Wind Power Sector in India

WIND POWER SECTOR IN INDIA 2010W

By Vijay Chander KeesaraCont: +91-9392 777 444

+91-9959 777 444e-mail: [email protected]

Contents

WIND B Y V I J A Y C H A N D E R K E E S A R A Page 161


1. IntroductionSome factsIndian Power IndustryIndustry StructureStatistics of the scenario in IndiaPolicyPlayers in the Industry

2. Government Regulations and policiesElectricity Act 2003Impact on the Industry

National Electricity Policy

Tariff PolicyFeatures of the Policy

Recent developmentsNorms Rationalised

3. Role of Institutional PlayersCentral GovernmentState GovernmentCentral Electricity AuthorityCentral Electricity Regulatory CommissionState Electricity Regulatory CommissionNational Load Dispatch Centre

4. Wind energy basicsWhat is Wind Energy?What is a wind Turbine?

5. Growth Potential6. Nuclear Power Generation7. Investments

StrengthsWeaknessesOpportunitiesThreats



Looking Ahead8. Impact of Budget 2008-2009

Impact on SectorImpact on Companies

9. Predictions10. Government Initiatives11. Investment Plans of Corporates12. Valuations13. Design of Wind Mill Tower14. Block diagram of Wind Power Generation15. Energy Scenario in India

Present State and future potential for Wind Energy generation in India

Wind Resource PotentialPromotional Policies and New Initiatives for

development of Wind PowerFrom Central GovernmentFrom State government

16. Wind Power generator manufacturing technology available in India

17. Barriers in Wind Power development18. Need of the Hour19. Investment components of project for installation

of wind energy generators having an installed capacity of 1.00 MW

Land, Layout Plan and site development requirementCivil constructionPlant and machineryElectricalInfrastructure development and Miscellaneous chargesProject CostMarketing



InsuranceEligibility of the BorrowersRepaymentInterest rate for the ultimate borrowersInterest rate for refinance from NABARDSecurity

20. IREDA’s Financing guidelines for Wind energy Projects

21. What is a Project FinanceDeal StructureTypical Deal ParametersExperience

22. The Economics of Wind PowerThree Main Factors Affecting Cost

Installation costOperating and maintenance costWindiness of the Site

CalculationsTotal Annual CostCost per Kilo Watt Hour

Other Economic Factors23. Trends Influencing the cost of wind power24. Operation and Maintenance cost of wind

generated power25. Future Evolution of the cost of wind generated

power26. State wise Wind power installation capacities

across India27. Growth of wind Power Installed Capacity28. Central Incentives29. Policies Introduced/Incentives declared by the

state governments for Private sector Wind Power projects

30. Estimated Wind power potential India (State Wise)



31. Abstract of wind Monitoring Stations in India32. State wise list of Wind monitoring stations for

which Micro Survey has been done33. Service Providers

Operation and maintenance (O&M)AgenciesWEG erecting ContractorsCrane Hiring AgenciesCivil ContractorsElectrical ContractorsComponent repairs (other than O&M)Insurance Companies (Surveyors & Valuers)ConsultantsFinancial InstitutionsAssociations and Societies

34. List of Private wind Farm owners (10 MW and above ) as of 31-03-2008

35. State wise communication addresses (official)36. Conclusions

ANNEXURE – IProject on Installation of Wind energy generators

for Captive useDetailed project Cost (for 1.00 MW)

ANNEXURE – IIWind Power density MAPWind Resource MAPWind Power cumulative capacity MAPMajor Power transmission Locating MAPEnergy Crisis Map

ANNEXURE –IIIComparisons Between Conventional energy and

Wind Power



Power is an essential requirement for all facets of our life and has been recognized as a basic human need. It is the critical infrastructure on which the socio-economic development of the country depends. The growth of the economy and its global competitiveness hinges on the availability of reliable and quality power at competitive rates. The demand of power in India is enormous and is growing steadily. The vast Indian power market, today offers one of the highest growth opportunities for private developers.

India is endowed with a wealth of rich natural resources and sources of energy. Resources for power generation are unevenly dispersed across the country. This can be appropriately and optimally utilized to make available reliable supply of electricity to each and every household. Electricity is considered key driver for targeted 8 to 10% economic growth of India. Electricity supply at globally competitive rates would also make economic activity in the country competitive in the globalized environment.

As per the Indian Constitution, the power sector is a concurrent subject and is the joint responsibility of the State and Central Governments. The power sector in India is dominated by the government. The State and Central Government sectors account for 58% and 32% of the generation capacity respectively while the private sector accounts for about 10%. The bulk of the transmission and distribution functions are with State utilities. The private sector has a small but growing presence in distribution and is making an entry into transmission. Power Sector which had been funded mainly through budgetary support and external borrowings was opened to private sector in 1991.



SOME FACTS

More than 64% of India’s total installed capacity is

contributed by thermal power. Significant jump in unit

size and steam parameters will result in higher

efficiencies and better economics for the Indian power

sector.

Western region accounts for largest share (30.09%) of

the installed power in India followed by Southern region

with 27.76%.

Unbalanced growth remains the cause of concern for

the Indian power sector. Only about 56% of households

have access to electricity, with the rural access being

44% and urban access about 82%.

Southern region remains the dominant region in

renewable energy source accounting for more than

57% of the total renewable energy installed capacity.

Indian Power Industry

Growth of Power Sector infrastructure in India since its Independence has been noteworthy making India the third



largest producer of electricity in Asia. Generating capacity has grown manifold from 1,362 MW in 1947 to 141GW (as on

30.09.2004). The overall generation in India has increased from 301 Billion Units (BUs) during 1992- 93 to 558.1 BUs in

2003.India’s Total installed capacity of power sector has been 141 GW. This India’s 141GW of total power is

generated by its three different sectors, i.e., state sector, central sector and private sector. Stare sector contribution

has been 53% to total installed capacity. Likewise, contribution of central sector and private sector has been

34% and 13.5% respectively.



Industry Structure

Power sector structure in India has been very simple yet well defined. Majority of Generation, Transmission and Distribution capacities are with either public sector companies or with State Electricity Boards (SEBs). National thermal power corporation, Nuclear Power Corporation, National Hydro Electric Power Corporation are the public sector companies in India which are into power generation. TATA power, Reliance Energy is domestic private players and CLP, Marubeni Corporation is international private players in power sector. public sector is only power generation. Private sector participation is increasing especially in Generation, transmission and Distribution. Distribution licences for several cities are already with the private sector. Three large ultra-mega power projects of 4000MW each have been recently awarded to the private sector on the basis of global tenders.

STATISTICS OF THE SCENARIO IN INDIA

Year ENERGY(MU) PEAK(MW)

Requirement

Availability

% Shortag

e

Demand

Met %Shortage

2002-03

5,45,674 4,97,589 8.8 81,492 71,547

12.2

2003-04

5,59,264 5,19,398 7.1 84,574 75,066

11.2

2004-05

5,91,373 5,48,115 7.3 87,906 77,652

11.7

2005-06

6,31,554 5,78,819 8.4 93,255 81,792

12.3

2006- 6,90,587 6,24,495 9.6 1,00,71 86,81 13.8



07 5 8

2007-08

7,39,345 6,66,007 9.9 1,08,866

90,793

16.6

Source: Ministry of Power

POLICYIndian Power Policy framework is designed and developed under Electricity Act 2003 and National Electricity Policy 2005. Under current policy the Government is keen to draw private investment into the sector.100% FDI permitted in Generation, Transmission & Distribution of power and no discrimination is made in terms of foreign private and domestic private players. All the companies (domestic and private) in this particular sector are treated at par. Incentives like, Income tax holiday for a block of 10 years in the first 15 years of operation; waiver of capital goods' import duties on mega power projects (above 1,000 MW generation capacity) is being provided. Independent Regulators that exist in Indian power sector are a) Central Electricity Regulatory Commission for central PSUs B)centreal electricity regulatory commission for inter-state issue.



PLAYERS IN TNE INDUSTRY

Above table depicts that NTPC has got highest installed capacity (29144MW) in the public sector. Secondly, all three players in the public sector have restricted their business only to power generation. In domestic private sector, TATA Power is the biggest player with installed capacity of 2323 MW. All the major domestic private players are in to generation transmission and distribution of power except RPG group which is not in to power transmission.

WIND

MAJOR PLAYERS

CAPACITY GEN. TRANS. DIST.

PUBLIC SECTORNTPC 29144(MW)

NHEPC 2755(MW) NPC 1412(MW) DOMESTIC PRIVATE SECTORTATA power 2323(MW) RPG group 975(MW) Reliance energy

941(MW)

INRERNATIONAL PRIVATE SECTORCLP 655(MW) MC 347(MW)

B Y V I J A Y C H A N D E R K E E S A R A Page 161

,NPC-Nuclear NTPC-National Thermal Power Corporation, NHEPC-National Hydro Electric Power Corporation Power Corporation, CLP- China Light and Power, MC-Marubeni Corporation


GOVERNMENT REGULATIONS AND POLICIES

Electricity Act 2003

The Electricity Act enacted in year 2003 has created a new paradigm for the development of power sector in India. It has abolished monopoly of the State Electricity Board created under the Electricity (Supply) Act 1948 and has created a new competitive framework for the development of the power sector in India with focus on the consumers and safeguarding their interests by independent Regulatory Commissions. The Act has eliminated/reduced entry barriers in the entire chain of the electricity supply business. It marks the culmination of the process beginning in the mid nineties of States enacting their own Reform Acts and the enactment of the Electricity Regulatory Commission Act of 1998 which brought into place the Central Electricity Regulatory Commission and authorized the state to create Regulatory Commissions at State level, if they wished to do so.

The Act has made structural change in the market with single-buyer model to multi-buyer model moving the market to the competitive phase

Open Access in Transmission is allowed right from the date of promulgation of the act. Central Electricity Regulatory Commission (CERC) has already notified regulations on non-discriminatory open access in transmission. Open access in distribution for the consumer consuming more than 1 MW of power allowed after January 2009.



The Electricity Act 2003 addresses concerns of all the players in the power sector and sets up a framework for development of a competitive, efficient, economically viable and consumer friendly power sector in India.

IMAPCT ON THE INDUSTRY

No restriction on captive generationMulti buyer model

Reduce lead time

Reduce financial and regulatory risk

Balance inter region disparities in power abilities

Private captive investment allowed

Open access

No monopoly over consumers

Parallel distribution network allowed

Encourage competition

National Electricity Policy

The National Electricity Policy has been notified by the Central Government on January 2005 under the Electricity Act 2003 to set direction of development of the Power Sector. Apart from the salient features mentioned above, the policy sets momentum in following areas:

• Full development of hydro potential in India• Choice of fuel for thermal generation to be based on

economics of generation and supply of electricity

• Development of national grid

• Availability Based Tariff (ABT) to be extended to state level



• All India transmission tariff sensitive to distance and direction to be introduced by the Central Commission

Tariff Policy

Tariff Policy has been notified by the Central Government under the Electricity Act 2003 to set clear methodology and principles for determining tariff by the Regulatory Commissions and to remove the Regulatory Risks for the various players in the Sector. The policy has addressed critical issues of uncertainty like computation of cross subsidy surcharge, agricultural tariff and Multi-Year-Tariff.

FEATURES OF THE POLICY

Tariff of all generation and transmission projects in private sector by competitive bidding-public sector to compete in five yearsReduction of cross subsidy to +-20% in next five years

Emphasis on distribution level open access; clear computation of cross subsidy surcharge

Transmission tariff sensitive to direction and distance

Strict implementation of performance standards

Agricultural tariff to encourage sustainable use of ground water

Time bound introduction of Multi-Year-Tariff structure

RECENT DEVELOPMENTS

The Central Electricity Regulatory Committee (CERC) has issued a new notification that deals with the tariff computation for the years 2009-10 to 2013-14



NORMS RATIONALISED

Return on equity (RoE) raised from 14 to 15.5 per

cent

Provision of additional RoE of 0.5 per cent for

projects commissioned on schedule.

RoE to be computed post-tax.

Advance against depreciation removed,

depreciation rates increased to 5.28 per cent from

3.6 per cent.

Incentive payment linked to availability rather

than plant load factor

ROLE OF INSTITUTIONAL PLAYERS

Central Government • Formulate National Electricity Policy and National

Tariff Policy• Formulate national policy on stand alone systems• Formulate national policy on Rural Electrification• Make Rules & Procedure for implementing

provisions of Electricity Act 2003• Appoint Chairpersons& other members of CEA



State Government• Assist Central Govt. in formulating National

Electricity Policy, Tariff Policy, etc• Make Rules & Procedure for implementing

provisions of Electricity Act 2003• Form SLDCs for optimal scheduling & dispatch for

the power systems• Make Rules & Procedure for implementing

provisions of Electricity Act 2003

Central Electricity Authority• Advice Central Government on matters relating to

National Electricity Policy• Advice appropriate government on technical

matters related to electrical systems• Formulate plans for optimal utilization of resources

in accordance with National Electricity policy

Central Electricity Regulatory Commission• Fix tariff for generating stations either owned by

central government or having sales in more than one state

• Regulate inter-state transmission tariff & fix trading margin

• Grant of licenses for interstate transmission & trading

State Electricity Regulatory Commission• Fix tariff for generation, Supply, transmission

& wheeling within the state



• Fix Cross Subsidy Surcharge when open access is allowed

• Fix trading margin for intra-state operations• Grant of licenses for intrastate transmission &

trading• Advice the State Govt. on policy matters

National Load Dispatch Centre • Interface with all the five Regional Load Dispatch

Centre’s (RLDCs) that are operational at present to acquire real-time data to continuously monitor integrated operation of the proposed National Grid

• To ensure optimal Scheduling & Dispatch among the RLDCs

Wind Energy Basics: What is wind energy? In reality, wind energy is a converted form of solar energy. The sun's radiation heats different parts of the earth at different rates-most notably during the day and night, but also when different surfaces (for example, water and land) absorb or reflect at different rates. This in turn causes portions of the atmosphere to warm differently. Hot air rises, reducing the atmospheric pressure at the earth's surface, and cooler air is drawn in to



replace it. The result is wind. Air has mass, and when it is in motion, it contains the energy of that motion ("kinetic energy"). Some portion of that energy can convert into other forms mechanical force or electricity that we can use to perform work. What is a wind turbine and how does it work? A wind energy system transforms the kinetic energy of the wind into mechanical or electrical energy that can be harnessed for practical use. Mechanical energy is most commonly used for pumping water in rural or remote locations- the "farm windmill" still seen in many rural areas of the U.S. is a mechanical wind pumper - but it can also be used for many other purposes (grinding grain, sawing, pushing a sailboat, etc.). Wind electric turbines generate electricity for homes and businesses and for sale to utilities.

There are two basic designs of wind electric turbines: vertical-axis, or "egg-beater" style, and horizontal-axis (propeller-style) machines. Horizontal-axis wind turbines are most common today, constituting nearly all of the "utility-scale" (100 kilowatts, kW, capacity and larger) turbines in the global market.

Turbine subsystems include:

i. A rotor, or blades, which convert the wind's energy into rotational shaft energy; •

ii. A nacelle (enclosure) containing a drive train, usually including a gearbox*

iii. A Generator iv. A tower, to support the rotor and drive trainv. Electronic equipment such as controls, electrical

cables, ground support equipment, and interconnection equipment



*Some turbines do not require a gearbox Wind turbines vary in size. This chart depicts a variety of historical turbine sizes and the amount of electricity they are each capable of generating (the turbine's capacity, or power rating). 1981 1985 1990 1996 1999 2000 Rotor (meters) 10 17 27 40 50

71 Rating (KW) 25 100 225 550 750 1,650 Annual MWh 45 220 550 1,480 2,200 5,600



The electricity generated by a utility-scale wind turbine is normally collected and fed into utility power lines, where it is mixed with electricity from other power plants and delivered to utility customers.

