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Volume: 1 Issue: 3 April - May 2015 ` 25/-Bimonthly, Chennai
A Bi-monthly Magazine of Indian Wind Turbine Manufacturers Association
Volume: 1 Issue: 3 April - May 2015
ContentsPage No.
Offshore Wind Policy Drivers in Europe & China 3Shruti Shukla (GWEC), Paul Reynolds (DNV GL) and Felicity Jones (DNV GL)
Wind Regulations and Policies in India - A Quick Glance 5Raghuraman Sachidanandam, Asst. Vice President, Government Relations & Regulatory Affairs Department, Gamesa Wind Turbines Pvt. Ltd., Chennai
Wind Power - Policy and Regulatory Affairs 12Amar Variawa, Director, Head of Public Affairs,
Vestas Wind Technology India Private Limited, Mumbai
Wind Industry and GST 16C A Sivakumar Ramjee, Wind Industry Tax Consultant
REC Market and the Recent Regulatory Developments 18Shruti Bhatia, Vice President - Policy and Communications, Indian Energy Exchange
PLF and CUF are Different Parameters 24Compiled by: Nitin Raiker, Suzlon Energy Limited, Mumbai
GST: What it Means to Wind Industry? 25R. Chandrasekaran, Consultant, M/s. Regen Powertech Private Limited
Roadmap for Small Wind Turbines 28Deepak Valagam, Technical Director, Vaata Infra Limited, Chennai
Know Your Wind Energy State - Maharashtra - A Snapshot 34
Compiled by Mr. Nitin Raikar, Suzlon Energy Limited, Mumbai
Snippets on Wind Power 36Sri Abhijit Kulkarni, General Manager, SKF India Ltd. and IWTMA Team
Photo Feature 39
Know Your member - AkzoNobel India Limited 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 Wind Turbines 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 April - May 2015
Dear Readers,
Warm Greetings from IWTMA with scorching summer, occasional rains, and sure enough that the South West Monsoon will set in soon heralding high power generation from wind.
The close of the Financial Year of 14-15 was with 2310 MW and this figure could have been higher if some of the state issues were resolved in time. It is remarkable that the market response was good to the delayed announcement of Accelerated Depreciation (AD) which contributed 635 MW in 14-15 and the industry is confident that in the
Financial Year 15-16, AD market will be in excess of 1 GW and the industry is confident of total installation of over 3500 MW. The association realizes that irrespective of the policies at the Centre, the urgent need of the hour is to work with Wind States and mainstream wind power.
As reiterated earlier, manufacturing and investment and perhaps financing is not an issue. The difficulties are in power evacuation and land issues with ‘right of way’ (ROW) during the project execution. The industry is confident that Scheduling and Forecasting both in high and low wind regime will help the State Load Despatch Centers to accept higher penetration of wind. The industry is fully aware of the Government plans to install 60 GW by 2022 and it depends only on policy…….policy and policy both by the Centre and the States.
Incentives of AD, GBI and 80 IA benefits have surely enhanced investment and the industry at this point hastens to add that any thoughts of Competitive Bidding which has been tried in many countries and not found successful or very many provisions that are required to make it a success as in the case of Brazil.
We are sure, wisdom will prevail, and that the industry driven by the private sector will meet the Government’s target with the current Policy Environment. We are gladdened by the announcement of our Hon’ble Minister for Power, Coal and New and Renewable Energy that a time will come when the wind, solar and hydro will meet the power requirement of the country.
Having repeated the importance of policy thrice, we are dedicating this issue to Policy and Regulatory Affairs which is dynamic to safeguard the interest of all stakeholders.
We trust that we will have a wonderful “Wind Year” and allow it to play its role in the energy mix to meet the energy security of the country along with other Renewables and our long march to prevent Global Warming and Climate Change.
Happy reading and we trust our small contribution will receive your continued patronage!
