IWP Magazine Dec. - Jan. 2016

Volume: 1 Issue: 7 December 2015 - January 2016 ` 10/-Bimonthly, Chennai

A Bi-monthly Magazine of Indian Wind Turbine Manufacturers Association

Volume: 1 Issue: 7 Dec. 2015 - Jan. 2016

Executive Committee

Contents Page No.

COP21: The World comes together to fight Climate Change 3

Mr. Tulsi R. Tanti, Chairman, Suzlon Group

OMS - Role in an Integrated Business Model 4

Mr. Vinod R. Tanti, Chief Operating Officer (COO), Suzlon Group

Operation and Maintenance of Wind Power Projects 7

Mr. M.K. DEB, Managing Director, M.P. Windfarms Ltd., Bhopal

Optical Fibre Cables for the Wind Energy Sector 8

Mr. Satyendra Gupta, Executive Director & CFO, Aksh Optifibre Limited, Delhi

Setting Up an Ideal Operations and Maintenance System for 9 Distributed Wind Farms and Peculiar Challenges Faced in India

Mr. Brig. (Retd.) YVR Vijay, Country Head - Wind World Operations Wind World India Limited, Mumbai

Operation and Maintenance of Wind Energy Converter (WEC)/ 14 Wind Turbine Generator (WTG) in India

Mr. S.R. Prabhu, Senior Vice President, O&M; M. Vivekanandan, Manager, O&M ReGen Infrastructure and Services Private Limited, Chennai

Wind Industry News 18

Summary of Key Incentives / Policy Facilitators Indian Wind Energy Sector 19

Researched & Compiled by Nitin Raikar, Suzlon Energy Limited, Mumbai

Wind Energy in Karnataka - Towards attaining Energy Independence 31

Mr. Chintan Shah, President & Head, Strategic Business Development, Suzlon Energy Limited, Pune

Snippets on Wind Power 35

Photo Feature 38

Windergy- Social Media Campaign by IWTMA 39

Know Your Member - LPS Bossard Pvt. Ltd. 40

Indian Wind Turbine Manufacturers Association4th Floor, Samson Tower, 403 L, Pantheon Road, Egmore

Chennai - 600 008. Tel : 044 43015773 Fax : 044 4301 6132 Email : [email protected]

[email protected] Website : www.indianwindpower.com

(For Internal Circulation only)

Views expressed in the magazine are those of the authors and do not necessarily reflect those of the Association, Editor, Publisher or Author's Organization.

Chairman

Mr. Madhusudan Khemka Managing Director Regen Powertech Pvt. Ltd., Chennai

Vice Chairman

Mr. Chintan Shah President & Head, (SBD) Suzlon Energy Limited, Pune

Honorary Secretary

Mr. Devansh Jain Director, Inox Wind Limited, Noida

Executive Members

Mr. Ramesh Kymal Chairman & Managing Director Gamesa Renewable Pvt. Ltd., Chennai

Mr. Sarvesh Kumar Deputy Managing Director RRB Energy Ltd., New Delhi

Mr. V.K. Krishnan Executive Director Leitner Shriram Mfg. Ltd., Chennai

Mr. Ajay Mehra Director, Wind World India Limited, Mumbai

Secretary General

Mr. D.V. Giri, IWTMA, Chennai

Associate Director and Editor

Dr. Rishi Muni Dwivedi, IWTMA, Chennai

2 Indian Wind Power Dec. 2015 - Jan. 2016

From the Desk of the Chairman - IWTMA

Dear Readers,

Greetings from IWTMA!

I take this opportunity to wish each one of you “A Happy and Prosperous New Year, A New Beginning, from Dreams to Reality and Goals to fulfil and A Great Windy Year ahead”. Closely followed by the New Year, Southern States have celebrated ‘Pongal’ or ‘Makar Shankranti’ which is a festival of new harvest. To us in the wind field, the harvest means “harnessing wind energy to feed 24 x 7 power throughout the Nation”.

The just concluded COP21 this year, perhaps, has thrown challenges between developed countries and developing countries and everyone is clear in the reduction of coal usage which will have adverse impact on climate change and global warming. The COP21 in Paris has defined that 100% Renewable Energy is achievable with a proper mind set. This edition carries an article entitled “COP21: The World comes together to Fight Climate Change” by Shri Tulsi R Tanti, CMD, Suzlon Group. I am pleased to mention Microsoft Chairman, Mr. Bill Gates quote “If India is to achieve the laudable RE target, the Government then has to lay special importance to Grid Management and Storage as Spinning Reserves”. There is nothing farther away from this truth.

While many states are conducting their annual event showcasing their state for higher investment growth, your Association has been quietly handling Regional Workshop at State level with stakeholders to highlight the challenges and opportunities and find solution for higher penetration. Three Workshops have been conducted so far in Andhra Pradesh, Madhya Pradesh and Karnataka and we plan to conduct two more in Maharashtra and Telangana and conclude it with a National Conclave in Delhi before March 2016. These Workshops have been very rewarding and the presentation made to the stakeholders in the Workshop at the Central and State Government level is well received. We are conducting these Workshops in collaboration with CII-GBC, Hyderabad.

Wind energy is just not a business and it is a National Movement as a “Power of the Future and Power Forever”.

IWTMA has sponsored a branding exercise through social media like Twitter, Facebook, LinkedIn titled “Windergy” and the programme will launch a website and finally culminate with an independent study, on the Road map to 60 GW by 2022.

Wind Turbine Technology is very advanced and complex and requires skilled personnel with domain knowledge to carry out the operation & maintenance of turbines working at remote and hostile conditions. Several sophisticated technologies have been evolved on condition monitoring, preventive maintenance and keeping the turbine in a fully performing condition, especially, during high wind season with equal importance to low wind season.

This edition of Indian Wind Power is dedicated to operation & maintenance to maximise wind output to help investor in their investment portfolio and feed energy to a power starved country like ours. We have chosen four articles from the renowned and experienced persons on operation & maintenance and the importance of team work, communication and supply chain to ensure high machine up time.

I am happy to inform the readers that the wind industry has crossed 25,000 MW milestone in December 2015 and we have an ambitious target of 60 GW by 2022 and 100 GW of wind alone by 2030. I conclude with a famous quote of Robert Frost “The woods are lovely, dark and deep, But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep”. IWTMA commits itself in this great saga to “RESPOND, PERFORM AND ACHIEVE”.

Happy reading and send us your valuable feedback.

With regards,

Madhusudan Khemka Chairman

3Indian Wind PowerDec. 2015 - Jan. 2016

COP21: The World comes together to fight Climate Change

Mr. Tulsi R. Tanti, Chairman, Suzlon Group

Climate change has been a cause for growing concern,

and rightly so. As global economy grows, production and

consumption continue to grow, with consequent growth in the

need for energy and carbon emission. This is putting the planet

at great risk. Studies have proved that the rise in the earth’s

temperature needs to be limited to 2°C above pre-industrial

levels if our children are to have the prospect of a green future.

While this translates into the seemingly large allowance of

1,000 billion tonnes, the fact remains that this will be reached

within 20 years if change is not implemented right away.

COP21, held in Paris at the end of last year, brought to light

all these facts and allowed nations to be a part of a historical

agreement to combat climate change and unleash actions and

investment towards a low carbon, resilient and sustainable

future.

The role that renewable energy plays in this mission was

clearly identified, with countries committing an increase in their

renewable energy installations as a means to support economic

growth while mitigating the risks of climate change. This led to

the distinction between environmental responsibility expected

from developing and developed nations, especially with regards

to carbon emission; and this differentiation was considered

across all pillars of action including mitigation, adaptation,

finance, technology capacity and transparency. Developed

economies have been recognized as the largest consumers

and, as a result, the largest producers. This increases the onus

of protecting the environment that falls on them. Furthermore,

it also adds upon them the responsibility to support their

developing counterparts with financial and technological

resources to enable global advancement without affecting the

environment.

The commitments made by the developed countries included

carbon emission reduction, renewable energy installation increase

as well as support for renewable energy, carbon capture and

energy efficiency to other countries. These commitments came

from Malaysia, Bahrain, Uruguay and Australia amongst others.

Developing countries, on the other hand, had commitments

more focused on increasing renewable energy installation to

support their industrial and consumption needs. Furthermore,

they were also focused on reducing their carbon emissions at

the outset so that economies such as India, China, South Africa,

Brazil and Sri Lanka could be built on clean energy. At the same

time, these nations offered clear indicators of the support they

were expecting from their developed allies.

India played an important role at the forum, pivotal in making

the agreement supportive of developing nations’ needs. With

the target of 175GW of renewable energy by 2022, India is

heavily vested in mitigating climate change risks. This target

was therefore further complemented at COP21 with the

commitment to reduce carbon emissions by 30% to 35% and

increase renewables to 40% of the energy mix by 2030. At

the same time, India demanded for IPR-free technology to lead

to faster adoption of clean technologies. We also requested a

review of gaps in implementation by developed countries in

order to measure their mitigation commitments and pledged

support for technology transfer, finance and capacity building to

developing countries.

Commitments made by India were based not only on the

nation’s energy needs, but also on Prime Minister Narendra

Modi’s pledge to mitigate the risks of climate change and curtail

the potential damage that could be caused, worldwide and in

India especially, by global warming. His vision led to the launch

of the initiative of the International Solar Alliance in collaboration

with French President François Hollande.

While discussions and debates brought forth many points on

the position of developed and developing countries on the

climate change front, the biggest achievement at COP21 was

the specific nature of the commitments made by nations from

around the world. Overcoming the ambiguity that existed in

previous commitments, COP21 ensured that nations became a

part of the agreement by outlining specific targets and actions,

thereby ensuring that the world works, collectively, towards

powering a greener tomorrow.


OMS - Role in an Integrated Business Model

Mr. Vinod R. Tanti, Chief Operating Officer (COO), Suzlon Group

This article attempts to bring in the author’s perspective towards the role of OMS (Operations, Maintenance and Services) within the lifecycle of the turbine. The scope is largely centred on offering extended warranty to onshore installations in India.

Wind Energy: A Look at the Indian Scenario

Humans aspire growth and energy fuels growth. However, renewable energy fuels growth without the undesirable consequences brought about by consuming non-renewable energy. The total renewable energy capacity installed in India, as on 30th November, 2015, stands at 38.3 GW*. 25 GW of this, which is approximately 65%, is through wind energy generation**, making India the fourth largest wind energy producer in the world***. This feat has been made possible due to the visionary leadership of the government, both Central and State. Other criteria that contribute equally to the success of the sector include technological advancements and the entrepreneurial spirit of the business community, especially customers, manufacturers and suppliers.

