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Suzlon Energy Ltd.
1 Suzlon wind farm in Utah, USA
SUZLON – Approach to
Climate Change
Seminar on Business Response to Climate ChangeCII-ITC Centre of Excellence March 22, 2013
Saurabh Yadav –Head Corporate and Policy Affairs
Suzlon Energy Ltd.Preamble....what we all know
2
• Depleting natural resources
• Environmental impact; Global
warming, Climate change
• Energy Security
• Global GDP growth, ever
increasing energy consumption
• Rising cost of fossil fuels
• Global regulatory framework
Renewable energy has emerged as most promising solution for energy &
environment issues
Renewable energy has emerged as most promising solution for energy &
environment issues
2
Suzlon Energy Ltd.Reality Check…..
3
In 2012, despite a slowing global economy, India’s electricity demand continued to rise.
Electricity shortages are common, and over 40% of the population has no access to
modern energy services.
India’s electricity demand is projected to more than triple between 2005 and 2030.
In the recently released National Electricity Plan (2012) the Central Electricity Authority
projected the need for 350-360 GW of total generation capacity by 2022.
Despite major capacity additions over recent decades, power supply struggles to keep up
with demand. Current energy deficit of 10% and peak deficit of 12%
According to the IEA’s World Energy Outlook (2011) India’s energy demand increases by a
compound annual growth rate (CAGR) of 3.1% from 2009 to 2035, which is more than
double the world’s energy demand growth at a CAGR of 1.3% for the same period.
12th Plan period (April 2012 to March 2017) has fixed a reference target of 15,000 MW in
new wind capacity additions, and an aspirational target of 30,000 MW (RE).
Poverty reduction and economic growth are the prime objectives of the National
Integrated Energy Policy; and energy is the key driver of development.
Suzlon Energy Ltd.The Renewable Energy (RE) Scenario in India
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62
70
78
45
10
24
3
11
10
5
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
FY05 FY06 FY07 FY08 FY09 FY10
Solar Power
Cogeneration
Small Hydro
Biomass
Wind Power
Cumulative growth of installed capacity of RE by various sectors
• The 18 GW strong RE sector in India
is 10% of the country’s cumulative
power sector capacity and adds 4%
of the total power generation.
• Wind power alone accounts for more
capacity and net power generation
than the nuclear power in India
Wind Energy
Source: MNRE
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Suzlon Energy Ltd.
Key drivers for wind sector which influence
Sectoral Viability
Climate change CO2 Emissions Scenario
Political
Support /Will
Energy security and cost
Environment focus +
targets Rpo/RPS
Intrinsic
Economics
Key Fiscal incentives
Commercial Viability
Technical Viability
Structural
constraints /
Opportunities
Wind regime / land
availability
Grid
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4
1a
2a
3a
2b
3b
4a
4b
3c
Key driversKey drivers
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Power demand
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EuropeEurope USAUSA IndiaIndia
Early concern & commitmentUnder global pressure,
Firm plan expected in 2010
Increasing pressure,
Voluntary measures (NAPCC)
High concern on fuel mix
Moderate on power cost
Moderate concern on capacity
addition & fuel mix
Critical Concern on fuel mix,
cost & capacity augmentation
High targetsTargets in selected
states only
RPO mandate for sate level
utilities
Feed-in tariffs Tax Benefit and CertificatesAttractive basket of incentives
and revenue options
High Capex & Opex, Moderate
CoF, Economy under Recovery
High Capex & Opex, Moderate
CoF, Economy under Recovery
Low Capex & Opex, High CoF,
Growing Economy
Easy access to matured
technology and expertise
Easy access to matured
technology and expertise
Access to matured technology
and expertise a lower cost
Saturation of potentialHigh potential ,
largely unexplored
High potential ,
largely unexplored
Moderate issues, stable &
modernized infrastructure
Issues in remote regions but
strong investment in networks
Infrastructure is constraint to
harness full potential
Moderate growth Moderate growthStrong GDP growth & extensive
power demand-supply gapGDP growth vs. efficiency
measures
5a
Most favorable Favorable Improving
Suzlon Energy Ltd.Key Drivers create Sectoral/Project Viability which
in turn influences Response viability such as…..