With regards,
Madhusudan Khemka
Chairman
From the Desk of the Chairman - IWTMA
3Indian Wind PowerApril - May 2015
Excerpts from Offshore Wind Policy and Market Assessment Report
The four year long FOWIND (Facilitating Offshore Wind in India) project has now been running for just over a year. During this time the project partners (DNV GL, GPCL, CSTEP and WISE) have worked to deliver necessary preliminary work to determine the potential for offshore wind development in the states of Gujarat and Tamil Nadu, in cooperation with MNRE and NIWE.
A key research output - the Offshore Wind Policy and Market Assessment Outlook - was launched on 17 February in New Delhi. A joint report from DNV GL and GWEC on behalf of the FOWIND Consortium, this report is a crucial link to facilitating the development of a roadmap for offshore wind power in India.
The report seeks to review the experiences to date in six major offshore wind markets including Belgium, China, Denmark, Netherlands, Germany and the UK; as well as to put the sector in the larger context of the industry as a whole. We try to tease out the lessons that may be useful for Indian policymakers as they piece together the policy, regulatory and financing frameworks which will allow for the development of a sustainable, commercially successful industry; which of course must be adapted to both the unique opportunities and challenges of the Indian financial and energy environments.
India already has a strong track record in onshore wind, but the rate of capacity addition has fallen in the past couple of years due to policy instability as well as state-specific issues linked to land acquisition for projects, etc. As a result offshore wind may now have a role to play. Offshore wind holds the potential for alleviating the land acquisition challenge. Although the costs are greater, offshore wind has some inherent advantages such as a large wind resource, higher wind speeds than onshore wind and more clarity over land tenure. Offshore wind can also play a role in meeting the demand from load centres closer to the coastline – for example, Greater Mumbai, Chennai and Surat, as well as other big cities such as Vishakhapatnam and Vadodara, subject to technical and economic feasibility.
This report has reviewed progress in the sector to date and focused on the regulatory and policy frameworks in seven leading markets. It has drawn out the following key recommendations for India:
Offshore Wind Policy Drivers in Europe & China
1. Set a clear offshore wind target and roadmap to convey the vision to industryExperience shows that a clear, time-bound, quantitative target for offshore wind development, and a roadmap of how to achieve it, is an effective tool to focus minds on the offshore wind opportunity.
2. Clearly articulate and affirm energy policy objectives to maintain industry confidenceA clear understanding of wider policy objectives helps to provide industry with confidence that the drivers for offshore wind will persist even if the exact milestones do not always go to plan.
3. Ensure managed progression from demonstration to commercial projectsDemonstration sites are crucial for identifying regulatory issues, testing the local supply chain, understanding specific environmental concerns, helping transfer knowledge and testing new technology. However, for the industry to make the necessary investment in infrastructure, a clear plan for a well-managed progression to commercial scale projects is also required.
4. Provide strong initial public investment and utilise Public-Private partnerships where possiblePublic investment is needed not just to reduce project risk and to provide soft loans but also to ensure that the preliminary assessments and necessary supporting infrastructure is developed. The high cost of offshore wind means that a mix of public and private finance is likely to be required.
5. Ensure sufficient volume, delivered in a smooth pipeline, and design risk-informed support mechanisms to drive cost reductionConfidence in sufficient market volume helps industry to maximise local ‘learning by doing’ and benefit from economies of scale – thus pushing down costs. Yet it is important to ensure a smooth pipeline, as rapid increases or decreases in deployment are challenging for the supply chain to manage. A further aid to cost reduction can be designing ‘risk-informed’ financial support mechanisms, which are structured such as to minimise upfront developer risk, and therefore minimise the cost of financing.
SHRUTI SHUKLA (GWEC)
PAUL REYNOLDS (DNV GL)
FELICITY JONES (DNV GL)
4 Indian Wind Power April - May 2015
6.
