WIND POWER DEVELOPMENT WIND POWER DEVELOPMENT PROGRAMME – STATUS & PROGRAMME – STATUS &

ISSUESISSUES

Ministry of New & Renewable Energy Ministry of New & Renewable Energy Government of India Government of India

New DelhiNew Delhi1

2

Commercially developed source of renewable

power generation.

Environment friendly

Direct and indirect employment benefits in rural areas

Low O&M Costs.

To assess wind power potential in the country and to identify suitable sites for wind power projects.

Promotional policies for creating conducive environment for private sector investment for development of Wind Power on large scale for grid quality power.

Technical support through C-WET

3

Country Installed capacity upto June.2011

China 52,800

USA 42,432

Germany 27,981

Spain 21,150

India 14,550

Italy 6,200

France 6,060

UK 5,707

Canada 4,611

Portugal 3,960

Rest of world 29,500

*Source –World Wind Energy Association

Wind Power Development - Wind Power Development - Global ScenarioGlobal Scenario

Total global installed capacity: 2,15,000 MW* Total global installed capacity: 2,15,000 MW*

4

The first demonstration wind project of unit size 55 KW installed in the year 1986 in Tamil Nadu.

Wind turbines of late 80s were mostly of around 250 KW hub height and rotor dia of 30 m.

On commercialization, induced with supportive policy regime the machines with the state of art technology upto unit size of 2000 KW are being installed in the country.

Recent trends towards better aero dynamic design, use of lighter and larger blades, higher towers, gear and gearless machines and variable speed of operation, using advanced power electronics.

5

Present Status

Growth in installed capacity - 15683 MW as on October, 2011

A Centre for Wind Energy Technology and Wind Turbine Test Station have been set up to provide support to industry, wind resource assessment

653 wind monitoring stations in 31 States/UTs established. Seven handbooks on Wind Energy Resource Indian Wind Atlas for India has been recently launched. Establishment of wind energy industry in India

• 18 major players in the sector with 45 models

• Indigenisation – about 80 to 50%

• Vendor development – parts and components including rotor blades, gear boxes, yaw components, nacelle cover, towers, raw material for blades being manufactured

6

Established in Chennai as an autonomous institution of Government of India (Registered under Societies act of Tamilnadu) in 1998; operational since 1999.

Objectives:

Technical focal point for wind power development

Wind resource estimation

Standardization and certification

Testing facilities as per international standards

Type approval for wind turbines

Information, Training & Commercial Services

7

The Wind Turbine Test Station established, under DANIDA assisted project, at Kayathar in Tuthukkudi district, Tamil Nadu.

Wind turbines of 225 kW to 1250 kW have been tested at Kayathar.

Experimental wind turbine of 2 MW installed at the test stations.

‘In-Situ’ measurements are carried out with state of art systems as per international Standards.

8

State-Wise Potential/Achievement

9

States Potential

DemoProjects

Achievement

AP 5349 7.8 213

GUJRAT 10609 17.3 2495

KARNA 8591 7.1 1849

M.P 920 0.6 276

MAH 5439 8.4 2482

RAJ 5005 6.4 1764

TN 5374 19.4 6565

Others 7843 4.2 39

TOTAL 49130 71.2 15683

Accelerated depreciation (80%) in first year

Income Tax Holiday under section 80 1A

Sales tax, excise duty reliefs

Concessional import and excise duty on specified parts and components

Preferential tariff by State utilities

10

Objectives

To broaden investor base – IPPs and FDIs

Level playing field between various class of investors

Encourage higher generation/improve CUF

Framework for transition from investment based incentive to outcome based incentive

11

Highlights

GBI in parallel with other fiscal incentives including accelerated depreciation

GBI and AD on mutually exclusive manner

GBI- Rs.0.50 /kWh subject to max Rs. 62.00 lakh /MW

Duration : > 4 years, and < 10 years

12

Guidelines issued to States in 1993-94 & 1994-95

Power Purchase rate @Rs.2.25/unit (1994-95 base year) escalation @ 5%

Wheeling and banking facilities for one year at nominal charges

Permission for third party sale to any unit anywhere in the state

13

As per National Electricity Act-2003, state regulators to specify a minimum percentage of power to be purchased from renewable sources.

RPOs have been announced by major states

As per National Tariff Policy-2005, state regulators to provide preferential tariff for renewable power.

