurement-Delivery
Construction, Erection & Commissioning
WeeksActivity Description
Readiness of Investigation
ReportCompletion of
Engineering Drawings
& Schematic DiagramsDelivery and site
testing of all
equipments and
auxillaries
Start of
Foundation
Construction
Completion of
foundation &
start of tubular
pole installation
Completion of
tower Installation
& Start of
Generator
module
placement
Installation of
rotor hub &
turbineblades
Test run&
Synchronisation
Completion of
Engineering Drawings
& Schematic Diagrams
Delivery and site
testing of all
equipments and
auxillaries
Completion of sub-
station, testing and
commissoning
FINANCIAL OVERVIEW
1. Introduction-
The proposed power plant at station Kondamithipalli, in Kurnool district of Andhra Pradesh is wind energy based plant,
which come under renewable sources of energy. The cost of power production through renewable sources is generally
more than that through conventional means. That is why central and state government of Andhra Pradesh have
announced a slew of measures in the form of fiscal incentives to set up the wind power farms in Andhra Pradesh. The
various incentives offered are as follows:
A. BY GOVT. OF INDIA
1. Under the Income Tax Act, the Govt. of India is allowing 80% Accelerated Depreciation on specified Non
Conventional Energy Devices / Systems (including wind power equipment) in the first year of installation of
the projects.
2. A ten year tax holiday has been allowed in respect of profits and gains of new industrial undertakings set up
anywhere in India for either generation or for generation and distribution of power.
B. BY THE STATE GOVERNMENT:
1. Each Eligible developer may be allocated available Govt. land to harness up to a maximum of 200 MW of wind
power initially. After commissioning of 100 MW capacity Wind farms in 1st stage in the allocated Govt.land,
the Government may allocate land for another 100 MW capacity Wind Farms. The application from the
developers for Government land will be considered on a first-cum-first-served basis.
2. 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.
3. The DISCOMS 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.
4. Wheeling charges will be at as per the orders of A.P.Regulatory Commission and as per the Open Access
policy. The concessional wheeling and transmission charges for captive use or 3rd party sale may be in kind at
5% of energy delivered into the grid (which includes transmission and distribution losses). The concession
wheeling and transmission charges will be subject to the approval of the AP Electricity Regulatory
Commission. However, the third party sale is permitted only to the HT- I category consumers as categorized in
Tariff Orders by the commission from time to time.
5. The Wind Power Projects are not eligible for Banking of Energy. The Energy generated by captive generating
plants, if not consumed during the billing month, would be deemed to have been sold to respective DISCOM
and the DISCOM may pay for such un-utilized Energy at the rate of 85% of the tariff.
6. Technical Consultancy Services through NEDCAP.
Considering all these aspects, the financial particulars of the project are calculated and evaluated to appraise the financial
viability of the project.
2. Project cost-
As per CERC guidelines, the total cost per MW for wind power project should be Rs 515 lakhs. Therefore the total cost for
a 12 MW wind power farm is Rs 6180 lakhs/MW. The entire project has to be financed from this corpus. The project cost
break-up is shown below:
2.1 Cost of land & civil works- The cost of land will consist of around 14% of the entire project cost, in case all the
land available is acquired at a reasonable rate. The cost of civil works, namely site development, levelisation,
construction of site office, installation of initial equipments necessary, construction of buildings, offices, tower
foundation etc will require another 15 % of the total cost.
2.2 Cost of machinery and auxiliary- Cost of machinery and auxiliaries forms the bulk of the portion of the total
project cost. Equipments will be procured through competitive bidding method from the Original equipment
manufacturers (OEMs). The bidder will be allowed to quote the price including all charges, taxes, cess, levies etc and
the cost of transportation to the site. The lowest bidder will be selected through the transparent process of bidding.
Likely cost of machinery and auxiliary will be 40% of the total project cost.
2.3 Cost of transmission and power evacuation- IT represents a major hindrance to the project viability. The
cost will represent around 26% of the project cost.