Investment: A Customer’s Perspective

Customers invest in capital goods to create wealth. They invest in the service of, and expected return from, the product. Two key criteria determine the investment decision: ‘Return on Investment’ and ‘Risk to Reward Ratio’.

The Return on Investment is determined by project cost, AEP (Annual Energy Produced) and tariff. The project risk is determined by the contract type and its execution. The wind energy sector offers a variety of solution options to customers; whilst most opt for full turnkey solutions. A few large players opt for an aggregation model for some of their projects where they purchase the equipment from an OEM (Original Equipment Manufacturer) supplier whilst insourcing or outsourcing some of the other parts which include site and infrastructure, installation and OMS (Operations, Maintenance and Services). This option is generally availed in situations where the turnkey option is not available.

Critical Success Factors

In addition to project cost, the tariff and the turbine/site compatibility are two factors that determine potential ROI. The

likely deviation between potential ROI and actual performance is determined by the project execution and OMS implemented during the lifecycle of the asset. This deviation can be negative or positive, and is often cyclical due to diurnal, seasonal and long-term wind cycles. The contributing factors can be simply compared to the life cycle of a human being as follows:

1. Genes: The turbine design and site is given at any point of time. The turbine/site compatibility determines the DNA: Potential AEP (Annual Energy Production).

2. Birth: The process from manufacturing the equipment in the controlled environment of a factory to its installation and stabilization in the natural environment of the wind farm determines the quality of birth.

3. Lifestyle: The nurturing of the turbine in terms of its monitoring and servicing through its lifetime determines its health and longevity.

The key indicator of turbine performance is AEP and one of its lead indicators is MA (Machine Aavailability) which in turn is influenced by MTBF (Mean Time Bbetween Failures) and MTTR (Mean Time to Repair). Increasing MTBF and reducing MTTR increases MA. Higher MA during the high wind season yields higher AEP.

OMS: The Customer’s Custodian

The long lifecycle of capital goods has the intrinsic tendency of wear and tear and hence, these products have the need for periodic servicing as well as replacements of various components. Further, capital goods sometimes have opportunities for further optimization through technological advancements or through better alignment with operating conditions. The OMS has a key role to play in all situations and various stages of life and at both, turbine and wind park levels.

OMS Mobilization: The first OMS contract is generally signed at the time of the equipment supply contract. Before the active role on the turbine and wind park begins, the OMS machinery (Team, Systems and Infrastructure) is geared well before the equipment reaches the site. The OMS team is familiarised with the product and trained to service it, as well as sensitized to


what signs to look at within and beyond the articulated checklist. Infrastructure to cater to the needs of the turbine + wind park, as well as the OMS staff, is set up at locations in proximity to the turbine installation for rapid service deployment.

Pre-commissioning checking and testing: The trained staff is certified for its competency on skills as well as ability to manage various possible scenarios. Parts of the equipment may be inspected at the factory, prior to installation and before commissioning. Post-commissioning tests are conducted or overseen and punch lists are created and cleared before the OMS team takes charge. During this stage, the maximum potential birth defects are attended to. The observations feed into the incoming systems to reduce/eliminate future instances of avoidable turbulence – which means better birth. A similar exercise is carried out at the wind park level.

Lifetime Servicing: There are three key parts to this - the SM (Scheduled Maintenance), the BDM (Break Down Maintenance) and the Analytics.

• At regular intervals, the turbine and infrastructure needs attending to in terms of recalibrations, change of consumables and replacements of parts. There are schedules to this for every machine type and climatic zone which get refined to individual wind parks. Adherence to this in letter and spirit is tantamount to a healthy lifestyle.

• Breakdowns do happen and the general causes are the genes, beyond envelope of working conditions or gaps in healthy lifestyle. Finding root causes and implementing corrective action reduces the MTTR. Working on the preventing action leads to increasing the MTBF.

• Based on the RCA (Root Cause Analysis) of above two and the constant monitoring of the working conditions envelope, wind, other weather conditions and Machine Operations SCADA (Supervisory Control and Data Acquisition), data gets converted into information. Combined with advancements in technology, possible options to reduce negative deviation as well as increase positive deviation surface. Business cases are tested towards net benefits and presented for implementation consideration.

OMS Synergies through an Integrated Business Model

The role of an integrated business model cannot be underplayed. Wherever a strong collaboration exists between the OMS, technology, supply chain and infrastructure development teams, the opportunity to upgrade the turbine to reduce negative

deviation as well as improve positive deviation is high. Negative deviations are reduced through predictive maintenance and consequently increasing the MTBF, reducing the MTTR and refining the control systems. Positive deviations, whilst increased by the earlier steps, get further enhanced through repowering options via changes in generator capacities, blade design, and hub height and so on. The same inputs also contribute towards designing better as well as advanced turbines, infrastructure and support systems.

Industry Trends and OMS - Potential and Future Directions

OMS has always been an important part of the overall lifecycle. With time, its criticality towards higher generation has increased significantly. Advancements in digital technology and IoT (Internet of Things) lead to advancements in turbine control systems, PM (Predictive Maintenance) as well as forecasting accuracy of power generation.

Multiple factors are leading to the steady growth of the wind energy sector in India. Technological advancement, availability of competitively priced equipment and positive government policy framework has made wind energy the most favourable choice for capacity addition in the country. The National Action Plan for Climate Change has set the target to achieve 15% contribution of renewable energy by 2020 which has led to an estimation of 7,000MW addition per annum. Aiding this target is the expected investment of over 4,000MW per annum brought forward by the announcement of Prime Minister Shri Narendra Modi during the Clean Energy Ministerial in New Delhi.

The increased demand for energy brought on by the ‘Make in India’ initiative as well as the growing awareness of the risks of climate change have increased the attractiveness of the wind energy sector. As more and more people choose wind to meet their energy needs, the demand for domestically manufactured components such as towers, blades, generators and converters among others is growing. As a result, India is emerging as the fastest growing supply chain manufacturing hub of wind energy in the world.

The viable environment and growing market has led to increased competition within the industry, and players are now looking at new ways to enhance customer experience. One way to do this is to provide not just wind turbines as a product, but to bring to the customer an end-to-end solution; and OMS, with its application to every stage of the lifecycle of the asset, is the ingredient that is required to make this possible.

*Source: MNRE.

**Source: IWTMA

***Source: Global Wind Energy Council, as at January 2016


1. The wind resource at any site is available for a limited number

of hours in a year.

Since the wind resource cannot be controlled, it is of vital

importance that the Wind Electric Generator (WEG) is

available for generation whenever the wind is strong.

From Investor’s point of view, it is most important to ensure

availability of WEG round the year.

The first step of O&M and WEG availability actually begins

during construction phase of the project. Strict supervision

of construction including evacuation lines and poles, proper

parameter setting of controller, correct torquing and assembly

of WEG ensure better long term availability.

2. Immediately after commissioning – a detailed study should

be initiated to ensure that the WEG is producing power as

per certified Power Curve corresponding to wind resource

available at the site. This is necessary to improve the

efficiency of WEG.

3. Post Commissioning:

High availability of WEG can be ensured through:

• Prompt attendance to reduce break down time of WEG.

• Efficient Maintenance

Maintenance protocol should therefore be most efficient and

systematic.

4. The maintenance aspect can broadly be divided into:

• Routine maintenance on day to day basis.

• Preventive maintenance during low wind period

Unless both type of maintenance is ensured, high WEG

availability cannot be achieved.

5. For routine maintenance the requirements are:

• Availability of skilled manpower

• Day to day record of breakdown

• Availability of spares at site.

Monitoring of daily log through SCADA is critical.

Study of daily log shall reveal the areas of frequent breakdown

and strategy should be evolved to find out remedial measures.

6. Preventive maintenance is quite crucial for wind power projects.

During low wind period – each and every WEG should be thoroughly inspected and the likely defects should be listed out. This should include both consumables and spares, which should be immediately procured and the rectification should be completed before the high wind period starts.

7. Earth resistance and di-electric strength of Transformer Oil should be checked at regular interval to ensure high availability of infrastructure and avoid failures of grid and internal electrical distribution.

Physical checking of internal/external distribution lines, adequate stringing (sag elimination), insulators, LA etc. is necessary.

8. The signals from control and protection circuits should be studied in depth to avoid breakdown due to faulty signals and/or over/under protection – which should be rectified for each WEG.

9. Modern WEGs should be ideally equipped with Condition Monitoring System (CMS). Sensors at strategic locations provide information on condition of Rotor Blades, Drive train, Generator, Bearings, Motors and Tower Vibrations. Such systems can assist O&M team with prior information on imminent failures. The data has to be monitored continuously and preventive measures can be taken before breakdown.

10. Wind forecasting also assist O&M team to plan in advance schedule maintenance during lull wind period.

11. High availability of WEG is the most critical factor which should be guaranteed by the WEG supplier and the investor has to be protected through suitable penalty clause.

12. Ideally the O&M charges should be in two parts –

- a) Fixed monthly charge and

- b) Variable charge related to actual generation.

Cost of components, spares and consumables should be charged as per actual.

The cardinal feature to ensure highly efficient O&M service is to engage an Independent Agency to monitor the performance on regular basis – say bi-monthly.

This shall not only identify the frequent breakdown areas but would also ensure prompt attendance by O&M staff.

Operation and Maintenance of Wind Power Projects

M.K. DEB, Managing Director, M.P. Windfarms Ltd., Bhopal


Optical Fibre Cables for the Wind Energy Sector

Satyendra Gupta, Executive Director & CFO, Aksh Optifibre Limited, Delhi

Electricity generation by wind turbine generators (WTGs) is a proven green energy technology in both land and offshore environments. However, wind farms located either onshore or offshore are often in remote and not easily accessible locations. Additionally, their height above ground can pose unique maintenance, repair and lightning strike challenges that must be addressed to make wind power renewable energy more reliable and economical.

Fibre Optics (FO) technology is probably the best known for use in high-speed and high-bandwidth telecommunication applications. But today, fibre optics data and control links are replacing copper links in wind turbines and farms making them a critical part of a wind farm operator’s solutions for minimizing costly downtime and service interruption.

Fibre optic technology is the most suitable - and in some cases the only acceptable - technology in high electrical noise environments for electrical generator/turbine control, power conversion and wind farm wide-area communications. The characteristics and reliability benefits of FO components - receivers, transmitters, transceivers and cable - are applicable in wind farms and wind turbines, as well as overall wind farm and wind park operation.

