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

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

3.  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 3

4. CountryInstalled capacity upto June.2011 China 52,800 USA 42,432 Germany 27,981 Spain 21,150 India 14,550 Italy 6,200 France 6,060 UK 5,707 Canada 4,611 Portugal 3,960 Rest of world 29,500 *Source –World Wind Energy Association Wind Power Development - Global Scenario Total global installed capacity: 2,15,000 MW* Total global installed capacity: 2,15,000 MW* 4

5.  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. 5

6.  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 6

7. 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 7

8.  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. 8

9. State-Wise Potential/Achievement 9 StatesPotentialDemo Projects Achieveme nt AP53497.8213 GUJRAT1060917.3 2495 KARNA85917.11849 M.P9200.6276 MAH54398.42482 RAJ50056.41764 TN537419.46565 Others78434.239 TOTAL4913071.215683

10.  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 10

11. 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 11

12. 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 12

13.  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 13

14.  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 14

15. 12 th Plan Proposals and Issues 15

16.  Achievement as on 30.10.2011 - 15,683 MW  11 th Plan Target - 9,000 MW  Achievement during 11 th Plan (upto October, 2011)- 8,589 MW  Target (2011-12)- 2,400 MW  Achievement (2011-12)- 1,527 MW  Trends late 10 th plan & 11 th plan – 1500-1700 MW (except 2010-11)  12 th Plan Target - 15,000 MW  To achieve aspired target : Avg. annual capacity addition of 3000 MW (+) 16

17. Major issues & constraints 1Resource assessment requires revisit 2Confined to Guj, Kar, A P, Maha, Raj, T N & M P 3Consumed within the State. States reluctant for higher RPOS In order to facilitate equitable burden sharing,state-wise renewable resource specific portfolio obligation need to be specified, including for wind power 4Needs creation of spinning reserve, for grid stability- limits to development - extra cost 5Additional power evacuation facility -extra cost on creation of transmission infrastructure 6Additional cost to be born on: - feed-in-tariff, spinning reserves and power evacuation infrastructure 7Result: Resource rich States reluctant to take higher RPOs- Grid instability, particularly hardly any spinning reserves exists 8Wind Forecasting and schedules 9Repowering of Wind farms 10Offshore wind power development 17

18. 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 18

19.  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 19

20. From 1 st 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 20

21.  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 21

22.  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 22

23.  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. 23

24.  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. Offshore Wind Energy – Technology Status 24

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27.  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) 27

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29.  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 29

30. MNRE Wind Turbines installed in Chitradurga, Karnataka 30

31. MNRE 31

32. THANK YOU 32