2.4 Miscellaneous cost- These represent around 5 % of the total project cost.
Cost Breakup-
Cost of land & civil works- Rs 1792.2 Lakhs
Cost of machinery and auxiliary- Rs 2472 Lakhs
Cost of transmission and power evacuation- Rs 1606.8 Lakhs
Miscellaneous cost- Rs 309 Lakhs
3. Taxes- All taxes on power generation equipments (i.e., excise, cenvat, customs etc) are to be included in the price
quoted by the manufactures/ suppliers in the competitive bidding process. The taxes related to transportation of
materials (i.e. freight, octroi etc) are also to be included in the price quoted by the manufactures/ suppliers in the
competitive bidding process. Direct taxes to be paid by the project developer is in the form of minimum alternate
tax(MAT) for the period of first 10 years, i.e. for the tax holiday period and thereafter it is the corporate tax rate which will
apply. The additional surcharge on corporate tax is the corporate cess and the educational cess. Pre-tax return equity is
allowed by the CERC Guidelines, according to which 19% return on equity is allowed for the first 10 years of operation and
thereafter 24% is allowed for the rest of the period. Efficient tax planning is required in advance for strong cashflows for
the project.
3.1 Freight- Freight charges are state level taxes that are imposed on the cost of equipments or materials and the cost
of transportation. Typically, they represent 5% to 7% of the total cost of transportation.
3.2 MAT- The MAT rate has been increased to 18% for the tax holiday period. A corporate cess of 7.5% is applicable on
MAT rate, and a 3% additional education cess is applicable. The effective Mat rate comes to 19.9305%.
3.3 Service tax- Service tax on the services provided by the EPC Contractor i.e. for the construction of Wind power farm
has to be included in the price quoted by the manufactures/ suppliers in the competitive bidding process. Service tax of
10% is applicable and an additional cess of 3% on the service tax is applicable.
3.4 Electricity Duty- Any electricity duty levied by state government is to be borne by the beefier and that is designated
as a pass through item.
4. Financing of the Project-
4.1 Financial parameters-
Income Tax % 33.22%
MAT Rate (for first 10 years) % 19.93%
80 IA benefits Yes/No Yes
Depreciation Rate for first 10 years % 7.00%
Depreciation Rate 11th year onwards % 1.33%
Years for 7% rate 10
4.2 Means of finance-
Total Debt Amount Rs Lacs 4326
Total Equity Amount Rs Lacs 1854
Loan Amount Rs Lacs 4326
Moratorium Period years 0
Repayment Period(include
Moratorium) years 10
Interest Rate % 14.29%
4.3 Assumptions-
Capacity Utilization Factor- 27%
Useful Life – 25 Years
Depreciation Rate for first 10 years- 7.00%
Depreciation Rate 11th year onwards- 1.33%
Years for 7% rate- 10
Working Capital will consist of:
• O&M Charges- 1 Month
• Maintenance Spare (% of O&M expenses)- 15%
• Receivables -2 Months
• Interest On Working Capital - 13.79%
Operation & Maintenance-Rs 6.5/MW
Total O & M Expenses Escalation- 5.72%
Selling Price- Rs 3.50 per unit for first 10 years.
4.4 Calculation of Tariff, NPV and IRR-
The detailed calculation is seen in the attached excel sheet. The project will be approved on the basis of levelised tariff.
The levelised tariff for the whole life of the project i.e. 25 years was found to be Rs 4.26/unit. The year-wise tariff was
found to be diminishing from base year of 2013-14, considered as year 0 to the 11th
year. This was due to the effect of
depreciation on loan repayment. From 11th
year onwards the year-wise tariff has shown slow rate of increase as the
amount of depreciation has decreased and the effect of O&M expenses was more pronounced.
Power generated from wind firm can be sold to AP DISCOMs at the SERC fixed rate of Rs 3.50/unit freezed for 10
years. Through this method, return on equity will be reduced. Power can also be sold through power exchange, where the
price of electricity is generally around Rs 5-6/unit for peak hours and Rs 3-4 for day off-peak hours.