Fibre Optics in Windmill

Wind power is the world's fastest growing energy source. By 2020, 12% of the world's demand of electricity will be produced by wind.

Why Fibre Optic Wind Farms

Wind farms work in a challenging environment and optic fibres are more suitable to withstand the wide temperature swings, humidity, vibration, and electromagnetic interference common to most grid connected wind farms. Since every kilowatt a wind generator produces is purchased, network interruptions and downtime leads to costly maintenance and lost revenue.

Optical fibre network provides real-time data capture to monitor wind turbine uptime, performance and power output – even from remote locations. This data is used to track efficiency and trends, plan maintenance schedules, report the power produced

and predictive information to the Independent System Operator critical to “Smart Grid” technology.

Benefits of Optical Fibre Cable

² Electrical isolation – No electrical, magnetic, or radio frequency interference.

² No grounding required. The cables can be installed next to power lines.

² Covers longer distances which are otherwise not feasible or difficult on metallic cables.

² Clean and safe media.

² Future proof installation for high speed communication.

Providing isolation and reliable communications make wind farm management and operation safer and more efficient. Many different fibre cable types (POF, HCS, Multimode, Single mode) can be used in WTGs, with plastic being the least expensive. Cost-effective plastic optical fibre (POF) and glass optical fibre solutions are used worldwide in existing wind farm installations. Higher reliability and easier maintenance are playing a role in the economics of wind power; getting a turbine online quickly and having it running reliably without interruption are critical concerns.

Fibre communication links consist of short-link POF, e.g. 60 meters, in individual turbines or multimode cables coupled to discrete transmitters/receivers or transceivers. Fibre cables are lightweight and both robust and resistant to harsh environments. One advantage of the POF is also its flexibility. For the handling of POF cables, 25 mm is the minimum bend radius (measured to the inside curvature), at which the cable can be bent safely without any damages during installation or even shortening the cable’s life. Under minimum tension, the minimum long-term bend radius is 35 mm. These are necessary characteristics for vertical cabling in towers that can be over 200 meters tall and where several hurdles in different parts of the WTG are to be bypassed. Fibre optics termination also offers safe and robust connections, either with POF, HCS or MM. It is very important to make sure that no cable will be pulled out of any equipment by mistake when technicians operate on any components of the turbine.


Introduction

Wind farm operations and maintenance can play an important role in maximizing the returns of existing assets and increasing revenues from existing wind farms. Depending upon existing levels of performance, improved O&M could account for nearly a 20 percent increase in IRR. Companies that identify and systematically capture this potential could then develop a key competitive advantage in the industry. The cost of electricity from wind has only two components -- capital cost repayments (with interest) and operation and maintenance (O&M) costs. The latter account for roughly 10 to 20% of the generation cost.

Aim, Vision, Mission and Strategy to Implement O&M Best Practises

Aim

The aim of wind farm operations and maintenance can be summed up in three simple aspects.

a. Optimise power yield from the turbines through the use of modern technology incorporated into scheduled/unscheduled maintenances, deep understanding of wind patterns and behavior and use of IT to ensure strong data analytics, technically and commercially.

b. To ensure safe and healthy HSE policies so that a zero accident and zero near miss situation is achieved.

c. To engage proactively the socio-political environment so that disruption of wind farms due to non-technical aspects is totally eliminated.

Vision

Thus, the vision statement for a good O&M provider would be included synergy between all stakeholders, maximizing power yield returns while simultaneously fostering a culture of safety and quality.

Mission

The mission statement of an O&M provider has been summed up above in the aim i.e. optimizing yield, focus on HSE and meeting benchmarks.

Strategy

In order to achieve the above vision and mission the strategy to achieve it would be:

a. Continuous monitoring of the turbines, grid and sub-stations through a strong robust SCADA, VSAT network connected to a centralized control centre. Behind the scenes of wind farms is the field monitoring equipment (manned by sensors looking at every crevice of the turbine). Data sets from sensors report on the operating status of individual turbine units and control points in the system. These control points monitors variances in oil level, voltage, humidity, bearing, coupling, particle counters, accelerometers, gearbox, and more.

b. A focus on monitoring of power curve adherence at all times. This will check if the turbine is performing under real life in a manner as expected in test conditions. It will tell us how the turbine is responding to real world characteristics such as wind shear, wind veer and turbulence. It would indicate whether terrain and roughness features in particular directions affects performance and whether the nacelle anemometer is giving a representative free stream wind reading.

c. Training of HR. A good O&M organisation should have dedicated areas containing wind turbines and generator technology, where employees and apprentices are trained in an environment closely resembling that which they will experience in the field.

d. Synergy in automation between SCADA inputs and business ERP. The SCADA inputs should drive all inputs to the business ERP right from power generation, turbine performance, inventory management, HR, inventory control etc.

e. Optimisation of all operational expenditure by having a strong reliability analysis, six sigma processes, Kaizen and other operational efficiency programs in place.

Levers that Allow Improvements in Wind Farm O&M

There are three key levers normally that allow improvements of a normal wind farm O&M. These are basically availability of the turbine, grid and sub-station; efficiency of the components

Brig. (Retd.) YVR Vijay, Country Head - Wind World Operations, Wind World India Limited, Mumbai

Setting Up an Ideal Operations and Maintenance System for Distributed Wind Farms and Peculiar Challenges Faced in India


of the wind farm and O&M costs. A fourth key lever for Indian conditions would be in management of the socio-politico-economic environment of the areas where wind farms exist.

Availability

A perfectly smooth operational wind farm in Indian conditions is capable of running at a 99% machine availability, 99% grid availability and 99.99% sub-station availability. These can be achieved by the following critical actions:

a. 24x7 availability of manpower within 30 minutes of any turbine. This can be achieved by good transportation models, suitable artery of communications in a wind farm and a direct link between the centralized control centre and the mobile with the wind farm maintenance staff.

b. Careful analysis through inventory management processes and controls like VED, ABC, SDE and FNS analysis so as to ensure that inventory stocks cater to seasonal fluctuations of spares consumptions. This will minimize unscheduled maintenance time to repair.

c. By having strong preventive maintenance protocols and reviews of PM processes. Good quality timely preventive maintenance is essential for overall turbine health and maximal generation. Condition based monitoring would greatly assist in reducing catastrophic failures and corrective actions can be taken well in time.

d. Strong grid inspection and quality processes to prevent impact of storms, oxidization, salinity impacts on components of the grid. A comparison of wind farm electrical grids between North Europe and India suggests that grid quality is a major deficiency in wind farms in India where OEMs tend to compromise on quality of components and construction. This results in grid availabilities in India which are significantly lower than their counterparts in countries of Northern Europe. The use of LVRT to protect the turbines from grid low voltages should be insisted on by wind OEMs as the life cycle cost would be more beneficial in terms of lesser downtime and spares consumption.

e. Sub-station component inspections should be of the highest order and PM tasks in a sub-station will prevent a sudden catastrophic failure which will result in major drop of turbines and grid availability. The sub-stations should be designed to cater for future expansion, peak loads, evacuation aspects and also have strong data communication features. There is a need for strong liaison between the sub-station and the state electricity boards.

Efficiency Aspects in Wind Farm

Apart from standard, preventive and unscheduled maintenance tasks on a wind farm there are a number of aspects involved in

improving efficiency in wind farms. Any good organisation must focus a lot of small and big operational efficiency study teams to review on technical efficiency aspects. There are a number of areas where such efficiency studies can be built. Some of these are:

a. Power curve adherence through proper wind vane and anemometer monitoring. It should be possible for the control centre to continuously monitor power curve adherence.

b. Root Cause Analysis of frequently occurring faults.

c. Blade health is another very important parameter. Cleaning of fungus and black cotton dust deposits on blades can increase blade efficiency by significant amounts.

d. Monitoring of PM adherence to strict time frames.

e. MIS to wind farms giving details of warnings, resets and break downs enable the man on site to get more aware of the health of his turbine fleet.

O&M Costs

The main aspects of O&M costs in a wind farm are:

a. Man Power Costs: Automation, positioning of manpower, quality of civil roads on a wind farm, training, tools and test jigs etc. go a long way in cutting down on manpower costs. Larger turbines are more efficient in manpower utilisation as the manpower requirement on a wind farm is more proportional to number of turbines rather can the total MW installed capacity. Having living accommodation within wind farms bring down idle travel time and reduce manpower requirement. High quality automation, good communication, quick transportation on the wind farm and condition based monitoring will help in optimisation of manpower.

b. Inventory: Spares typically comprise almost 40% of the O&M costs in the wind industry. Teams which analyse development of local vendors for manufacture and repair, RCA of failures, conditional monitoring systems etc. contribute to control of inventory expenses. There are a number of automated tools today which help optimize on stocking levels. Foreign spares manufacturers must be

Our groundwork enables our

clean energy contribution

to touch the sky

Our groundwork is what earns us the wings:

§ Robust operations -

from concept to commissioning and lifetime care thereafter

§ Comprehensive in-house manufacturing facilities –

including complete turbines and towers

§ Turbine technology -

reliable and proven gearless technology

§ Holistic solutions –

to all wind energy related financial / regulatory / CDM aspects

§ Proven track record -

18 years of operation; capacities exceeding 4200MW

www.windworldindia.com

Wind World (India) Ltd.Wind World Towers, Plot No. A-9, Veera Industrial Estate, Veera Desai Rd., Andheri (W), Mumbai 400 053, India.Tel: +91 22 6692 4848 | Email: [email protected]


encouraged to set up repair facilities within India. Having best quality lubrication systems utilized timely go a long way in reducing spares consumption of mechanical nature. Good quality grid and LVRTs go a long way in enhancing the life of electrical and electronic spare parts. Expenditure on high quality lightning protection spares and arrestors greatly reduce consumption of electronic and electrical spares. Development of courier agencies to deliver spares in shortest possible time frames to the wind farm can help in reducing stocking levels.

c. Hiring of Plant and Machinery: Hiring of large cranes, trailers and transport can dramatically increase O&M costs in a wind farm. High quality lubrication protocols, proactive replacement of smaller bearings and condition monitoring mechanism can reduce such costs significantly. A simple exercise like proactive replacement of front bearings on first sign of wear and tear through grease leakage brought down major update costs by 25%. Also idle time of such cranes, trailers and transport need to be minimized by careful scheduling and clubbing of tasks.

d. Civil Infrastructure O&M: Often compromises are done in maintaining roads within a wind farm. In the peak of the monsoon during high wind season India produces close to 80% of its wind power. Poor roads delay access times to turbines, prevent major updates and create considerable losses in generation.

e. Blade O&M: PM and regular monitoring of blade surface wear and tear can extend the life of a blade to last as much as the life of the wind turbine i.e. 25 years. There is a need to ensure this protocol is strictly adhered to. Also often due to poor procurement and supply chain protocols life of costly blade paint and maintenance materials are compromised. Just in time processes for such short shelf life spares go a long way in reducing O&M costs. Use of high resolution cameras, travelling internal cameras, quadcopters, man basket and rope access techniques enable quicker blade O&M on the turbine itself.

f. Vehicle and Fuel Costs: The size of wind farms and their distance from habitation drive up vehicle hiring and fuel costs. Upto 10% of O&M costs are often contributable to this. Use of better transportation models, GPS systems etc. need to be emphasized to O&M teams on site to reduce such expenditure.

