Behind the Power Behind the Power CurveCurve

Samip Patil (Team Hawks)

A Power Curve

Technicality “Behind the power curve” is an

aviation expression that refers to the point in flight --- usually either coming in for landing or when rapidly slowing down to lose altitude, when the airplane’s drag starts to slow it down faster than the engine can recover from quickly.

Generalized meaning

The aviation expression has been generalized to refer to situations where you are really behind external circumstances and it will take a lot of catching up to just get even with the outside world.

What POWER means to us India has recorded total renewable deals of $134 million in

2008, which is about 7.3% of total Asia Pacific renewable deals, and it stands third, behind China and Australia.

Net sales grow by 25% YoY during 3Q FY 09, 35% YoY during 9m FY 09.

- Tata Power Net sales grow by 21% YoY during 3Q FY 09, 16% YoY

during 9m FY 09.- NTPC (National Thermal Power Corporation)

Topline grows by 189% YoY in 3Q FY 09, 59% YoY in 9m FY 09.

- PTC (Power Trading Corporation of India)

The Energy Crisis

World’s Total Sector-wise Energy Consumption (2007)

0%

20%

40%

60%

80%

100%

Asia Pacific 1185.1 1896.2 403.1 123.4 194 7005.7

Africa 138.2 105.9 75.2 3 22.2 612.6

Middle East 293.5 6.1 269.4 0 5.1 692.1

Europe and Eurasia 949.4 533.7 1040.1 275.6 188.6 5326.8

South and Central Ameriac 252 22.4 121.1 4.4 153.1 1033.5

North America 1134.7 613.3 728.9 215.6 146.2 5224

Oil (mtoe) Coal (mtoe) Gas (mtoe)Nuclear Energy

(mtoe)Hydro (mtoe) Electricity (Twh)

Power Graph

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4500

1980 1990 2000 2002 2004 2006 2007 2008

Oil (tonnes) Coal (mtoe)Gas (mtoe) Nuclear (mtoe)Hydro (mtoe) Electricity (*10 Twh)

Reserves

0

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400000

600000

800000

1000000

1200000

1400000

1600000

1800000

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2000 2005 2008

Oil (mtoe) Coal (mtoe) Gas (mtoe)

Rate of Formation vs. Rate of Consumption The calculated

length of production of 1cm of coal range from 25 to 100 years

1 ton of coal = 6.64 lakhs cubic cm

181 years is what we have to deplete our entire coal and to release 460 ppm of CO2 into the environment

Electricity generated = 2280 kWh/ ton of coal

CO2 released = 3.5 tons/ ton of coal

The world has consumed 5522 million tonnes of coal in 2007

Enter the Renewables

Renewable Energy

Renewable energy is energy generated from natural resources—such as sunlight, wind, rain, tides and geothermal heat— which are renewable (naturally replenished).

Industry Potential

The following five pages will educate us of the true potential of the renewable energy sector.

The world’s total electricity production in 2007 was 19894 TWh. India has produced 774.66 TWh

WINDWIND Global wind energy capacity grew by 28.8

percent last year to reach total global installations of more than 120.8 GW (one billion watts) at the end of 2008, according to Global Wind Energy Council (GWEC). 

India was using 4430 megawatts of wind power, which increased to 9587 MW.

”The 120 GW of global wind capacity in place at the end of 2008 will produce 260 TWh and save 158 million tons of CO2 every year.”

Indian Railways are investing in the wind energy with plans for a 10.5MW wind farm in the Saurashtra region of Gujar. – Jan 2009

TTeecchhnnoollooggyy India has a total power generation capacity of

about 1,45,000 megawatts and plans to add about 80,000 megawatts in the ongoing 11th Plan that ends in 2012. - 10 Jul 2008, 0240 hrs IST, ET Bureau  

The Indian Industry can save up to 27% power by adopting Energy Efficient technologies and practices, said Mohan Verghese Chunkath, IAS, Tamil Nadu Energy Development Agency, at the 8th edition of Energy Summit, an international conference on energy efficiency organized by Confederation of Indian Industry (CII) at Chennai Trade Center, Chennai.

Water At Independence, only 6% of rural India had

access to safe drinking water. That figure has gone up to 82%. The per capita availability of renewable freshwater in the country, however, has fallen drastically over the last 50 years. The water table is rapidly falling with unregulated over-exploitation of groundwater.

By 2025, water scarcity in India will be acute. And big dams, mega river-linking projects or privatized water distribution may not help - InfoChange News & Features

Scarcity of water calls for the need for tightly managed and accurate solutions for filter stations, wastewater management bodies and municipal corporations, so that water wastage is minimized

The Sun Most parts of India receive 4-7 kWh of Solar

radiation per square meter per day with 250-300 sunny days in a year.

India has abundant Solar resources, as it receives about 3000 hours of sunshine every year, equivalent to over 5,000 trillion kWh. India can easily utilize the Solar energy or Solar Power.