The net present value of net cash flows from the project on the basis of year-wise tariff was found to be Rs 25.17 lakhs,
without considering the CDM benefits. Similarly, IRR from the net cash flows comes to be 17%.
5.CDM Benefits- When the electricity is produced from any renewable source of generation, apart from the physical
electricity, environmental attributes (e.g., reduction in CO2, NO2 or reduction in any other environmental pollutant
emission) are generated. These environmental attributes can be labelled as green attributes considering its positive
impact on environment. To off-set the extra cost associated with the production of green electricity, these green
attributes can be exchanged with the customers who are having obligation to reduce the green house gases generated to
a certain threshold.
Certified Emission Reductions are the representation of these environmental attributes and can be sold in separate
market other than physical electricity market. The project will be eligible for small scale renewable energy project and the
no of CERs issued to it will be as per the appropriate methodology.
5.1 Baseline emission factor of concerned grid- The power generated though this project will be evacuated
through the Southern Regional Grid. The combined margin for small scale renewable energy projects and the
corresponding
emission factor is derived for calculation No of CERs to be issued and the amount of benefits available.
Source: cdmbaselineindia.com
5.2 Net benefits available from CDM-
A detailed calculation was done for arriving at the benefits derived from sale of CERs (shown in the attached excel sheet).
The benefits accrued are suitably discounted at the WACC for finding ht present value of the benefits.
The following assumptions were made while calculating:
• Benefits can be realised after an interval of 7 years
• Emission factor to remain 0.95 tCO2/Mwh as per baseline for small renewable power projects(Data Source:
cdmbaselineindia.com)
• Price of CER traded- Rs 800/-( As on 28.02.10, CER is traded at Rs 780/- in MCX)
• As per CERC guideline, net benefits derived from CDM has to shared in the ratio of 50:50 between project developer
and the beneficiary from the 5th year of operation)
The total benefits (PV) available to the project developer form sale of CERs is Rs 4,44,77,218/-
REQUEST FOR TARIFF ORDER
1. Agencies and Regulations involved in Wind Energy Promotion in India-
1.1 Agencies –
Ministry of New and Renewable Energy (MNRE), Govt. of India is an independent Ministry e xclusively for renewable energy sources.
Minister : Dr. Farooq Abdullah
Secretary : Mr. Deepak Gupta
The activities related to wind power is looked afte r by Wind Power Division, Power Group.
AGENCIES PROMOTED BY CENTRAL GOVERNMENT :
FOR FINANCING :
Indian Renewable Energy Development Agency (IREDA)
India Habitat Centre Complex Core 4A,East Court, 1st Floor,Lodi Road, New Delhi - 110003 Tel : 011 - 24682214 - 21 Fax : 011- 24682202, 24682204, 24682207 Email : [email protected] Website : www.iredaltd.com
FOR WIND RESOURCE ASSESSMENT TESTING AND CERTIFICAT ION
Centre for Wind Energy Technology (C-WET) Velachery-Tambaram High Road, Pallikaranai, Chennai - 601302 Tel : 91-44-22463982-84 Fax : 91-44-22463980 email : [email protected] Web : www.cwet.tn.nic.in
State level agency or State Nodal Agency(SNA) for A ndhra Pradesh-
NON-CONVENTIONAL ENERGY DEVELOPMENT CORPORATION OF ANDHRA PRADESH LIMITED
Regd.Office: 5-8-207/2,
Pisgah complex, Nampally,
Hyderabad - 500 001. India
Tele: Off: 3202391/3203692 Grams: "NEDCAP"
Fax:040-23201666
Web: www. nedcap.gov.in.
1.2 Guidelines-
1.2.1 MNRE guideline on Wind Energy Generation-
1. Scheme for Implementation of Generation Based Incentives (GBI) for Grid Interactive Wind Power
Projects.
1. Objectives:
(i) To broaden the investor base and create a level playing field between various classes of investors.