The Politico-Socio-Economic Angle in India

Every state in India has a different socio-political environment. The levels of economic development across states are still skewed. Wind farms primarily exist in seven states of India and the difference in overall environment makes it feel like working in seven different countries. The typical issues in each state are given below. Disruptions due to local issues, ROW, agitations, thefts etc. cause losses amounting to huge amounts in generation and other forms of payments.

a. Tamil Nadu: Poor control by the political establishment on the DISCOMs and EBs has seen huge losses due to back downs on wind power in the high generation season. A strong action by IWPA in terms of giving better forecasting and scheduling analysis to the state is helping in reducing some of these losses. However, despite this, good liaison with state electricity authorities and lower level staff can bring down some of this impact. In peak season this can reduce back down losses in generation by over 25%.

b. Karnataka: There is a need to have strong relations with local Panchayat leaders as otherwise increased political activism amongst farmer communities sees a lot of losses on wind OEMs due to local issues, blocking of roads, prevention of tree trimming below electrical lines. In addition, Karnataka has lots of wind farms located in forest areas, good documentation and environmental clearances in project stage prevent disruption and distress during the O&M phase.

c. Andhra Pradesh: This state is relatively nascent in wind power and there is a need to educate and impart awareness to state authorities on the peculiarities of wind power seasons and impact of curtailments. Again strong

9%

8%

23%

5%

9%

31%

15%

SecurityVehicleEmployeeSpecial Tasks

AMC VendorBreakdown Maint

Fig 1: Breakdown of Wind Turbine O&M Costs


relations with local panchayats help in reducing ROW and other disruption of wind farm activities.

d. Maharashtra: This state is characterized by a high level of interference by lower level politicians and government officials. Strong liaison with the police is essential to minimise losses due to disruption. There is also therefore a need to have very strong documentation always available on site to minimise disruption due to these elements. In addition, the state is very prone to local leaders stopping wind farm activities during heavy rains, drought etc. Good drainage systems on wind farms should carefully avoid flooding of farms of locals during the high rainy season. Road construction in hilly areas must be carefully done to prevent future landslides. The areas around Beed and Ahmednagar are drought prone and there is a need to have CSR activities to alleviate problems of local farmers in these areas. The construction of the grid in Maharashtra must be done in a manner where strong documentation is available for all elements of the grid in terms of ROW, pole payment, land payment, approach road payments, tree trimming agreements etc. Otherwise, wind farms operations are often disrupted by local leaders and mischievous elements. Similarly outsourcing of technical manpower is another area where local leaders often play a role in this state.

e. Gujarat: This state while being relatively easy from business friendliness and governance has very strong panchayat leaders. In case of electrical fires, death of peacocks on the grid etc. Panchayat leaders has been known to disrupt and claim very high damages from wind industry. Also lack of clarity on Gauchar land has often seen wind turbines shut down for long periods due to local issues. Strong documentation and synergy with panchayat leaders and local administration is very critical for smooth functioning of O&M. The use of bird cages and protective measures to reduce deaths of birds on electrical grids are critical. Grass cutting and tree trimming in dry season needs to be monitored very carefully to prevent losses to farmers and compensations from wind industry.

f. Madhya Pradesh: This state has a peculiar problem of sudden increase in incidences of theft of copper cable and earthing cable. Otherwise it is a largely stable state.

g. Rajasthan: Rajasthan is poised to become the leading state in wind turbine installations in India. However, extreme levels of poverty see unique challenges especially in the Jaisalmer district which is the heart of the wind industry in Rajasthan. Theft of power cables, earthing cables, metal bracings from towers on power lines has often brought large wind farms to crippling halts. There have been cases

when double circuit towers have collapsed due to theft of bracings causing weakening of towers and hundreds of turbines deprived of generation for long periods. Also there is a need to hire vehicles required for O&M right across all villages spanned by the wind farms. In case any village feels it is deprived there is a strong chance of local strong men from the village depriving access to the wind farms. Anti-theft measures include electronic surveillance, higher security manpower on fast moving SUVs, providing such SUVs to local police men etc. The most effective anti-theft measure has been seen to be the hiring of local village strong men for security of wind farms as otherwise they were seen to be abetting the power cable theft industry.

Strong clearances from all agencies involved in project stage, good documentation on site, strong legal teams, liaison with local police, local political bodies and village panchayats, generation of employment by hiring of vehicles, security and outsourced manpower and good CSR activities form an important component at strategic level for a good O&M company to maximize availability and generation in the Indian environment.

Conclusion

The difference between an average O&M and high end O&M could mean increased yields of even upto 20%. The key aspects of strategy of wind farm O&M to optimise performance can be summarized as:

a. Good Liaison: An O&M organisation acts as a “conduit for communication” between the wind farm owner, turbine manufacturer, maintenance contractors, inspectors, land owners, neighbours, authorities and emergency services.

b. Strong Scheduled Maintenance, Regular Inspections and Quality Audits

c. The Right Technology: This includes conditioning monitoring systems, remote monitoring, and supervisory control and data acquisition (SCADA).

d. HSE Protocols

e. Rapid Response to SCADA Information: O&M providers need to guarantee response times to alarms, “24 hours per day, seven days a week”. In some instances, a local or remote reset of equipment may be necessary, while sometimes a technician may have to attend the site to diagnose the problem.

f. Spare Part Planning

g. High End Data Analytics


How the equipment (WEC) is Unique?

WEC is the equipment / dynamic device that is installed and operated for its life span of 20-25 years in outdoor (more predominantly remote villages) or non-controllable environment unlike equipment under roof of the factory & controlled environment.

Apart from the technology / method used to convert energy available in wind, the environment in which the WEC is being operated also influence a lot, on deciding the operation guidelines and maintenance practices. The environment includes the local adverse climatic conditions and the grid network (including unstable grids) at which the WEC is being connected for evacuating the energy from the Wind.

Product of O&M crew of WECs / WPP

The purpose of the O&M crews is to harness the Wind at all available time during its entire life time. “Energy output” (KWH) from the WEC is the product of an O&M crew.

Goals of O&M

To achieve the aim of highest possible production, O&M has the following goals:

Y Developing the Maintenance strategy based on the following:

1. Sub equipment’s used in the WEC (OEM /designer recommendation).

2. Environment - Ambient conditions (Temperature and Humidity levels, Air quality).

3. Climate cycle (High Wind season, monsoon & Low wind season).

4. Windfarm HT lines and connected substations maintenances.

5. Condition based maintenance based on feedback from Condition Monitoring.

Y Scheduling & performing the maintenance as per the

preventive maintenance strategy and wind forecast

information.

Figure 1: Maintenance Cycle

As strategically the low wind period has been considered

best for major maintenance activity; however in low wind

period also we may have good wind days which are

site specific. So the wind forecasting data may lead to

adjustment in scheduling the maintenance activity.

Y As all the WECs are auto operated based on the wind

velocity, however the evacuation requirement drives the

operator to make the strategy to operate effectively to

achieve more KWH and keep up the reliability of WEC

internal components (Power & auxiliary circuit).

Y Upgrading the maintenance methods / procedure to have

improved perfection and also to optimize the resources

incurred in the maintenance activity.

Operation and Maintenance of Wind Energy Converter (WEC)/ Wind Turbine Generator (WTG) in India

S.R. Prabhu Senior Vice President,

O&M

M. Vivekanandan Manager, O&M

ReGen Infrastructure and Services Private Limited, Chennai


Blade Maintenance Using Skylift

Wind Vane Alignment Fixture – Avoids the manual errors while aligning the wind vane along with the axis of the WEC

The Team performs the maintenance by adopting innovative optimized method; Pitch bearing replacement without Crane

The Blade Maintenance – Optimizing the resources innovative method


Y Planning the Breakdown maintenance resources based on the reliability of components as per design and site specific operating condition.

Y Continuous monitoring of WECs and making predictions based on the data analytics. Understanding the behavior of each WEC in the wind farm by the generated output and various process parameter and data.

Y Liaison with State Electricity board and Transmission and Distribution (T&D) companies to maintain the evacuation system healthier and executing energy reading and invoice process. Maintaining the wind farm electric (Balance of Plant - BOP) in healthier condition.

Y Maintaining the wind farm infrastructure facilities like internal roads for easier access to the WEC’s.

Y Coordinating with Load Dispatch Centre (LDC) and wind forecasting agency for effective implementation of load scheduling process.

Y Ensuring the safety of all internal and external stakeholders, all other equipment’s, tools, measuring instruments, spares inventory etc. in all activities.

Y Preserving the environment in sites while using the resources and disposing the waste from the maintenance activities.

The Team O&M

Technically qualified personnel employed as operator. Operator performs as maintenance technician as well for the WEC, Wind Power Plant (WPP). This is the best suitable and successful model for WEC /WPP O&M.

� Core Team at Site – Real Performers

The team of technical people has to work in WEC without supervisor unlike factories/plant.

The site team should be highly self-motivated to understand and perform the duties with high zeal always in challenging environment unlike factories with controlled boundary. So, the support teams at central offices of O&M and customer must provide right support.

We have sophisticated tools to assist the O&M team by processing the data from WEC’s.

The output of those tools needs to be used properly by the team available at site positively.

� Support team at Central office

The team at central office provides continuous support to the site team in terms of resources & enhancing the performance of the WEC’s and for the maintenance activities technically and administratively.

Modern Tools for O&M

² Enterprise Resource Planning (ERP) software with LSMW (Legacy System Migration Workbench) enabled – To have better reports on activities of the WECs for analyzes.

² SCADA for WPP.

² Wind farm Analytics - Analytics from SCADA data at Wind Power Plant (WPP) level.

² Condition Monitoring Tools - Lubricant (Grease / Oil) analysis, vibration measurement, shock pulse measurement.