What is wind turbines made of? The towers are mostly tubular and made of steel. The blades are made of fiberglass-reinforced polyester or wood-epoxy. How big is a wind turbine? Utility-scale wind turbines for land-based wind farms come in various sizes, with rotor diameters ranging from about 50 meters to about 90 meters, and with towers of roughly the same size. A 90-meter machine, definitely at the large end of the scale at this writing, with a 90-meter tower would have a total height from the tower base to the tip of the rotor of approximately 135 meters (442 feet).



Offshore turbine designs are under further development and will have larger rotors—at the moment, the largest has a 110-meter rotor diameter—because it is easier to transport large rotor blades by ship than by land. Small wind turbines intended for residential or small business use are much smaller. Most have rotor diameters of 8 meters or less and would be mounted on towers of 40 meters in height or less. How much electricity can one wind turbine generate? The ability to generate electricity is measured in watts. Watts are very small units, so the terms kilowatt (kW, 1,000 watts), megawatt (MW, 1 million watts), and gigawatt (pronounced "jig-a-watt," GW, 1 billion watts) are most commonly used to describe the capacity of generating units like wind turbines or other power plants.

Electricity production and consumption are most commonly measured in kilowatt-hours (kWh). A kilowatt-hour means one kilowatt (1,000 watts) of electricity produced or consumed for one hour. One 50-watt light bulb left on for 20 hours consumes one kilowatt-hour of electricity (50 watts x 20 hours = 1,000 watt-hours = 1 kilowatt-hour) .

The output of a wind turbine depends on the turbine's size and the wind's speed through the rotor. Wind turbines being manufactured now have power ratings ranging from 250 watts to 5 megawatts (MW).

Example: A 10-kW wind turbine can generate about 10,000 kWh annually at a site with wind speeds averaging 12 miles per hour, or about enough to power a typical household. A 5-MW turbine can produce more than 15 million kWh in a year--enough to power more than 1, 400 households. The average U.S. household consumes about 10,000 kWh of electricity each year.



Example: A 250-kW turbine installed at the elementary school in Spirit Lake, Iowa, provides an average of 350,000 kWh of electricity per year, more than is necessary for the 53,000-square-foot school. Excess electricity fed into the local utility system earned the school $25,000 in its first five years of operation. The school uses electricity from the utility at times when the wind does not blow. This project has been so successful that the Spirit Lake school district has since installed a second turbine with a capacity of 750 kW.

Wind speed is a crucial element in projecting turbine performance, and a site's wind speed is measured through wind resource assessment prior to a wind system's construction. Generally, an annual average wind speed greater than four meters per second (m/s) (9 mph) is required for small wind electric turbines (less wind is required for water-pumping operations). Utility-scale wind power plants require minimum average wind speeds of 6 m/s (13 mph). The power available in the wind is proportional to the cube of its speed, which means that doubling the wind speed increases the available power by a factor of eight. Thus, a turbine operating at a site with an average wind speed of 12 mph could in theory generate about 33% more electricity than one at an 11-mph site, because the cube of 12 (1,768) is 33% larger than the cube of 11 (1,331). (In the real world, the turbine will not produce quite that much more electricity, but it will still generate much more than the 9% difference in wind speed.) The important thing to understand is that what seems like a small difference in wind speed can mean a large difference in available energy and in electricity produced, and therefore, a large difference in the cost of the electricity generated. Also, there is little energy to be harvested at very low wind speeds (6-mph winds contain less than one-eighth the energy of 12-mph winds).



How many turbines does it take to make one megawatt (MW)? Most manufacturers of utility-scale turbines offer machines in the 700-kW to 2.5-MW range. Ten 700-kW units would make a 7-MW wind plant, while 10 2.5-MW machines would make a 25-MW facility. In the future, machines of larger size will be available, although they will probably be installed offshore, where larger transportation and construction equipment can be used. Units up to 5 MW in capacity are now under development. How many homes can one megawatt of wind energy supply? An average U.S. household uses about 10,655 kilowatt-hours (kWh) of electricity each year. One megawatt of wind energy can generate from 2.4 to more than 3 million kWh annually. Therefore, a megawatt of wind generates about as much electricity as 225 to 300 households use. It is important to note that since the wind does not blow all of the time, it cannot be the only power source for that many households without some form of storage system. The "number of homes served" is just a convenient way to translate a quantity of electricity into a familiar term that people can understand. (Typically, storage is not needed, because wind generators are only part of the power plants on a utility system, and other fuel sources are used when the wind is not blowing. ) What is a wind power plant? The most economical application of wind electric turbines is in groups of large machines (660 kW and up), called "wind power plants" or "wind farms." Wind plants can range in size from a few megawatts to hundreds of megawatts in capacity. Wind power plants are "modular," which means they consist of small individual modules (the turbines) and can easily be made larger or smaller as needed. Turbines can be added as electricity demand grows. Today, a 50-MW wind farm can be completed in



18 months to two years. Most of that time is needed for measuring the wind and obtaining construction permits—the wind farm itself can be built in less than six months. What is "capacity factor"? Capacity factor is one element in measuring the productivity of a wind turbine or any other power production facility. It compares the plant's actual production over a given period of time with the amount of power the plant would have produced if it had run at full capacity for the same amount of time. A conventional utility power plant uses fuel, so it will normally run much of the time unless it is idled by equipment problems or for maintenance. A capacity 0factor of 40% to 80% is typical for conventional plants. A wind plant is "fueled" by the wind, which blows steadily at times and not at all at other times. Although modern utility-scale wind turbines typically operate 65% to 90% of the time, they often run at less than full capacity. Therefore, a capacity factor of 25% to 40% is common, although they may achieve higher capacity factors during windy weeks or months. It is important to note that while capacity factor is almost entirely a matter of reliability for a fueled power plant, it is not for a wind plant—for a wind plant, it is a matter of economical turbine design. With a very large rotor and a very small generator, a wind turbine would run at full capacity whenever the wind blew and would have a 60-80% capacity factor—but it would produce very little electricity. The most electricity per dollar of investment is gained by using a larger generator and accepting the fact that the capacity factor will be lower as a result. Wind turbines are fundamentally different from fueled power plants in this respect. If a wind turbine's capacity factor is 33%, doesn't that mean it is only running one-third of the time? No. A wind turbine at a typical location in the Midwestern U.S. should run about 65-90% of the time. However, much of



the time it will be generating at less than full capacity (see previous answer), making its capacity factor lower. What is "availability" or "availability factor"? Availability factor (or just "availability") is a measurement of the reliability of a wind turbine or other power plant. It refers to the percentage of time that a plant is ready to generate (that is, not out of service for maintenance or repairs). Modern wind turbines have an availability of more than 98%--higher than most other types of power plant. After more than two decades of constant engineering refinement, today's wind machines are highly reliable. Wind Energy Costs: A number of factors determine the economics of utility-scale wind energy and its competitiveness in the energy marketplace. The cost of wind energy varies widely depending upon the wind speed at a given project site. The energy that can be tapped from the wind is proportional to the cube of the wind speed, so a slight increase in wind speed results in a large increase in electricity generation. Consider two sites, one with an average wind speed of 14 miles per hour (mph) and the other with average winds of 16 mph. All other things being equal, a wind turbine at the second site will generate nearly 50% more electricity than it would at the first location.



The three examples above are for costs per kilowatt-hour for a 51 MW wind farm at three different average wind speeds expressed in meters per second. Cost figures include the current wind production tax credit. Improvements in turbine design bring down costs. The taller the turbine tower and the larger the area swept by the blades, the more powerful and productive the turbine. The swept area of a turbine rotor (a circle) is a function of the square of the blade length (the circle’s radius). Therefore, a fivefold increase in rotor diameter (from 10 meters on a 25-kW turbine like those built in the 1980s to 50 meters on a 750-kW turbine common today) yields a 55-fold increase in yearly electricity output, partly because the swept area is 25 times larger .and partly because the tower height has increased substantially, and wind speeds increase with distance from the ground. Advances in electronic monitoring and controls, blade



A large wind farm is more economical than a small one . Assuming the same average wind speed of 18 mph and identical wind turbine sizes, a 3–MW wind project delivers electricity at a cost of Rs 2.60 per kWh and a 51-MW project delivers electricity at Rs 1.60 per kWh— a drop in costs of Rs 1.00 or nearly 40% . Any project has transaction costs that can be spread over more kilowatt-hours with a larger project. Similarly, a larger project has lower O&M (operations and maintenance) costs per kilowatt-hour because of the efficiencies of managing a larger wind farm. Optimal configuration of the turbines to take the best advantage of micro-features on the terrain will also improve a project's productivity.

Current Status of Wind Energy Market In order to understand the available business opportunity in the wind energy market we need to initially access the existing global wind energy market and determine future growth areas in various subcontinents globally





Global Wind Energy Sector Salient features Worldwide capacity reaches 121,188 MW, out of which 27,261 MW were added in 2008. Wind energy continued its growth in 2008 at an increased rate of 29 %. All wind turbines installed by the end of 2008 worldwide are generating 260 TWh per annum, equaling more than 1.5 % of the global electricity consumption. The wind sector became a global job generator and has created 440,000 jobs worldwide. The wind sector represented in 2008 a turnover of 40 billion Euros. For the first time in more than a decade, the USA took over the number one position from Germany in terms of total installations. China continues its role as the most dynamic wind market in the year 2008, more than doubling the installations for the third time in a row, with today more than 12 GW of wind turbines installed. North America and Asia catch up in terms of new installations with Europe which shows stagnation. Based on accelerated development and further improved policies, a global capacity of more than 1,500,000 MW is possible by the year 2020. General Situation:



Wind energy



has continued the worldwide success story as the most dynamically growing energy source again in the year 2008. Since 2005, global wind installations more than doubled. They reached 121,188 MW, after 59,024 MW in 2005, 74,151 MW in 2006, and 93,927 MW in 2007. The turnover of the wind sector worldwide reached 40 billion in the year 2008. The market for new wind turbines showed a 42 % increase and reached an overall size of 27,261 MW, after 19,776 MW in 2007 and 15,127 MW in the year 2006. Ten years ago, the market for new wind turbines had a size of 2,187 MW, less than one tenth of the size in 2008. In comparison, no new nuclear reactor started operation in 2008, according to the International Atomic Energy Agency.

Wind energy as an answer to the global crisis: In light of the threefold global crisis mankind is facing currently – the energy crisis, the finance crisis and the environment/climate crisis – it is becoming more and more obvious that wind energy offers solutions to all of these huge challenges, offering a domestic, reliable, affordable and clean energy supply. At this point of time it is difficult to predict the short-term impacts of the credit crunch on investment in wind energy. However, currently smaller projects under stable policy frameworks like well-designed feed-in tariffs are less affected by the credit crunch than higher-risk investments e.g. in large offshore wind farms or under unstable political frameworks and in countries which are seen as not offering sufficient legal stability.



Wind energy as a low-risk investment In the mid to long term it is clear that wind energy investments will rather be strengthened due to their low-risk character and societal and additional economic benefits. Investment in a wind turbine today means that the electricity generation cost are fixed to the major extend over the lifetime of the wind turbine. Wind energy implies no expenses on fuel and operation and maintenance costs are usually well predictable and rather marginal, in relation to the overall investment. Employment: Wind energy as job generator One fundamental advantage of wind energy is that it replaces expenditure on mostly imported fossil or nuclear energy resources by human capacities and labor. Wind energy utilization creates many more jobs than centralized, non-renewable energy sources. The wind sector worldwide has become a major job generator: Within only three years, the wind sector worldwide almost doubled the number of jobs from 235,000 in 2005 to 440,000 in the year 2008. These 440,000 employees in the wind sector worldwide, most



of them highly skilled jobs, are contributing to the generation of 260 TWh of electricity. Future prospects worldwide Based on the experience and growth rates of the past years, it is expected that wind energy will continue its dynamic development also in the coming years. Although the short term impacts of the current finance crisis makes short-term predictions rather difficult, it can be expected that in the mid-term wind energy will rather attract more .investors due to its low risk character and the need for clean and reliable energy sources. More and more governments understand the manifold benefits of wind energy and are setting up favorable policies, including those that are stimulation decentralized investment by independent power producers, small and medium sized enterprises and community based projects, all of which will be main drivers for a more sustainable energy system also in the future. Carefully calculating and taking into account some insecurity factors, wind energy will be able to contribute in the year 2020 at least 12 % of global electricity consumption. By the year 2020, at least 1,500,000 MW can be expected to be installed globally. A recently published study by the Energy Watch Group reveals – as one out of four described scenarios – that by the year 2025 it is even likely to have 7,500,000 MW installed worldwide producing 16,400 TWh. All renewable energies together would exceed 50 % of the global electricity supply. As a result, wind energy, along with solar, would conquer a 50 % market share of new power plant installations worldwide by 2019. Global non-renewable power generation would peak in 2018 and could be phased out completely by 2037.







Continental Scenarios: In terms of continental distribution, a continuous diversification process can be watched as well: In general, the focus of the wind sector moves away from Europe to Asia and North America. Europe decreased its share in total installed capacity from 65.5 % in 2006 .to 61 % in the year 2007 further down to 54.6 % in 2008. Only four years ago Europe dominated the world market with 70.7 % of the new capacity. In 2008 the continent lost this position and, for the first time, Europe (32.8 %), North America (32.6 %) and Asia (31.5 %) account for almost similar shares in new capacity. However, Europe is still the strongest continent while North America and Asia are increasing rapidly their shares. The countries in Latin America and Africa counted for respectively only 0.6 % and 0.5 % of the total capacity and fell back in terms of new installations down to respectively only 0.4 % and 0.3 % of the additional capacity installed worldwide in the year 2008.

Growth Potential

According to a report by KPMG and CII, India's energy sector will require an investment of around US$ 120 billion-US$ 150 billion over the next five years.



The government has revised its target of power capacity addition to 90,000 MW in the 11th Five-Year-Plan (2007-12), up by 11,423 MW from the earlier estimate of 78,000 MW to sustain the growth momentum of the economy.

Further, according to the Planning Commission estimates, renewable energy (RE) projects worth US$ 16.50 billion, for the generation of 15,000 MW power, would come up in the 11th Plan.

Moreover, the government has earmarked a total capital subsidy of US$ 6.88 billion for providing electricity connections and for the distribution of infrastructure to rural households.

Investments

According to an ASSOCHAM study during January-June 2008, investment announcements totalling to US$ 40.84 billion were made in the power sector.

Reliance Power Transmission will invest nearly US$ 348.66 million in setting up a 1,500-km transmission line.

Hyderabad-based Greenko Group plans to invest about US$ 300 million in three years for setting up about 15 clean energy projects in the country.

Strengths

India has the fifth largest electricity generation capacity in the world

Transmission & Distribution network of 6.6 million circuit km - the third largest in the world

Potential for growth in this sector (demand exceeding supply)

Increasing focus on renewable sources of energy Government presence in the sector (encouraging entry

of foreign players)



No barriers to entry

Weaknesses

Public sector players are only into generation of power Large demand-supply gap: All India average energy

shortfall of 9% and peak demand shortfall of 14% Lack of exposure of entrepreneurs to handle

international contracts Inexperience of SEBs to handle changing market

environment in addition to their weak financial condition

Unavailability of fuel and unwillingness of fuel suppliers to enter into bankable contarcts

Lack of necessary infrastructure to transport and store fuel, high cost risk involved in transporting fuel

Opportunities

huge population base Opportunities in Generation Ultra Mega Power Plants (UMPP) – 9 projects of 4000

MW each. Coal based plants at pithead or coastal locations which

are untapped. Hydel power potential of 150,000 MW is untapped as

assessed by the Government of India. Renovation, modernisation, up-rating and life extension of old thermal and hydro

power plants.

