Presentation Title ( Arial, Font size 28 )
Status
on Wind Power
Date, Venue, etc..( Arial, Font size 18 )
Challenges and
Opportunities
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India Wind Potential Map.
Color
WPD
0 – 100
<200
200 – 250
250 – 300
300 – 400
400 – 450
Source
– NIWE site.
Density
Map18
ofBold)
INDIA.
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BoxWind
( Arial,
Font size
State wise Wind Potential in India in MW.
Source NIWE, Rank I – Waste Land, Rank II – Cultivable Land
& Rank III – Forest
Wind
Potential
ONSHORE .
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BoxLand.
( Arial,
Font
size 18–Bold)
Status on State wise Wind Project Installation in
India.
Sl.
No.
State
WIND POWER POTENTIAL
Gross Potential *
Cummulative Wind
(MW) [as per
Capacity Installed as on
NIWE]
31st March 2016
1 Andhra Pradesh
44228
1472
2 Gujarat
84431
4032
3 Karnataka
55857
2878
4 Kerala
1699
44
5 Madhya Pradesh
10843
2171
6 Maharashtra
45394
4659
7 Rajasthan
18770
3995
8 Tamil Nadu
33799
7653
9 Others
7234
4.3
Total
302251
26908.3
Source
– IWPA. Box ( Arial, Font size 18 Bold)
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Installed Capacity during the FY 16 by OEM’s
Name of Member
Regen Powertech Pvt .Ltd
Andhra
Pradesh Gujarat
Karnatak
a
Kerala
Madhya Maharast Rajastha Tamilnad Telangan
Pradesh ra
n
u
a
Others
Total(MW)
0
1.5
0
0
213
24
4.5
70.5
0
0
313.5
146
50
160
0
386
25.7
182
54
0
0
1003.7
Inox wind Ltd
0
180
0
0
520
64
26
0
0
0
790
RRB Energy Ltd
0
0
0
0
0
0
6.6
16.2
0
0
22.8
Vestas Windtech Pvt Ltd
0
0
0
0
0
0
0
0
0
0
0
GE India Industrial Pvt Ltd
0
0
30.6
0
0
0
96.5
0
0
0
127.1
Pioneer Wincon Pvt Ltd
0
18.5
0
0
0
0
0
4.75
0
0
23.25
Leitwind Shriram Mfg Ltd
0
12.25
0
0
0
0
0
16
0
0
28.25
12.8
23.2
17.6
0
37.6
4
93.6
0
0
0
188.8
Suzlon Energy Ltd
Nupower Technologies Pvt
Ltd
203.7
100.2
23.1
8.4
124.8
47.8
278.7
35.7
77.7
0
900.1
0
0
0
0
0
26.65
0
0
0
0
26.65
Total IWTMA Members
362.5
385.65
231.3
8.4
1281.4
192.15
687.9
197.15
77.7
0
3424.15
Kenersys India Pvt Ltd
0
0
0
0
0
12.9
0
0
0
0
12.9
Global Wind Power Ltd
Winwind Power Energy Pvt
Ltd
0
0
0
0
10.5
0
0
0
0
0
10.5
0
0
9
0
0
4
0
0
0
0
13
Gamesa Renewable Pvt Ltd
Wind World India Ltd
0
Tota All OEMs
362.5
385.65
240.3
8.4
1291.9
209.05
687.9
197.15
77.7
Source
– IWPA- Box
Current( Arial,
Additions
OEM’s.
…Message
Fontby
size
18 Bold)
0
3460.55
Introduction • Government has taken an aggressive target of 60,000 MW of Wind capacity
by 2022. Currently the installed capacity of India as on 31st March 2016 is
26905 MW.
• Gap between the aspiration and target is 33096 MW. Estimated Wind
Capacity to be installed every year till 2022 will be more than 5500 MW
every year. Government has also committed to Paris Convention that by
2030 the installed capacity of Renewable Power in India will be 3,00,000
MW i.e. 40 % of the energy demand will be met by Renewable Power .
• Hence for installing the wind power capacity in India there is sufficient
backing from the Government.
• India also has a vast coastal line where in there is potential to develop the
wind power projects . Almost every state along the coast on at least the
Western side take advantage of winds for installing the wind power.
• Wind Energy as a industry has matured in India over a period of last two
decades and additional support from Government will be only welcomed.
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Support of Policy Framework & Drivers
Feed-in-Tariffs (FiTs)
• The wind energy capacity additions has been driven primarily through a FiT
mechanism. Various State Electricity Regulatory Commission (SERCs) far have
adopted a cost-plus approach.
Generation Based Incentive (GBI)
• Introduced to persuade developers to install wind capacity focussing on the quantum
of electricity generated rather than mere installation of wind turbines to gain the AD
benefit i.e. using wind as a financial instrument as opposed to a power source. GBI is
there till 2017 . This incentive needs to be kept on if India wants to realise the Paris
goals.
Major Wind Turbine Players
• All major Indian players like Suzlon, Inox , WWIL , Regen and foreign players like
Gamesa, GE have a well established factories in India. International Blade
manufacturer LM has set up additional blade plant in India.
• Sufficient technical staff available for carrying out the operation & maintenance of the
projects.
• Development of Infrastructure in India allowing access to MW scale turbines in India.
Major
Wind States
have( Arial,
declared
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Box
FontWind
size Tariff’s.
18 Bold)
Policy Framework
Renewable Purchase Obligations (RPO)
• In the absence of the AD, wind industry’s reliance on the RPO regulations
have increased manifold.
