India's Performance in Wind Power Development

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    BY:

    PIYUSH KANT

    NAGA ADITYA ERANKI

    ANANDPARMAR

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    y The total amount of economically extractable power availablefrom the wind is considerably more than present human

    power use from all sources. An estimated 72 (TW) of wind

    power on the Earth potentially can be commercially

    viable, compared to about 15 TW average global power

    consumption from all sources in 2005. Not all the energy of

    the wind flowing past a given point can be recovered.

    y In the early 1980s, the Indian government established the

    Ministry of Non-Conventional Energy Sources (MNES) to

    encourage diversification of the countrys energy supply, and

    satisfy the increasing energy demand of a rapidly growing

    economy. In 2006, this ministry was renamed the Ministry of

    New and Renewable Energy (MNRE).

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    STARTED IN 1990, UNDER THE AEGISOF MNES, WHICH WAS LATERCONVERTED INTO MNRE IN 2006

    HAS QUICKLY DEVELOPED INTO THE5TH LARGEST PRODUCER OF WINDPOWER

    CURRENT GENERATION CAPACITY OF11807MW(7.1% OF INDIASGENERATION CAPACITY)

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    MUCH OF THE DEVELOPMENT HASBEEN DUE TO THE PRIVATE SECTOR.

    EMPHASIS HAS BEEN ON CAPACITYADDITION AND NOTGENERATION(1.6%)

    LACK OF COHERENT NATIONALRENEWABLE ENERGY POLICY

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    Rapid rise in demand

    Need for sustainable development

    High potential for development

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    The Kyoto Protocol

    Consistent performance of industry

    Grid isolated areas

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    y Wind measurements were carried out at lower hub

    heights and did not take into account technological

    innovation and improvements and repowering of old

    turbines to replace them with bigger ones.

    y At heights of 55-65 meters, the potential for wind

    development in India may be around 65-70 GW.

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    BETTERCAPABILITIES

    GOVT INITIATIVE

    MANUFACTURINGBASE

    GROWING

    DEMAND

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    FISCAL INCENTIVES

    LAND INCENTIVES

    FINANCIAL INCENTIVES

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    IMPETUSPROVIDED BY EA

    2003

    IT HOLIDAYAND EXCISE

    DUTYEXEMPTION

    SPECIAL TARIFF

    BY STATES(GBI)

    GUARENTEED

    MARKETS (RPS) FEED IN TARIFF

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    MEFGUIDELINES

    LEASING

    IREDA

    FOREST LANDFOR WINDGENERATION

    FOR 30 YEARS

    LOANS FOR

    RENEWABLEENERGYPROJECTS

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    y For grid connected wind power projects under 49 MW

    y Incentive of 0.5 rupees per KWh (0.7 Euro cents) in

    addition to the existing state incentives

    y Small investors can opt for this alternative incentive

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    Ten out of the 29 IndianStates have now

    implemented quotas for arenewable energy share of

    up to 10%

    Have introducedpreferential tariffs for

    electricity produced fromrenewable sources

    States have implementedfiscal and financial

    incentives

    Energy buy back

    Preferential grid connection

    Transportation charges andElectricity tax exemptions.

    PolicyMeasures

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    y The new GBI scheme is expected to provide a

    significant incentive for new entrants into the Indian

    wind market, and it is expected that a minimum of

    2,200 MW of new wind power capacity will beinstalled in India in the financial year or 2010/2011.

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    y

    Indias tremendous wind energy resource has onlybeen partially realised due to the lack of a coherentnational renewable energy policy

    y

    Currently, the promotion of renewable energy in Indiais mainly driven by state governments

    y Though some states have set high renewable portfolio

    standards, other states only have low or no targets, andenforcement is insufficient

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    y To boost investment in renewable energy, it is essentialto introduce clear, stable and long-term supportpolicies.

    y A number of policy measures at national level must becarefully designed to ensure that they operate inharmony with existing state level mechanisms and do

    not lessen their effectiveness.

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    LET THE WINDS OF CHANGE BLOW!!