windmill repo

8/7/2019 windmill repo

1/10

REPOWERING OF OLD WIND FARMS IN INDIA

BIG OPPORTUNITY TO UNEARTH

REPOWERING OF OLD WIND FARMS IN INDIA

BIG OPPORTUNITY TO UNEARTH

RajendraRajendra V.V. KharulKharulSrSrFellow and HeadFellow and Head

Centre for Wind PowerCentre for Wind Power

World Institute of Sustainable Energy, PuneWorld Institute of Sustainable Energy, Pune

26 NOV. 2008, WIND INDIA 200826 NOV. 2008, WIND INDIA 2008

2

Presentation PlanPresentation Plan

1. Introduction1. Introduction

2. International experience2. International experience

3. Issues and Challenges3. Issues and Challenges

4. Suggestion & recommendations4. Suggestion & recommendations

5. Conclusion5. Conclusion


2/10

3

IntroductionIntroduction

Cumulative installations crossed 9500 MW in OCT. 2008

More than 82 % capacity added after Mar. 2002.

Pre 2002 installations mostly used wind turbines of capacities 55kW to 300kW.

Large number of small rating machines exists at many sites in states like TamilNadu, Gujarat and Maharashtra.

By end of March 2007, about 5700 number of machines (44 % of then installed)of rating less than 300 kW and totalling to 1300+ MW were installed in India.

With many states facing power shortages on one side and potential windy areasbeing utilized inefficiently on the other side, it becomes imperative for India toassess the potential of repowering the old wind farms in the country.

4

Variations in turbine sizes in IndiaVariations in turbine sizes in India

Year-wise wind power installed in India

0

200

400

600

800

1000

1200

1400

1600

1800

2000

upto199

2

1992

/93

1993

/94

1994

/95

1995

/96

1996

/97

1997

/98

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

Year

Installations(MW)

200-400 kW

500-750 kW

800-1650 kW


3/10

5

Strategies for improving performanceStrategies for improving performance

Re-powering

Retrofitting

Refurbish and relocate

Intercropping

Re-powering:

Re-powering deals with the replacement of first generation smallcapacity wind turbines with modern megawatt and multi-megawattwind turbines. 1-to-1 up-scaling of solitary wind turbines

2-to-1 replacement

Clustering of solitary wind turbines into farms

6

Possible re-powering scenarioPossible re-powering scenario

Before

After


4/10

7

Benefits of re-poweringBenefits of re-powering

More efficient use of potential land, more capacity addition per unit of land area.

More energy generation per unit of land area and per square meter of rotor area

with improved economics.

Increase in the percentage share of wind-power in the power-generation mix

Reduction in green house gases possible and hence the possibility of earning more

foreign exchange through sale of certified emission reductions.

Re-powering can be used as tool to achieve national or state targets for renewable

energy such as Renewable Purchase Specifications (RPS) in India

More social and environmental benefits such as improved landscape, a lesser

number of turbines, a lesser footprint area utilization, use of new technology

reducing noise-levels, reduced avian mortality resulting in better technology

acceptance by communities.

Better power-grid integration

Reduction in risks and uncertainties for wind-energy estimation

8

International experience (1)International experience (1)

Denmark

Different phases of re-powering: phase one (100 kW to < 450kW). Different incentives offered according to phase of re-powering.

Phase-I: 1480 turbines totalling 121.7 MW, replaced with 272 new turbines totalling 331.6MW. By end 2007, 10% capacity addition resulted from re-powering.

Re-powering certificates: these replacement certificates enabled successful re-poweringin Denmark. The certificate holder is awarded a higher price for electricity produced fromnew turbines up to a maximum of two or three times the replaced capacity (depending onthe replaced turbine name plate rating).

Phase-II to re-power another 175 MW aging turbines , < 450 kW rating.

For re-powering 1.6 Eurocents/kWh are offered as surcharge till 2009. The surcharge isfor electricity production corresponding to full-load hours for up to twice thedecommissioned wind-turbine installed power capacity. The surcharge is regulated inrelation to the market price of electricity


5/10

9


Germany Local government restrictions on hub-height and spacing of turbines limited theinterest in opting for re-powering.

Amendment to the Renewable Energy Sources Act (EEG) in 2004 offered anadditional financial incentive to re-power turbines installed before 1995 .

Failure of this legislative measure (amendment to EEG in 2004) to accelerate there-powering market in Germany.

The German Wind-energy Association (BWE) study shows that spacingrequirements and height limits result in the loss of enormous economic potentialfor wind energy.

Till 2005, less than 1% of then installed (16826 MW) capacity repowered.

Recent amendments in June 2008, in EEG offered 0.5 cents/kWh above the initialfeed-in price of 9.1 cents/kWh for re-powering projects. This will be effective from1 January 2009.

BWE estimates re-powering potential up to 2020 in Germany at 15000 MW.

10

International experience (3]International experience (3]

Findings of re-powering at a wind farm in Bassens ( Lower Saxony), Germany


6/10

11


The Netherlands

Two re-powering strategies: the first deals with re-powering solitary wind-

turbines. The second focuses on wind-farms.

A model developed by ECN wind-energy: the effect of re-powering existing

wind-turbines can be simulated. It distinguishes different sizes of turbines,

wind-farms and age of the turbines involved. Different re-powering strategies

can be fed into the model.

No ongoing re-powering programme sited.