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1. Increasing awareness & support to combat Global warming and Climate Change etc
2. Global initiatives eg.COP, Rio+20 drive Renewable Energy investments
3. Maturing technology enable Cost & Performance optimization; Close to achieving grid parity
4. Renewable Energy incentives e.g. RECs, CER, GBI facilitate project feasibility
5. Massive potential in harnessing offshore wind energy
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Suzlon Energy Ltd.
Response effectiveness depends upon
environmental footprint
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Generic idea regarding environmental footprint…
Suzlon Energy Ltd.
Design & Mfg. of WTGs
Environmental footprint will depend upon…
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Wind Resources Mapping
Land and Site Identification
Site Infrastructure Development
Installation & Commissioning
Power Evacuation
Life Cycle Asset Management
Value Added Services (CSR, Environmental and Stakeholder Managements; )
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Suzlon Energy Ltd.Government of India – Responsible
Approach to Climate Change Mitigation• Government of India released the National Action Plan on Climate Change (NAPCC)
outlining existing and future policies and programs addressing climate mitigation
and adaptation.
• The Plan identifies eight core “national missions” running through 2017 – identifies
India’s development objectives while yielding co-benefits for addressing climate
change.
• The Plan’s broad goals are consistent with the three pillars of sustainable
development – economic; social; and environmental – which all need to be
integrated for the provision of adequate energy supplies.
• Specification of RPO target in the Act/RE Law binding on States - State regulations
for Renewable Purchase Specification Targets & Renewable Energy Certificates
(RECs).
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Suzlon Energy Ltd.Suzlon’s Leadership in India
Wind Farms
Mfg. Facilities
Marketing
NetworkAsia’s largest wind
park at Kutch,
Gujarat
Over 860 MW &
expanding…
Asia’s largest wind
park at Kutch,
Gujarat
Over 860 MW &
expanding…
• Market leader for 13 years
• More than 6 GW of installed
capacity across 40+ wind
farms in 8 states
• Developing mega sized wind
parks including Asia’s largest
one at Kutch, Gujarat with
planned capacity of 1500MW
• Over 1600 customers in India
• 2000+ technical manpower
• World class integrated WTG
manufacturing facilities with
annual capacity of 3.5 GW
for supplies to local and
global markets
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Suzlon Energy Ltd.
Wind farms
Suzlon Group in Numbers
SuzlonSuzlon
Products
600KW to 6MW
Products
600KW to 6MW Employees
13,000+
Employees
13,000+
Global presence
32 countries
Global presence
32 countries
Installed capacity
18+ GW
Installed capacity
18+ GW
CO2 reduction 30+ Mn T
YoY*
CO2 reduction 30+ Mn T
YoY*
Turnover
$3.6 Bn
Turnover
$3.6 Bn
Customers
1,800+
Customers
1,800+
Order-book
$7.5 Bn
Order-book
$7.5 Bn
* As on end 2009
Strong technology focus, manufacturing in LCC and presence in high
growth markets make Suzlon a leading global player
Suzlon Energy Ltd.
Gujarat : 1231 MW• Wind parks at Kutch (860+
MW - Asia’s largest) and
Saurashtra (400+ MW)
• Manufacturing plants
• Blade Testing Center
Maharashtra : 1552 MW• Wind parks at Dhule (760+
MW), Sangli (270 MW),
Satara (206 MW)
• Manufacturing plants
• Engineering center
• Group Global HQ
Karnataka : 661 MW• Wind parks at Kappatguda
(197 MW), Harpanhalli,
Chitradurga & Hassan
• Manufacturing plant
Kerala : 21 MW• Wind park at Agali
Tamil Nadu : 1687 MW• Wind parks at Sankaneri (700+MW),
Coimbatore (530MW) and
Devarkulam (419MW)
• Manufacturing plants
Andhra Pradesh: 8.5 MW• Wind farm at Tirupati
• Upcoming wind park at Anantpur
Eastern Region: • Regional HO at Kolkata
• 2 Marketing offices
Northern Region: • Regional HO at Delhi
• 3 Marketing offices
Rajasthan : 1029 MW• Wind parks at Jaisalmer
(825+MW) &
Jodhpur (200+ MW)
Madhya Pradesh: 124 MW• Wind farm at Dewas, Ratlam
and Mahuria
SUZLON’s Market Leadership
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Suzlon Energy Ltd.