Care
ful c
onsi
dera
tion
of
the
cost
s an
d be
nefit
s of
pro
mot
ing
a lo
cal s
uppl
y ch
ain
Job
crea
tion
is a
key
driv
er f
or o
ffsh
ore
win
d, y
et n
eeds
car
eful
con
side
ratio
n. It
cou
ld b
e be
nefic
ial f
or In
dia
to p
rom
ote
inve
stm
ent
in t
his
sect
or w
ith a
vi
ew t
owar
ds c
reat
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a ro
bust
sup
ply
chai
n as
par
t of
the
cou
ntry
’s in
dust
rial d
evel
opm
ent
stra
tegy
. H
owev
er,
the
deci
sion
to
deve
lop
a su
pply
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ust
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ased
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whe
ther
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entia
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ket
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ig e
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rant
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rtun
ities
in t
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ider
glo
bal m
arke
t.
Sum
mar
y of
Off
shor
e W
ind
Polic
y D
rive
rs in
Eur
ope
and
Chin
a
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ted
King
dom
Ger
man
yD
enm
ark
Belg
ium
Net
herl
ands
Chin
a
Inst
alle
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paci
ty37
43 M
W52
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70 M
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W
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et8-
13 G
W b
y 20
206.
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y 20
202.
8 G
W b
y 20
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y 20
204.
45 G
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y 20
2310
GW
by
2020
Key
pol
icy
driv
ers
Ener
gy s
ecur
ity:
•••
Dec
arbo
nisa
tion:
•••
Indu
stria
l ben
efits
: ••
Ener
gy S
ecur
ity:
•••
Dec
arbo
nisa
tion:
••
Indu
stria
l ben
efit:
•••
Ener
gy S
ecur
ity:
••
Dec
arbo
nisa
tion:
•••
Indu
stria
l ben
efit:
•••
Ener
gy S
ecur
ity:
••
Dec
arbo
nisa
tion:
•••
Indu
stria
l ben
efit:
••
Ener
gy S
ecur
ity:
•
Dec
arbo
nisa
tion:
•••
Indu
stria
l ben
efit:
•••
Ener
gy S
ecur
ity:
•••
Dec
arbo
nisa
tion:
••
Indu
stria
l ben
efit:
••
Land
/ s
eabe
d te
nure
&
deve
lopm
ent
right
s
The
Cro
wn
Esta
te
owns
sea
bed
and
leas
es s
ites.
Con
sent
pr
ovid
ed t
hrou
gh ‘
one
stop
sho
p’ in
Eng
land
an
d W
ales
Sepa
rate
ons
hore
and
of
fsho
re c
onse
nts
requ
ired
in S
cotla
nd
Dev
elop
er le
d ap
proa
ch t
o id
entif
icat
ion
of s
ites,
w
ithin
ove
rall
Mar
ine
Plan
.
Mar
ine
regu
lato
r BS
H h
as le
adin
g ro
le,
supp
lyin
g m
ost
perm
its
All
perm
issi
ons
are
gran
ted
by t
he
DEA
. Th
e D
anis
h co
nsen
ting
proc
ess
for
offs
hore
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d ca
n be
co
nsid
ered
a o
ne-
stop
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p ap
proa
ch
Seab
ed s
plit
into
se
ven
leas
e ar
eas.