Threats

Competition to domestic players from foreign Pvt. players as 100% FDI permitted by government in Generation, Transmission & Distribution

Not a lucrative option for investors(ROE ) Rise in price of raw materials Tariffs are distorted and do not cover cost



Looking ahead

A recent study by consultancy major McKinsey estimates India's power demand to increase from the present 120 giga watt (GW) to 315 GW–335 GW by 2017, if India continues to grow at an average of 8 per cent over the next 10 years. This would require a five- to ten-fold rise in power production, entailing investments worth US$ 600 billion over the next ten years.

To feed its rapidly growing economy, India is planning to get an additional 60,000 MW of electricity from various hydro-power projects by the end of 2025.

The government targets providing electricity for all by 2012. Under the Rajiv Gandhi Grameen Vidyutikaran Yojna, the Ministry of Power plans to electrify 120,000 villages in the current Five Year Plan (2007–12).



IMPACT OF BUDGET 2008-09

The finance minister Mr. P Chidambaram urged in powering the country's power sector while reading out its second union budget in the parliament. The 'populist' union budget evoked somehow positive response from both consumer and industrial point of view.

The power industry in the India has to witness the peak power shortages, where demand of the electricity is far more exceeding than the supply. The difference between the two is estimated to be nearly 7% and 12% in terms of total and peak requirements. For bridging the gap between demand and supply, the government is envisaged in setting up of around 78,000 MW of power generating capacity during the 11th five year plan, which covers the time period of 2007 to 2012.

The finance minister announced the total allocation of Rs. 5500 Crore for the Rajiv Gandhi Grameen Vidyutikaran Yojana, which will be continued in the eleventh five year plan also with a capital subsidy of Rs. 28,000 Crore. The budget 2008-09 is proposed to spend Rs. 5500 Crore in lightning up 5000 villages across the country. The scheme aims in providing free electricity benefits to those villagers which are below the poverty line. The new fund outlay will clearly help in the setting and development of power infrastructure in villages.

India is one of the largest consuming countries of coal. For bringing uniformity in the process of coal production and pricing, coal distribution policy has been announced. Coal regulator has to be appointed. The proposal of a coal regulator shall benefit the generating companies, which are badly hit by rising fuel prices.



The finance minister has announced the withdrawal of exemption from 4% additional duty of customs levied under section 3(5) of customs act, 1975 on transmission, power generation projects, sub transmission, distribution projects and specified goods for high voltage transmission projects. Rs. 8000 Crore has been set aside in 2008-09 for accelerated power development and reforms project. The custom duty on project imports has been reduced from 7.5% to 5%.

At Tilaiya, fourth UMPP (Ultra Mega Power Projects) has to be awarded shortly. Besides this Chhattisgarh, Tamil Nadu, Maharashtra & Karnataka are coming up with five more UMPPs with the available govt. support. Power generation companies like Tata Power and NTPC are more likely to be befitted with the allocation of UMPPs. 4% countervailing duty on imports is levied on power plants less than 1000 MW. The finance minister has decided to set up a 'National Transmission and Distribution Fund' for proper transmission and distribution reform and for addressing the higher losses in the power sector.

Rajiv Gandhi Grameen Vidyutikaran Yojana to be continued during the Eleventh Plan period with a capital subsidy of Rs 28,000 Crore ;allocation of Rs 5,500 Crore for FY09.

Rs 800 Crore to be provided for Accelerated Power Development and Reforms Project (APDRP).

Proposal to set up a national fund for transmission and distribution (T&D) reform.

Impact on sector

Aggressiveness in allotting UMPPs to prospective bidders expected to speed up the generation capacity.

Setting up of a national fund for T&D reforms to provide a more focused approach.

Coal distribution policy and appointment of a coal regulator to bring regularity to the process of coal production and pricing.



Impact on companies National fund for T&D reforms to help prospects of

companies like Tata Power and REL. Reforms in the coal sector to help generation

companies like NTPC, Tata Power and Reliance Power. Removal of custom duty exemption on power projects

to impact companies like NTPC and Tata Power. But imposition of a 4% special countervailing duty on

imports for power plants less than 1,000 MW is causing grief.

The union budget 2008-09 is silent on the extension of section 80IA tax benefit for power projects. Non extension of the section may have adverse impact on the power projects which are being commencing in current financial year. As they may not be completed before March 31, 2010, which is the last date for commissioning under the existing 80IA tax provision of the Income Tax Act, 1961.

PREDICTIONS

India requires an additional 90,000 MW of generation

capacity by 2012.

Opportunities in Transmission network ventures -

additional 60,000 circuit km of Transmission network

expected by 2012.

Total investment opportunity of about US$ 150 billion

over a 5 year.

By end March 2008, India will achieve Commercial

Operation Date (COD) on about 10,000 MW, marking

the best first year in any Plan period.



As per recent budget, Govt to will provide Rs.800 Crore

for the Power Development and Reforms Project.

Govt. propose to create a national fund for transmission

and distribution reform in order to improve the poor

state of transmission and distribution (T&D) that has

been a drag on the sector.

The fourth Ultra Mega Power Project (UMPP) at Tilaiya

to be awarded shortly.

Possibility of bring up five more UMPPs in Chhattisgarh,

Karnataka, Maharashtra, Orissa and Tamilnadu.

In Hydro projects, 77 schemes have been identified

with a total of 33,000 MW capacity additions

Government Initiatives

Moreover, the following major policy initiatives of the government have increased the attractiveness of the power sector:

- Captive power plants have been freely permitted.

- Open access to transmission encouraging competition amongst generators and distributors and trading in power from surplus to deficit regions.

- Generating companies permitted to distribute electricity in rural areas

- Automatic approval for 100% foreign equity is permitted in generation, transmission, and distribution and trading in power sector without any upper ceiling on the quantum of investment

Investment Plans of Corporate



The corporate sector has been gearing to grab the opportunities in the power sector. According to an Assocham study, of the total $132.13bn corporate investment announced during the first half of 2008, maximum were from the power sector with 33.9% share. Few significant examples are:

- Reliance Power plans to invest $12.5bn in the next five years to add 15,000 MW of capacity.

- Videocon plans to invest $5.21bn in setting up 5,000MW thermal power projects.

- Lanco plans to invest $3.75bn in setting up 3000MW hydro-power project by 2015.

- Essar plans to invest $1bn in setting up a 1200MW of power project.

- Bharat Heavy Electricals (BHEL) in collaboration with Bharat Electronics plans to invest $1.23bn in setting up an integrated photovoltaic facility.

Valuations

Going forward, given the ever increasing demand in the power sector, favourable initiatives of the government and ambitious investment plans of the companies; the power sector has good growth potential. Government's increased focus on private public partnership (PPP) for power projects provides tremendous opportunities for the private companies.

Company TTM EPS P/E 2009 P/E 2008

NTPC 9.01 19.7 21.2

Power Grid Corporation 3.99 24.1 23.6

Neyveli Lignite 6.46 1.8 16.1



Jaiprakash Hydro-Power 5.06 5.4 9.4

Torrent Power 7.13 9.8 13.2

Tata Power 32.11 20.6 23.0

Reliance Infrastructure 48.47 10.0 23.7

BHEL 59.27 23.8 31.6

DESIGN OF WINDMILL TOWER ( all dimensions in

cm)



BLOCK DIAGRAM OF WIND POWER GENERATION

WIND WIND

WIND TURBINE

GEARING AND COUPLING

ELECTRICAL GENERATOR

CONTROLLER

ENERGY STORAGE

ENERGY STEP-UPING

DEVICE



LOAD UTILIZATION

1. Energy Scenario in India

India is a power-starved country. The total installed power generation capacity in India stood at 1,05,714.29 MW including thermal, hydel, nuclear and renewables. The contribution of thermal, hydel, nuclear and renewable sources of power towards the total installed power generation capacity were 73%, 23.50%, 2% and 1.50% respectively. According to a recent estimate there is a demand gap of 8-10% and a peak load demand gap of 18-20% in the country. The problem is also accentuated by the fact that there is very little decentralized generation of power and vast areas in the rural segment is not connected by grid power. This is where tapping wind energy for generation of grid quality electricity on a decentralized manner can be of immense help to the country.

2. Present state and future potential for wind energy generation in India

Exploitation of wind energy has been in place from time immemorial but the development of technology for tapping the same for generation of grid quality electricity is of a recent origin. India has been quick to make a foray in this area. It has made its mark as one of the top ranking countries in the world in wind power generation. With an installed generation capacity of 1702.30 MW of wind power, India now ranks 5th in the world after Germany, USA, Denmark and Spain in wind power generation. According to a recent estimate, the gross wind power generation potential in the country is estimated at 45,195 MW at 50 Mtr. Hub Height. Hub height is defined as the height from the Ground Level (GL) at which the hub of the windmill or the hub of the propeller blades of the wind energy generator is situated. The state wise potential and installed capacity is given in the



table below:

Table-1

State Gross Potential in MW

Total Installed Capacity in MW

Demonstration Projects (MW)

Private Sector Projects (MW)

Total Capacity (MW)

Andhra Pradesh

8275 5.40 87.20 92.60

Gujarat 9675 17.30 149.60 166.90

Karnataka 6620 2.60 93.60 96.20

Kerala 875 2.00 0.00 2.00

Madhya Pradesh

5500 0.60 22.00 22.60

Maharashtra

3650 6.40 392.80 399.20

Orissa 1700 6.40 18.70 25.10

Rajasthan 5400 19.40 875.60 895.00

Tamil Nadu 3050 1.10 0.00 1.10

West Bengal

450 1.60 0.00 1.60

Total 45195 62.80 1639.50 1702.30 The present installed capacity of 1702.30 MW of wind power is around 3.78% of the total potential in the country. The achievement during the VIIIth Plan was significant. 860 MW of wind power capacity was added during the plan period as against



the initial target of 100 MW and the revised target of 500 MW.

Ministry of Non Conventional Energy Sources (MNES); a full fledged Ministry of Govt. of India looking after the promotional and development policies of renewables in the country; has year marked a target of 5,000 MW from wind energy sources by 2012 i.e. the end of the XI th Five Year Plan.

3. Wind resource potential

The wind power generation in the country is influenced to a great extent by the wind speed and wind power density prevalent at a particular potential location at any given point of time. The wind speed is affected to a large extent by the strong southwesterly monsoons, starting in May-June, and at the same time by the weaker northeastern monsoons in the winter months. It has been generally observed that 60-70% of the total wind power generation in the country takes place during June- October when the southwest monsoons are prevalent through out the country. According to a latest study, locations having an annual mean wind power density greater than 150 watts/ square meter at 30 meter hub height have been found to be suitable for development of wind power projects. The details of these sites are available in the wind energy atlas of India.

4. Promotional policies and new initiatives for development of wind power

Govt. of India and state govts. have developed suitable policies and guidelines for providing technical help, financial support and various other incentives for development of wind power in the country. These include R&D activities for design and development of low cost indigenous wind energy harnessing technologies, dissemination of the developed technologies through demonstration projects, setting up of the commercial wind farms through central and state government subsidy, providing financial incentives to potential entrepreneurs etc.

The various incentives that are being provided by the central and



the state governments are as per the details given below:

From Central Government

· Income Tax Holiday

· Accelerated Depreciation

· Concessional Custom Duty/ Duty Free Import

· Capital/ Interest Subsidy

From State Governments

· Energy buyback, power wheeling and banking facilities

· Sales tax concession benefits

· Electricity tax exemption

· Demand cut concession offered to industrial consumers who establish power generating units from renewable energy sources

· Capital Subsidy

The table given below depicts the initiatives provided by some of the state governments towards development of commercial wind power projects. These calorific values or heat values indicate that bio-gas can perform works similar to fossil oil in domestic cooking, lighting etc., with better efficiency depending upon the methane content in it. The bio-gas has also the potential for use in internal combustion engines used for pumping water etc. for which research and development works are in progress. Biogas, therefore, has a bright future as an alternate renewable source of energy for domestic and farm use.



3. Bio-Gas, its Production Process and Composition

It would be useful to know what bio-gas is and what its properties are-

(i) Bio-gas: Itmainly comprises of hydro-carbon which is combustible like any hydro-carbons and can produce heat and energy when burnt. The chemical formula of the hydro-carbon is CH4 where C stands for carbon and H for hydrogen and chemically the gas is termed as methane gas. The chemical formula of some other commonly used hydrocarbons derived from fossil oil viz. petrol, kerosene, diesel, etc. are C6H14 , C9H20 and C16H34 respectively. Unlike these hydro-carbons which are derived from direct chemical processes, bio-gas is produced through a bio-chemical process in which some bacteria convert the biological wastes into useful bio-gas comprising methane through chemical interaction. Such methane gas is renewable through continuous feeding of biological wastes and which are available in plenty in rural areas in the country. Since the useful gas originates from biological process, it has been termed as bio-gas in which methane gas is the main constituent.

(ii) Production Process:The process of bio-gas production is anaerobic in nature and takes place in two stages. The two stages have been termed as acid formation stage and methane formation stage. In the acid formation stage, the bio-degradable complex organic compounds of solids and cellulose presents in the waste materials are acted upon by a group of acid forming bacteria present in the dung and reduce them into organic acids, CO2, H2, NH4 and H2S. Since the organic acids are the main products in this stage, it is known as acid forming stage and this serves as the substrates for the production of methane by methanogenic bacteria.

In the second stage, groups of methanogenic bacteria act upon the organic acids to produce methane gas and also reduce CO2 in the presence of H2 to form methane (CH4). At the end of the process the amount of oxygen demanding materials in the waste product is reduced to within the safe level for handling by human



beings. There are four types of methano-genic bacteria; Methano-bacterium, Methano-spirillium, Methano-coccus and Methano-circina. These bacteria are oxygen sensitive and photo-sensitive and do not perform effectively in the presence of oxygen and light.

Constituents The gas thus produced by the above process in a bio-gas plant does not contain pure methane and has several impurities. A typical composition of such gas obtained from the process is as follows: Table –II

Items Andhra Pradesh

Karnataka

Madhya Pradesh

Mahar-ashtra

Rajasthan

Tamil Nadu

West Bengal

Wheeling

2% of energy

2% of energy

2% of energy

2% of energy

2% of energy

2% of energy

2% of energy

Banking

12 months

2% p.m. for 12 months

- 12 Months

12 Months

12 Months

6 Months

Buy - Back

Rs. 2.25/ Kwh (5% escalation 1997-98)


Rs. 2.25/ Kwh no escalation




On case to case basis

Third Party Sale

Not allowed

Allowed Allowed Allowed Allowed Not Allowed

Not Allowed

Capital Subsidy

20% Max. Rs.

Max. Rs. 25.00 Lakh for

Same as other industri

30% Max. Rs. 30.00

- - -



25.00 Lakh

backward areas

es Lakh

Other incentives

Industry status

No electricity duty for 5 years

- 100% sales tax exemption

No electricity duty for 5 years

No electricity duty

-

Apart from the same, MNES has set up an autonomous body called The Center for Wind Energy technology (C-WET) with assistance from the Danish Government. C-WET conducts research and development work for development of indigenous technology for wind power generation, preparation of technical standards for certification of wind power generators, award of certificates for the development as well as consultancy activities for development of market for wind power.

On similar lines to C-WET few other autonomous bodies namely Wind Energy Producers Association (WINPRO) and Indian Wind Turbine Manufacturers Association (IWTMA) have been created. The objective of WINPRO is to create awareness about the development of wind power in the country, creating consensus about solving technical problems and development of skilled manpower through organization of countrywide seminars, workshops etc. Similarly the function of IWTMA is to discuss/ take up issues concerning wind turbine manufacturers with central, state governmental and other concerned agencies, work towards an amicable solution to the issues so that development and penetration of wind power in the country can take place in a sustainable manner.

5. Wind power generator manufacturing technology available in the country

The wind turbines installed so far in the country are



predominantly of the “fixed pitch” type. The degree by which the Wind Energy Generator (WEG) propeller blades can be made to tilt through mechanical or electrical controls is called the pitch of the WEG. However, with technological advancement, the use of WEGs with better aerodynamic designs, lighter and larger blades made up of fibre glass material with epoxy coating, higher tubular towers, direct mesh drive and variable speed gearless operation using advanced power electronics is gaining momentum.