(ii) To incentivise higher efficiencies with the help of a generation/outcome based incentive.
(iii) To facilitate entry of large independent power producers and foreign direct investors to the wind power sector.
2. Incentive and Duration:
2.1 Under the scheme, a GBI will be provided to wind electricity producers @ Rs. 0.50 per unit of electricity fed into the grid for a period not less than 4 years and a
maximum period of 10 years in parallel with accelerated depreciation on a mutually exclusive manner, with a cap of Rs. 62 lakhs per MW. The total disbursement in a year will
not exceed one fourth of the maximum limit of the incentive i.e. Rs.15.50 lakhs per MW during the first four years. The scheme will be applicable to a maximum capacity
limited to 4000 MW during the remaining period of 11th Plan period. The provision of GBI will continue till the end of 11th Plan period. However, provision of accelerated
depreciation in parallel with GBI will continue till the 11th Plan period or introduction of Direct Tax Code, whichever is earlier.
2.2 Detailed Guidelines for implementation arrangements will be issued shortly. GBI would be available for wind turbines
commissioned after the issue of this scheme and commissioned on or before 31.3.2012 and would be governed by the
Guidelines.
3. Eligibility:
3.1 The GBI scheme would be implemented in parallel with existing fiscal incentive including that of accelerated
depreciation, for grid connected wind power projects in a mutually exclusive manner, so that companies can avail either
accelerated depreciation or GBI, but not both. Once a Company has opted for one benefit, it cannot change the option later.
As GBI promotes higher generation, it is intended that the first claim of beneficiary should be on GBI.
3.2 In case of a company which amalgamates, changes its form or name or transfer assets to another company, the
GBI may be released only when the claimant produces a proof that it has intimated the concerned Commissioner of Income
Tax of the changed position of ownership and henceforth, the new company will not claim the benefit of accelerated
depreciation.
3.3 The GBI will cover grid connected generation from wind power projects set up for sale of electricity to grid at a tariff
fixed by SERC and/or State Govt. and also include captive wind power projects, but exclude third party sale, (viz. merchant
power plants).
4. Implementation Arrangements:
4.1 The GBI would be implemented through Indian Renewable Energy Development Agency (IREDA). IREDA will also
assist the Ministry in organizing business meets, awareness programmes and other related activities, as considered necessary
for promotion of the scheme.
4.2 The funds provided in the budget of MNRE will be released upfront as advance to IREDA to ensure timely release and
flow of funds to the projects. The existing system followed by various state utilities for data collection/metering and billing on
the generation of electricity for the purpose of payment to the power producers with modification, if any as deemed necessary,
would be followed as the basis for disbursal of the amount due to the power producer for the new turbine(s) to be set up
under the GBI.
4.3 All the wind power producers (whether availing AD or GBI) will be required to register with IREDA. IREDA will give an
acknowledgement of the registration, which would become a part of the documents required for claiming the AD. An
instruction to this effect will be issued by the Department of Revenue shortly. Through this registration mechanism, the
turbine owners will provide the required details of the machines including generation data to the IREDA.
4.4 As the GBI scheme would be applicable only for those wind power producers who do not avail the accelerated
depreciation benefit under the Income Tax Act, investors would be required to furnish documentary proof to this effect that no
accelerated depreciation has been availed. Apart from other required documents for disbursement, the company will also
submit a copy of their Tax returns duly certified by the same Chartered Accountant who conducted statuary audit under
section 44AB of Income Tax Act that no accelerated depreciation has been claimed. IREDA will build safeguards into the
implementation /disbursal process of the scheme to avoid the misuse of the GBI incentive.
4.5 The IREDA would disburse the GI to the developers through their designated bank account periodically through e-
payment.
4.6 This incentive is over and above the tariff that may be approved by the State Electricity Regulatory Commissions in
various States. In other words, this incentive that is sanctioned by the Union Government to enhance the availability of
power to the grid will not be taken into account while fixing tariff by State Regulators.