Fo
ur p
erm
its is
sued
by
diff
eren
t au
thor
ities
Leas
e ar
eas
and
one
stop
con
sent
ing
shop
pr
ovid
ed b
y M
inis
try
of In
fras
truc
ture
and
En
viro
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t
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entif
ied
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. D
evel
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en f
ollo
w ‘
Inte
rim
Mea
sure
s fo
r th
e A
dmin
istr
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evel
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ent
and
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stru
ctio
n of
O
ffsh
ore
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d Po
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’
Grid
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nect
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Dev
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smis
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but
th
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red
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ell
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hird
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ty
TSO
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red
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fund
all
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w
ind
grid
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wor
ks t
o an
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shor
e co
nnec
tion
poin
t
Con
nect
ion
deve
lope
d an
d fin
ance
d by
grid
op
erat
or E
nerg
inet
Grid
con
nect
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born
e by
dev
elop
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exce
pt f
or €
25m
illio
n co
ntrib
utio
n fr
om T
SO
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toric
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rren
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nder
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echa
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m
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eed-
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ariff
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r D
iffer
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15 y
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feed
-in t
ariff
w
ith p
oten
tial f
or
acce
lera
ted
12 y
ear
feed
-in t
ariff
at
high
er
rate
Feed
-in t
ariff
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th
roug
h co
mpe
titiv
e au
ctio
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indi
vidu
al
site
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en c
ertif
icat
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emiu
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eed-
in t
ariff
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ctio
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ugh
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petit
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Feed
-in t
ariff
for
of
fsho
re p
roje
cts
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dis
tanc
e fr
om s
hore
. D
emon
stra
tion
proj
ects
get
a
mor
e ge
nero
us F
IT
com
para
tivel
y
Cou
rtse
y: G
loba
l Win
d En
ergy
Cou
ncil
(GW
EC)
FOW
IND
_ O
ffsh
ore
Win
d Po
licy
and
Mar
ket
Ass
essm
ent
– A
Glo
bal O
utlo
ok
Full
rep
ort
ava
ilab
le o
n "
ww
w.f
ow
ind
.in"
5Indian Wind PowerApril - May 2015
Introduction
Under the leadership of country's most celebrated Prime Minister Mr. Narendra Modi, India hopes to become the “Renewable Energy Capital of the world.” As part of new Governments Union Budget 2015-16, India has ambitious targets of 60 GW of Wind Power Capacity and 100 GW of Solar Power Capacity by 2022, which is more than six times the current installed capacities of approximately 23 GW and 3 GW. Both targets would require more than `10 trillion of investment if they are to be met.
India’s National Action Plan on Climate Change recommends that the country generate 10% of its power from solar, wind, hydropower and other renewable sources by 2015, and 15% by 2020.
Background
Unique in the world, India has the only Ministry that is dedicated to the development of renewable energies: the Ministry of New and Renewable Energy. But even with a drastic boost of renewable energy, India faces a formidable challenge in weaning itself from coal, which accounts for 59 percent of its electric capacity. That dependence on fossil fuels (around 68% in total) is why India ranks fourth behind China, the United States, and the European Union in global greenhouse gas emissions.
The Indian government’s strategy to focus on renewables also stems from the fact that India has an energy import bill of around $150 billion, which is expected to reach $300 billion by 2030. India imports 80% of its crude oil and 18% of its natural gas requirements.
The success of India’s renewable energy strategy relies in the dynamic policy making which allows for incremental target setting along with identification and removal of various barriers through the process. The implementation of policies like accelerated depreciation scheme, generation based incentives and renewable purchase obligation have played an integral role. The crux of the dynamic policy making is decentralized implementation, where the state governments are allowed to develop their own policy targets and regulations in line with, but independent from, federal policy.
Policy Support
² Accelerated Depreciation (AD)
Section 32 of Income Tax Act earlier allowed 100% Accelerated Depreciation (AD) to wind energy projects. Few years ago the 100% of AD for Wind Energy was reduced to 80%. The government has withdrawn the AD for wind energy from April 2012 and later reintroduced in the current budget.
It is ironical that high efficient coal fired boilers which are polluting enjoy 100% AD. It is unfortunate that some policy makers look upon AD as a disincentive and that once tax benefit is enjoyed; there is no interest in generation. This is not true. The AD will cover perhaps the equity portion say 30% and the investor has to service the loan of 70% through generation only. It is a biased view that AD machines do not perform.
² Generation Based Incentive (GBI)
The government introduced GBI to encourage green field companies who do not require depreciation and be given an incentive for generation. 50 Paise per unit with a cap of 100 lacs per MW for 10 years with again a cap of 25 lacs per year is being given as per current status.
Both the incentives are mutually exclusive and the investor can choose either AD or GBI. In the year 2011-12, the industry installed 3200 MW with both incentives and in the absence of AD and GBI, it came down as low as 1700 MW in 2012-13.