• Due to the lack of enforcement of RPO in many states, the demand for wind
power and for the Renewable Energy Certificates (REC) has not taken off
as planned. RECs are traded are at the floor for some time, and the number
of unsold RECs has been increasing.
• Central Electricity Regulatory Commission (CERC) has extended the
validity of the RECs by 12 months i.e. valid for a period of two years as
opposed to the initial period of one year.
• Currently the RPO was to be fulfilled by the Distribution companies only.
Now a move has been made by MNRE to have this obligation fulfilled by the
thermal generating power companies also.
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Current Challenges
Despite various efforts from Wind energy developers and government, several issues related to
development of wind power projects continues to dominate like any other power generation
projects.
Land Acquisition:
• In most states, availability of land for wind farms is a contentious issue. Even if private
lands are available, conversion of land use status from agricultural to non-agricultural is a
time consuming process.
• If the land is close to a protected area or forest lands then obtaining clearance from forest
authorities is challenging and time intensive process.
Power Evacuation:
• The increased capacity addition is unfortunately not matched by an equivalent addition of
power evacuation infrastructure. The lack of grid availability during the peak wind seasons
is a major problem.
• Tamil Nadu and Rajasthan , where technical challenges result in grid congestion. It is
estimated that, the generation of wind power dropped by 15% or more for most companies
in last FY due to the lack of grid availability.
• Recent synchronization of Southern Grid with other grids is expected to help resolve the
above issue.
• The internal 33 KV network which is developed by the Investors need Statutory protection.
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Current Challenges
Uncertain Policies / Incentive schemes
• Tariffs: Lack of clarity / timely announcement of wind tariff policies in many
states like Rajasthan discourages developers and IPPs coming out with
clear plans for capacity addition.
• Incentives: Late / uncertain announcement of AD/GBI also gives similar
impression as developers find it difficult to ascertain commercial viability of
the wind energy projects – which are still capital intensive compared to
conventional Thermal / Hydro projects.
• REC Markets: With no enforcement of the RPO in sight by most states, the
demand for RECs is quite limited. On the other hand, the number of projects
registered under the REC mechanism and the number of RECs issued
(supply of RECs) has been increasing at a fast pace, mainly Non-Solar
RECs.
• This adds to woes of the developers who chooses to take the APPC + REC
route and revenues from RECs are delayed as their RECs remain unsold,
severely affecting project cash-flows.
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Current Challenges
Financial Health of DISCOMs:
•
It continues to be one of the major issue for Wind projects like other power
projects. This severally affects the balance-sheets of developers.
Introduction of Forecasting Mechanism / RRF:
•
•
•
CERC has issued an order to all wind power generators with a capacity of
10 MW or more to forecast their generation for the next day, for every 15
minute interval. This was conceptualized to make the grid operations better
and reduce instability that may arise out of the fluctuation of power from
wind turbines to the grid.
Given the unpreparedness of various DISCOMs to implement the
forecasting and lack of accurate forecasting mechanisms / satellite data
availability in India like other developed nations, it is expected that this order
will eventually affect the profitability of the wind farms severely.
Infirm nature of wind power is a source of major challenge . To mitigate this
risk forecasting and scheduling of wind power needs to be done.
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Current Challenges
Support from OEMs for Operation & Maintenance .
•
•
•
•
•
Since the Wind Industry is maturing the turbines are getting older and have
started facing the problems of failures of components like Blades , Generators ,
Gear boxes. Even consumables like greases, electronic items like capacity
boards are in short supply .
Many OEMs are facing issues of working capital due to stranded wind capacity
installed in states like Rajasthan/ Maharashtra not having a valid power
purchase agreements leading to assets getting stranded and cash flow issues.
Above has resulted in to turbine availabilities being affected resulting in
generation loss.
Currently since Investor has to depend solely on OEMs and reputed third party
service providers are yet to be developed the dependency on OEM’s will be a
threat . Need to develop a third parties willing to do the services.
Too many OEM players have entered the Indian market with sufficient complete
chain of Project Execution, Logistics , Comprehensive O & M yet to be
developed and willing to offer products. Investors are facing selection risks.
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Measures to accelerate development
Governments plays vital role in development of wind projects by providing
incentives to the sector, faster clearances system etc.
Land Acquisition:
• Single Window Clearance
• Price ceilings may be introduced.
• Government may facilitate land measurement
Improvement in Power evacuation facilities:
• Across the states with significant wind potential, the grid does not have sufficient
spare capacity to evacuate ever increasing wind power.
• As a result, the state DISCOMs are reluctant to accept more power and on a
merit order basis prefer thermal power. Thus, there is an urgent need to
augment the grid capacity, better forecasting of power demand across the
nation, and a modernization of the grid.
• The Government, acknowledging the importance of evacuation infrastructure for
renewables, has announced Green Energy Corridors for transmission of power.
• The aim is to supply 175 GW of renewable power (solar & wind) to the national
grid by 2022.
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Measures to accelerate development
Clear Policies:
• Clearer policies with regard to Tariff, and other project development aspects
shall help the sector as project developers would gain confidence in policy
matters and can be certain about planning the project cash-flows.
Improvement of financial health of DISCOMs:
• Many problems like timely payment of power supplied, tariff policies are directly
linked to the financial health of the DISCOMs.
• Because of the inability to make timely payment to generators by the DISCOMs,
the sector sees it as a major hurdle. Recent initiatives made by government to
support the DISCOMs financially and make them self-sustainable is laudable.
Enforcement of RPO:
• Enforcement of RPO on various obligated entities like DISCOMs, Open Access
and Third party sale consumers is also the key to encourage Renewable Energy
and Wind power development in particular. The same shall help revive REC
markets and improve the financial viability of a project.
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