4.7 The mechanism of Unique Identification (UI) number developed by IREDA will have to be followed by all the wind
power developers to claim the GBI. This will also be used to monitor the performance of the projects including those availing
AD, in respect of quantity of electricity fed to the grid and comparative performance etc.
4.8 IREDA would provide feedback to the Ministry regarding implementation of the scheme and would suggest
modification to make the implementation more effective. The Ministry will also obtain feedback from other stakeholders in
regular intervals and take steps to modify the modalities of implementation, if required.
5.0 Financial Outlay
5.1 The financial liability during the 11th Plan is estimated to be Rs.380 crore, which would be met by the Ministry from its
existing Plan allocation.
6. Evaluation of the Scheme:
6.1 The GBI would be evaluated during the last year of the 11th Plan and if the response of the GBI exceeds the expectations,
further up-scaling would be considered based on the evaluation.
7.0 This issues with exercise of delegated powers of the Ministry and with the IFD’s concurrence 2009 vide their diary no.
IFD-1536/201009
2. Revised Guidelines for Wind Power Projects - self-certification regarding.
1. It has been decided to extend the facility of self-certification up to period ending 30th September, 2007 for the machines which are already under testing and certification by the Centre for Wind Energy Technology (C-WET), and any other machines that may be offered and are taken up for testing and certification during the ensuing windy season of 2007, subject to the following conditions :
• C-WET would evaluate the eligibility of manufacturer, who approaches for Type. Certification, as per the evaluation criteria in vogue, which is being followed by C-WET.
• Validity of Self-Certification facility for models specified in the List of Models and Manufacturers thereof issued by C-WET is extended up to 30th September, 2007.
• Self-Certification facility would be available for a maximum period of 18 months from the date of signing of the agreement with C-WET for the models hereinafter including in the category "Model under Testing and Certification at C-WET" in the List to be issued by C-WET.
• In case the manufacturers fail to submit necessary documentation as per the agreed schedule/time limit with C-WET, the specific models of such manufactures would be kept in a separate category, in the “Revised List of Models and Manufacturers thereof”. (to be issued on a quarterly basis) withdrawing their entitlement for commercial deployment of machines which are under certification.
• C-WET would undertake evaluation of the Wind Turbines set up under Self-Certification by following the procedure as given in para-3 below and send recommendations to the Ministry to consider the continuation of models’ entitlement for Self-Certification facility.
2. The following procedure would be adopted by C-WET to undertake evaluation of wind turbines set up under Self-Certification :
(a) The manufacturer shall make full particulars of all installations including performance guarantees provided to the C-WET and the Ministry. The company shall also submit reports annually on all such installations analyzing the performance and failure reports with reasons thereof.
(b) The manufacturer shall give full particulars of the customers. The Ministry or its assigned establishments may also directly consult the customers. A standardized questionnaire shall be prepared and used for obtaining details.
(c) A sample survey would be carried out to determine the veracity of the claims made by the manufacturer against the standardized format. The result of the analysis would be discussed in the meeting of the Committee on "Revised List of Models and Manufacturers" thereof and suitable recommendations would be sent to the Ministry to consider continuation of the Models’ entitlement for Self-Certification facility.
3. In the case of new manufacturers who want to introduce new models which are not tested and certified earlier in India or abroad, a maximum of 20 machines could be set up under the Self-Certification facility, provided the manufacturer fulfils the criteria as given in para-2 above.