In a lighter vein in a given wind farm both GBI and AD machines will perform and the same machines do not know the DNA of GBI and AD.
² Renewable Energy Certificate (REC)
The Union government also introduced the Renewable Energy Certificate (REC) mechanism, which could be traded through the designated power exchanges with a floor and forbearance price. Unfortunately, the REC market, leave alone being static, has left thousands of certificates unsold due to poor RPO implementation by states.
Wind Regulations and Policies in India - A Quick Glance
Raghuraman Sachidanandam, Asst. Vice President Government Relations & Regulatory Affairs Department, Gamesa Wind Turbines Pvt. Ltd., Chennai
6 Indian Wind Power April - May 2015
S. No.
Policy Parameters Tamil Nadu Maharashtra Gujarat Rajasthan Karnataka Madhya Pradesh Andhra Pradesh CERC Telangana
1 Policy Date & Link October 14, 2008 July 25, 2013 July 18, 2012 RE Policy 2009 February 21, 2013 February 13, 2015 Policy and Tariff order awaited2 Tariff Order Date & Link July 31, 2012 July 7, 2014 January 7, 2013 July 16, 2014 February 24, 2015 March 26, 2013 November 15, 2012 March 31, 2015
3 Policy -New Policy for Power Generation from Non-Conventional sources-2008 Valid until new policy
Wind Power Policy 2013 Valid 31 Mar 2016
Policy for Promoting Generation of Electricity from Wind-2012 Valid until new policy
Karnataka Renewable Energy Policy 2009-2014
New Policy in Draft stage (Karnataka Wind Power Policy 2014-2020)
Wind Power Project Policy-2012
(Amended 02 Feb 2013)Amended on March 18, 2015
Wind Power PolicyValid for 5 years
-Separate Policy Guidelines yet to come
4 Capital Cost (in lacs/MW) 575 585 568 565 600 596 575 619.52 600
5Capacity Utilization Factor (CUF)
27.15%Zone wise(22% to 32%)
24.5%21% (J,J,B)20% (others)
26% 20% 23%Zone wise (20% to 32%)
Two Zones at max
6Feed in Tariff (Preferential Traiff) in `/kWh
3.51
Zone - CUF - TariffZ1 - 22% - 5.70Z2 - 25% - 5.01Z3 - 30% - 4.18Z4 - 32% - 3.92
4.155.64 (J,J,B)5.93 (others)
4.50 5.92 4.70
Zone - CUF - TariffZ1 - 20% - 6.58Z2 - 22% - 5.98Z3 - 25% - 5.27Z4 - 30% - 4.39Z5 - 32% - 4.11
Zone - CUF - TariffZ1 - 20% - 6.34Z2 - 22% - 6.20Z3 - 24% - 6.00
7 Tariff if AD Availed -Z1 - 5.33, Z2 - 4.69,Z3 - 3.91, Z4 - 3.67
-5.31 (J,J,B) 5.57 (others)
- - -Z1 - 5.87, Z2 - 5.34,Z3 - 4.70, Z4 - 3.92Z5 - 3.67
-
8 Tarif Period (in years) 20 13 25 25 20 25 25 13 20
9 Valid upto31-07-2014 extended till next order
31-03-2015 extended upto 31-07-2015
10-08-201631-03-2015 1st year of MYT
October 9, 2018 31-03-2016 31-03-2015 31-03-2016 MYT can be adopted
10 Wheeling Charges40% on normal chages WEGs shall have to bear actual line losses in kind
Normal wheeling charges and losses
66 KV and above: Normal OA charges/losses applicable
<66 Kv: Normal OA charges and losses @10% applicable
<66 Kv (only one WTG): Normal OA charges and losses @7%
Normal OA charges 5%Exempted (2% in case of 3rd party sale)
Exempted -Shall be exempted like Andhra Pradesh
11 Banking
Non-REC (Allowed): Banking period April to March Unutilized energy to be paid at 85% of FIT REC (Allowed Monthly) Surplus power after a month considered lapsed
Not Allowed Surplus power after setoff shall be purchased by licensee as: Credit for energy injected should be provided strictly on 15 minute time block basis.