Technological advancement is being made nowadays for complete elimination or reduction in reactive power consumption by the WEGs. Reactive power is defined as the power required for cutting the electromagnetic field generated within the armature coil of the electrical generator of a WEG under static condition for it to rotate and generate electrical power. The unit size of the WEGs has also gone up from 55-100 KW to 400-750KW for commercial projects being implemented nowadays.

6. Barriers in wind power development

In spite of the availability of various financial incentives and availability of technological know-how, the development of wind power is very tardy in the country. The main bottlenecks for large-scale development of wind power in the country can be attributed to the following:

1.Distortions in the energy market2.Stiff competition from subsidized conventional energy and its universal acceptability3. Lack of awareness and organizational skill required for propagating the technology4.Technological constraints for limited level of grid penetration (20% maximum)5. Inappropriate estimation of the power load that is to be served by the WEG6.Lack of adequate capital at affordable cost7.Laborious and tardy procedure for site allocation



7. Need of the hour

The following are the need of the hour:

1. Urgent efforts are required for the design and development of low cost, simple to use wind turbines. The manufacturers in India who have a tie up with foreign firms should see that the level of indenization of the WEGs is increased so that the plant and machinery cost is reduced.

2. Suitable extension mechanism has to be devised wherein the benefits of development of wind power can be disseminated to the rural communities, village panchayats so that collective organizational skills can be developed.

3. Simple, easy to understand and lucid techniques should be devised which can help in correct estimation of power requirement at various power-consuming units.

4. The various agencies providing institutional finance have got a key role to play by providing finance to the promoters at concessional rate of interest, repayment period matching to the level of annual revenue available for repayment of debt, provision of adequate grace period, rationalization of the process of creation of charge by the bankers on the securities of the promoters etc.

5. Simplification of procedure for speedy land/ site allotment for the wind turbines.

Therefore, in order to bring the desired information in the knowledge of potential entrepreneurs and in order to properly guide them in establishment of projects on wind energy generators, the present model having an installed wind power generation capacity of 1.00 MW has been formulated.

8. Investment components of project for installation of wind energy generators having an installed capacity of 1.00 MW



The various investment components are as follows:

Land, layout plan and site development requirement:

The land requirement for installation of the wind energy generators will depend upon the total installed capacity of the wind farm. The site should have been identified by MNES or its state level sister agencies for its potentiality for development of wind power based on technical parameters such as avg. yearly wind speed, wind power density, wind direction etc. The site should find a mention in the wind energy atlas of India having potentiality for wind power development. The average yearly wind speed of the site should be greater than the minimum cut-in wind speed for the specific WEG proposed to be installed. Micro sitting at the site should also have been done by MNES or concerned state level agency. Non agricultural land should invariably be used for installation of the WEGs. A minimum distance of 7 times the rotor diameter should be maintained between 2 adjacent WEGs installed in a single row, whereas a minimum row to row distance of 3 times the rotor diameter should be maintained between 2 WEGs. Therefore, approximately an area of 4.00 acre is required for installation of 1.00 MW capacity wind power plant. The tentative cost of land and land development charges for the model project has been considered at Rs. 4.00 Lakh.

It has been observed from experience that the major WEG manufacturers generally purchase land in bulk from MNES/ State Nodal Agencies for installation of WEGs. Thereafter, the companies negotiate for establishment of WEGs with corporates, partnership firms, individuals etc. Once the contractual agreement is signed, the WEG manufacturing companies go in for installation and commissioning of the WEGs on a turn key basis. They also help in completing all the legal formalities and making arrangements for forward linkages viz. signing of the power purchase agreement (PPA) with the concerned state electricity board (SEB) for sale of wind power, using the power transmission and distribution infrastructure of the SEB for wheeling of power for captive use etc, third party sale, banking



etc. The WEG manufacturing companies thereafter transfers the ownership of the projects to its true owners. However, they continue to operate the project on behalf of the corporates, partnership firms, individuals etc. as well as carry out annual repair and maintenance operations based on annual contractual agreement.

Civil construction:

As a thumb rule approximately 2.30% of the total project cost involved in a 1.00 MW capacity Wind Energy Farm is used towards meeting the cost of civil infrastructure.

The cost include construction of sheds for installation of the control panel, metering unit, construction of foundation for the lattice/ tubular tower on top of which the WEGs is to be housed. A cost of Rs. 3.00 Lakh /unit (WEG) has been considered for the model project . Thus the total cost amounts to Rs. 3.00 lakh x 4 = Rs. 12.00 Lakh.

Plant and Machinery:

In the proposed model project four number of WEGs are proposed to be installed. Some of the important technical specifications of the machines have been presented in the table given below:

Table-III

Technical specifications of the WEGs

Rated Capacity 250KW

Rotor Diameter 30m

Hub Height 50m

Rotor with Pitch Control



Type Upwind rotor with active pitch control

Direction of rotation Clockwise

Number of blades 3

Length of blades 14m

Swept Area 707 m 2

Blade Material Fiber glass ( reinforced epoxy) with integral lightening protection

Rotor Speed Variable 18-50 rpm

Tip Speed 25-75 m/s

Pitch Control Three synchronized blade pitch systems with battery back up

Generator Rigid

Hub Bearings Tapered roller bearings

Grid Feeding AC-DC-AC through converter- inverter

Braking System 3 independent aero brakes with emergency backup supply

Yaw Control Active through arrangement gears, friction damping etc.

Cut-in wind speed 2.5 m/s

Rated wind speed 13 m/s

Tower Steel tubular As a thumb rule 86% of the total cost for erection and commissioning a 1.00 MW capacity wind farm is incurred towards cost of plant and machinery. Under the model project a cost of Rs. 104.00 Lakh ( inclusive of packaging, handling, erection and commissioning charges etc.) has been considered for the supply of each WEG of 250 kW installed power generation capacity at the site. Thus the total cost amounts to Rs. 104.00 Lakh x 4nos. = Rs. 416.00 Lakh



Electricals:

Suitable step up transformers with 33 KV as output voltage are also required for stepping up the voltage of generated power for onward feeding the same to the state power grid. A cost @ Rs. 4.50 Lakh per transformer unit totaling Rs. 18.00

Lakh has been considered for the model project. Apart from it, a cost of Rs. 0.975 Lakh has also been considered towards cost of 33 KV OHT Line.

Infrastructure development / miscellaneous charges:

A cost of Rs. 25.00 Lakh has been considered for the model project.

Project Cost:

The detailed item wise project cost considered are as follows:

Table -IV

Detailed project Cost (Rs. Lakh)

S.No.

Description Rate/unit (Rs.in Lakh)

Qty. or no. of units

Amount

1 Purchase of land, land development and fencing charges

Lump sum amount

4.00 acres 4.00

2 Supply of WEG of 100.00 4 400.00



250 kW capacity each

3 Packaging , handling, loading , transportation, unloading and insurance cover till erection of WEGs

1.00 4 4.00

4 Foundation and other civil structures

3.00 4 12.00

5 Electrical and Transformers 33 KV

4.50 4 18.00

6 Erection and Commissioning

3.00 4 12.00

7 Other project cost including charges for infrastructure development @ Rs. 25 Lakh per MW for 1.00 MW

25.00 1.00 MW 25.00

8 Cost of 33 KV OHT Line ( External and internal) 0.15 KM assumed approx. @ Rs. 6.50 lakhs per KM or as actual

0.975

9 Total 475.98 9. Marketing



The wind power generated can be:

i. Used for captive use through wheeling using the power grid of the concerned state electricity board.ii. Can be directly sold to the State Electricity Board

The banks are requested to make themselves familiar with the wind power development policies brought out by IREDA and it's sister concern at the state level for financing WEG installation project proposals.

10. Insurance:

The wind energy generators should be adequately insured.

11. Eligibility of the borrowers:

The borrowers can be proprietary and partnership firms, cooperatives, joint stock companies, joint sector companies etc

12. Repayment:

The repayment schedule has been calculated considering the tenure of the term loan of 5 years without any grace period. However, banks are free to decide upon the repayment schedule depending upon the net cash flow assessed.

13. Interest rate for ultimate borrowers:

Banks are free to decide the rate of interest within the overall RBI guidelines . However, for working out the financial viability and bankability of the model project we have assumed the rate of interest as 12% p.a.

14. Interest rate for refinance from NABARD:

As per circulars of NABARD issued from time to time.

15. Security:



Banks may take a decision as per RBI guidelines.

Results of financial analysis are as under:

The financial analysis of the investment on installation of Wind Energy Generators for generation of wind power has been attempted for two different scenarios.

1. Power is wheeled through the power grid of the concerned state electricity board for captive use.2. Wind power generated is directly sold to the to the state electricity board.

The results are place in annexures I(a) to VIII(a) and I(b) to VIII(b) respectively. The project has a margin money component of 25% with the rate of interest on term loan and working capital as 12% p.a. and 13% p.a. respectively. The financial indicators for two different investment scenarios are as under:

I. Power is wheeled through the power grid of the concerned state electricity board for captive use.

1.Net present value @ 15% DF (NPV) : Rs. 471.845 Lakh2.Internal Rate of return (IRR) : 27.37%3.Benefit Cost Ratio (BCR) : 1.79: 14.Average Debt Service Coverage Ratio (DSCR): 1.75:1

II. Wind power generated is directly sold to the state electricity board.

1. Net present value @ 15% DF (NPV) : Rs. 333.369 Lakh2. Internal Rate of return (IRR) : 21.92 %3. Benefit Cost Ratio (BCR) : 1.55:14. Average Debt Service Coverage Ratio (DSCR) : 1.61:1



Project on Installation of Wind Energy Generators for captive use of wind power Check ANNEXURE-I

Project on Installation of Wind Energy Generators for commercial use of wind powerCheck ANNEXURE-I


http://www.nabard.org/modelbankprojects/wind_power_a.asp

http://www.nabard.org/modelbankprojects/wind_power_a.asp

http://www.nabard.org/modelbankprojects/wind_power_b.asp

http://www.nabard.org/modelbankprojects/wind_power_b.asp


IREDA's Financing Guidelines for Wind Energy Projects(w.e.f. 25 .05.2009)

Sl.No.

Financing Schemes

Interest

Rate(%) p.a

Maximum

Repayment

Period (Years)

Minimum Promoters

’ Contributi

on(%)

Term Loan from IRED

A

Remark

1. Project financing - Setting up of wind farms on ownership / lease basis

11.25

to 11.90

10 30% Upto 70% of

total Proje

ct Cost

Projects setup by manufacturers or their subsidiaries with minimum capacity of 5 MW may avail additional loan upto 15% secured by BG/FDR and generation guarantee is provided for entire loan period to the borrowing company



and the same is assigned to IREDA

Note:

1. The above interest rates are variable and will automatically reset upon expiry of every 3 years from the date of first disbursement/reset.

2. The option is available for a fixed interest rate for the entire loan period subject to the condition that 1% additional interest shall be charged.

3. Maximum of 1 year grace period after commissioning of project will be applicable for commencement of principal repayment.

4. Rebate of 0.75% will be given in the event of borrower furnishing security of Bank Guarantee or Pledge of FDR issued by Scheduled Banks.

Eligibility Criteria For FinancingWho Can Apply?

• Public, Private Ltd companies, NBFCs and registered Societies.

• Individual, Proprietary and Partnership firms (with applicable conditions)

• State Electricity Boards which are restructured or in the process of restructuring and

eligible to borrow loan from REC/PFC.General Eligibility Criteria for Applicants• Profit making companies with no accumulated losses.• Debt Equity Ratio not more than 3:1 ( 5:1 in case of

NBFCs - Conditions Apply)• No default to IREDA and other FIs / Banks• No erosion of paid-up capital.Note: Applicants who are loss making/ not meeting the criteria relating to accumulated losses/debt equity ratio shall be eligible for financing if Bank Guarantee / FDR is provided as security for the entire loan.Eligible Projects



• Projects demonstrating techno commercial viability.

• Grid connected wind farm projects in identified windy sites appearing in the MNRE / CWETlist of potential sites for wind farm projects in the country.• Projects incorporating wind electric generators appearing in the C-WET approvedmanufacturers list.• Project sites having mean annual wind power density of over 200 Watts/Sq.m. at 50mabove ground level(agl).• Project incorporating new Wind Electric Generators with the capacity 225 kW and above.• Refinancing of Projects commissioned upto 1 year prior to date of registration ofapplication at IREDA.How to Apply

Loan Application to IREDA is to be submitted in prescribed form. The details of clearances / documents required for consideration of loan sanction are specified in the application form. The application form is available free of cost and may also be downloaded from IREDA’s website www.iredaltd.com .

WHAT IS PROJECT FINANCE?

Project finance is the term used to describe a structure in which the only security for a loan is the project itself. In other words, the owner of the project company is not personally, or corporately, liable for the loan. In a project finance deal, no guarantee is given that the loan will be


http://www.iredaltd.com/


repaid; however, if the loan is not repaid, the investor can seize the project and run or sell it in order to extract cash.

This process as rather like a giant property mortgage, since if a home owner does not repay the mortgage on time, the house may be repossessed and sold by the lender. Therefore, the financing of a project requires careful consideration of all the different aspects, as well as the associated legal and commercial arrangements. Before investment, any project finance lender will want to know if there is any risk that repayment will not be made over the loan term.

DEAL STRUCTURE

A typical, simple project finance deal will be arranged through a special purpose vehicle (SPV) company. The SPV is called 'Wind Farm Ltd' in Figure 3.1. This would be a separate legal entity which may be owned by one company, consisting of several separate entities or a joint venture.

One bank may act alone if the project is very small, but will usually arrange a lending syndicate – this means that a group of banks will join together to provide the finance, usually with one bank as the ‘lead arranger’ of the deal. This is shown in Figure 3.1, where Bank A syndicates the loan to Banks B, C and D.

Figure 3.1: Typical Wind Farm Finance Structure



Source: Garrad Hassan

A considerable amount of work is carried out before the loan is agreed, to check that the project is well planned and that it can actually make the necessary repayments by the required date. This process is called 'due diligence' and there is usually separate commercial, technical and legal due diligence carried out on behalf of the bank. The investors will make careful consideration of technical, financial and political risks, as well as considering how investment in a project fits in with the bank’s own investment strategy.

TYPICAL DEAL PARAMETERS

Generally, a bank will not lend 100 per cent of the project value and will expect to see a cash contribution from the borrower – this is usually referred to as ‘equity’. It is typical to see 25 to 30 per cent equity, and 70 to 75 per cent loan (money provided by the bank as their investment). Occasionally, a loan of 80 per cent is possible.



The size of the loan depends on the expected project revenue, although it is typical for investors to take a cautious approach and to assume that the long-term income will be lower than assumed for normal operation. This ensures that the loan does not immediately run into problems in a year with poor wind conditions or other technical problems, and also takes into account the uncertainty associated with income prediction.

Typically, a bank will base the financial model on the ‘exceedance cases’ provided within the energy assessment for the project. The mean estimated production of the project (P50) may be used to decide on the size of the loan, or in some cases a value lower than the mean (for example P75 or P90). This depends on the level of additional cash cushioning that is available to cover costs and production variation over and above the money that is needed to make the debt payments. This is called the debt service cover ratio (DSCR) and is the ratio of cash available at the payment date to the debt service costs at that date. For example, if €1.4 million is available to make a debt payment (repayment and interest) of €1 million, the DSCR is 1.4:1.

The energy assumptions used for the financial model and associated DSCR are always a matter of negotiation with the bank as part of the loan agreement. Some banks will take a very cautious approach to the assumed energy production, with a low DCSR and some will assume a more uncertain energy case, but with a high DSCR and sufficient cash cushioning to cover potential production variation.

The loan is often divided into two parts: a construction loan and a term loan. The construction loan provides funds for the construction of the project and becomes a term loan after completion. At the ‘conversion’ from a construction into a term loan, the terms and conditions associated with the loan



change, as does the pricing of the debt. The term loan is usually less expensive than the construction loan as the risks are lower during operation.