1.2.2 Central Incentives-
A. Indirect Taxes
I. Custom Duty for Wind Energy Equipments and Compo nents --custom dated 01.03.2002, as
i) Wind operated electricity generators up to 30 kW and wind operated battery chargers up to 30 Kwan- 5%
ii) Parts of wind operated electricity generators for manufacturer/maintenance of wind operated electricity generators, namely :
a) Special bearing-5% b) Gear Box -5% c) Yaw components-5% d) Wind turbine controllers-5% e) Parts of the goods specified at (a) to (d) above-5% f) Sensors-25% g) Brake hydraulics-25% h) Flexible coupling-25% i) Brake callipers-25%
iii) Blades for rotor of wind operated electricity generators for the manufacturers/maintenance of wind operated electricity generators- 5%
iv) Parts for the manufacturer/maintenance of blades for rotor of wind operated electricity generation- 5%
v) Raw materials for manufacturer of blades for rotor of wind operated electricity generators- 5%
(a) If the importer at the time of importation furnishes in all cases, a certificate to the Dy. Commissioner of Customs or Assistant Commissioner of Customs as the case may be, from an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Non-Conventional Energy Sources recommending the grant of this exemption and in the case of the goods at (ii) to (v) the said officer certifies that the goods are required for the specified purposes; and
(b) Furnishes an undertaking to the said Dy. Commissioner of Customs Assistant Commissioner to the effect that -
(i) in the case of wind operated electricity generators up to 30 kW, or wind operated battery chargers up to 30 kW, he shall not sell or otherwise dispose off, in any manner, such generators or chargers for a period of two years from the date of importation.
(ii)in case of other goods specified at (ii) to (v), he shall use them for the specified purpose, and
(iii) in case he fails to comply with sub-conditions (i) or (ii), or both conditions, as the case may be, he shall pay an amount equal to the difference between the duties liveable on the imported goods but for the exemption under this notification and that already paid at the time of importation..
Devices/Systems exempted from Excise Duty:
(i) Wind operated electricity generator, its components and parts thereof including rotor and wind turbine controller.
(ii) Water pumping wind mills, wind aero-generators and battery chargers
Exemption/reduction in Central Sales Tax and General Sales Tax are available on sale of renewable energy equipment in various states.
1. Accelerated Depreciation benefit u/sec. 32 Rule 5 up to 80% of the project cost in the first year plus additional depreciation @ 20% for projects being commissioned after March 2005 with new plant & machinery.
2. Exemption on Income Tax on earnings from the project u/sec. 80 IA for 10 years.
1.2.3 IREDA's Financing Guidelines for Wind Energy Projects-
Sl. No.
Financing Schemes
Interest Rate (%) p.a
Maximum Repayment
Period (Years)
Minimum Promoters’ Contribution
(%)
Term Loan from
IREDA
Remark
1. Project financing - Setting up
of wind farms on
ownership / lease basis
11.25 to
11.90
10 30% Upto 70% of total Project Cost
Projects setup by manufacturers or their
subsidiaries with minimum capacity of 5
MW may avail additional loan up to
15% secured by BG/FDR and
generation guarantee is provided for entire
loan period to the borrowing company
and the same is assigned to IREDA
Note:
1. The above interest rates are variable and will automatically reset upon expiry of every 3 years from the date of first disbursement/reset. 2. The option is available for a fixed interest rate for the entire loan period subject to the condition that 1% additional interest shall be charged.
3. Maximum of 1 year grace period after commissioning of project will be applicable for commencement of principal repayment. 4. Rebate of 0.75% will be given in the event of borrower furnishing security of Bank Guarantee or Pledge of FDR issued by Scheduled Banks.
Eligibility Criteria for Financing
Who Can Apply?
• Public, Private Ltd companies, NBFCs and registered Societies.
• Individual, Proprietary and Partnership firms (with applicable conditions)
• State Electricity Boards which are restructured or in the process of restructuring and
eligible to borrow loan from REC/PFC.
General Eligibility Criteria for Applicants
• Profit making companies with no accumulated losses.
• Debt Equity Ratio not more than 3:1 ( 5:1 in case of NBFCs - Conditions Apply)
• No default to IREDA and other FIs / Banks
• No erosion of paid-up capital.
Note: Applicants who are loss making/ not meeting the criteria relating to accumulated losses/debt equity ratio shall be eligible for financing if Bank Guarantee / FDR is provided as security for the entire loan.
Eligible Projects
• Projects demonstrating techno commercial viability.