CERC issued attractive guidelines to determine the preferential tariff

CERC issued guidelines for RECs

14

12th Plan Proposals and Issues

15

Achievement as on 30.10.2011 - 15,683 MW

11th Plan Target - 9,000 MW

Achievement during 11th Plan (upto October, 2011) - 8,589 MW

Target (2011-12) - 2,400 MW

Achievement (2011-12) - 1,527 MW

Trends late 10th plan & 11th plan – 1500-1700 MW(except 2010-11)

12th Plan Target - 15,000 MW

To achieve aspired target : Avg. annual capacity addition of 3000 MW (+)

16

Major issues & constraintsMajor issues & constraints

1 Resource assessment requires revisit

2 Confined to Guj, Kar, A P, Maha, Raj, T N & M P

3 Consumed within the State. States reluctant for higher RPOS In order to facilitate equitable burden sharing ,state-wise renewable resource specific portfolio obligation need to be specified, including for wind power

4 Needs creation of spinning reserve, for grid stability- limits to development - extra cost

5 Additional power evacuation facility -extra cost on creation of transmission infrastructure

6 Additional cost to be born on: - feed-in-tariff, spinning reserves and power evacuation infrastructure

7 Result: Resource rich States reluctant to take higher RPOs- Grid instability, particularly hardly any spinning reserves exists

8 Wind Forecasting and schedules

9 Repowering of Wind farms

10 Offshore wind power development

17

Resource AssessmentExisting estimate of 49 GW is obsolete- TN already harnessed 5.5 GW- another 9 GW in pipeline.

Existing assumptions for potential Estimation

- Sites having wind potential of 200w/sq m at 50 meter hub height considered economically feasible

- Availability of land in potential sites @ 2 % of the entire area

- Wind Farm requirement @9 MW/sq km May Require Revision

Alternative estimates suggest much higher potential- 400 GW- 1200 GW.

Lawrence Berkeley National Laboratory, USA- even without farm land potential is around 1000 GW

Group’s Suggestion: Urgent need to carry out comprehensive potential - Action Initiated

18

Realistic Assessment of wind potential at 100m anemometry based on actual availability of land - in seven wind potential states (Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Rajasthan, Madhya Pradesh).

Funding support for resource assessment exercise to be provided by G.O.I

Project already initiated by C-WET in association with SNAs.

The exercise to be completed in three years

19

From 1st August 2011, the condition of no installation below 200 Watt/sqm, has been removed

Rational

New Generation Machines capable of harnessing lower wind areas

lower wind density regimes can have higher CUF

All stakeholders, investors, banks etc. understand risks

Such conditions does not exists anywhere in world

20

IEGC (May, 2010) – ‘Wind generators shall be responsible for forecasting their generation upto an accuracy of 70%. If the actual generation is beyond +/- 30% of the schedule wind generator would have to bear the UI charges’.

Industry is not ready with Forecasting –delayed by 1 year- now to start 1 Jan 2012

Task in Hand

Forecasting is necessary to transform wind from infirm to semi-firm power – a condition necessary to create countrywide market for wind power

Industry to take lead- Help develop capacity so that a number of forecasting players emerge

21

About 4000 MW with unit size below 500kw

For better potential harnessing – replace old and smaller generators by larger capacity & new generation wind turbines.

Issues - Land ownership, land costing and decommissioning cost - States reluctant to go for new PPA

MNRE is working on

Realistic assessment of re-powering potential

Creation of an appropriate policy framework for re-powering including- Revision of PPA for repowered projects or transmission of power to other states

States are requested to provide suggestions

22

Onshore wind energy have reached to mass deployment globally, the offshore exploitation of wind energy potential is yet to take off

Advantage include: more electricity; higher power density compared to land; less obtrusive; can provide cost competitive electricity to coastal region.

According to an estimate there is potential of 2800TWh by 2020 and 3500 by 2030 in Europe.

Europe is the global leader in terms of offshore wind energy installation.

Globally installations have reached - 2500 MW . (Europe : 2,400 MW followed by China - 100MW and Japan 1MW.

100 GW Projects proposed or under development in Europe as of September,2009.

EU targets to establish 40 GW by 2020 and 150GW by 2030.

23

The offshore wind farms in the water depth from 0.8 to 220 m. depth with monopile, jacket, tripod and floating technologies.

Offshore Turbines are based on the same technology as the onshore and their residual life is also the same. i.e about 20 years.

The rated capacity of the Turbines are at 3MW, 3.6MW and 5MW.

At different depth the turbine installation requires different type of bases for stability .

A monoplile base is used for water up to 30 m depth, where as turbines are installed on tripod or steel jacket base for 20-80 m depth water.

Offshore Wind Energy – Technology Offshore Wind Energy – Technology StatusStatus

24

25

26

Higher cost of energy than land based installations

Cost on associated infrastructure: vessels for turbine installations, port and harbor upgrades, manufacturing facilities, work forced training programme maintenance

Limited experience in deep waters

Technical challenges:- infrastructure development to support fabrication, installation, interconnection, operation and maintenance

Yet to evolve standardized approval process( so far it has been on case to case basis)

27

28

The Ministry has constituted a Technical Committee to analyze the available offshore wind data to identify the offshore wind areas and their potential.

Potential for Tamil Nadu is being carried out by C-WET in collaboration with European experts

The preliminary estimates suggests offshore wind potential at Kanniyakumari and Dhanshukodi in Rameshwaram.

After Potential estimation pilot projects will be undertaken

29

MNRE

Wind Turbines installed in Chitradurga, Karnataka30

MNRE

31

THANK YOUTHANK YOU

32