Wind power development: Innovative trends to increase project profitability per KwH

1. Wind power development: Innovative trends to increase project profitability per KwH Mr. Ravindra Utgikar Head - Corporate Marketing 29th May 2012, Pune

2. Outline Innovative trends to increase project profitability per KwH • Perspective on Indian Wind industry • Low wind sites: Basics • Levers for improving project profitability: • New technological concepts • Indigenous manufacturing of critical components • Selecting maintenance strategies for BoP equipments • RECs: Adding value to the bottom line • Case Study

3. Perspective on Indian Wind industry Wind Power Potential in India Low Wind Sites Low wind site energy potential in India is more than 3 times the current installed capacity Source: Center of Wind Energy Technology (C-WET)

4. Low Wind Sites: Basics Basic Equation of Wind Power Wind Power is derived from the kinetic energy of the wind by obstructing its path with wind turbines. Once wind hits a wind turbine blade it results in the following vital equation Power Curve P = Power output V = Wind speed ρ = Air density A= Swept area Cp = Power Coefficient P = ½* ρ * v3 * A * Cp Power = 1/2 x Swept Area x Air Density x Velocity3 Increases with the cube of the wind speed Power in wind energy Increases linearly with air density Increases with the square of the rotor diameter Power from wind energy reduces exponentially as wind speed drops

5. Low Wind Sites : Qualification Low Wind Sites Low wind sites have 40% – 60 % less energy potential compared to high wind sites Source: International Electrotechnical Commission (IEC)

6. Low Wind Sites: Pros and Cons Challenges posed by low wind sites can be overcome by better turbine design and efficient Project & OMS

7. Levers For Improving Project Profitability#1 (a) Blades: New Technological Concepts Material Fibers are extremely stiff and strong and can have a very low density For the above site parameters S95 WTG produces 10.2% more electricity than S88 WTG Design Technology continuously reducing the net weight and increasing the blade’s efficiency Innovations make blades lighter, easier to transport and maintain, and help achieve bigger rotor diameter thereby harnessing more power from the low wind sites

8. Levers For Improving Project Profitability#1 (b) Generator: New Technological Concepts • Advancement in generator technology helps improve power capture by reducing losses & also increase reliability

9. Levers For Improving Project Profitability#1 (c) Gearbox: New Technological Concepts Evolution in Gearbox Technology Evolution of Gearbox Design • Advancements in gearbox technology and design have improved turbine reliability to reduce downtimes and improve turbine availability

10. Levers For Improving Project Profitability#1 (d) Tower: New Technological Concepts For the above site parameters S97 WTG with 100m HH produces 6.6% more electricity than 90m HH Concrete Towers Longer life and less resource-intensive to produce. Effective for taller towers Lattice Towers Cumbersome process and longer time to erect tower Hybrid Towers Sturdier and reduce the amount of concrete Tubular Steel Towers Completely erected in 1 day • Innovations in Tower technology facilitate higher hub heights as a result enhance energy captured in low wind sites

11. Levers For Improving Project Profitability#1 Summary: New Technological Concepts Trends • New technology concepts & materials are explored to design WTGs suited for low wind sites

12. Levers For Improving Project Profitability#2 Indigenous Manufacturing • Indigenous mfg benefits when economies of scale justifies investment in technology

13. Levers For Improving Project Profitability#3 BoP Equipments & OMS: Major components • Transmission lines • 33 kV transmission lines • 220 kV EHV Transmission lines • HT Switch yard • Power Transformer, Measurement & Protection System, circuit isolation components (VCB/Isolators) • Evacuation Sub Stations • Transportation: Trailers & Cranes • Each component/s has unique character & maintenance needs

14. Levers For Improving Project Profitability#3 BoP Equipments & OMS: Summary Efficient BoP & service not only optimize capital cost but also help minimize downtime, improve turbine availability and thereby project profitability

15. Levers For Improving Project Profitability#4 Renewable Energy Certificates (RECs) Feed-in Tariff [State Regulated Tariff] Sale of electricity to DISCOMs at State regulated tariff REC Option Green Attributes Electricity REC Sell to DisComs at Price ≤ Pooled Cost of Power Purchase* Sale of Electricity at Market Price in open market Sale of RECs at Power Exchange • REC root is a new frontier to realize wind energy project profitability Renewable Energy Certificate A commodity, representing the environmental attributes of a unit (KwH) of renewable energy. RECs are used as a market instrument for the development of RE industry.

16. Inter state Transmission • Attract Investment Levers For Improving Project Profitability#4 RECs: Advantages • Alternative  to Meet Renewable Purchase Obligation • Promotion of stand-alone systems • Competition in Electricity Market • Overcoming the barrier of natural diversity • REC mechanism gaining momentum in India

17. Case Study : Harnessing Low Wind SitesS9X Suite of WTGs for Low Wind Sites Larger Rotor Diameter Variable Tower Heights • Two new increased rotor sizes to capture more power from low winds • S95 for Class II A sites • S97 for Class IIIA sites • Variable tower heights of 80, 90, 100m • Low-cost optimization of power generation at low to medium wind speed • 15% reduction in tower weight from the earlier S88 towers 2008 DFIG Generator Technology Advanced Blade Design • DFIG operation improves RoI for the IPP customers through • Optimizing reactive power • Meeting latest grid requirements • S9X Suite built on highly successful S88 platform brings latest world class technology to India • S9x Blades bring Advanced Aerodynamic Efficiency • Improved Structural Design while reducing Weight

18. To put it all together……

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