• Grid connected wind farm projects in identified windy sites appearing in the MNRE / CWET
list of potential sites for wind farm projects in the country.
• Projects incorporating wind electric generators appearing in the C-WET approved
manufacturers list.
• Project sites having mean annual wind power density of over 200 Watts/Sq.m. at 50m
above ground level(agl).
• Project incorporating new Wind Electric Generators with the capacity 225 kW and above.
• Refinancing of Projects commissioned up to 1 year prior to date of registration of
application at IREDA.
1.2.4 C-WET’s Type Approval - Provisional Scheme-2000-
A certification Scheme for Wind Turbines in India namely, "Type Approval - Provisional Scheme-2000 (TAPS-2000)", for according Provisional Type Certification and corresponding requirements of Provisional Type Testing & Measurements of Wind Turbine Generator Systems has been formulated. Ministry of Non-Conventional Energy Sources, Government of India has accorded approval for this Scheme.
To serve the needs of the wind industry, pertinent to the Indian requirements, the wind turbines types have been classified in to three categories for the purpose of certification. The Provisional Type Certificate valid in India will be issued according to three categories of TAPS-2000 for the three classes of wind turbine types as given below :
a. Provisional Type Certification : Category - I
The WTGs types, which possess valid type certificates or approvals from an accredited Certification Bodies.
Under this category, all the Indian wind turbine manufacturers in India, who are in possession of a valid type certificates or approvals from accredited certification bodies for the wind turbines to be manufactured and marketed by them, will be able to obtain a provisional type approvals/ certificates from C-WET. In this category, evaluation of the design partially, manufacturing system and the foundation design requirements will be carried out.
b. Provisional Type Certification : Category - II
The WTGs types, which possess valid type certificates or approvals from accredited Certification Bodies, supplemented by Provisional Type Tests.
Under this category, for a WTGs possessing a valid type certificate or approval can seek to obtain a Provisional Type Certificate as in Category-I, however, with an enlarged scope of design verification. This category requires that the Provisional Type Tests be carried out at Wind Turbine Test Station (WTTS) Kayathar, Tamil Nadu.
c. Provisional Type Certification : Category - III
New or significantly modified WTGs types, which do not posses valid type certificates, fall under this category. In this category, the new wind turbines, which have not been type certified or the wind turbines having type certificates with significant modifications introduced in them will be taken up for Provisional Type Approval. This category also requires that the Provisional Type Tests be carried out at WTTs, Kayathar. A complete design evaluation focussing on the safety and engineering integrity of the wind turbine will be carried out, in addition to evaluation of manufacturing system and foundation requirements
1.3 Regulation by state governments-
ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION IN ITS ORDER,
VIDE NO- 9 of 2005, Dated: 27-09-2005 has specified the percentage of non-conventional energy to be purchased by state
DISCOMs, captive power producers and open access consumers. The salient points of the order are summarised below:
o Every person to whom this Order applies, shall purchase not less than five per cent (5%) of his consumption of
energy from NCE sources under RPPO during each of the years 2005-06 to 2007-08 (each year commencing on 1st
April of the calendar year and ending on 31st
March of the subsequent calendar year).
� One-half of one percentage point out of the RPPO specified hereinabove (one-half of one per cent of total
consumption) shall always be kept reserved by the distribution licensees for procurement of Wind-based
energy and shall be diverted, if necessary, to other NCE, only on a temporary basis, and also that all energy
available from this source shall be purchased until it reaches the aforementioned one-half of one percentage
point even if consequently, the total NCE purchase exceeds the total RPPO considering the NCE power
purchase commitments made under the power purchase agreements (hereinafter, “the PPAs”) already
entered into and consented to by the Commission:
� Further, such obligation to purchase NCE shall be inclusive of the purchases, if any, from NCE sources already
being made by concerned Distribution Licensees, etc:
� Subject to the provisions of paragraph 20, such purchase of power to comply with this Order shall be made
from amongst the categories specified in paragraph 19, from generating stations located within the State:
� Distribution Licensees shall make all purchases, other than those committed to be made under the PPAs
already entered into with the consent of the Commission, in accordance with the provisions of paragraphs 21
and 22.