Figure 2: The Frequency spectrum and time series signal of Shock pulses of main bearings.

When / where Asset (WEC) care starts...

The Asset (WEC) care needed to maintain the reliability of components to fulfill the intended function through its lifespan.

The answer for the question “From when asset care starts to have intended function through lifetime” is just after assembly of WEC sub assemblies....

To achieve the designed reliability of components used in WEC; the care needs to be ensured from each of the following stages of WPP.


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1. Transportation of sub-assemblies.

2. Storage of the sub-Assemblies at yards.

3. Ensuring the care during erection, and commissioning

4. During the period in between commissioning and the Grid commissioning in our current Indian scenario.

5. After commissioning & during operation.

Challenges of O&M

² Currently, the biggest challenge is to find and retain the skilled technical manpower at site. As our industry practice has to attract the technical people to stay and work in sites by ensuring the needs of the family life.

² Support from government and local public near the site to eliminate antisocial elements which are creating ROW issues and involving theft of components.

Key factor for the Successful WPP

The success of WPP is mainly depend on the team effort all interested parties from OEMs, O&M sub-contractor / supplier, customer, state utilities and local public.

Now a days, for enhancing the overall resource availability of WPP, the IPP customers are building a stronger team of people to monitor closely to get the better return of investment of the WPP (Wind Power Project). The collaborative, proactive and positive approach is very much essential from both sides of O&M experts and customer managers for the successful project returns and the effective asset management for the project life span.

This has been proved in one of our projects, that ReGen O&M team along with customer team has been awarded the ‘best operator of the year’ for one of its wind farm in the country due to their devoted efforts by the O&M team and the customer team.

– “The best Team can only win the Game even in the Singles Game“.

Wind Industry News

² Gamesa India has got an order for setting up 50 MW wind power project at Kayathar in Tamil Nadu from Perpetual Investment, a group entity of Atria Power for supply, erection and commissioning of 25 units of G97, 2 MW wind turbines with a hub height of 104 m.

² LM Wind Power is setting up its second blade manufacturing plant in Halol industrial area near Vadodara in Gujarat in India which will start operations in March 2016. The plant will focus on blades up to 60 metres with room for expansion and will employ more than 300 people in the initial phase, mainly from the local area.

² Suzlon Energy Ltd has received an order for the supply and installation of 31.5 MW of turbines at a wind farm in Telangana for several 2.1-MW S97 wind turbine generators (WTGs) to Hero Future Energies (HFE) for installation on 120-metre hybrid towers that combine both lattice and tubular structure.

² ReGen Powertech is gearing up to launch its 2.0 mw wind turbine by June, 2016 in the Indian market. The company is also readying a 2.8 mw wind turbine specifically for the export markets.

² Gamesa India has entered into a twin agreement with Ostro Energy for turnkey supply, erection and commissioning of 100 MW of wind energy project at its Amba site in Madhya Pradesh by February 2017 and another 100 MW project at Nimbagallu site in Andhra Pradesh by December 2016.

² Inox Wind Limited has announced the commissioning of its 800 MW blade facility at Barwani district in Madhya Pradesh having an annual production capacity of 400 rotor blade sets and eventually also have an annual manufacturing capacity of 400 nacelles and hubs, 300 towers and will double Inox Wind’s production capacity to 1,600 MW.

² NuPower Renewables has commissioned 30-MW wind power project in Maharashtra on a self development basis with 2.05 MW wind turbines

manufactured by NuPower with advanced German technology from Wind-to-Energy (W2E).

² ReGen Powertech has won a Rs 500-crore (75 MW) order from the Malpani group for its project coming up in Madhya Pradesh. The company has also won the orders from the Hero group, Sembcorp Green Infra, Ghari Detergent, Ruchi Soya, Sancheti Properties and Royal Classic for wind turbine installations.

² Andhra Pradesh government has decided to enter into an MoU with Suzlon Energy Ltd for manufacture and development of 4,000 MW Renewable Energy Power Projects (Wind Energy) and Wind Solar Hybrid Systems and to establish Wind Turbine Generator manufacturing facilities in the State.

² Indian solar and wind projects developer Welspun Renewables has commissioned the 126-MW wind farm in Pratapgarh district in Rajasthan.

² Tata Power and Gamesa have entered into a pact for a 100 MW wind turbine project at Nimbagallu in Andhra Pradesh for supply, erection and commissioning of 50 units of wind turbines by May 2017.

² Inox Wind Infrastructure Services Limited has acquired 100% stake in Sarayu Wind Power (Tallimadugula) Private Limited.

² Inox Wind Ltd has agreed to co-develop a 3-MW machine for its home market with technology partner AMSC. Inox Wind has also entered into a licensing agreement to buy from the US wind and grid technology company the rights to manufacture 2-MW electronic control systems in-house in India. Currently, the firm imports this “critical” wind turbine component from AMSC.

² Suzlon’s S97, 2.1MW prototype turbine with a hybrid tower in Gujarat has achieved 35 per cent plant load factor (PLF) in the last 12 months.

² India’s renewable energy sector has got investments worth more than $100 billion over the last eight months in 2015, as per the report released by the Institute for Energy Economics and Financial Analysis (IEEFA).


Incentive Nomenclature /

Key Policy Enablers

State/Central

MinistryNodal /

Implementing Agency

Brief Description Policy Document

Accelerated

Depreciation

Benefits (AD)

Central Ministry

of Finance

(MoF)

Income Tax

(IT)

Accelerated depreciation (AD) is a

fiscal incentive which allows investors

to claim 80% of depreciation in the

first year, allowing them to write off

the investment more quickly. AD for

wind was withdrawn in 2012 only to

be reinstated in 2014 (refer policy

link)

AD IT Notification

http://climatechampion.

wikispaces.com/file/

view/Income+tax+8th+

amendement+2014.

pdf/567734547/

Income%20tax%208th%

20amendement%202014.pdf

Initial

Depreciation

allowance

for Power

Projects

Central Ministry

of Finance

(MoF)

Income Tax

(IT)

In order to encourage new investment

in business of generation or generation

and distribution of Power an initial

depreciation shall be allowed @ 20%

of actual cost of new machinery or

plant acquired and installed in the

previous year. Amendment w.e.f. from

1st April 2013.

IT Notification


wikispaces.com/file/view/

Additional+Depreciation.

pdf/567734775/Additional%20

Depreciation.pdf

IT 80 IA Tax

Holiday

Central Ministry

of Finance

(MoF)

Income Tax

(IT)

The law allows a power producer to

claim tax exemption for upto 10 years

within the first 15 years of a project's

operations. However for Corporates

MAT @ ~21% shall be applicable.

The eligible date for projects in the

power sector to avail the benefit

under Section 80-IA of the Income

Tax Act stands extended from March

31, 2014 to March 31, 2017.

IT Notification - 80IA



Income+Tax+Section+80IA.

pdf/567734997/Income%20

Tax%20Section%2080IA.pdf

Researched & Compiled by Nitin Raikar ([email protected])

Summary of Key Incentives / Policy Facilitators Indian Wind Energy Sector



Key Policy Enablers

State/Central

MinistryNodal /

Implementing Agency


100% FDI in

wind sector

Central Ministry

of Finance

(MoF)

Reserve Bank

of India (RBI)

FDI in the power sector is permitted

through the automatic route (does

not require any prior approval either

by the Government or RBI).There

is no sectoral cap and 100% FDI is

allowed.

RBI Notification


wikispaces.com/file/view/RBI+

Circular+100+percent+FDI+P

ower+Sector.pdf/567735121/

RBI%20Circular%20100%20

percent%20FDI%20Power%20

Sector.pdf

IREDA

Refinance

Scheme

Central Ministry

of New &

Renewable

Energy

(MNRE)

Indian

Renewable

Energy

Development

Agency Ltd.

IREDA has introduced a Refinance

Scheme for the promotion of

Renewable Energy applications in the

country, with the aim of expanding the

commercial market through financial

incentives through refinance at

concessional rates. The IREDA NCEF

Refinance Scheme aims to bring

down the cost of funds for Renewable

Energy projects by providing refinance

at concessional rates of interest, with

funds sourced from the National Clean

Energy Fund (NCEF). The Scheme will

be in operation for a period of five

years commencing from the financial

year 2013-14.

IREDA Re-Finance Notification



IREDA+NCEF+Refinance+

Scheme_Mar+2014.pdf/

567735233/IREDA%20NCEF%

20Refinance%20Scheme_

Mar%202014.pdf

Generation

Based

Incentive

(GBI)

Central Ministry

of New &

Renewable

Energy

(MNRE)

Indian

Renewable

Energy

Development

Agency

(IREDA)

The Ministry of New and Renewable

Energy (MNRE) has reinstated the

Generation Based Incentives (GBI).

Under the scheme, GBI will be

provided to wind electricity producers

@ Rs. 0.50 per unit of electricity fed

into the grid for a period not less than

4 years and a maximum period of

10 years with a cap of Rs. 100 Lakhs

per MW. The total disbursement in a

year will not exceed one fourth of the

maximum limit of the incentive i.e.

Rs. 25.00 Lakhs per MW during first

four years. The GBI scheme will be

applicable for entire 12th plan period

having a target of 15,000 MW.

Generation Based Incentive

(GBI) Operational Guidelines



RevisedOperationalGuidelines

for GridConnectedWindPower

Projects underExtensionGBI

Scheme% 282012-

2017%29.pdf/567735377/

RevisedOperationalGuidelines

forGrid ConnectedWindPower

Projectsunder

ExtensionGBIScheme%

282012-2017%29.pdf



Key Policy Enablers

State/Central

MinistryNodal /

Implementing Agency


Priority Sector

Lending

Central Ministry

of Finance

(MoF)

Reserve Bank

of India (RBI)

In an attempt to align itself with

the policy priorities of the Indian

government, the Reserve Bank of India

has revised the priority sector lending

norms, and has accorded priority

sector lending status for renewable

energy. As per RBI’s notification,

banks can now provide loans upto

a limit of Rs150 million to borrowers

for solar, biomass, wind, and micro-

hydel power generation, and also

for renewable energy based public

utilities like street lighting systems

and remote village electrification. For

individual households, the loan limit

has been set to Rs 1 million per

borrower.

Priority Sector Lending for

Renewable Energy



view/RBI_Priority

+Sector+Lending_2015_

Renewable+ Energy.