Typically, the length of a loan is between 10 and 15 years, but loan terms have become longer as banks have become more experienced in the wind industry.

The interest rate is often 1-1.5 per cent above the base rate at which the bank borrows their own funds (referred to as the interbank offer rate). In addition, banks usually charge a loan set-up fee of around 1 per cent of the loan cost, and they can make extra money by offering administrative and account services associated with the loan. Products to fix interest rates or foreign exchange rates are often sold to the project owner.

It is also typical for investors to have a series of requirements over the loan period; these are referred to as ‘financial covenants’. These requirements are often the result of the due diligence and are listed within the ‘financing agreement’. Typical covenants include the regular provision of information about operational and financial reporting, insurance coverage and management of project bank accounts.

EXPERIENCE

In the last two decades, no wind industry project has ever had to be repossessed, although industry and project events have triggered some restructuring to adjust financing in difficult circumstances. The project finance mechanism has therefore served the industry and the banking community well. A decade ago, developers might have struggled to find a bank ready to loan to a project, whereas today banks often pursue developers to solicit their loan requirements. Clearly, this has improved the deals available to wind farm owners.



THE ECONOMICS OF WIND POWER

Generating electricity from the wind makes environmental sense. The wind is a clean and renewable fuel that will never run out. It can also make economic sense. Although a wind energy system requires a large initial capital outlay, the wind itself is free. Hence, a turbine can generate electricity for years with no fuel costs while the costs of other sources of energy may escalate.

After the initial cost of a turbine is paid off, the only on-going cost is maintenance; the fuel is free. How long do wind turbines take to pay for themselves? The answer to this question depends on a lot of factors, such as how often the wind blows, how much money homeowners can save by generating their own electricity, and how much a commercial wind farm can sell their energy for.

Trends suggest that wind power, which is already cost competitive in windy areas, is likely to become even more cost effective over time. For one thing, the cost of producing electricity from fossil fuels is likely to increase, causing utility



rates to rise. In addition, the technology associated with manufacturing turbines and generating wind power is likely to become less expensive.

The economics of wind power can vary significantly. Many websites give visitors access to specialized calculators for computing the cost of operating a specific turbine. That said, rough estimates for the current cost of generating electricity from wind power are:

Residential Wind Turbine - About 10 cents per kilowatt-hour Commercial Wind Turbine - About 4 cents per kilowatt-hour A kilowatt-hour is the amount of energy it takes to power ten 100 watt light bulbs for an hour. For owners of residential turbines, the main number to compare this with is the amount that UPPCO charges for a kilowatt-hour, which is about 11 cents.

For commercial generators of wind power, the main number to compare this with is the amount that they can sell their electricity for, which depends on the contract they negotiate. When the operators of a wind farm negotiate their contract as part of a Green Energy program or in conjunction with customers who guarantee to pay a certain amount, they can receive enough to make a profit. Other incentives, such as renewable energy production tax credits can add to that profit margin. As another point of comparison, coal-fired power plants can produce electricity for about 3 cents per kilowatt-hour.

Three Main Factors Affecting Costs

With wind energy, the fuel is free. The cost of generating electricity from wind is primarily affected by three factors:



installation costs, operation and maintenance costs, and the windiness of the site.

A. Installation Costs

The installation costs include the purchase price of the complete system (including tower, wiring, utility interconnection or battery storage equipment, power conditioning unit, etc.) plus delivery and installation charges and professional fees.

A grid-connected residential-scale system (1-10 kW) generally costs between $2,400 and $3,000 per installed kilowatt.

Commercial turbines (larger than 500 kW) cost in the range of $1,000 to $2,500 per kilowatt, with the lowest costs achieved when large multiple units are installed at one location.

In general, capital costs represent between 75% and 90% of the total cost.

B. Operation and maintenance costs

Operating expenses are incurred over the lifetime of the wind system. Operating costs include maintenance and service, insurance, and any applicable taxes. Once the project has been paid for, the only costs are operation and maintenance costs. A rule of estimation for annual operating expenses is 1.5% to 2.5% of the initial system cost. Another estimate is based on the system's energy production and is equivalent 1 to 2 cents per kW-hr of output.

C. Windiness of the site

Wind turbines obviously yield more energy in places with lots of wind, with the average strength of the wind being a key parameter. Therefore, in evaluating the actual output of a wind turbine, one has to take into account the capacity factor, which is the ratio of average power output to the



rated power of the turbine. Based on the wind potential map for the local area, a conservative estimate of the capacity factor for wind turbines in the western UP would be in the range 0.15-0.25.

Calculations

To determine the cost per kW-hr for electricity generated by a wind turbine, one first estimates the wind turbines total annual costs and the turbine's annual energy output. Then one can estimate the cost per kilowatt-hour as:

Cost Per kW-hr = Annual Cost/Annual Energy Output

For illustrative purposes, consider the total initial cost of a 5 kW residential system and a 500 kW commercial system.

A. Total Annual Cost

The total annual cost will be the initial cost of the turbine spread out over the lifetime of the turbine plus the annual operating expenses.

Initial costs: The initial cost is inclusive of all expenses to evaluate, buy, install and start-up a wind system.

Residential 5 kW system = $15,000 Commercial 600 kW system = $800,000

Operation and maintenance costs: Annual operating costs are estimated as 2% of initial capital cost. For the two wind



system examples, the annual operating costs are:

Residential 2% x $15,000 = $300 Commercial 2% x $800,000 = $16,000

Total annual costs over expected lifetime: To compute annual cost of the wind turbines.

Annual Cost = (Initial Cost/Expected Life) + Annual Operating Costs

Wind turbine manufacturers estimate a useful life of between 20 and 30 years for their product. Using 30 years as expected lifetime:

Residential ($15,000/30) + $300 = $800 per yearCommercial ($800,000/30) + $16,000 = $42,667 per year

B. Cost Per Kilowatt Hour

The cost per kilowatt-hour will be:

Cost Per kWh = Annual Cost/Annual Energy Output

Annual energy output. The annual energy output will depend on the windiness of the site as represented by a capacity factor. Based on the average wind speed in UP, a conservative estimate of the wind turbine capacity factor will be 0.18 for the residential system and 0.20 for the commercial system. Therefore, the annual energy outputs of the two systems would be:

Residential 5kw x 0.18 x 24 x 365 = 7,884 kilowatt-hrsCommercial 600kw x 0.20 x 24 x 365 = 1,051,200 kilowatt-hrs

And, therefore, the cost per kilowatt-hr of the two systems are:



Residential $800/7,884 kwh = $0.10 per kilowatt-hr Commercial $42,667/1,051,200 kwh = $0.04 per kilowatt-hr

Other Economic Factors

A more accurate cost per kilowatt-hour calculation requires that one also take into account many details, including:

Interest paid on borrowed money Insurance

Utility buy-back

State and federal tax benefits

Wind turbine resale value

Trends Influencing the Costs of Wind Power

In recent years, three major trends have dominated the development of grid-connected wind turbines:



Turbines have become larger and taller – the average size of turbines sold on the market has increased substantially;

The efficiency of turbine production has increased steadily; and

In general, the investment costs per kW have decreased, although there has been a deviation from this trend in recent years.

Figure 1.3 shows the development of the average-sized wind turbine for a number of the most important wind power countries. It can be observed that the annual average size has increased significantly over the last 10-15 years, from approximately 200 kW in 1990 to 2 MW in 2007 in the UK, with Germany, Spain and the US not far behind.

As shown, there is a significant difference between some countries: in India, the average installed size in 2007 was around 1 MW, considerably lower than levels in the UK and Germany (2,049 kW and 1,879 kW, respectively). The unstable picture for Denmark in recent years is due to the low level of turbine installations.

Figure 1.3: Development of the Average Wind Turbine Size Sold in Different Countries



Source: BTM-consult

In 2007, turbines of the MW-class (with a capacity of over 1 MW) had a market share of more than 95 per cent, leaving less than 5 per cent for the smaller machines. Within the MW-segment, turbines with capacities of 2.5 MW and upwards are becoming increasingly important, even for on-land sites. In 2007, the market share of these large turbines was 6 per cent, compared to only 0.3 per cent at the end of 2003.

The wind regime at the chosen site, the turbine hub height and the efficiency of production determine power production from the turbines. So just increasing the height of turbines has resulted in higher power production. Similarly, the methods for measuring and evaluating the wind speed at a given site have improved substantially in recent years and thus improved the site selection for new turbines. However, the fast development of wind power capacity in countries such as Germany and Denmark implies that, by now, the best wind sites in these countries have been taken and that new on-land turbine capacity will have to be erected at sites



with a marginally lower average wind speed. The replacement of older and smaller turbines with modern versions is also becoming increasingly important, especially in countries which have been involved in wind power development for a long time, as is the case for Germany and Denmark.

The development of electricity production efficiency, owing to better equipment design, measured as annual energy production per square metre of swept rotor area (kWh/m2) at a specific reference site, has correspondingly improved significantly in recent years. With improved equipment efficiency, improved turbine siting and higher hub height, the overall production efficiency has increased by 2-3 per cent annually over the last 15 years.

Figure 1.4 shows how these trends have affected investment costs, exemplified by the case of Denmark, from 1987 to 2006. The data reflects turbines installed in the particular year shown (all costs are converted to 2006 prices); all costs on the right axis are calculated per square metre of swept rotor area, while those on the left axis are calculated per kW of rated capacity.

The number of square metres covered by the turbine’s rotor – the swept rotor area - is a good indicator of the turbine’s power production, so this measure is a relevant index for the development in costs per kWh. As shown in Figure 1.4, there was a substantial decline in costs per unit of swept rotor area in the period under consideration, except during 2006. So from the late 1990s until 2004, overall investments per unit of swept rotor area declined by more than 2 per cent per annum, corresponding to a total reduction in cost of almost 30 per cent over these 15 years. But this trend was



broken in 2006, when total investment costs rose by approximately 20 per cent compared to 2004, mainly due to a significant increase in demand for wind turbines, combined with rising commodity prices and supply constraints.

Looking at the cost per rated capacity (per kW), the same decline is found in the period 1989 to 2004, with the exception of the 1,000 kW machine in 2001. The cause is related to the size of this specific turbine: with higher hub height and larger rotor diameter, the turbine is equipped with a slightly smaller generator, although it produces more electricity. This fact is particularly important when analysing turbines built specifically for low and medium wind areas, where the rotor diameter is considerably larger in comparison to the rated capacity. As shown in Figure 1.4, the cost per kW installed also rose by 20 per cent in 2006 compared to 2004.

Figure 1.4: The Development of Investment Costs from 1989 to 2006, Illustrated by the Case of Denmark.



Note: Right axis: Investment costs divided by swept rotor area (€/m2 in constant 2006 €). Left axis: Wind turbine capital costs (ex-works) and other costs per kW rated power (€/kW in constant 2006 €).

In addition, the share of other costs as a percentage of total costs has generally decreased. In 1989, almost 29 per cent of total investment costs were related to costs other than the turbine itself. By 1997, this share had declined to approximately 20 per cent. This trend towards lower auxiliary costs continues for the last turbine model shown (2,000 kW), where other costs amount to approximately 18 per cent of total costs. But from 2004 to 2006 other costs rose almost in parallel with the cost of the turbine itself.

The recent increase in turbine prices is a global phenomenon, which stems mainly from a strong and increasing demand for wind power in many countries, along with constraints on the supply side (not only related to



turbine manufacturers but also resulting from a deficit in sub-supplier production capacity of wind turbine components). The general price increases for newly installed wind turbines in a number of selected countries are shown in Figure 1.5. There are significant differences between individual countries, with price increases ranging from almost none to a rise of more than 40 per cent in the US and Canada.

Figure 1.5: The Increase in Turbine Prices from 2004 to 2006 for a Selected Number of Countries

Note: Preliminary dat

a shows that prices for new turbines might continue to rise during 2007.

Source: IEA (2007)

Operation and Maintenance Costs of Wind Generated Power

Operation and maintenance (O&M) costs constitute a sizeable share of the total annual costs of a wind turbine. For a new turbine, O&M costs may easily make up 20-25 per



cent of the total levelised cost per kWh produced over the lifetime of the turbine. If the turbine is fairly new, the share may only be 10-15 per cent, but this may increase to at least 20-35 per cent by the end of the turbine’s lifetime. As a result, O&M costs are attracting greater attention, as manufacturers attempt to lower these costs significantly by developing new turbine designs that require fewer regular service visits and less turbine downtime.

O&M costs are related to a limited number of cost components, including:

Insurance; Regular maintenance;

Repair;

Spare parts, and

Administration.

Some of these cost components can be estimated relatively easily. For insurance and regular maintenance, it is possible to obtain standard contracts covering a considerable share of the wind turbine’s total lifetime. Conversely, costs for repair and related spare parts are much more difficult to predict. And although all cost components tend to increase as the turbine gets older, costs for repair and spare parts are particularly influenced by turbine age; starting low and increasing over time.

Due to the relative infancy of the wind energy industry, there are only a few turbines that have reached their life expectancy of 20 years. These turbines are much smaller than those currently available on the market. Estimates of O&M costs are still highly unpredictable, especially around the end of a turbine’s lifetime; nevertheless a certain



amount of experience can be drawn from existing, older turbines.

Based on experiences in Germany, Spain, the UK and Denmark, O&M costs are generally estimated to be around 1.2 to 1.5 eurocents (c€) per kWh of wind power produced, over the total lifetime of a turbine. Spanish data indicates that less than 60 per cent of this amount goes strictly to the O&M of the turbine and installations, with the rest equally distributed between labour costs and spare parts. The remaining 40 per cent is split equally between insurance, land rental and overheads.

Figure 1.6, shows how total O&M costs for the period between 1997 and 2001 were split into six different categories, based on German data from DEWI. Expenses pertaining to buying power from the grid and land rental (as in Spain) are included in the O&M costs calculated for Germany. For the first two years of its lifetime, a turbine is usually covered by the manufacturer’s warranty, so in the German study O&M costs made up a small percentage (2-3 per cent) of total investment costs for these two years, corresponding to approximately 0.3-0.4 c€ /kWh. After six years, the total O&M costs increased, constituting slightly less than 5 per cent of total investment costs, which is equivalent to around 0.6-0.7 c€/kWh. These figures are fairly similar to the O&M costs calculated for newer Danish turbines (see below).

Figure 1.6: Different Categories of O&M costs for German Turbines, as an Average over the Time Period 1997-2001.



Source: DEWI.

Figure 1.7 shows the total O&M costs resulting from a Danish study, and how these are distributed between the different O&M categories, depending on the type, size and age of the turbine. For a three-year-old 600 kW machine, which was fairly well represented in the study, approximately 35 per cent of total O&M costs covered insurance, 28 per cent regular servicing, 11 per cent administration, 12 per cent repairs and spare parts, and 14 per cent for other purposes. In general, the study revealed that expenses for insurance, regular servicing and administration were fairly stable over time, while the costs for repairs and spare parts fluctuated considerably. In most cases, other costs were of minor importance.

Figure 1.7: O&M Costs as Reported for Selected Types and Ages of Turbines



Source: Jensen et al. (2002)

Figure 1.7 also shows the trend towards lower O&M costs for new and larger machines. So for a three year old turbine, the O&M costs decreased from around 3.5 c€/kWh; for the old 55 kW turbines to less than 1 c€/kWh for the newer 600 kW machines. The figures for the 150 kW turbines are similar to the O&M costs identified in the three countries mentioned above. Moreover, Figure 1.7 shows clearly that O&M costs increase with the age of the turbine.