� The power purchases under the PPAs for the purchase of NCE already entered into by the distribution
licensees and consented to by the Commission shall continue to be made till their present validity, even if the
total purchases under such PPAs exceed the percentage as specified hereinabove.
� Applicability of Renewable Power Purchase Obligation (RPPO)
� Every Distribution Licensee, captive power consumer open access consumer and scheduled consumer (to the
extent of power availed through open access) shall be required to purchase electricity at the percentage
specified hereinabove of his total consumption of electricity within the area of a distribution licensee from
non-conventional energy sources.
� Any procurement of energy for sale or otherwise transmission / wheeling to places outside the State shall be
excluded while computing the quantum of the total energy under paragraph 16, while any procurement of
energy from outside the State but for use within the State, shall be included.
� The consumption of a Rural Electricity Supply Co-operative Society shall constitute a part of Distribution
licensee’s consumption and the corresponding RPPO shall be discharged by the distribution licensee in whose
overall area of supply, such Society is located.
� Sources of Non-conventional Energy
� The sources of energy for the purpose of complying with the percentage of NCE procurement shall be
� Cogeneration (from renewable sources of energy like bagasse);
� Mini-Hydel;
� Wind;
� Municipal waste;
� Industrial waste; and
� Biomass
� In view of the NEDCAP having already issued a large number of sanctions for setting up of biomass-based
power plants, no further biomass-based power shall be purchased by the distribution licensees than that
already committed through the PPAs already entered into and consented to by the Commission.
� Procedure of procurement of electricity from NCE sources :
� Up to and including the level of percentage specified in paragraphs 10 and 11 above, the distribution
licensees can enter into long-term PPAs with the NCE developers of relevant category. The ceiling for the
tariff of such purchases shall be as per order dated 20-03-2004 in R.P.No.84 of 2003 in O.P.No.1075 of 2000,
as amended. In case of purchase of electricity other than through long-term PPAs, the ceiling tariffs shall be
the total tariffs (fixed plus variable), as worked out for each source of energy (Co-generation, Mini-Hydel etc.)
on the basis of aforementioned order of the Commission.
� A distribution licensee shall be at liberty to procure NCE from other distribution licensee(s) within the State at
the weighted average cost of the latter’s purchase of NCE during the year.
� Reporting requirements: Every person requiring to purchase power from NCE sources under this Order shall
file before the Commission annually, by 30th
November, the details of total requirement of power under RPPO
in the ensuing financial year, power presently being purchased from such sources, additional power required
to be purchased from such sources to comply with this Order and action being taken to procure such power.
� Effect of default
o Where any person though required to comply with this Order fails to purchase the required percentage of
power from NCE sources, he shall be liable for penalty as may be decided by the Commission under section
142 of the Act. No penalty shall however be levied if such defaulter proves to the satisfaction of the
Commission that there is no availability of NCE power within the State for purchase within the ceiling rates
specified in paragraph 21 in spite of his best endeavours to procure it:
o The penalty if any levied under paragraph 24 shall be placed at the disposal of NEDCAP, or any other entity /
entities nominated by the Government of Andhra Pradesh with the consent of the Commission for utilization
towards promotion of cogeneration and generation of electricity from renewable sources of energy as also
for conservation of electricity.
2. Proposal for issuance of tariff order by CERC- As per Central Electricity Regulatory Commission (Terms and
Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2009,
“The Commission shall determine the generic tariff on the basis of suo-motu petition at least six months in advance at
the beginning of each year of the Control period for renewable energy technologies for which norms have been
specified under the Regulations.”
The generic levelised tariff as per the terms and conditions of determination of tariff for wind power projects under
the above regulations for wind power plant at station Kondamithipalli, comes out to be Rs 4.26/unit. It is proposed to
approve the project on the basis of this levelised tariff.