12


The U.S.A.

Prior to 1999, 245 MW re-powered, 1999 to 2003 only 23 MW, by end of Mar. 07 total re-powering 340 MW (20% of 1600 MW capacity in 1990 in California)

California Fix: change in federal law denied production tax credits to re-powered wind facilitiesunder existing contracts unless project owners obtained from the purchasing utility a contractstating that the additional power from a re-powered project would be priced at short-run avoidedcost. This provision, known as the California Fix, slowed re-powering for several years, in partbecause short-run avoided cost proved unattractive.

The US Tax Code (Section 45) provides that re-powered facilities with an existing standard offercontract are only eligible for the production tax credit if the contract is amended so that any wind-

generation in excess of historical norms is either sold to the utility at its current avoided costs, orelse sold to a third party. That means it denies the tax credit to repowered projects, unless ownersagreed with the purchasing utility to amend their contracts to reduce the purchase price for theincremental power produced. Such provisions did hamper the re-powering

Californias renewable portfolio standard: provisions such as legislative goal of 20% retails salesfrom renewables by 2017, increase by at least 1% per year.


7/10

13

Re-powering: Potential States in IndiaRe-powering: Potential States in India

Tamil Nadu Gujarat

Maharashtra

14

Turbine Installation Trends in IndiaTurbine Installation Trends in India

71147114711471141305813058130581305810010010010053415341534153411082510825108251082510010010010035943594359435948646864686468646100100100100

264620211518151405137996277>1MW

157519831510261293125707148

600kW -

1MW

157632972512742752251113241928

300kW-

600kW

131757574412265375501112488657< 300 kW

MWQty%MWQty%MWQty%

2006/072006/072006/072006/072005/062005/062005/062005/062004/052004/052004/052004/05

Ratings

Percentage change of wind turbine capacity installed in India


8/10

15

Percentage Share of WTG having less than 500 kW ratings in India

Turbine Installation Trends in India....Turbine Installation Trends in India....

16

Cost of re-powering and incentivesCost of re-powering and incentives

Repowering project costs are always more than that of green field projects.

Re-powering wind-power project costs: Need consideration for future revenue loss from the existingfunctional projects over its balance life.

To make the projects viable additional financial support is required either in terms of separate feed-in-tariff or financial incentives through governments / utilities buying green power.

Incentives Options

Option I:The additional project cost in case of repowering can be compensated through add-on tariff by separatefeed-in-tariff for re-powered projects

Option II:The additional repowering project cost may be compensated through repowering incentive on the lines ofrecently introduced generation based incentive (GBI) for five years by MNRE.

Option III:

If MNRE decides to prolong the incentive period from 5 years in Case-II to 10 years generation, so as toensure the efficient project functioning for longer duration


9/10

17

Challenges for re-powering in IndiaChallenges for re-powering in India

Technical issues O & M of old WTs

Underutilization of wind resource site

Electrical grid and substation

Rating of WT for re-powering

Turbine Spacing

Testing and certification

Options to dispose off Scrap

Exporting to other countries

Buy back by the government

Buy back by the WTG manufacturer

Re-using or recycling

Financial issues

Land ownership and land costing

De-commissioning Cost

Salvage value of old project

Discounting factor

Sale to EB V/s Captive Power Projects

Tariff and incentives for re-powering

Policy and regulatory issues

PPA Issue

Mode of sale of electricity

High open access charges to new captive windprojects

Other issues

Many old WTs manufacturers do not exist

Distributed Vs Concentrated risks

Availability of cranes

MARKET MODEL?

18

Suggestions and recommendationsSuggestions and recommendations

Wind power projects having less than 300 kW or 500 kW turbine capacity may be

offered for repowering.

Stringent micro-siting criterion as followed in few states (e.g Tamil Nadu ) should

be relaxed to develop full repowering potential.

All Captive, third party sale and sale to SEB projects should be considered for

successful re-powering programme, since above 65% of the investors are in

captive mode

For permitting re-powering, old existing project should have maximum balance life

of 10 years and wind turbine capacity of each WTG < 500 kW, shall be considered.

The re-powering ratio should be at least 2 which in turn will give more energy yield

(>3 times). The same land area as per existing project needs to be considered

Re-powering incentives

Feed-in tariff support: for 20 years

Generation linked re-powering incentive for 5 or 10 years


10/10

19

ConclusionConclusion

Re-powering benefit- With half the infrastructure, double thecapacity and triple the energy, this is the re-powering mantra orthumb rule.

Re-powering should be the preferred option to retrofitting /refurbishment or relocation of old wind turbines.

The incentive may be offered through SERC tariffs or throughgeneration linked incentives by MNRE for the period of five-tenyears.

Apart from the economics, other important challenges forimplementing re-powering and associated issues like-technical,financial and policy & regulatory etc. need special attention.

20Thank You !

World Institute of Sustainable EnergyWorld Institute of Sustainable EnergySuryaSurya--SumanSuman, 49 Hindustan Estates,, 49 Hindustan Estates,

Road No. 2,Road No. 2, KalyaniKalyani NagarNagar, Pune, Pune 411 006411 006Tel.Tel. -- 9191--020020--26613832/ 2661385526613832/ 26613855FaxFax -- 9191--020020--2661143826611438

WebsiteWebsitewww.wisein.orgwww.wisein.orgEmailEmailcwp@[email protected]

windmill repo

Documents