With regard to the future development of O&M costs, care must be taken in interpreting the results of Figure 1.7. Firstly, as wind turbines exhibit economies of scale in terms of declining investment costs per kW with increasing turbine capacity, similar economies of scale may exist for O&M costs. This means that a decrease in O&M costs will be related, to a certain extent, to turbine up-scaling. And second, the newer and larger turbines are better aligned



with dimensioning criteria than older models, implying reduced lifetime O&M requirements. However, this may also have the adverse effect that these newer turbines will not stand up as effectively to unexpected events.

The Cost of Energy Generated by Wind Power

The total cost per kWh produced (unit cost) is calculated by discounting and levelising investment and O&M costs over the lifetime of the turbine, and then dividing them by the annual electricity production. The unit cost of generation is thus calculated as an average cost over the turbine’s lifetime. In reality, actual costs will be lower than the calculated average at the beginning of the turbine’s life, due to low O&M costs, and will increase over the period of turbine use.

The turbine’s power production is the single most important factor for the cost per unit of power generated. The profitability of a turbine depends largely on whether it is sited at a good wind location. In this section, the cost of energy produced by wind power will be calculated according to a number of basic assumptions. Due to the importance of the turbine’s power production, the sensitivity analysis will be applied to this parameter. Other assumptions include the following:

Calculations relate to new land-based, medium-sized turbines (1.5-2 MW) that could be erected today;

Investment costs reflect the range given in Chapter 2 - that is, a cost per kW of 1,100-1,400 €/kW, with an average of 1,225 €/kW. These costs are based on data from IEA and stated in 2006 prices;

O&M costs are assumed to be 1.45 c€/kWh as an average over the lifetime of the turbine;



The lifetime of the turbine is set at 20 years, in accordance with most technical design criteria;

The discount rate is assumed to range from 5-10 per cent per annum; in the basic calculations, a discount rate of 7.5 per cent per annum is used, although a sensitivity analysis of the importance of this interest range is also performed; and

Economic analyses are carried out on a simple national economic basis. Taxes, depreciation and risk premiums are not taken into account and all calculations are based on fixed 2006 prices.

The calculated costs per kWh of wind-generated power, as a function of the wind regime at the chosen sites, are shown in Figure 1.8. As illustrated, the costs range from approximately 7-10 c€/kWh at sites with low average wind speeds, to approximately 5-6.5 c€/kWh at windy coastal sites, with an average of approximately 7c€/kWh at a wind site with average wind speeds.

In Europe, the good coastal positions are located mainly on the coasts of the UK, Ireland, France, Denmark and Norway. Medium wind areas are mostly found inland in mid and southern Europe - in Germany, France, Spain, Holland and Italy - and also in Northern Europe - in Sweden, Finland and Denmark. In many cases, local conditions significantly influence the average wind speeds at a specific site, so significant fluctuations in the wind regime are to be expected even for neighboring areas.



Figure 1.8: Calculated Costs per kWh of Wind-Generated Power as a Function of the Wind Regime at the Chosen Site (Number of Full Load Hours)

Note: In this figure, the number of full load hours is used to represent the wind regime. Full load hours are calculated as the turbine’s average annual production divided by its rated power. The higher the number of full load hours, the higher the wind turbine’s production at the chosen site.

Source: Risø

Approximately 75-80 per cent of total power production costs for a wind turbine are related to capital costs - that is, the costs of the turbine, foundations, electrical equipment and grid connection. Thus a wind turbine is capital intensive compared with conventional fossil fuel-fired technologies, such as natural gas power plants, where as much as 40-60 per cent of total costs are related to fuel and O&M costs. For this reason, the costs of capital (discount or interest rate) are an important factor for the cost of wind generated power, a factor which varies considerably between the EU member countries.



In Figure 1.9, the costs per kWh of wind-produced power are shown as a function of the wind regime and the discount rate (which varies between 5 and 10 per cent per annum).

Figure 1.9: The Costs of Wind-Produced Power as a Function of Wind Speed (Number of Full Load Hours) and Discount Rate; the Installed Cost of Wind Turbines is Assumed to be 1,225 €/kW



Source: Risø

As illustrated in Figure 1.9, the costs ranges between around 6 and 8 c€/kWh at medium wind positions, indicating that a doubling of the interest rate induces an increase in production costs of 2 c€/kWh. In low wind areas, the costs are significantly higher, at around 8-11 c€/kWh, while the production costs range between 5 and 7 c€/kWh in coastal areas.

Development of the Cost of Wind-Generated Power

The rapid European and global development of wind power capacity has had a strong influence on the cost of wind power over the last 20 years. To illustrate the trend towards lower production costs of wind-generated power, a case that shows the production costs for different sizes and models of turbines is presented in Figure 1.10. Due to limited data, the



trend curve has only been constructed for Denmark, although a similar trend (at a slightly slower pace) was observed in Germany.

Figure 1.10 shows the calculated unit cost for different sizes of turbines, based on the same assumptions used in the previous section: a 20-year lifetime is assumed for all turbines in the analysis and a real discount rate of 7.5 per annum is used. All costs are converted into constant 2006 prices. Turbine electricity production is estimated for two wind regimes - a coastal and an inland medium wind position.

The starting point for the analysis is the 95 kW machine, which was installed mainly in Denmark during the mid 1980s. This is followed by successively newer turbines (150 kW, 225 kW), ending with the 2000 kW turbine, which was typically installed from around 2003 onwards. It should be noted that wind turbine manufacturers generally expect the production cost of wind power to decline by 3-5 per cent for each new turbine generation they add to their product portfolio. The calculations are performed for the total lifetime (20 years) of the turbines; calculations for the old turbines are based on track records of more than 15 years (average figures), while newer turbines may have a track record of only a few years, so the newer the turbine, the less accurate the calculations.

Figure 1.10: Total Wind Energy Costs per Unit of Electricity Produced, by Turbine Size (c€/kWh, constant 2006 prices).



Source: Risø

The economic consequences of the trend towards larger turbines and improved cost-effectiveness are clearly shown in Figure 10. For a coastal position, for example, the average cost has decreased from around 9.2 c€ /kWh for the 95 kW turbine (mainly installed in the mid 1980s), to around 5.3 c€ /kWh for a fairly new 2,000 kW machine, an improvement of more than 40 per cent over 20 years (constant 2006 prices).

Future Evolution of the Costs of Wind-Generated Power

In this section, the future development of the economics of wind power is illustrated by the use of the experience curve methodology. The experience curve approach was developed in the 1970s by the Boston Consulting Group; it relates the cumulative quantitative development of a



product to the development of the specific costs (Johnson, 1984). Thus, if the cumulative sale of a product doubles, the estimated learning rate gives the achieved reduction in specific product costs.

The experience curve is not a forecasting tool based on estimated relationships. It merely shows that if the existing trends continue in the future, the proposed development may be seen. It converts the effect of mass production into an effect upon production costs, without taking other causal relationships into account. Thus changes in market development and/or technological breakthroughs within the field may change the picture considerably, as would fluctuations in commodity prices such as those for steel and copper.

Different experience curves have been estimated for a number of projects. Unfortunately, different specifications were used, which means that not all of these projects can be directly compared. To obtain the full value of the experiences gained, the reduction in price of the turbine (€/KW-specification) should be taken into account, as well as improvements in the efficiency of the turbine’s production (which requires the use of an energy specification (€/kWh), see Neij et al. 2003). Thus, using the specific costs of energy as a basis (costs per kWh produced), the estimated progress ratios range from 0.83 to 0.91, corresponding to learning rates of 0.17 to 0.09. So when the total installed capacity of wind power doubles, the costs per kWh produced for new turbines goes down by between 9 and 17 per cent. In this way, both the efficiency improvements and embodied and disembodied cost reductions are taken into account in the analysis.

Wind power capacity has developed very rapidly in recent years, on average by 25-30 per cent per year over the last ten years. At present, the total wind power capacity doubles approximately every three to four years. Figure 1.11 shows the consequences for wind power production costs, based on the following assumptions:



The present price-relation should be retained until 2010; the reason why no price reductions are foreseen in this period is due to a persistently high demand for new wind turbine capacity, and sub-supplier constraints in the delivery of turbine components;

From 2010 until 2015, a learning rate of 10 per cent is assumed, implying that each time the total installed capacity doubles, the costs per kWh of wind generated power decrease by 10 per cent; and

The growth rate of installed capacity is assumed to double cumulative installations every three years.



State-wise Wind Power Installed Capacity In India

State As on 31.03.2006 As on 31.03.2007 Addition

during 2006-

07

Addition

during 2007-

08

2008-09

TC

Demons-

trationProject

s(MW)

Private

Sector Projec

ts(MW)

TotalCapaci

ty(MW)

Demons-tration

Projects(MW)

Private

Sector Projec

ts(MW)

TotalCapacity

(MW)

(MW) (MW) (MW)till

30.11.08

(MW)



Andhra Pradesh 5.4 115.6 121.0

7.800 113.54 121.34

0.8 0.0 0.0

Gujarat 17.3 320.8 338.1

17.840 656.52 674.36

328.9 580.13

179.80

1432.71

Karnataka 7.1 577.5 584.6

7.075 837.95 845.02

264.7 187.0

173.10

1184.45

Kerala 2.0 0.0 2.0

2.125 0.23 2.35 0.0 8.7

12.50

23.00

Madhya Pradesh 0.6 39.7 40.3

0.590 56.00 56.59 17.4 69.25

0.00

187.69

Maharashtra 8.4 992.9 1001.3

8.980 1471.3 1480.3

483.6 276.075 82.00

1837.85

Rajasthan 6.4 351.7 358.1

6.350 465.65 471.99

111.7 70.45

132.20

670.97

Tamil Nadu 19.4 2873.1 2892.5

19.355 3440.1 3459.4

565 391.90

250.30

4132.72

West Bengal 1.1 0.0 1.1

1.750 0.0 1.75 0.5 0.0

0.00

1.10

Others 1.6 0.0 1.6

1.6 0.0 1.6 0.0 0.0

0.00

3.20

Total (All India) 69.6 5271.0

5340.6

73.165 7041.2

7114.6

1773 1583.50

5

829.90

9587.14

Growth of Wind Power Installed Capacity (As on 31.03.2008)

Sl. State Year-wise Installed Capacity Addition (MW) Total

No. Upto Mar’01 2001-02 2002-03 2003-04 2004-05 2005-062006-

072007-08 Capacity

(MW)



1 Andhra Pradesh 91.790 1.500 - 6.000 25.850 0.900 0.800 - 126.840

2 Gujarat 164.905 8.650 7.150 29.275 51.175 84.600 328.950 580.130 1254.835

3 Karnataka 50.650 22.500 52.460 81.430 200.400 170.930 264.750 187.000 1030.120

4 Kerala 2.350 - - - - - - 8.700 11.050

5 Madhya Pradesh 21.690 - - - 6.250 11.200 17.450 69.250 125.840

6 Maharasthra 198.060 196.545 2.000 6.250 48.750 545.100 483.600 276.075 1756.380

7 Rajasthan 9.110 8.380 44.440 129.580 93.860 74.525 111.750 70.450 542.095

8 Tamil Nadu 806.860 46.960 132.905 355.145 688.330 860.655 564.960 391.900 3847.715

9 West Bengal 1.000 - - - - 0.250 0.500 - 1.750

10 Others 1.300 - - - - - - - 1.300

TOTAL (MW) 1347.715 284.535 238.955 607.6801114.61

51748.16

01772.76

01583.505 8697.925

Graph showing Year-Wise Installed Capacity(MW) in INDIA



CENTRAL INCENTIVES

A. Indirect Taxes



I. Custom Duty for Wind Energy Equipments and Components (Notofication No.21/2002-custom dated 01.03.2002, as amended by Notification No.11/2006 –customs dated 01.03.2006)

Description of Goods Rate

i) Wind operated electricity generators upto 30 kW and wind operated battery chargers upto 30 kW

5%

ii) Parts of wind operated electricity generators for manufacturer/maintenance of wind operated electricity generators, namely :

a) Special bearingb) Gear Box c) Yaw componentsd) Wind turbine controllerse) Parts of the goods specified at (a) to (d) abovef) Sensorsg) Brake hydraulicsh) Flexible couplingi) Brake calipers

5% 5% 5% 5% 5% 25% 25% 25% 25%

iii) Blades for rotor of wind operated electricity generators for the manufacturers/maintenanceof wind operated

5%



electricity generators.

iv) Parts for the manufacturer/maintenance of blades for rotor of wind operated electricity generation

5%

v) Raw materials for manufacturer of blades for rotor of wind operated electricity generators

5%

Conditions :

(a) If the importer at the time of importation furnishes in all cases, a certificate to the Dy. Commissioner of Customs or Assistant Commissioner of Customs as the case may be, from an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Non-Conventional Energy Sources recommending the grant of this exemption and in the case of the goods at (ii) to (v) the said officer certifies that the goods are required for the specified purposes; and

(b) Furnishes an undertaking to the said Dy. Commissioner of Customs Assistant Commissioner to the effect that -

(i) in the case of wind operated electricity generators upto 30 kW, or wind operated battery chargers upto 30 kW, he shall not sell or otherwise dispose off, in any manner, such generators or chargers for a period of two years from the date of importation.

(ii) in case of other goods specified at (ii) to (v), he shall use them for the specified purpose, and

(iii) in case he fails to comply with sub-conditions (i)



or (ii), or both conditions, as the case may be, he shall pay an amount equal to the difference between the duty leviable on the imported goods but for the exemption under this notification and that already paid at the time of importation.

II. Excise Duty [Notification No.6/2002 dated 01/03/2002 (S.No.237 non-conventional devices/systems)(Notification No.6/2006 C.E. Dated 01/03/2006)]

Devices/Systems exepted from Excise Duty:

(i) Wind operated electricity generator, its components and parts thereof including rotor and wind turbine controller.

(ii) Water pumping wind mills, wind aero-generators and battery chargers.

III. Sales Tax

Exemption/reduction in Central Sales Tax and General Sales Tax are available on sale of renewable energy equipment in various states.

B. Direct Taxes



1. Accelerated Depreciation benerit u/sec. 32 Rule 5 up to 80% of the project cost in the first year plus additional depreciation @ 20% for projects being commissioned after March 2005 with new plant & machinery.

2. Exemption on Income Tax on earnings from the project u/sec. 80 IA for 10 years.

Policies Introduced / Incentives Declared by the State Governments for

Private Sector Wind Power Projects

ITEMS

STATES

AndhraPrades

h

Gujarat

Karnataka

Kerala

Madhya

Pradesh

Maharashtra

Rajasthan

TamilNadu

WestBeng

al

Captive Use

Allowed Allowed

Allowed Allowed Allowed

Allowed Allowed Allowed

Allowed

Wheeling

At par with conventional

4% of energy

5% of energy + Rs.1.15/kWh as cross subsidy for 3rd party

To be decided by SERC

2% of energy + transmission charges as per ERC

2% of Energy as wheeling + 5% as T&D loss.

Below 132 kV, 50% of normal charges applicable to 33 kV

5% of energy

7% of energy + open access charges



sale. decelared by commission + Surcharge + Losses *

Banking

Not Allowed

Allowed @2% of energy input

Not Allowed

12 Months Six Months

5% (12 months Financial year April to March)

Buy-back Rate by SEB

Rs.3.50 per kWh without any escalation for 10 years as per AP Govt. Policy amendment Date 09.09.2008 subject to approval of APERC

Rs.3.50 per kWh

(without any escalation for 20 yrs.)

Rs. 3.40 per kWh without any escalation for 10 yrs of commercial operation

Rs. 3.14 per kWh without any escalation for 20 yrs.

Year wise rates (Rs./kWh) from 1st to 20th

year

1st Yr – 4.03 2ND Yr – 3.863RD Yr – 3.69 4TH Yr – 3.525TH Yr – To 20TH

Yr – 3.36

Rs.3.50/kWh (First year of commissioning).

(escalation of 15 paise per year for 13yrs)

For Jaisalmer, Jodhpur and Barmer district Rs.3.60 per unit for injection in 33kV or 11kV system & Rs.3.71 per unit for injection in EHV system.