PDF/567735505/RBI_Priority%

20Sector%20Lending_2015_

Renewable%20Energy.PDF

National

Clean Energy

Fund (NCEF)

Central Ministry

of Finance

(MoF)

Inter-

Ministerial

Group (IMG)

National Clean Energy Fund (NCEF)

has been created for funding research

and innovative projects in clean energy

technologies & is one of the primary

vehicles for climate change finance

in India. It was created through the

Finance Bill of 2010-11. Clean Energy

Cess is being levied on coal produced

in India, as well as on imported coal.

The cess so collected is transferred to

NCEF. By levying a tax of Rs. 50/ton

on coal consumed with in the country,

the NCEF was created in 2010 mainly

for developing and deployment of

clean energy in the country. In 2014,

this levy was raised to Rs. 100/ton,

and then in the 2015 budget, this

levy has been further raised to Rs.

200/ton which will result in an annual

fund of~Rs. 14,000 crore. This fund

can go a long way in accelerating the

growth of clean energy.

NCEF Guidelines with

Q&A compilation



view/Guidelines_proj_

NCEF_18042011+and+

11062014.pdf/567735657/

Guidelines_proj_NCEF_

18042011%20 and

%2011062014.pdf



Key Policy Enablers

State/Central

MinistryNodal /

Implementing Agency


Renewable

Purchase

Obligation

(RPO)

Central

/ State

Central

Electricity

Regulatory

Commission

(CERC)

State

Electricity

Regulatory

Commissions

(SERCs)

Renewable Purchase Obligation (RPO)

means the requirement specified

by the State Electricity Commission

under clause (e) of sub-section (1) of

Section 86 of the Electricity Act, 2003,

for the obligated entity to purchase

electricity from renewable energy

sources. The responsibility of setting

RPO targets and implementation rests

with the State Electricity Regulatory

Commissions (SERCs).

Electricity Act, 2003



The+Electricity+Act_2003.

pdf/567735897/The%20

Electricity%20Act_2003.pdf

Renewable

Energy

Certificates

(RECs)

Central Central

Electricity

Regulatory

Commission

(CERC)

National Load

Despatch

Centre

(NLDC)

Renewable Energy Certificate (REC)

mechanism is a market based

instrument to promote renewable

energy and facilitate compliance

of renewable purchase obligations

(RPO). This concept seeks to address

the mismatch between availability of

RE sources and the requirement of

the obligated entities to meet their

RPO.

Renewable Energy Certificate

- Reference documents

https://www.recregistryindia.nic.

in/index.php/general/publics/

Reference_Documents

Excise Duty

Exemption

Central Department

of Revenue

Ministry

of Finance

(MoF)

Central Board

of Excise &

Customs

Major Wind Operated Electricity

Generator (WOEG) parts such as

tower, nacelle, rotor, blades, wind

turbine controller etc. are eligible for

exemption from Central Excise duty

vide F.No.201/08/2015-CX.6

Excise Duty notification



Circular+No.+1008_15_2015-

Central+Excise.

pdf/567736073/

Circular%20No.%20

1008_15_2015-Central%20

Excise.pdf

Customs Duty

Exemption

Central Department

of Revenue

Ministry

of Finance

(MoF)

Central Board

of Excise &

Customs

Certain key Wind Energy components

and allied raw materials enjoy customs

duty concessions & exemption.

On receipt of MNRE certificate,

concessional Basic Customs Duty

is applicable & Special Additional

Duty(SAD) is waived off. Wind Energy

components are exempt from Counter

Vailing Duty (CVD).

Customs Duty Notifications



Customs+Notifications_GE_

SAD_CVD.pdf/567736833/

Customs%20Notifications_GE_

SAD_CVD.pdf



Key Policy Enablers

State/Central

MinistryNodal /

Implementing Agency


EXIM Policy Central Ministry of Commerce & Industry

Department of Commerce Directorate General of Foreign Trade

Under the Export Promotion Capital Goods (EPCG) Scheme, Foreign Trade Policy (FTP) 2015-2020 reduced export obligation for green technology products. For exporters of Green Technology Products, Specific Export Obligation (EO)shall be 75% of EO as stipulated in Para 5.01 of the policy. There shall be no change in average EO imposed, if any, as stipulated in Para 5.04. Wind Turbine is included in the Handbook of Procedures (refer para Para 5.29).

Foreign Trade Policy (FTP) 2015-20

http://climatechampion.wikispaces.com/file/view/Foreign+Trade+Policy+2015-20+and+Handbook+of+ Procedures.pdf/567737807/ Foreign%20Trade%20Policy%202015-20%20 and%20Handbook%20of%20Procedures.pdf

Renewable Energy Act (Draft)

Central Ministry of New & Renewable Energy (MNRE)

Ministry of New & Renewable Energy (MNRE)

The Draft Renewable Energy Act for India broadly proposes provisions for institutional structure (constitution of decision-making and advisory bodies in the government), supportive ecosystem (RE Policy and Plan, Resource assessment, policies on testing, M&V, and indigenous manufacturing of components), economic and financial framework, (constitution and operation of national and state level funds) to support achieving of the objectives of the Act, and renewable energy applications including distributed and grid connected renewable electricity.

Draft Renewable Energy Act

http://climatechampion.wikispaces.com/file/view/Draft+RE+Act+_2015+and+Key+Features.pdf/567738579/Draft%20RE%20Act%20_2015%20and%20Key%20Features.pdf

National Offshore Wind Policy

Central Ministry of New & Renewable Energy (MNRE)

National Institute of Wind Energy (NIWE)

Union Cabinet approves the National Offshore Wind Energy Policy. With this approval, the Ministry of New & Renewable Energy (MNRE) has been authorized as the Nodal Ministry for use of offshore are as within the Exclusive Economic Zone (EEZ)of the country and the National Institute of Wind Energy (NIWE) has been authorized as the Nodal Agency for development of offshore wind energy in the country and to carry out allocation of offshore wind energy blocks, coordination and allied functions with related ministries and agencies.

Gazette Notification - National Offshore Wind Policy

http://climatechampion.wikispaces.com/file/view/National-Offshore-Wind-Energy-Policy-Gazzette-notification.pdf/567738773/National-Offshore-Wind-Energy-Policy-Gazzette-notification.pdf



Key Policy Enablers

State/Central

MinistryNodal /

Implementing Agency


Corporate Social Responsibility - RE

Central Ministry of Corporate Affairs (MCA)

Ministry of Corporate Affairs (MCA)

The new Companies Act, 2013, has made it mandatory for companies to be socially responsible by introducing the ’corporate social responsibility’ (CSR) regime. Section 135 of the new Companies Act, read with the CSR Rules, mandates companies meeting certain criteria to set aside two percent of their net profits for under taking and promoting socially beneficial activities and projects in India. The ministry has also prepared an illustrative list of activities that can be classified as CSR work. Among them, “Renewable Energy projects” would be considered as a CSR activity provided that it is not part of the particular company’s business.

New Companies Act, 2013 - CSR Clarification

http://climatechampion.wikispaces.com/file/view/MCA_CSR_General_Circular_21_2014.pdf/567742297/MCA_CSR_General_Circular_21_2014.pdf

Electricity Amendment Bill, 2014

Central Ministry of Power (MoP)Ministry of New & Renewable Energy (MNRE)

Central Electricity Regulatory Commission (CERC)

Promotion of Renewal Energy: In order to accelerate the development of Renewable Energy sources, a number of measures including the provision for a separate National Renewable Energy Policy, development of renewable energy industry, Renewable Generation Obligation on coal and lignite based thermal power plants, specific exemptions to Renewal Energy sources from open access surcharge, separate penal provisions for non-compliance of Renewal Purchase Obligation etc., have been envisaged.

Electricity Amendment Bill 2014

http://climatechampion.wikispaces.com/file/view/Electricity+Amendment+Bill+ 2014.pdf/567742507/Electricity%20Amendment %20Bill%202014.pdf

Green Energy Corridor

Central Ministry of Power (MoP)

Power Grid Corporation of India Ltd.

The Green Energy Corridor project is aimed at transmission of renewable energy from generation points to the load centres by creating intra-state and inter-state transmission infrastructure. The intra-state transmission component is being implemented by respective states while PGCIL is executing the inter-state part. It seeks to address intermittency and variability aspects as well as grid integration issues of large-scale renewable energy generation

PGCIL Green Corridor Report

http://www.powergridindia.com/_layouts/PowerGrid/User/ContentPage.aspx?PId=296&LangID=english



Key Policy Enablers

State/Central

MinistryNodal /

Implementing Agency


Ujwal DISCOM Assurance Yojna (UDAY) Scheme - Financial bailout for revival of Power Distribution companies (Discoms )

Central Union

Cabinet

Ministry of

Power (MoP)

The Union Cabinet today approved

the financial bail out for revival

of Power Distribution companies

(Discoms) mooted by Power Ministry.

The weakest link in the value chain is

distribution, where in Discoms in the

country have accumulated losses of

approximately Rs. 3.8 lakh crore and

outstanding debt of approximately

Rs. 4.3 lakh crore as on March,

2015. Financially stressed Discoms

with the potential to seriously

impact the banking sector and the

economy at large are notable to

supply adequate power at affordable

rates thus adversely affect national

priorities. This will expedite FIT

payments to wind energy investors.

Ujwal DISCOM Assurance Yojna (UDAY) Scheme



UDAY+%28Ujwal+DISCO

M+Assurance+Yojana%29.

pdf/567742709/UDAY%20

%28Ujwal%20DISCOM%20

Assurance%20Yojana%29.pdf

National Wind Mission

Central Central

Ministry

of New &

Renewable

Energy

(MNRE)

Ministry

of New &

Renewable

Energy

(MNRE)

Recognizing the importance of

wind power in India, the Planning

Commission had recommended

establishment of a National Wind

Energy Mission in the 12th Five

Year Plan. A concept note for the

establishment of the Mission was

accordingly prepared by MNRE after

preliminary consultation with various

stakeholders. As of date the NWEM is

awaited.

National Level Consultation on National Wind Energy Mission



view/MNRE_NWEM_

National+Level+Consultation.

pdf/567742901/MNRE_

NWEM_National%20Level%20

Consultation.pdf

National Renewable Energy Target of 175 GW by 2022

Central Ministry

of New &

Renewable

Energy

(MNRE)

Ministry

of New &

Renewable

Energy

(MNRE)

India has an ambitious target of

installing 175 GW of renewable

capacity by 2022. This 175 GW

comprises of 100 GW (Solar), 60 GW

(Wind), 10 GW (Bio Mass Power), and

5 GW (Small Hydro Power). Achieving

this calls for US $120 billion in capital

investment and equity of US $40

billion. The adoption of a large target

of 175 GW of RE capacity (excluding

large hydro) by 2022 is a bold step

towards a future RE denominated

electricity system.

