1 Presentation on Wind based Generation and connectivity to Grid Atul Shah Business Head Suzlon Power Infrastructre (P) Ltd Date: 28 th April 2008

2 Why Wind energy ? Key differentiators Current Scenario Why Grid connectivity is becoming important ? What are the issues ? How EWA deals with it ? What WFD wants ? Contents.

3 Why WIND ENERGY?  High oil prices (beyond $ 100 per barrel)-energy cost is soaring up. Wind energy is any day attractive if oil price is above $ 40 per barrel  Do we believe in Climate change and Global warming ?  Do we accept that there is energy shortage in both average and peak Demand?  Do we believe that conventional fuels will get exhausted some time in future but it will not happen in our life time. So We do not care  Do we respect our law- Electr. Act 2003 in words and spirit ?

4 Why WIND ENERGY?  Capital costs comparable and reasonably stable.  Lower O & M costs  Gestation period of Approx 6 months  Feeding remote areas and thereby reducing T & D losses to some extent  Carbon credits  Pvt And institutional investors and partnership in creating infrastructure  Employment generation

5 Key Differentiators Uncertain nature of the wind sources & hence Infirm source Sites-Located in difficult terrains - from the coastal plains to the hilly hinterland and sandy deserts, Far flung from densely populated areas, and far away from Load centers. All these makes connectivity technically and commercially complex. Unit size being small, negligible Auxiliary equipments, cooling water requirements and switching in /out in the system does not pose any problem like conventional generating units Quantum jump in Wind power, demands power evacuation at higher voltage levels PLF between 25 to 35 % depending on site.

6 Wind Farms located in remote areas in Maharastra (Load centres)

7 Wind Farms located in remote areas in GUJARAT LOAD centres

8 Indian scenario in Wind sector Wind potential in India- By The CWET /MNRE is Approx. 45,000 MW and by IWTMA is Approx.65,000 MW. Present installed capacity of wind power- Approximately 8768 MW –expected to go up to MW in next three years In Wind generation- Tamil Nadu leads followed by Maharastra, Gujarat, Karnataka, Rajasthan and MadhyaPradesh, in that order

9 Growth of wind power in India (Source: Global Wind energy Council)

10 Installed Capacity of Wind generators in India StateAs on As on Addition during Total As on (MW) Andhra Pradesh121 0 Gujarat Karnataka Kerala Madhya Pradesh Maharashtra Rajasthan Tamil Nadu West Bengal1202 Others2202 Total (All India)

11 Wind Power (MW) installation by SUZLON in India STATEAs Mar ‘ TOTAL Gujarat Karnataka Maharahstra TAMIL NADU M.P.1831 Rajasthan19869 KERALA 4 A.P.9 TOTAL

12 Why Grid connectivity is important As per IE Act 2003, Clause 86(1)(e) Wind Power to be promoted & regulatory Commissions have appropriately passed orders for the same including terms for PPA & RP Obligations. However, it is not perceived by all stake holders in the same spirit. Connectivity being considered more critical than power flow. Commercial issues take precedence over technical matters

13 Why Wind Farms are significantly important now? Over the past three years, wind based power addition has been more than 1700 MW per year and with higher anticipated growth this would go to 2500 MW Present percentage of installed capacity of wind power is approx. 6% While installation is fast, time taken to lay transmission lines would be the critical path work for connecting the wind power generation to the grid. Likely addition of further 10,000 MWs in next three years.

14 Likely effects of Wind Generators on Grid NO contribution to Short Ckt level of the grid Do not cause problems of Voltage Regulation Do not affect Net work stability or create power swing Do not cause distress to voltage profile of power system-the WTGs trips at 80% grid voltage When connected / disconnected,- no over / under frequency to the grid, - no Transients in system due to large size of grid.

15 What are the Issues? (Contd…) Treating Wind Farm Developer (WFD) as Vendors instead of extended arm of STU to create infrastructure. Getting private investors to invest of Rs.45 to Rs. 60 lacs per MW approx., which is almost 15 to 20% of Transmission & distribution investments. Not a part of comprehensive planning process in T & D infrastructure. No guide lines on technical matters, Different spec.s across utilities, outdated deign philosophies, irrelevant to WF peculiarities and forcing them to be like conventional Units. Wrong perceptions of costs and making infrastructure expensive, making investment unviable and working against our interests

16 What Wind energy sector Expects Revisit specs and guidelines for WFS. The presently defined capacities of conductors at various voltage levels as per CEA Transmission planning criteria correspond to wind velocity of 2 kM per hour and high solar radiation are ok for normal lines but Wind farms generate power only between wind speeds of 14 kM/Hr. to 48kM/Hr. Hence current carrying capacity can be much higher This occurs during June to December when ambient temp.s are low and even solar radiation is low and further enhancing current capacity Therefore the loadability of the line connecting wind farms has to be equal to thermal capacity.

17 What Wind energy sector Expects (contd..) Since these lines are at the fag end of the system and also short lines, loading beyond SIL, but up to thermal limits should be permitted Redundancy of transmission lines (N -1) should be based on loss of a line and not loss of of a tower and should be left to the developer. Standardization of specifications of Substation equipments and the auxiliary systems. Since variable cost of wind energy generation is zero, wind energy to be considered for absorption as a “must run’ station similar to Run of the river Hydel power stations Amperes and power flow should be the criterion and not connected load due to diversity and non-simultaneous peak

18 What Wind energy sector Expects (contd..) Infrastructure should be technically optimum and cost effective. Interstate power evacuation on pvt lines must be permitted. Suggest a single window clearance for all issues related to power evacuation instead of Transco, discom, and nodal agencies. There is need for uniform policy through out the country in respect of tariff of wind power, its wheeling and banking. The technical and regulatory framework should be pan india investor- friendly as windy sites are limited. Wind energy should be given open access in the same way as for captive power.

19 What Wind energy sector Expects (contd..) STUs/ licensee should consider RP obligations as minimum and not maximum. Since forecasting and scheduling is taking time, hybrid with solar and biomass will be next best option and new guidelines should cover this. This will eliminate the un schedulable aspect of infrim energy and till such time whole grid has to be considered and not each state like EWEA.

20 About SUZLON Manufacturing capacity as of March MW, By March will be 10,000 MW Employees more than 15,000 from more than 14 nationalities Operating in four continents and 17 countries Holds 4 th largest market share in the world SUZLON executes from concept to commissioning of wind farm power and interconnection to grid To increase the power availability from wind farms, Suzlon is set to deploy Hybrid generation with Solar / biomass