Today the contribution of Solar power with an installed capacity of 9.84 MW, is a fraction (< 0.1 percent) of the total renewable energy installed 13, 242.41(as on 31st October 2008 by Ministry of New and Renewable Energy).

India’s theoretical solar potential is about 5000 T kWh per year.

Duration

Domestic

Commercial

Industry

Railways

Agriculture

Public services

Others

1980s 13.7% 6.0% 53.0% 2.5% 20.4% 2.8% 1.6%

1990s 18.8% 6.1% 38.9% 2.3% 29.5% 2.9% 1.6%

2000s* 25.2% 8.0% 32.4% 2.6% 25.9% 3.5% 2.5%

Compounded Annual Growth Rate (CAGR)^

10.0% 8.5% 4.7% 6.1% 7.6% 6.2% 7.7%

ElectricityElectricity

Company Information

Following are a few companies which are making waves in the renewable energy industry in India and also in the world.

Enercon India

The POWER OF The POWER OF WINDWIND

Company Profile Enercon India is a joint venture between the

German company Enercon and the India based Mehra Group.

Enercon is a leading wind power generation company.

The company is into manufacturing, installation and services for the wind power sector.

Employs 8000 people worldwide in over 30 countries

It also possesses the world’s largest wind turbine, which can light up 1776 homes (each consuming approx 938 kWh per month)

Facts and Figures Revenue – From

Rs. 1721 crores in 2005-06 to Rs. 2700 crores in 2007-08

Operations across 24 countries

Projects in hand till March 2010

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Revenue

Period

Turnover 1721 2175 2700 4000

2006 2007 20082009

(projecte

Enercon’s Coverage Enercon's

customer base is spread across India covering all states identified with commercial feasible wind potential.

Haryana and AP are next on the List

27%

18%

24%

17%

12%2%

KarnatakaMaharashtraTamil NaduRajasthanGujaratMadhya Pradesh

News Enercon India is setting up four windmills—two

in MP and one each in Gujarat and Tamil Nadu. Apart from the 50-mw windmill coming up in Indore, MP, the company is also setting up a 5-mw power project at Jotur in Dhar district – Aug 2007

Indian power company Enercon is planning a 140 MW wind power plant in the state of Haryana. – Oct 2008

Earthfirst Canada has signed a turbine supply agreement and a long term service and warranty agreement with Enercon. - 2009

ALSTOM Power (India)

The POWER OF The POWER OF EARTHEARTH

Company Profile The company is the world leader in integrated power

plant, in power production services and air quality control systems.

Alstom works with all energy forms (coal, gas, nuclear, fuel-oil, hydropower, wind)  and is a leader in environmental protection (reduction of CO2 emissions, reduction of nitrogen oxide emissions..).

Alstom will provide the conventional island for the future EPR nuclear power plant in France.

The Group is also developing CO2 capture processes that could lead to commercial scale in the medium term.

Our Group employs around 79,000 people in 70 countries, serving customers worldwide.

Facts and Figures The net sales rose

from 134 billion euros to 169 billion in 2008

The profits rose to 862 million in FY07/08 from 538 million in FY07

*Half yearly report puts profits at 531 million at the end of FY08/09Q2

13433 14200 169008950

261538

862531

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10

100

1000

10000

100000

2006 2007 2008 2009*

Net Sales (million Euros)

Profit (million Euros)

News ALSTOM Projects India Limited (APIL), won an

INR 460 crore order for a hydroelectric project in Andhra Pradesh. – livemint (Nov 2008)

Alstom Projects won two orders worth Rs 5.92 billion, one for power plant in UAE and the other for a power station in Uganda. – Feb 2009

Alstom Projects India jumped 6.88% to Rs 277.45 and topped the gainers in BSE’s A group. – Feb 2009

Alstom merges its power generation activities into a single Sector, Alstom Power – Mar 2009

Ion Exchange

The POWER OF WATER

Company Profile Ion Exchange India pioneered water

treatment in India and is today the country's premier company in water and environment management, with a strong international presence.

Formed in 1964, as a subsidiary of the Permutit Company of UK, we became a wholly Indian company in 1985 when Permutit divested their holding.

We currently employ 1,000 people - multi-disciplinary teams of highly experienced professional managers technologists and scientists, supported by a widespread infrastructure in India and abroad

The Brand

Our well known range of  drinking water purifiers and water conditioners is part of a range of water treatment solutions that together provide total water care for homes.

Facts and Figures

Turnover increased from 297 crores (March 2006) to 411 crores (March 2007)

Turnover for March 2008 is 482 crores.

Turnover at present, till Dec 2008 is 477 crores

297411 482 477

5.05 5.98

10.65

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10

100

1000

2006 2007 2008 2009

Turnover (crores) Profit (Crores)

News IEI’s contribution to the water industry was once

again recognized with three prestigious Water Awards for the second consecutive year.• Best Water Company – Ion Exchange (India) Ltd.• Best Water Conserver (Waste Water Management) – Ion Exchange Waterleau Ltd.• Best RO water Purifier – Zero B from Ion Exchange (India) Ltd. – Nov 2007

Ion Exchange is revamping it’s marketing strategy to make it’s flagship product, Zero B a market leader. - 2008

Ion Exchange (India) Ltd. announced that the company has bagged an order worth INR 1,263 million from NTPC Tamil Nadu Energy Company for a power plant project – March 2009

Moser Baer Photo Voltaic

The POWER OF FIRE

Company Profile Moser Baer Photo Voltaic Limited (MBPV), is a

wholly-owned subsidiary of Moser Baer India Limited, with its headquarters in New Delhi, India.