MNRE 2020 RE Targets



MNRE_175GW+ Renewable-

Power-by-2022.pdf/

567743081/MNRE_175GW

%20Renewable-Power-

by-2022.pdf



Key Policy Enablers

State/Central

MinistryNodal /

Implementing Agency


Preferential

Feed in Tariff

Central

/ State

Central

Electricity

Regulatory

Commission

(CERC)

State

Electricity

Regulatory

Commissions

(SERCs)

Most ERCs have put in place

technology specific FiTs for their

states as is mandated by the E-Act.

These tariffs are developed in a public

consultative process after giving

due consideration to views from

all stakeholders. After considering

all relevant fixed, operating & fuel

costs and the normative generation

from each resource, a levelized tariff

formulated with due consideration

for return on equity, generally in

the range of 16%. Such tariffs once

decided hold over the length of the

PPA(~20yrs). Tariffs are revised each

year for new upcoming projects.

National Tariff Policy 2006



National+Tariff+Policy+2006.

pdf/567743341/National%20

Tariff%20Policy%202006.pdf

VAT

Exemption in

certain Wind

States

State State

Government

Revenue

Department

Value Added Tax (VAT) is exempted

in Madhya Pradesh & Rajasthan for

Wind Energy

VAT Exemption (MP & Raj)



MP+and+Raj+Vat+Exemption_

Schedule+I.pdf/567743601/

MP%20and%20Raj%20

Vat%20Exemption_Schedule

%20I.pdf

Miscellaneous

State specific

benefits

State State

Govern-

ments

SERC/State

Utilities

1) Electricity Duty exemption for

energy generated from wind

energy (some states offer ED only

for captive use for specific period)

2) Sale of Electricity from Wind Energy

does not attract Sales Tax

3) Certain States have implemented

favourable provision for wheeling,

banking and third party sale by

wind power. These provisions

however differ from state to state.

4) Certain states offer revenue land at

concessional rates or permit setting

up wind projects in waste land.


Chintan Shah, President & Head, Strategic Business Development, Suzlon Energy Limited, Pune

Wind Energy in Karnataka Towards attaining Energy IndependencePresentation made at the Regional Workshop on Wind Energy (an IWTMA - CII Initiative to discuss prospects, opportunities and challenges of the Wind Power sector) on 7th January 2016 at Bangalore.

Wind Energy in India: Journey till Now (A Snapshot)

² Installed base of over 25,000 MW spread across 8 states

– Resource potential: 300 GW + 100 GW (off-shore)

² Investor mix till this date: Broad classification

– 40% captive power producers (MSME sector) –Heavy reliance on Accelerated Depreciation (AD)

– 30% mix (PSUs, retail investors)

– 30% IPPs (latest entrant)

² Technology evolution over past few years

– Size: 250 kW size going to multi-mega watt (viz. up to 2.5 MW) in turbine size

– Class: From class II to Class III and IV wind turbines (which produce at lower wind speeds)

– Height: Hub height from 50 meters to now 120 meters

² Employment generation: Mostly rural or semi-urban areas

– Direct: 1,00,000

– Indirect: 10,00,000

² Export

– Averaging of USD 500 million on an annual basis

After going through a tough time, the sector has now all elements for revival of growth.

Wind Energy: Advantage Karnataka

² The state offers vast wind resource for harnessing wind energy

– 56 GW potential at 100m (as per the latest estimates by NIWE)

– 2720 MW (commissioned as on 31st September 2015)

– Only 20.9 MW has been installed in 1sthalf of 15-16 against 226.5 MW in same period previous year

– 380 MW+ (to be added in FY15-16)

² Various IWTMA members/OEM have/are setting up green field manufacturing units in the state

– AkzoNobel, LM Wind, SKF, Suzlon, Wind World has manufacturing units in Karnataka.

² Various OEMs and developers are geared up to develop wind projects in Karnataka and the industry is confident that state has a potential to do 600 - 700 MW/Year.

² At 700 MW/yr the state will attract further investment both from OEM’s and component manufacturers who are members of IWTMA.

Certain Issues: Need to look into by Government of Karnataka

² Ease in business and to have a clear vision and clarity for development of wind energy projects in the coming years

Tariff related

– Tariff @4.50/kWh is low

– Tax as pass through in tariff is not –tax efficient structure

Policy related:

– RE policy 2014-2020 to be expedited

– Cross subsidy charges on Third party sale under W&B sale to be removed.

– Restriction on private land purchase by corporates

– Revenue lands should be allowed to set up wind power projects without going through the restrictions on such lands, i.e. Reserved for Grazing, Gomalor Hullubannietc.

• The Wind Power Projects do not bar or hinder grazing of cattle in the project lands


Forest Issues

Compulsory Afforestation

– Identification of non-forest lands for Compensatory Afforestation (CA), has become very difficult

– The existing CA charges are 1.52 lakh/Ha and the enhancement of rate is expected. to Rs. 2.34 lakh/Ha with in a month. This includes 10 years plantation maintenance.

Possible Solution

– Karnataka Forest Department has identified more than 4.0 lakh Hectares of land in Deemed Forest category, which is not mutated nor developed by the FD. The same land can be allocated for each of the project.

– Where CA lands are not available GOK/GOI should grant approval by collecting 2xCA charges.

Medicinal Plantation Charges

– Medicinal Plantation Charges are at the rate of CA Charges

Possible Solution

– Raising of Medicinal plantation component may be exempted for Wind Energy Sector, since majority of the

projects lies in highly, degraded, Rocky, Windy areas, where

in, no or sparse vegetation exists and will not support the

medicinal plants.

– Charges prescribed by National Medicinal Board may be

made applicable.

Other Issues

– FRA certificate from the DC may be exempted to the

projects establishing in eastern parts of Karnataka, where

there is no tribal settlements exists in the forest area.

– Wind Farm Projects may be shifted from non-linear

category to linear category.

– Soil and Moisture Conservation Charges may be

standardized on par with the National Watershed

Development department restricting the treatment plan

for the executed project area.

– The deviations/violations in drawings which are occurred

during execution of project with in the sanctioned extent

of forest land may be regularized by approving the ‘as built

drawing’ as per the Forest (Conservation) Act 1980.

SHANTIGRAM

UPCL

JAGALUR

KUDIGI

Green Energy Corridor: KARNATAKA - 400KV Existing + Proposed Tr. Lines for Wind and Solar

ChitradurgaWP : 3000Cmd : 1300EF : NilFF : 800 MWC.N.HALLI

KAPNOOR

P

YTPSMUGALKHEDBelgaum

GadagWP : 2200 MWCmd : 650EF : NilFF : 600 MW

WP : 2500 MWCmd : 250EF : 220 MWFF : 1000 MW

400 KV Substation

EF : Existing Feasible CapacityFF : Future Feasible Capacity

TO HINDUPUR

220KV 1

220KV 2

PavagadaWAVAGP : AD1000A MW

BijapurWP : 1800 MWCmd : BI300JAPUREF : NilFF : 1200 MW

765 KV Substation

220 KV SubstationWP : Wind PotentialCmd : Commissioned

Cmd : NilEF :220KV 35 MW 3FF : 1000 MW

Source : CT & STU

Green Energy Corridor: Karnataka

KARNATAKA State grid - Augmentation

– 400KV Dhoni proposed by KPTCL has to be executed from Gadag Area on high priority.

– 400KV SS at Bijapur to be proposed with connectivity to 765/400KV Kudligi proposed substation.

– 400KV SS to be proposed at Pavagada with connectivity to 400KV Hindupur proposed by Andhra Pradesh and 765/400KV Madhugiri SS.

– Two number of 220KV substation’s to be proposed around 400KV proposed Pavagada substation.

– Need a 400 KV substation along with three 220 KV interconnected substations at Nippani.


– 400K construction of 400KV SS near Jagalur has to be expedited on high priority.

– Conversion of 220KV SC line from ITAGI to Davangere with DC line.

– Conversion of 220KV SC line to DC line from Shiralkoppato Ranibennur.

– Interconnection on 400 KV between Hiriyur existing station and Madhugiri’s proposed 765 KV station is a MUST in order to ease the congestion.

– 400KV substations proposed in Northern Karnataka: Kudigi, Kapanoor, Mughalkhed has to be expedited on high priority.

– 400 KV line from Kaigato Mupasa (Goa) (Inter regional) is one of the most essential links due to technical advantage.

Wind Energy: Karnataka - Sum Up

² Advantages

– The state offers vast wind resource for harnessing wind energy

– OEMs and component manufacturers have/are setting up green field manufacturing units in the state

– At 700 MW/yr the state will attract investment of 4200 corers year on year in addition to generating large scale rural employment.

² Issues

– Tax as pass through needs to be clubbed with tariff

– Limitation in private land procurement

– Undue delays in forest land clearance

– Compulsory afforestation and reduction in related charges

– Exemption in allocation of land in tribal areas

– Conversion for wind power projects from non-linear category to linear category

² State Grid Augmentation

– Number of 400 KV / 220 KV are to be commissioned

– Conversion of various lines from Single Circuits to Double Circuits

Certain Issues: Need to look into by Central Government

² To meet the target of 60 GW by 2022

• Green Energy Corridor & Inter-state transmission charges

– Transmission bottlenecks leads & high inter-state transmission charges is one of the biggest hurdles

• Plan and execution of multiple green corridors, and socialization of inter-state transmission charges would lead to a huge boost for investments

• RPO enforcement

– Is a must to support inter-state exchange of energy

• Scheme for indegenisation & infrastructure financing from NCEF

– Scheme on the lines of FINAME (Brazil) for interest subvention for localised product

– Cheaper financing for creating infrastructure (EHV) & logistics

• GST

– Electricity duty is not proposed to be subsumed in GST, while wind energy is exempted from excise today, this will lead to slapping of 18% of GST on the project cost

• RE to be covered under GST and taxed at ‘zero’

• Additional GBI for balancing through storage & funding for ancillary services

– Central government to create a scheme for creating ancillary services by the state government for balancing requirement (viz. pumped hydro)

– Additional GBI for wind-storage options (viz. battery, compressed air)

• Export from India

– Currently, annual exports averages at USD 500 million which has a potential to increase beyond USD 3 billion

• Export policy to be established for wind energy sector

• Low cost working capital required to compete with international players

• Role of EXIM Bank of India for project financing in overseas geographies

Forecasting and Scheduling

² Industry offers full cooperation in forecasting & scheduling of wind power to facilitate higher penetration and help SLDC in load dispatch management and grid stability IWTMA 14

Skill Development

² O&M alone involves 2-3 persons/MW on a continuing basis spread over 25 Years.

