Wind Mill Industry Analysis by using Porter’s Five Forces Presented By- Akash Saxena Archita Gaur Khushboo Chelani Jaya Saxena

INTRODUCTION India is blessed with 7517 km of

coastline and territory up to 12 nm into the sea. This is where lies the potential of sustained energy growth.

India is 5th largest producer of wind energy in the world, with 16078 MW of installed.

Tamil Nadu, Maharashtra, Gujarat, Karnataka are leading wind energy producers in India.

Short construction period and low O&M cost makes it an attractive proposition.

PORTER’S FIVE RULE

THREAT OF SUBSTITUTE geothermal aquifers

Tidal &Wave Energy Solar energy,

Hydrothermal energy Coal,

THREATS OF NEW ENTRANTS

• Risk of new entrant is low.• Performance requirement.• Enormous Investment to be

competitive.• Turbine must be able to

compete.• Reduce Cost with logistic• land availability (wind must

be greater than 7meter per second)

Porter’s 5 Rule

BARGAINING POWER OF SUPPLIER

High Cost is involved Raw material Vertical- backward integration

BARGAINING POWER OF BUYER

bargaining power of customers is little more complicatedNo. of buyers decreasedWind farm is purchased by either utility co, local govt. or a pension fund, Big co.

Porter’s 5 Rule

RIVALARY(MEDIUM)

PEST ANALYSIS Legal Factor Regulations regarding heights (thumb rule). National Electricity Policy, 2005 Aims at accelerated development of power

sector, providing supply of electricity to all areas. No clearance is required from Central Electricity Authority (CEA) for power

generation projects up to Rs 1,000 million. Excise duty on a number of capital goods and instruments in the RE sector has

been reduced or exempted. Concession Under Income Tax- Industrial undertakings set up in any part of India for the generation or

distribution of power, a 100% deduction is allowable from profits and gains for first five years then after 30% of the profits and gains.

The Budget has also proposed a 10-year tax holiday for the generation and distribution of power, to be availed during the initial 15 years.

Technological Factor

Size of 250 KW going to multi megawatt. i.e. Up to 2.1 MW in turbine size Class of wind turbine upgraded which produce at low speed.. Height of hub increased from 50 meters to 120 meters. Internationally turbines have the rotor diameter is 120 -130. In India it would be same

in 2016-17.

Economic Factor

jobs created per year (30% More jobs than a coal Plant, 66% more job than a nuclear power plant)

Per capita income GDP Growth of economy. No use of fuel Promotes Cost-Effective Energy Production

Social Factor

Population

Electricity supply increased

Central pollution control board categorized wind project into green category.

Energy Independence

Support agriculture

Negligible Greenhouse Gases

Conserves and Keeps Water Clean

INDUSTRY ATTRACTIVENESS With modern technology we can capture wind efficiently. Once the wind turbine builds the energy is produces does not cause

green house gases, or other pollutants. Free, renewable resource No harmful emissions Minimal land use Remote areas that are not connected to the electricity power grid can

use wind energy We can use our own supply Wind turbines are available in a range of sizes which means a vast

range of people and businessman can used. Single households to small to small town and villages can make good

use of range of wind turbines available today.

CONCLUSIONWind mill = connect- invest- jobs