WIND POWER DEVELOPMENT PROGRAMME – STATUS & ISSUES Ministry of New & Renewable Energy

1. WIND POWER DEVELOPMENT PROGRAMME – STATUS & ISSUES Ministry of New & Renewable Energy Government of India New Delhi

2. Wind Power Commercially developed source of renewable power generation. Environment friendly Direct and indirect employment benefits in rural areas Low O&M Costs.

3. Wind Power Programme Components • 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

4. Wind Power Development - Global Scenario Total global installed capacity: 2,15,000 MW*

5. Wind Power Technology Development in India • 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.

6. Wind Power Development in India • 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

7. Centre for Wind Energy Technology (C-WET) 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

8. Wind Turbine Test Station • 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.

9. Wind Power Potential State-Wise Potential/Achievement

10. Fiscal Incentives • 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

11. GBI Scheme 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

12. GBI Scheme 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

13. MNRE POLICY GUIDELINESPRE-ELECTRICITY ACT 2003 • 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

14. Regulatory Policy Framework • 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

15. 12th Plan Proposals and Issues

16. Target and Achievement • 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 (+)

17. Major issues & constraints

18. Wind Potential Resource Assessment • Existing 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

19. Wind Resource Assessment at 100m level • 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

20. Wind Power Density Condition 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

21. Wind Forecasting and Schedules • 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

22. Re-powering • 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

23. Offshore wind Energy – Global Deployment Status • 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.

24. Offshore Wind Energy – Technology Status • 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.

26. Beatrice Demonstration Project Scotland – using Jacket Type Base

27. Offshore Wind deployment: Barriers • 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)

28. Offshore Wind India has a coastline of about 7600 km

29. CONT… • 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

30. MNRE Wind Turbines installed in Chitradurga, Karnataka

31. MNRE

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