² Industry will cooperate with the state government to impart skill development programme at ITI/Diploma level to encourage local employment and avoid migration.


Snippets on Wind Power

Additional Items for SAD Exemption

MNRE has issued a list of parts required for use in the manufacture of Wind Operated Electricity Generators (WOEGs) for issuance of Special Additional Duty (SAD) exemption certificate in addition to Ministry’s O.M. of even no. dated 24.11.2014. The additional items are: slip ring unit, chain/hoist for nacelle, bearing housing, couplling, climbing system and lift, switch gear, gear and generator mount and door frame for tower.

US Congress Passes Omnibus Bill with Five-Year Wind PTC Extension

The Production Tax Credit (PTC) is considered as the U.S. wind industry's most important federal tax incentive, which provides wind developers with a credit of $0.023/kWh for electricity generated to the power grid. On 16th December 2015 both Chambers of Congress passed an omnibus spending bill that includes a provision to extend the expired PTC for five years. President Barack Obama has said he will sign the legislation into law.

COP21 Paris talks: India Satisfied except a line on Coal

India has reasons to be satisfied with the COP21 talks at Paris and Paris Agreement on Climate Change but the inclusion of one line in the article dealing with the deal’s purpose might prove to be a big irritant in its plans to build coal-fired power plants. The line, possibly introduced in the text with India in mind, says that one of the ways the purpose of the agreement could be achieved is by making global “finance flows consistent with a pathway towards low greenhouse gas emissions and climate resilient development”. There are observations that this line could be used by developed countries to arm-twist India on its coal plans on the grounds that it was not pursuing a low-emission pathway. They fear that by using that argument, developed nations can move to deny opportunities for India to raise money abroad. An Indian negotiator admitted that India was not happy with the inclusion of that sentence but said it was “not the most important” provision of the agreement.

India to launch $1-b equity fund for renewable energy

In a question from Congress MP Shashi Tharoor, Piyush Goyal, Minister of State (Independent Charge) Power, Coal and New & Renewable Energy said “We hope to launch a $1-billion private equity fund where the government companies will seed the initial capital and then at a later date we will look at foreign capital to pool with it to provide equity support to companies which want to come and invest in India’s renewable energy sector,”

Addressing a ‘Talkathon’ ahead of the 2015 Paris Climate Conference or COP21, Minister said, “While we hope the Paris talks will help developed countries provide long-tenor low-cost funding, we are also preparing ourselves to see how we can finance our renewable energy thrust.”

The last three German coal mines were closed down forever on 18th December 2015.

Cabinet Approves Amendments in Power Tariff Policy

On 20th January 2016, the Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved the proposal of the Ministry of Power for amendments in the Tariff Policy. For the first time a holistic view of the power sector has been taken and comprehensive amendments have been made in the Tariff Policy 2006. The amendments are also aimed at achieving the objectives of Ujwal DISCOM Assurance Yojana (UDAY) with the focus on 4 Es: Electricity for all, Efficiency to ensure affordable tariffs, Environment for a sustainable future, Ease of doing business to attract investments and ensure financial viability. Highlights of Amendments are:

Electricity:

• 24X7 supply will be ensured to all consumers and State Governments and regulators will devise a power supply trajectory to achieve this.

• Power to be provided to remote unconnected villages through micro grids with provision for purchase of power into the grid as and when the grid reaches there.

• Affordable power for people near coal mines by enabling procurement of power from coal washery reject based plants.


Efficiency:

• Reduce power cost to consumers through expansion of existing power plants.

• Benefit from sale of unrequisitioned power to be shared allowing for reduction in overall power cost.

• Transmission projects to be developed through competitive bidding process to ensure faster completion at lower cost.

• Faster installation of Smart meters to enable “Time of Day” metering, reduce theft and allow net metering.

• Lower power cost by creating transmission capacity for accessing power from across India.

Environment:

• Renewable Power Obligation (RPO): In order to promote renewable energy and energy security, 8% of electricity consumption excluding hydro power, shall be from solar energy by March 2022.

• Renewable Generation Obligation (RGO): New coal/lignite based thermal plants after specified date to also establish/procure/purchase renewable capacity

• Affordable renewable power through bundling of renewable power with power from plants whose PPAs have expired or completed their useful life.

• No interstate transmission charges and losses to be levied for solar and wind power.

• Swachh Bharat Mission to get a big boost with procurement of 100% power produced from Waste to Energy plants.

• To release clean drinking water for cities and reduce pollution of rivers like Ganga, thermal plants within 50 km of sewage treatment facilities to use treated sewage water.

• Promotion of Hydro projects through long-term PPAs and exemption from competitive bidding till August 2022.

• Ancillary services to support grid operation for expansion of renewable energy.

Ease of doing Business:

• Generate employment in coal rich Eastern states like Odisha, West Bengal, Jharkhand, Chhattisgarh etc. by encouraging investments. States allowed to setup plants, with up to 35% of power procured by DSICOMs on regulated tariff.

• Remove market uncertainty by allowing pass through for impact of any change in domestic duties, levies, cess and taxes in competitive bid projects.

• Clarity on tariff setting authority for multi-state sales. Central Regulator to determine tariff for composite schemes where more than 10% power sold outside state.

These amendments will benefit power consumers in multiple ways. While reducing the cost of power through efficiency, they will spur renewable power for a cleaner environment and protect India's energy security. They would also aid the objectives of Swachh Bharat Mission as well as Namami Gange Mission through conversion of waste to energy, usage of sewage water for generation and in turn ensure that clean water is available for drinking and irrigation.

These amendments will ensure availability of electricity to consumers at reasonable and competitive rates, improve ease of doing business to ensure financial viability of the sector and attract investments, promote transparency, consistency and predictability in regulatory approaches across jurisdictions. It will further facilitate competition, efficiency in operations and improvement in quality of supply of electricity. These holistic amendments to Power Tariff Policy which complement schemes like UDAY will ensure the realization of Hon'ble Prime Minister Shri Narendra Modi's vision of 24X7 affordable power for all.

Source: PIB, GoI

Theme of Next Issue

The theme of the next issue

of Indian Wind Power is

"Blade Technology".

We invite relevant articles to the

theme. We solicit your cooperation.

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Photo FeatureRegional Interactive Workshop on Wind Energy at Bangalore 7th January 2016

IWTMA and CII Sohrabji Godrej Green Business Centre organized an Interactive Workshop on Wind Energy at Bangalore on 7th January 2016. Photographs taken during the workshop:

From Left to Right: Mr. J K Jethani, Director-Wind, MNRE; Mr. Ramesh Kymal, Chairman and Managing Director, Gamesa; Mr. P Ravikumar, Additional Chief Secretary to Govt, Energy Dept, Government of Karnataka; Mr. D.K. Shivakumar, Hon’ble Minister of Energy, Government of Karnataka; Mr. Ravi Raghavan, Vice Chairman - CII, Karnataka State Council; Mr. Madhusudan Khemka, Managing Director, Regen Powertech and Mr. G V Balram, Managing Director, Karnataka Renewable Energy Development (KREDL)

The delegates at the workshop

Press Meet held on 7th January 2016 at Bangalore during the Regional Workshop

From Left to Right:

Mr. Chintan Shah, Vice Chairman, IWTMA; Mr. Madhusudan Khemka, Chairman, IWTMA; Mr. Ramesh Kymal, Chairman, CCI, RE Council, Godrej GBC and CMD, Gamesa and Mr. D.V. Giri, Secretary General, IWTMA

Media during the Press Meet


IWTMA has initiated a social media campaign to create awareness and promote wind energy.

We are live on Facebook, Twitter and You tube.

You can start by liking and following our platforms

Windergy - Social Media Campaign by IWTMA

Facebook: Windergy India

Page: https://www.facebook.com/windergy.india/?fref=ts

Twitter: Windergy India

Handle: https://twitter.com/WindergyIndia

You Tube: Windergy India

Channel: https://www.youtube.com/channel/UC8QB02llnGtutknhUyouHIw

Website: www.windergy.in

(coming shortly)


Printed by R.R. Bharath and published by Dr. Rishi Muni Dwivedi on behalf of Indian Wind Turbine Manufacturers Association and printed at Ace Data Prinexcel Private Limited, 3/304 F, (SF No. 676/4B), Kulathur Road, Off NH 47 Bye Pass Road, Neelambur, Coimbatore 641062 and published at Indian Wind Turbine Manufacturers Association, Fourth Floor, Samson Towers, No. 403 L, Pantheon Road, Egmore, Chennai 600 008.

Editor: Dr. Rishi Muni Dwivedi

Know Your Member

Mr. Rajesh Jain Managing Director

LPS Bossard is one of the leading fastener companies in India with a strong presence in 14 locations, 4 Distribution Centers and 1 R&D center; headquarter in Rohtak (Haryana). The company is ISO 9001/14001, OHSAS 18001 and ISO 26000 certified and is able to offer customers a full-service package which focused on fasteners and includes technical, engineering support and inventory management.

The company has manufacturing unit across an area of 25,000 square meters with installed capacity of 10,000 metric tons per annum, where hot forging, cold forging and machining capabilities are there. Alongwith, the company also has its heat treatment facility and plating facility for different types of plating like zinc plating, dacromet coating, geomet coating, cadmium plating, hot dip galvanizing etc.

Our customer base is made up of the top Indian and multinational companies, with our assembly technology solutions having been accepted in key customer segments such as power transmission and distribution, healthcare, EMS, railways, defense, automotive, construction equipment, machinery and industrial products, with a high focus in renewable energy such as wind and solar sector.

In order to be successful and grow profitability a company has to have foundations that are made of values, skills and experience. At LPS Bossard we have built such foundations which have given our employees a basis from which to use their skills and abilities every day to successfully master the challenges they face. Our employees and their loyalty provide the basis for our progress.

Our strategy for the future is that we want to build long-term relationships with our customers by raising their competitiveness through excellent performance, innovative application engineering and lean management of the entire supply chain. Our objective is total customer satisfaction, to do this we team up with our customers and together co-create values.

LPS BOSSARD PVT. LTD.

LPS Bossard Pvt. Ltd. headed by Mr. Rajesh Jain as Managing Director. He is also the

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Mr. Vineet Talwar is the Country Manager at LPS Bossard.

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Registered with REGISTRAR OF NEWSPAPERS for India, New DelhiVide No. TNENG/2015/60605 Date of Publishing : 30.01.2016

December 2015 - January 2016