Renewable Energy 2012 Wind Conference 1 Wind power development: Innovative trends to increase project profitability per KwH Mr. Ravindra Utgikar Head -

Renewable Energy 2012 Wind Conference

1

Wind power development:

Innovative trends to increase project profitability per KwH

Mr. Ravindra Utgikar

Head - Corporate Marketing

29th May 2012, Pune


Outline

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Low wind sites: Basics

Case Study

Levers for improving project profitability:

1. New technological concepts2. Indigenous manufacturing of critical components 3. Selecting maintenance strategies for BoP equipments4. RECs: Adding value to the bottom line

Innovative trends to increase project profitability per KwH

Perspective on Indian Wind industry


Projected potential of Indian low wind power is at 102 GW*

Total 16 GW of wind power installed by end Dec 2011

Highly competitive with presence of major global OEM suppliers

Major drivers being FITs, long term PPAs, GBI, RPO & RECs

Low wind sites has potential of ~50 GW*

Source: Center of Wind Energy Technology (C-WET)

Wind Power Potential in India

Low Wind Sites

Perspective on Indian Wind industry

3

Low wind site energy potential in India is more than 3 times the current installed capacity


Power from wind energy reduces exponentially as wind speed drops

Power in wind

energy

Low Wind Sites: Basics

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Wind Power is derived from the kinetic energy of the wind by obstructing its path with wind turbines. Once wind hits a wind turbine blade it results in the following vital equation

Basic Equation of Wind Power

Increases with the cube of the wind speed

Increases linearly with air density

Increases with the square of the rotor diameter

P = ½* ρ * v3 * A * Cp P = Power outputV = Wind speedρ = Air densityA= Swept areaCp = Power Coefficient

Power = 1/2 x Swept Area x Air Density x Velocity3

Power Curve


Low Wind Sites : Qualification

Wind class parameters

Avg. wind speed Extreme 50-year gust Turbulence

5 Source: International Electrotechnical Commission (IEC)

IEC Class I II III IV

Vave average wind speed (m/s) 10.0 8.5 7.5 6.0

V50 extreme 50-year gust (m/s) 70 59.5 52.5 42.0

Turbulence intensity class A B A B A B A B

I15 (Turbulence intensity at 15m/s) 18% 16% 18% 16% 18% 16% 18% 16%

Low Wind Sites

Low wind sites have 40% – 60 % less energy potential compared to high wind sites


Challenges

• Sites typically far from load centres & in remote areas devoid of infrastructure

• Same turbine configuration gives lower generation due to low power in wind

• Low generation leads to lower returns (%IRR) ; difficulty in project financing

• Seasonal winds in low wind sites lead to higher turbine downtime, lowering PLF

Low Wind Sites: Pros and Cons

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Opportunities

• Lower peak loads imposed by wind on the turbine

• A turbine configuration can be designed downwards to make it more cost efficient

• Higher shut down times due to wind speeds lower than cut-off speeds provide ample opportunity for regular turbine maintenance

• Lower wind gusts positively affect the turbine availability

Challenges posed by low wind sites can be overcome by better turbine design and efficient Project & OMS


Des

ign

Pre bending• Clearance to the tower, lighter

blades

Split blades• Next generation blades with

Suitability for mountainous areas

Mat

eria

l

Glass fiber

• Strong material with low cost

Carbon Fiber• Very high strength material but

expensive, future lies here Fibers are extremely stiff and strong and can have a very low

density

Technology continuously reducing the net weight and

increasing the blade’s efficiency

Levers For Improving Project Profitability#1 (a) Blades: New Technological Concepts

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Wind Site Data

Wind speed 7.5 m/s

K factor 2

Wind Sheer 0.15

Hub height 80 m

For the above site parameters S95 WTG produces 10.2% more

electricity than S88 WTG

Innovations make blades lighter, easier to transport and maintain, and help achieve bigger rotor diameter thereby

harnessing more power from the low wind sites


Advancement in generator technology helps improve power capture by reducing losses & also increase reliability

Levers For Improving Project Profitability#1 (b) Generator: New Technological Concepts

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Conventional• Sub-2.5 MW WTGs• Induction, WF synchronous generators• Partial power conversion; full power conversion limited to DD systems

Advanced• 2.5 MW and above rated WTGs• DFIG, Permanent magnet generators for both GD and DD systems• Full power conversion

Next Generation

• Above 3 MW WTGs

• MV synchronous, superconducting generators

• Converter-less and full conversion systems


3-stage gearbox

1/2-stage gearbox

Variable ratio

gearbox

Evolution in Gearbox TechnologyEvolution in Gearbox Technology Evolution of Gearbox DesignEvolution of Gearbox Design

Stall and fixed speed operation

Compact nacelle development

High torque density flex pin

operation

Levers For Improving Project Profitability#1 (c) Gearbox: New Technological Concepts

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Advancements in gearbox technology and design have improved turbine reliability to reduce downtimes and improve turbine availability


Tubular Steel Towers

Completely erected in 1 day

Lattice Towers

Cumbersome process and longer time to erect tower

Concrete Towers

Longer life and less resource-intensive to produce. Effective for

taller towers

Hybrid Towers

Sturdier and reduce the amount of

concrete

Levers For Improving Project Profitability#1 (d) Tower: New Technological Concepts