Germany
Italy
France
UK
Belgium
Canada
China
Turkey
India
Brazil
Nicaragua
Japan
N. America
USA and
Canada3,181
Portugal and Spain
Europe installations
Germany 2,113
France 1,273
UK 754
Others 1,509
Total 5,649
Asia
China 1,163
Japan 118
India 6,879
Sri Lanka 10
Total 8,170
Australia
Total 913
S. America
Brazil 388
Nicaragua 63
Total 451
(Figures in MW)
Suzlon Group installations
Customized solutions as per market requirements
Around 18,000 MW in 30 countries & 2,100 technicians working worldwide*1: As on December 2011; includes all installed and SCADA connected
systems
Suzlon Energy Ltd.Environmental Impacts due to the Changes in Land use
• Infrastructure development & construction
� Tree felling (replaced at best by lawns)
� Water and energy consumption
� Cementing – reduction in water percolation
� Short term labor requirements
• Manufacturing, transport, packaging..
� Waste disposal, land filling / incineration
� Emissions and effluents
� In migration – load on local resources
� Consumerism and neglect of local produce / resources
14Threat to Local Environment
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Suzlon Energy Ltd.Suzlon’s Efforts
• Taking CSR seriously – as a responsibility and sustainable business strategy
� Not just spending – but making money responsibly
� Not just looking good /doing good but being good
� Relating to farmers as partners in success – win – win
� Gender justice - promoting women farmers
� Conjunction land use – a major initiative:
– Sharing common property resources / land water
– Investing in conservation and biodiversity (Soil & Water Conservation, tree
plantation, indigenous seed banks)
– Grazing land development;
– Collective farming (khadins) in desert and arid zones along with participatory NRM;
3/
25
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Suzlon Energy Ltd.Suzlon’s Efforts
• Supportive mechanisms in partnership with
Govt and NGOs
� Strengthening women farmers - Self Help Groups, Micro-Credit
� Evolving a cadre of 'jankars' ('wise women‘) to facilitate small
holder's innovation and subsistence
� Promotion Integrated Agro Based Livelihoods Program (IABLP)
approach (farming system approach); emphasizing mutual
dependency of degraded land and livestock;
� Bio-mass recycling for soil improvements
16Empowering & enabling Smallholders
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Suzlon Energy Ltd.Suzlon’s Efforts
• Encouraging Innovation
� Village awards to reward collective efforts
� Multimedia documentation of outcomes for extension;
� Technology transfer;
� Cross subsidizing innovation through 'in kind ' support of
machinery, factory scrap, technical trouble shooting and market
link;
� Promotion of 'green' , organic, eco friendly food among growing
middle class that can afford and appreciate nutritive value;
� Agriculture in public schools to promote farming
17It makes business sense …
Suzlon Energy Ltd.What is in it for Corporate?
• License to operate
• Risk reduction
• Reduced generation losses / down time
• Customer Satisfaction and choice
• Employee’s choice
• Brand image – not just green washing
• Investment in tomorrow’s business
• Community as business partners -
3/
25
18Sustainable Business for sustainable Economy
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Suzlon Energy Ltd.
Lessons and points to deliberate• Demanding “responsible business”
• Engaging businesses in sustainable development
• UN / Govts and research institutions to explore win-
wins
• Evolving business perspective from within - it is
possible
• Empowering civil society to demand Accountability and
transparency
19If we don’t co-opt businesses they will co-opt us
Suzlon Energy Ltd.Lessons and points to deliberate
• Demanding “responsible business”
• Engaging businesses in sustainable development
• UN / Govts and research institutions to explore win-
wins
• Evolving business perspective from within - it is
possible
• Empowering civil society to demand Accountability and
transparency
20If we don’t co-opt businesses they will co-opt us
11
Suzlon Energy Ltd.Summarizing SUZLON’s Approach...
India is a large developing country with a nearly 700 million rural population
directly depending on climate sensitive sectors ( like agriculture, forests and
fisheries) and natural resources (such as water, biodiversity, mangroves, coastal
zones, grasslands) for their subsistence and livelihoods. Climate change is likely
to impact all the natural ecosystems as well as socio-economic systems as per the
National Communications Report of India to the UNFCCC. In fact, developing
countries like India are facing the dual burden of climate change and
globalization.
SUZLON’s approach to addressing the challenges of Climate Change is based upon
this understanding of Indian context – i.e. an effective response needs to be
derived from an integrated approach to adaptation and mitigation.
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Suzlon Energy Ltd.
Thank You
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