For other district Rs.3.78

Rs.2.90 per kWh

Note : TNERC has proposed Rs.3.40 in its discussion paper. However, final order is yet to be issued.

Rs.4 per kWh



per unit for injection on 33kV or 11 kV system & Rs.3.89 per unit for injection in EHV system.

ThirdPartySale

Allowed under Electricity Act 2003 subject to regulation framed by respective SERCs









Other Incen-tives

Industry Status E.D.

Exempted, Demand cut 30% of windfarm installed capacity

No electricity Duty for 5 yrs

No electricity Duty

for 5 yrs

# Power evacuation arrangement, Approach Road, Electricity Duty, Loan to cooperative societies

Exemption from electricity Duty @50% for 7 years



Penalty on kVArh consum-ption

10 paise per kVArh upto 10% & 25 paise per kVArh above 10%

10 paise per kVArh up to 10% and 20 paise per KVArh above 10%

Rs. 0.40 Per kVArh

27 paiseper kVArh

25 paiseper kVArh

5 paise per uear w.e.f. 01/04/2006 with escalation of 5% per year

25 paise per kVArh if the ration of kVArh drawn to KWh exported is upto 10% and 50 paise per KVArh for more than 10%.

Source : MNRE / SNAs Notes :1. # Other incentives in Maharashtra are : (a) For

evacuation arrangement of wind energy project, 50% amount will be given as a subsidy through Green energy fund and 50% amount will be given as a loan without interest to private developers. The loan will be repaid by MSEB/transmission licensees after commissioning and transferring the ownership of evacuation arrangement to MSEB / transmission licensees in 5 equal yearly installments. (b) 100% expenditure for construction of approach roads will be made through Green energy fund. (c) No electricity duty for 5 years for captive use. (d) 11% share capital will be provided to cooperative sector for seting up of wind power projects as a grant through Green energy fund.

2 . * 4.5% for supply to consumer directly on EHV

systemand 8.3% for supply using distribution licensee below 132 KV.



3. For latest and detailed information refer concerning State Nodal Agencies / State Electicity Regulatory Commissions.

Estimated Wind Power Potential in India

Sl. No.

State Gross Potential (MW)

1 Andhra Pradesh 8275

2 Gujarat 9675

3 Karnataka 6620

4 Kerala 875

5 Madhy Pradesh 5500

6 Maharashtra 3650

7 Orissa 1700

8 Rajasthan 5400

9 Tamil Nadu 3050

10 West Bengal 450



Total 45195

Note :Gross potential is based on assuming 1% of land availability for wind power generation in potential areas.

(Source : MNRE (Erstwhile MNES))

Abstract of wind monitoring Stations in India(As on 31st March, 2008)

Sl.No.

State / Union

Territory

Total Station

s Establis

hed

No. of Stations

in operatio

n

Stations with Annual Avg.

WPD > 200 W/m2

at 50 mheight

1 Andaman & Nicobar

14 2 1

2 Andhra Pradesh

65 4 35

3 Arunachal Pradesh

9 0 -

4 Assam 8 1 -

5 Chhattisgarh

3 - -


http://www.windpowerindia.com/statwind2.html#ap

http://www.windpowerindia.com/statwind2.html#ap

http://www.windpowerindia.com/statwind2.html#a&n

http://www.windpowerindia.com/statwind2.html#a&n


6 Goa 1 - -

7 Gujarat 62 3 38

8 Haryana 7 1 -

9 Himachal Pradesh

10 1 -

10 Jammu & Kashmir

9 2 -

11 Jharkhand 2 - -

12 Karnataka : MNES Stations KPCL Stations

5019

14-

218

13 Kerala 27 2 16

14Lakshadweep

10 - 8

15 Madhya Pradesh

36 6 7

16 Maharashtra

91 4 32

17 Manipur 5 1 -

18 Mizoram 5 - -

19 Orissa 11 - 6


http://www.windpowerindia.com/statwind2.html#os

http://www.windpowerindia.com/statwind2.html#ms

http://www.windpowerindia.com/statwind2.html#ms

http://www.windpowerindia.com/statwind2.html#mp

http://www.windpowerindia.com/statwind2.html#mp

http://www.windpowerindia.com/statwind2.html#ld

http://www.windpowerindia.com/statwind2.html#ld

http://www.windpowerindia.com/statwind2.html#kr

http://www.windpowerindia.com/statwind2.html#kk

http://www.windpowerindia.com/statwind2.html#gj


20 Punjab 11 - -

21 Pondichery 4 - -

22 Rajasthan 38 - 7

23 Sikkim 3 - -

24 Tamil Nadu 67 3 44

25 Tripura 3 - -

26 Uttaranchal

11 - 1

27 Uttar Pradesh

7 4 -

28 West Bengal

10 - 1

Total

598 48 225


http://www.windpowerindia.com/statwind2.html#wb

http://www.windpowerindia.com/statwind2.html#wb

http://www.windpowerindia.com/statwind2.html#up

http://www.windpowerindia.com/statwind2.html#up

http://www.windpowerindia.com/statwind2.html#tn

http://www.windpowerindia.com/statwind2.html#rs


State-wise List of Wind Monitoring Stationsfor which Micro Survey has been done

(As on 31.03.2008)

Sl. No.

Station

Andhra Pradesh

1 Bhimunipatnam, Dist.Vishakapatnam

2 Jamalamadugu, Dist.Cuddapah

3 Kadavakallu, Dist.Ananthapur

4 Kondamithipalle, Dist.Kurnool

5 M.P.R. Dam, Dist.Ananthapur

6 Nallakonda, Dist.Ananthapur

7 Nazirabad, Dist.Rangareddy

8 Pampanoorthanda, Dist.Ananthapur

9 Ramagiri, Dist.Ananthapur

10 Thirumalaypalli, Dist.Cuddapah



11 Vajrakarur, Dist.Ananthapur

Gujarat

12 Amrapar, Dist.Junagadh

13 Bamanbore II, Dist.Rajkot

14 Bhandariya, Dist.Bhavnagar

15 Dhank, Dist.Rajkot

16 Gala, Dist. Jamnagar

17 Godladhar, Dist. Rajkot

18 Haripar, Dist.Jamnagar

19 Jafrabad, Dist.Amreli

20 Jamanvada, Dist.Kachchh

21 Kalyanpur, Dist.Jamnagar

22 Kukma, Dist. Kachchh

23 Mahidra, Dist. Surendranagar

24 Motisindholi, Dist.Kachchh



25 Mundra, Dist. Kachchh

26 Navibandar, Dist.Junagadh

27 Okha, Dist.Jamnagar

28 Poladiya, Dist. Kachchh

29 Sanodar, Dist.Bhavnagar

30 Sinai, Dist. Kachchh

31 Surajbari, Dist. Kachchh

Karnataka

32 B.B. Hills, Dist.Chikamagalur

33 Chalamatti, Dist.Hubli

34 Chikodi, Dist.Belgaum

35 Gokak, Dist.Dharwad

36 Hanamsagar, Dist.Raichur

37 Hanumanahatti, Dist.Belgaum

38 Horti, Dist.Bijapur



39 Jogimatti, Dist.Chitradurga

40 Kamkarhatti, Dist.Belgaum

41 Kanderayanahalli, Dist.Haveri

42 Kappatta Hills, Dist.Gadag

43 Mannikeri, Dist.Belgaum

44 Mavinhunda, Dist.Belgaum

45 Sangundi, Dist.Bijapur

46 Subramanyahalli, Dist. Bellary

Kerala

47 Kanjikode, Dist.Palakkad

48

Kulathumedu, Dist. Idduki

49 Nallasingham, Dist. Pallakad

Madhya Pradesh

50 Kukru, Dist.Betul

51 Mahuriya, Dist.Shajapur



52 Nagda, Dist. Dewas

53 Sendhwa, Dist.Khargon

54 Valiyarpani, Dist. Khargon

Maharshtra

55 Alamprabhupathar, Dist.Kolhapur

56 Amberi, Dist.Satara

57 Bramanawel, Dist.Dhule

58 Dhalgaon, Dist.Sangli

59 Dongarwadi, Dist.Sangli

60 Gudepanchgani, Dist.Sangli

61 Kavdya Dongar, Dist.Ahmadnagar

62 Khandke, Dist.Ahmadnagar

63 Kolgaon, Dist.Ahmadnagar

64 Kotoli, Dist.Kolhapur

65 Lonavla, Dist.Pune



66 Matrewadi, Dist.Satara

67 Motha, Dist.Amravathi

68 Sautada, Dist.Beed

69 Takkarmauli, Dist.Dhule

70 Thoseghar, Dist.Satara

71 Vankusawade, Dist.Satara

72 Vijayadurg, Dist.Sindhudurg

Orissa

73 Damanjodi, Dist.Koraput

74 Puri, Dist.Puri

Rajasthan

75 Devgarh, Dist.Chittourgarh

76 Jaisalmer, Dist.Jaisalmer

77 Phalodi, Dist.Jodhpur

Tamil Nadu



78 Achamkuttam, Dist.Thirunelveli

79 Alagiyapandiyapuram, Dist.Thirunelveli

80 Andipatti, Dist.Madurai

81 Ayikudi, Dist.Thirunelveli

82 Edayarpalayam, Dist.Coimbatore

83 Ennore, Dist.Chengelpet

84 Maivadi, Dist.Coimbatore

85 Manglapuram, Dist.Thirunelveli

86 Mettukadai, Dist.Periyar

87 Naduvakurichi, Dist.Thirunelveli

88 Onamakulam, Dist.Tuticorin

89 Ottapidaram, Dist.Tuticorin

90 Pongalur, Dist.Ciombatore

91 Pulavadi, Dist.Coimbatore

92 Pusaripatti, Dist.Coimbatore



93 Puliyamkulam, Dist.Thirunelveli

94 Sankaneri, Dist.Thirunelveli

95 Ovari, Dist.Thirunelveli

96 Vakaikulam, Dist.Tuticorin

West Bengal

97 Gangasagar, Dist.24 Paraganas

Notes :

i. The Micro Survey reports for the above stations are available for sale at C-WET, Chennai.

ii. State-wise estimated potential can be seen in Directory on Indian Windpower 2008.

SERVICE PROVIDERS

O&M Agencies

Sl. No.

Name

1Batliboi enXco Pvt. Limited

2Golden Non Conventional Energy Systems Pvt. Ltd.



3Henel Engineers Pvt. Ltd

4Hofincons Infotech & Ind.Service Ltd

5Kalani Industries Limited

6Kintech Systems (P) Ltd

7M.P.Windfarms Limited162, Maharana Pratap Nagar, Zone-II,Bhopal - 462 011Tel : 0755-553681, 555479 Fax : 0755-550481E-mail : [email protected]

8Pentagon WTG Services

9Rajee Wind Energy Services

10RPP Windtech Services

11R.S.Windtech Engineers (P) Ltd.

12SANA Engineering Company

13Sastha Engineers & Consultants

14Simms Wind Power Services

15Spectrum WEG Services

16Sri Ganesh Wind Power Engineers Pvt. Ltd.

17Star Energy Systems

18Suzlon Windfarm Services Pvt. Ltd.


mailto:[email protected]


19Utility Powertech Ltd.

20Victory Windfarm Services Pvt. Ltd.Block A-2, 3/8 Abdul Razack StreetSaidapet, Chennai-600015Tel : 044-4337935, 4333759 Fax : 044-4333759E-mail : [email protected]

21Wind Care

22Wescare (India) Ltd.

23Windengineering India

24Windia Power Limited

WEG Erection Contractors

Sl. No.

Name

1Mesuka Engineering Company Pvt. Ltd.

2Rameez Engineering Construction Corp.

3Royal Engineering Works

4RPP Windtech Services







8Star Engineering Works

9Victory Windfarm Services Pvt. Ltd.Block A-2, 3/8 Abdul Razack StreetSaidapet, Chennai-600015Tel : 044-4337935, 4333759 Fax : 044-4333759E-mail : [email protected]

10Wind Care

11Windengineering India

Crane Hiring Agencies

Sl. No.

Name

1Aban Loyd Chiles Offshore Ltd.

2Crane Hiring Co.

3Express Crane Services

4Express Transport Pvt. Ltd. Kukarni Patil Bhavan 2nd Floor, 14 Murzban Road,Fort, Mumbai - 400 001 T : 022-56339898 F : 022-56339833 E : [email protected] W : www.expressworld.com


http://www.expressworld.com/




5Gopalji and Bros

6Laxmichand Dharshi


8Modern Hiring Co.

9Navin Heavy Lifters


11Reshamsingh & Co. Pvt. Ltd.

12Sanghvi Movers Ltd.

13Simplex Crane Service Pvt. Ltd.


15Tulsa crane

16Wescare (India) Ltd

17Wind Care



Civil Contractors

Sl. No.

Name

1A.G. Immanuel Construction

2D. H. Pawar

3D. Ranjanna & Co.

4Kamla Electricals & Engineering Co.

5Krishna Pillai & Co.


7N.D. Shetty

8Petron Civil Engg. Ltd.

9S.Ponnaiyan Associates



12WIND

B Y V I J A Y C H A N D E R K E E S A R A Page 161


Sl. No.

Name

1Aditya Engineers

2Akash Switchgears

3Archana Electricals Pvt. Ltd.

4Bombay Suburban Electric Supply Ltd.

5Deepak Panchaity & Co.

6Encon

7En-En Electrical Engineers

8Lasmi Chandra Engg. Co. Pvt. Ltd.

9P.R.V. Constructions

10Power Best Electricals Pvt. Ltd.


12Shanthy Electricals

13Simms Engineering

14Space Age Associates

15Sri Ganesh Wind Power Engineer’s Pvt. Ltd.

16Wind Care



17Windfab

COMPONENT REPAIRS (Other than OEMs)

Sl.No.

Item Name

1Blade

Gandhi & Associates

Karna Reinforcements



Mickeal Polymers

Sastha Engineers & Consultants

Satyam Industries

Wind Care

2Generator

ABB Limited

Appllo Electrical Services

Avant-Grade Engineers (P) Ltd

Classic Coils Pvt. Ltd

Everest Electricals & Engg. Services

Evans Electric Pvt. Ltd

Indian Heavy Electricals

Paramount Conductors Ltd.

Premier Electrical Services

Ram Krishna Electrical Winding Works

Re-union Engg. Co. Ltd.

R.S.Windtech Engineers (P) Ltd.

Universal Electric Engg. Works

Venus Engineering Services

V.G. Electrical Services

Victory Windfarm Services Pvt. Ltd.



Wind Care

3Gear Box

G.G. Automotive Gears Ltd.

Greaves Limited



Shanthi Gears Ltd.

Wind Care

4Electronic Cards, Anemometer and Windvane

Arvindar Electronix



Sri Amman Services

Weltech Engineers

Wind Care



INSURANCE COMPANIES, SURVEYORS & VALUERS

Sl. No.

Insurance Companies

1Bajaj Allianz General Insurance Co. Ltd

2ICICI Lombard General Insurance Co. Ltd

3IFFCO Tokio General Insurance Co. Ltd

4National Insurance Company Ltd.

5Oriental Insurance Company Ltd.

6The New India Assurance Company Ltd.

7Reliance General Insurance Co. Ltd

8Royal Sundaram Alliance Insurance Co. Ltd

9TATA AIG General Insurance Co. Ltd

10United India Insurance Company Ltd.

Sl. No.

Valuers / Surveyors

1Anmol Sekhri & Associates



2Elcimech Engineers & Enterprises

3J.B. Boda & Co. Pvt. Ltd.

4R.B.Davar

5R.K.Patel & Co.

6 Unison Risk Services (P) Ltd.



CONSULTANTS

Sl. No.

Name

1Consolidated Energy Consultants Ltd. 162, Maharana Pratap Nagar, Zone-II, Bhopal - 462 011 Tel. : 0755-553681, 555479 Fax : 0755-550481 Email : [email protected]

2Tata Energy Research Institute (TERI)

3Esquire Engineers & Consultants Ltd.