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Wind Site Data

Wind speed 6.5 m/s

A factor 8.46

K factor 2

Wind Sheer 0.16

Losses 15%

For the above site parameters S97 WTG

with 100m HH produces 6.6% more electricity

than 90m HH

Innovations in Tower technology facilitate higher hub heights as a result enhance energy captured in low wind sites


Blade

• More energy yield

• Lesser weight• High stiffness

Gearbox

• Reliability• Easy

maintenance

Generator

• Fixed/Variable speed

• Efficiency improvement

• Compact nacelle

Converter

• Fixed/Variable speed

• Grid compliance

• Synchronous PMGs

Tower

• More energy• Weight

reduction

Direct Drive

1-Stage

2-Stage

3-4 Stage

Induction

DFIG

Synchronous

PM SynchronousSuperconducting

No convertor

Partial

Full Convertor

Blade

• More energy yield

• Lesser weight• High stiffness

Gearbox

• Reliability• Easy

maintenance

Trends

Longer Blades

Split Blades

Wood Laminates

Glass Fiber

Carbon Fiber

Levers For Improving Project Profitability#1 Summary: New Technological Concepts

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New technology concepts & materials are explored to design WTGs suited for low wind sites


Levers For Improving Project Profitability#2 Indigenous Manufacturing

Pros

• Control over value chain; security of supply

• Optimized component design for seamless interfaces

• Improves profit margin

• Cost optimization leading to profitability

• Focused in-house experimentation to harness technological advances

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Cons

• Devoid of past track record

• Economies of scale needed to justify business case

• Cost Vs. technology equation needs to be favorable

• Needs significant CAPEX & OPEX

• Vulnerable to wind energy industry swings

Indigenous mfg benefits when economies of scale justifies investment in technology


Transmission lines 33 kV transmission lines 220 kV EHV Transmission lines

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HT Switch yard Power Transformer, Measurement &

Protection System, circuit isolation components (VCB/Isolators)

Evacuation Sub Stations

Levers For Improving Project Profitability#3 BoP Equipments & OMS: Major components

Transportation: Trailers & Cranes

Each component/s has unique character & maintenance needs


Levers For Improving Project Profitability#3 BoP Equipments & OMS: Summary

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Efficient BoP & service not only optimize capital cost but also help minimize downtime, improve turbine availability and thereby project profitability

• QHSE compliance• Engaging quality Sub-

contractors & Vendors• Risk identification and risk

mitigation

Project Execution

• Planning• Coordination with cross

functions• Synchronization with SCM

PMO

• Component • Project packages

Standardi-zation

• Wind site resource assessment

• Micrositing• Third party endorsement• Prognosis

Turbine Suitability

• 24*7 central monitoring station

• MIS and reportsO & M

• Training and skills enhancement

• Spares and inventory management

• Crane optimization

Services


Levers For Improving Project Profitability#4 Renewable Energy Certificates (RECs)

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Renewable Energy Certificate A commodity, representing the environmental attributes of

a unit (KwH) of renewable energy. RECs are used as a market instrument for the development of RE industry.

Sale of Electricity at Market Price in open

market

Feed-in Tariff[State Regulated Tariff]

Sale of electricity to DISCOMs at State

regulated tariff

REC

Sale of RECs at Power Exchange

Sell to DisComs at Price ≤ Pooled Cost of Power

Purchase*

REC Option

Electricity Green Attributes

REC root is a new frontier to realize wind energy project profitability


Levers For Improving Project Profitability#4 RECs: Advantages

Inter state Transmission

Promotion of stand-alone systems

Overcoming the barrier of natural

diversity

Competition in Electricity Market

Alternative to Meet Renewable

Purchase Obligation

Attract Investment

REC mechanism gaining momentum in India


Case Study : Harnessing Low Wind SitesS9X Suite of WTGs for Low Wind Sites

• S9x Blades bring Advanced Aerodynamic Efficiency

• Improved Structural Design while reducing Weight

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2008

• Two new increased rotor sizes to capture more power from low winds

• S95 for Class II A sites• S97 for Class IIIA sites

Larger Rotor Diameter

Advanced Blade Design

Variable Tower Heights

• Variable tower heights of 80, 90, 100m• Low-cost optimization of power

generation at low to medium wind speed

• 15% reduction in tower weight from the earlier S88 towers

DFIG Generator Technology

DFIG operation improves RoI for the IPP customers through• Optimizing reactive power• Meeting latest grid requirements

S9X Suite built on highly successful S88 platform brings latest world class technology to India


To put it all together……

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Huge opportunity in India from low wind sites ~50 GW

Innovative solution will only ensure Project profitability from low wind sites

Focus on developing WTGs suited for Low wind speed sites

Efficient BoP & OMS solutions help achieve project profitability

RECs mechanism getting popular as it aids profitability

Suzlon’s E2E solutions deploying S9X WTGs, designed specially for low wind regimes, help secure project profitability


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Thank you!www.suzlon.com For business queries write [email protected]

Documents

Renewable Energy 2012 Wind Conference 1 Wind power development: Innovative trends to increase project profitability per KwH Mr. Ravindra Utgikar Head -