It was set up for spearheading our foray into the exciting universe of photovoltaic products, systems and projects. Moser Baer is a global leader in the optical storage media industry.

We intend to utilize the core strengths, technical expertise and high volume manufacturing excellence acquired through the successful growth of our optical media business to our advantage in the PV business.

Facts and Figures

Year to date revenue of 350 crores

Revenue for the FY2007-2008 was 218 crores.

Profits for the FY07/08 were as compared to in FY06/07

198.8217.8

350

23

51

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FY-06/ 07 FY-07/ 08 FY-08/ 09

Revenue (crores of INR) Profit

News Moser Baer Photovoltaic (MBPV) today announced

that it has won a contract from Roads and Buildings Department of Gujarat to set up one of India’s largest roof-top solar photovoltaic (SPV) installations in Surat. – Feb 2009

Moser Baer India Limited has entered into definitive agreements to supply solar modules to major European solar system integrators. The agreements, with a cumulative value of more than $500 million, envisage supply of amorphous silicon Gen 8.5 thin film panels by PV Technologies India Limited, Moser Baer’s photovoltaic subsidiary, up to the year 2012. – Oct 2008

KEC International

The POWER OF LIGHTNINGThe POWER OF LIGHTNING

Company Profile KEC International is One of the largest Power

Transmission EPC companies in the world.  KEC has made an indelible mark on the world map

by constantly and consistently re-engineering itself to retain it's position of leadership in the areas of quality, technology, capacity and capability.

KEC's strengths lie in the areas of Design, Manufacture, supply and Construction of Turnkey Projects of Power Transmission lines of voltages upto 800 KV and in the execution of Railway Electrification projects, setting up Sub-stations and power Distribution Networks, Optical Fiber Cable (OPGW) installations, Turnkey Telecom Infrastructure Services and maintenance of Power Transmission Lines.

Facts and Figures Revenue increased

from 2380 crores in FY06/07 to 3560 crores million in FY07/08

Profit posted for FY07/08 was 170 crores against 105 crores in FY06/07

KEC reported FY07/08Q3 revenue growth of 25% and the rise in net profit by 29%

1964 23813560

2335

49.3

104.64172.16

111.5

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2006 2007 2008 2009

Revenue (Crores) Profits (Crores)

News KEC International wins EEPC India ‘Top Exporter’

Award – Mar 2009 Power equipment maker KEC International on

Thursday said it has secured two orders worth Rs 227 crore from Power Grid Corporation for supplying power transmission equipment. – Feb 2009

RPG Group company KEC International plans to invest Rs 100 crore in a transmission tower manufacturing facility in the Middle-East. – Feb 2009

KEC has bagged two orders totaling to Rs. 207 crores -- Rs 166 crores from Power Grid Corporation of India Limited (PGCIL) & Rs. 41 crores from CESC Limited, another RPG group company. – Mar 2009

Epilogue

The Butterfly Effect

The phrase refers to the idea that a butterfly’s wings might create tiny changes in the atmosphere that may ultimately alter the path of a tornado or delay, accelerate or even prevent the occurrence of a tornado in a certain location. The flapping wing represents a small change in the initial condition of the system, which causes a chain of events leading to large-scale alterations of events.

Meaning There are many times in our life when we

may feel as small as a butterfly, and when we think that the things we can do have as little effect as the fluttering of a butterfly’s wings. 

We think that in our own little space allotted to us, in the small roles given us to play, we make almost no difference in the lives of those around us.

Little however do we know that what we do may truly result to a big difference later on, creating waves of change that wouldn’t have happened had we not taken the initiative to do our part.

Footnote

When you accept some When you accept some responsibility you begin to responsibility you begin to give yourself the power to give yourself the power to change things.change things.

THE POWER OF CHANGE

2007 – Statistics of Energy Consumption (Courtesy of BP)

Landmass’ based consumption in million tonnes of oil equivalent (mtoe)

North America

South and Central America

Europe and Eurasia

Middle East

Africa

Asia Pacific

The World

Products

Oil 1134.7

252 949.4 293.5

138.2

1185.1

3952.9

Gas 728.9 121.1 1040.1

269.4

75.2 403.1

2637.8

Coal 613.3 22.4 533.7 6.1 105.9

1896.2

3177.6

Nuclear

215.6 4.4 275.6 0 3 123.4

622

Hydro 146.2 153.1 188.6 5.1 22.2 194 709.2

Electricity (TWh)

5224 1033.5

5326.8

692.1

612.6

7005.7

19894.7