4Aruvi Engineers & Consultants (Pvt) Ltd.

5Snehgiri Consultants Services

6G.E. Consultants

7Industrial & Technical Consultancy Organisation of Tamil Nadu Ltd. (ITCOT)

8Dr. S.K.Tewari Engg. Consultancy

9Tata Consultancy Services

10National Aerospace Laboratories

As per List Issued by MNES

FINANCIAL INSTITUTIONS




Sl. No.

Na

me

1 Gujarat Industrial Investment Corp. Ltd.

2 Indian Renewable Energy Development Agency Limited

3 Industrial Credit & Investment Corp. of India Ltd.

4 Industrial Development Bank of India

5 Industrial Development Finance Corp. Ltd

6 Industrial Finance Corporation of India

7 Industrial Reconstruction Bank of India

8 Infrastructure Leasing and Finance Services Ltd.

9 National Bank for Agriculture and Rural Development (NABARD)

10 Power Finance Corporation

11 Pradeshiya Industrial & Investment

12 Rural Electrification Corporation

13 Small Industries Development Bank of India

14amil Nadu Power Finance and Infrastructure Development Corp. Ltd.



ASSOCIATIONS & SOCIETIES

Sl. No.

Associations

1 Indian Wind Energy Association

2 Indian Wind Power Association

3 Indian Wind Turbine Manufacturers Association

4 Organization for Non-conventional Energy Sector (ONES)

5 Renewable Energy Developers Association of Maharashtra

6 Wind Energy Developers Association of Karnataka

7 Wind Energy Producers Association

Societies

1 Electronics Research & Development Centre (ER&DC)

2 Indian Society for Wind Engineering

3 Winrock International India



List of Private Wind farm Owners in India

10 MW and Above

As on 31.03.2008

Sl. Name of Owner Total

No. (MW)

1 DLF Limited 161.200

2 Madras Cement Ltd. 136.085

3 Enercon Windfarms Hindustan P. Ltd. 128.800

4 MSPL Limited 113.150

5 HZL 107.200

6 Essel Mining & Industries Ltd. 75.000

7 Tata Power Company Ltd. 71.150

8 Aban Loyd Chiles O. Ltd. 65.985

9 Bajaj Auto Ltd 65.200

10 Rajasthan State Mines & Mineral Ltd. 52.300

11 Jaiprakash Associates Limited 49.000

12 REI Agro Limited 46.100

13 Nuziveedu Seeds Ltd 45.850



14 Gujarat NRE Coke Ltd 45.500

15 Patnaik Minerals Pvt Ltd 45.400

16 NEPC Micon 43.850

17 Vijayanand Roadlines Ltd 42.500

18 Ramgad Minerals & Mining Pvt. Ltd. 41.900

19 BP Energy India Pvt Ltd 40.000

20 Simran Wind Project Pvt Ltd 39.300

21 Vishal Export Overseas Ltd 39.225

22 Gangadhar Narsighdas Agrawal 38.450

23 Reliance Innoventures Pvt Ltd 37.500

24 Rajasthan Ren. Energy Corp. Ltd. 36.450

25 Gujarat Fluorochemicals Ltd. 35.100

26 Soundararaja Mills Ltd. 34.800

27 Godavat Pan Masala 33.880

28 Enercon (Windfarm) India Ltd. 33.600

29 KPR Mill Pvt. Ltd. 33.170

30 Gujarat Gardian Limited 31.600

31 Grace Infrastructure (P) Ltd. 31.000

32 KS Oil Ltd. 30.800

33 MSPL GROUP 30.000

34 Dhariwal Industries Ltd 29.950

35 Tata Finance Ltd 29.450



36 Ashok Leyland Fin. Ltd 29.175

37 Sapthagiri Distilleries 28.500

38 Ruchi Infrastructure Ltd 28.200

39 Shree Naman Developers Limited 28.125

40 Roaring 40 28.000

41 Tamilnadu Newsprint & Paper Ltd 28.000

42 Ellora Times Ltd. 27.900

43 Mohan Breweries & Distilleries 27.150

44 Savita Chemicals Ltd 26.550

45 Shanmugavel Group 25.500

46 Best & Co. 25.000

47Shraddha Construn. & PowerGen. P.Ltd.

25.000

48 Indo Wind Energy Ltd 24.900

49 SREI 24.800

50 Enercon Wind Farms (Raj) Pvt. Ltd. 24.000

51 Power Finance Corp. 24.000

52 GACL 23.750

53 CEPCO Industries Pvt. Ltd. 23.575

54 Ghodawat Industries Ltd 23.500

55 Premier Fine Yarns Pvt. Ltd. 22.850

56 NEG-Micon (I) P. Ltd. 21.150



57 GI Windfarms Ltd. 21.000

58 Nishkalp Investment & Trading 20.950

59 TCS Textiles Ltd. 20.750

60 Aarvee Denims & Exports Ltd. 20.500

61 Loyal Textile Mills Ltd 20.450

62 RCI Power Ltd 20.000

63 Sun N Sand Hotel Pvt. Ltd. 19.050

64 Jindal Alluminiam Ltd 19.040

65 Ratnamani Metals & Tubes Ltd. 19.000

66 VSL Mining Company (P) Ltd 19.000

67 Weizmann Ltd 19.000

68 Lakshmi Machine Works Ltd 18.200

69 DJ Malpani 18.150

70 CPCL 17.600

71 Suzlon Infrastructure Limited 17.500

72 Chettinad Cement Corp. 17.350

73 Arvind A Traders 16.850

74 Dalmia Cements (B) Ltd 16.525

75 Surajbari Windfarm Dev. Pvt. Ltd 16.500

76 Premier Spg & Wvg Mills Pvt. Ltd 16.250

77 Rasi Seeds (P) Ltd. 16.250

78 Taurian Iron & Steel Co. Pvt. Ltd. 16.250



79 Bannari Amman Spinning Mills Ltd. 16.200

80 Bharat Forge Ltd 15.930

81 Jayajyoti & Co. Ltd 15.700

82 Goetze (I) Finance Services Ltd 15.580

83 Apollo Tyres Ltd. 15.500

84 Indian Petrochemicals Co. Ltd 15.315

85 MRF Ltd 15.300

86 Topaz Investments Pvt Ld 15.300

87 Aryan Coal Benification Pvt. Ltd. 15.000

88 Bharati Shipyard Ltd 15.000

89 Enercon Wind Farms Krishna Ltd. 15.000

90 GSEC 15.000

91 Minerals Enterprises Ltd. 15.000

92 MMTC Limited 15.000

93 Muthoot Fincorp Ltd. 15.000

94 Sanjay Ghodawat 15.000

95 Suma Shilp Limited 15.000

96 Manganese Ore (India) Ltd. 14.400

97 Fair Deal Supplies Pvt. Ltd. 14.260

98 Shanmugavel Mills 14.250

99 VS Lad & Sons 14.200

10 Shah Promoters & Developers 14.000



0

101

Ramco Industries Ltd. 13.900

102

Ambika Cotton Mills Ltd. 13.800

103

Prakash Industries Ltd 13.775

104

C Mahendra Exports Ltd 13.750

105

Textool Co. Ltd 13.400

106

Rajapalayam Mills Ltd. 13.300

107

V.M. Salgaonkar & Bro Pvt. Ltd. 13.300

108

Y Mahabaleswarappa & Sons 13.300

109

Sree Narasimha Textiles Ltd. 13.200

110

Echjay Industries Pvt. Ltd. 13.050

111

Shriram City Union Fin. 13.050

112

Mahanagar Developers 12.800



113

SCM Creations 12.750

114

Metal Powder Co. Ltd 12.575

115

KRBL Limited 12.500

116

Tirupur Textiles Pvt. Ltd. 12.500

117

Shriram Investments Ltd 12.450

118

Best International 12.400

119

Prabhu Spinning Mills (P) Ltd. 12.300

120

Bellary Iron Ores Pvt. Ltd. 12.250

121

Era Infrastructure (India) Limited 12.150

122

Velatal Spinning Mills Ltd 12.110

123

Advik-Hi-Tech Pvt. Ltd. 12.100

124

Ansal Properties & Infrastructure Ltd 12.000

125

Avinash N Bhosale 12.000

12 Tamilnadu Petro Products 12.000



6

127

Cheran Spinners Ltd. 11.900

128

Suzlon Towers & Structures Limited 11.750

129

Sambandam Spinning Mills 11.625

130

Transport Corporation of India Ltd. 11.500

131

Usdev International Ltd 11.330

132

Bhoruka Power Co. Ltd. 11.300

133

Subhash Projects & Mktg 11.285

134

Saurashtra Fuels Pvt. Ltd. 11.250

135

DCW Limited 11.200

136

Revathi Equipment Ltd 11.150

137

Ruchi Soya Industries Ltd. 11.050

138

Walden Properties Pvt Ltd 11.050



139

Texmo Industries 10.840

140

Charisma Builders 10.800

141

Rajpalayam Mills 10.750

142

Emco Limited 10.500

143

Energy Infratech Pvt Ltd 10.500

144

Maris – Karnatka 10.500

145

Elecon Engineering Co. Ltd. 10.450

146

Srei Infrastructure Finance Ltd. 10.400

147

Khatau Narbheram & Co 10.250

148

Kandagiri Spinning Mills 10.125

149

UTI Ltd. 10.125

150

APSRTC 10.000

151

Deepak Ferti.& Petrochem.Corpn Ltd. 10.000

15 Era Constructions India Ltd 10.000



2

153

Lanco Infratech Ltd 10.000

154

Nuclear Power Corpn. of India Ltd 10.000

155

Sri Ranganathar Industries P. Ltd. 10.000

TOTAL3841.510

State wise Communication Address

1) A & N Islands Superintending Engineer, Andaman & Nicobar Islands Admn.,Port Blair - 744101, Tel : 03192-232404, 232685Fax : 233365

2) Andhra Pradesh Managing Director, Non-conventional Energy DevelopmentCorporation of Andhra Pradesh (NEDCAP), 5-8-207/2, Pisgah Complex, Namapalli, Hyderabad - 500001 Tel : 040-23202391, 23203692 , 23203376Fax : 040-23201666Email : [email protected]

3) Gujarat Director,Gujarat Energy Development Agency(GEDA), Block No. 11 & 12, 4th Floor Sector - IIUdyog Bhawan,

4) Karnataka Managing Director, Karnataka Renewable Energy Development Ltd.(KREDL),No.19, Maj.Gen. A.D. Loganadhan INA Cross,




Gandhi Nagar - 382 017 Email : [email protected]

Queens Road, Bangalore – 560 052 Tel : 080-2282220-1 Fax : 080-2257399 Email : [email protected]

5) Kerala Director, Agency for Non-conventional Energy and Rural Technology(ANERT),P.B.No. 1094, Kesavadasapuram, Thiruvananthapuram - 695004, Tel : 0471-2449854, 2440121-2 Fax : 0471-2449854 Email : [email protected]

6) Lakshadweep Executive Engineer (Ele.)Union Territory of Lakshadweep, Department of Electricity, Kavaratti - 682555, Tel : 04896-262127Fax : 04896-262936, 262140

7)Madhya Pradesh Managing Director,Madhya Pradesh Urja Vikas Nigam Ltd.(MPUVN), B-Block, Urja Bhawan, Main Road No.2., Shivaji Nagar, Bhopal - 426 016, Tel : 0755-2553595, 2556245

Fax : 0755-2553122 Email : [email protected]

8) Maharashtra Director, Maharashtra Energy Development Agency (MEDA),MHADA Commercial Complex,S.No.191-A, Phase-I,Opp. Tridal Nagar,Yerawada, Pune - 411006 Tel : 020-26683633, 26683634 Fax : 020-26683631 Email : [email protected]









9) Orissa Chairman & Chief Executive, Orissa Renewable Energy Dev. Agency(OREDA), S-3/59, Macheshwar Industrial Estate,Bhubaneshwar - 751010 Tel : 0674-2580660, 2480258

Fax : 0674-2580368

10) Rajasthan Managing DirectorRajasthan Renewable Energy Corporation Ltd (RRECL) (Formerly REDA & RSPCL) E-166, Yudhisthir Marg, C- Scheme,Jaipur – 302 004 Tel : 0141 – 2384055, 2384077 Fax : 0141 - 2381528

11) Tamil Nadu Chairman & Managing Director, Tamil Nadu Energy Dev. Agency(TEDA), E.V.K. Sampath Maaligai, 5th Floor, College Road, Chennai - 600006, Tel : 044-28224830, 28236592 Fax : 044-28222971 Email : [email protected]

Chariman, Tamil Nadu Electricity Board(TNEB), 5th Floor (east), NPKRR, Maaligai, 500 Anna Salai, Chennai - 600002, Tel : 044-28530167

12) Uttar PradeshDirector, Non-Conventional Energy Development Agency(NEDA), Vibhuti Khand, Gomati Nagar, Lucknow-226010, Tel : 0522-2392942-3,2392872-4 Fax : 0522-2393952, 2392072




Fax : 044-28521944 Email : [email protected]

13) West Bengal Director, West Bengal Renewable Energy Development Agency (WBREDA), Bikalpa Shakti Bhavn, Plot No. J-1/10, EP&GP Block Salt Lake Electronics Complex, Sector-V, Kolkata-700 091 Tel : (033) 23575038, 23575348 Fax : (033) 23575037, 23575347 Email: [email protected]





CONCLUSIONS

The nature of wind energy deals is changing. Although many small, privately-owned projects remain, there has been a substantial shift towards bigger, utility-owned projects. This change brings new money to the industry, reduces dependence on banks for initial funding and brings strong sponsors.

Projects are growing and large-scale offshore activity is increasing. Since banks favor larger projects, this is a very positive change. If the general economic picture deteriorates, this may give rise to certain misgivings concerning project finance, in comparison to the last few years, but political and environmental support for renewable energy means that the funding of wind energy remains a very attractive proposition. Obtaining financing for the large-scale expansion of the industry will not be a problem.

ANNEXURE-I

Project on Installation of Wind Energy Generators for



captive use of wind power

Installed capacity: 1.00 MW

Detailed Project Cost Annexure-I (a)

(Rs. Lakh)

S.No.

Description Rate/unit (Rs.in Lakh)


Amount

1 Purchase of land, land development and fencing charges

Lump sum amount

4.00 acres

4

2 Supply of WEG of 250 kW capacity each

100 4 400

3 Packaging , handling, loading , transportation, unloading and insurance cover till erection of WEGs

1 4 4

4 Foundation and other civil structures

3 4 12

5 Electrical and Transformers 33 KV

4.5 4 18

6 Erection and Commissioning

3 4 12

7 Other project cost including charges for infrastructure development @ Rs.25.00 Lakh per MW for 1.00 MW

25 1 25

8 Cost of 33 KV OHT Line ( External and internal) 0.15 KM assumed approx. @ Rs. 6.50 lakh per KM or as actual

0.98



9 Total 475.98

Annexure-I (b) Detailed Project Cost

Installed capacity: 1.00 MW

(Rs. Lakh)

S.No. DescriptionRate/unit (Rs.Lakh)


Amount

1Purchase of land, land development and fencing charges

Lump sum amount

4.00 acres

4.00

2Supply of WEG of 250 kW capacity each

100.00 4 400.00

3

Packaging , handling, loading , transportation, unloading and insurance cover till erection of WEGs

1.00 4 4.00

4Foundation and other civil structures

3.00 4 12.00

5Electrical and Transformers 33 KV

4.50 4 18.00

6Erection and Commissioning

3.00 4 12.00

7

Other project cost including charges for infrastructure development @ Rs. 25.00 Lakh per MW for 1.00 MW

25.00 1 25.00

8 Cost of 33 KV OHT 0.98



Line ( External and internal) 0.15 KM assumed approx. @ Rs. 6.50 lakh per KM or as actual

9 Total 475.98

ANNEXURE-II















ANNEXURE-III










Date post:	18-Nov-2014
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