Surplus energy after setoff with OA consumer’s consumption in same 15 min. block shall be purchased at APPC (provided licensee would be able to meet its RPO through purchase of such surplus energy)
For TPS: Banking not provided.
For CPP (not opting REC): Banking (slot-wise) allowed for 1 month, Surplus power purchased at 85% of FIT
For CPP (opting REC): Banking not provided.
Allowed only for Captive consumption (Monthly basis) Unutilized banked energy upto 10% will be paid at 60% of Industrial tariff. Unutilized banked energy, in excess of 10% shall lapse
Non-REC (Allowed Annualy) Unutilized energy purchased at 85% of FIT REC (Allowed Monthly) Unutilized energy purchased at APPC Settlement @ difference of UI charges
Permitted
Allowed (April to March)
No drawal permission for 5 months (Feb-June)
Unutilized energy purchased at 50% of APPC
-Shall be allowed on yearly basis
12 Banking Charges 0.94 `/kWh 2% 2% 2% 2% - Minimum
13 Third Party Sale Not permitted permited permitted permited permitted permitted permitted - Shall be permitted
14 APPC `/kWh3.38 or 75% of 3.51 (FIT) For 2014-15
3.76 3.02 3.073.06 For 2015-16
2.79 For 2015-16
3.38 -Can refer AP for time being
15 CDM Sharing
100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
100% with the Generator100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
75:25 between Generator and Consumer
100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
90:10 between Developer and Discoms
100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
No Sharing with Discoms like AP, may follow MH
16
RPO Obligation total (For 2015-16) in %
11.00 9.00 9.00 9.00 10.00 7.00 7.00- In line with NAPCC
(Non-Solar + Solar) 9 + 2 8.50 + 0.50 7.5 + 1.5 7.50 + 1.50 10 + 0.25 6 + 1 6.80 + 0.20
17 Electricity Duty Exempted for first 10 years Exempted except for 3rd party saleExempted for captive consumption
Exempted for 5 years Exempted for 10 years Exempted Shall be exempted
State Wise Tariff ParametersWind Energy in India as of April 2015
7Indian Wind PowerApril - May 2015
S. No.
Policy Parameters Tamil Nadu Maharashtra Gujarat Rajasthan Karnataka Madhya Pradesh Andhra Pradesh CERC Telangana
1 Policy Date & Link October 14, 2008 July 25, 2013 July 18, 2012 RE Policy 2009 February 21, 2013 February 13, 2015 Policy and Tariff order awaited2 Tariff Order Date & Link July 31, 2012 July 7, 2014 January 7, 2013 July 16, 2014 February 24, 2015 March 26, 2013 November 15, 2012 March 31, 2015
3 Policy -New Policy for Power Generation from Non-Conventional sources-2008 Valid until new policy
Wind Power Policy 2013 Valid 31 Mar 2016
Policy for Promoting Generation of Electricity from Wind-2012 Valid until new policy
Karnataka Renewable Energy Policy 2009-2014
New Policy in Draft stage (Karnataka Wind Power Policy 2014-2020)
Wind Power Project Policy-2012
(Amended 02 Feb 2013)Amended on March 18, 2015
Wind Power PolicyValid for 5 years
-Separate Policy Guidelines yet to come
4 Capital Cost (in lacs/MW) 575 585 568 565 600 596 575 619.52 600
5Capacity Utilization Factor (CUF)
27.15%Zone wise(22% to 32%)
24.5%21% (J,J,B)20% (others)
26% 20% 23%Zone wise (20% to 32%)
Two Zones at max
6Feed in Tariff (Preferential Traiff) in `/kWh
3.51
Zone - CUF - TariffZ1 - 22% - 5.70Z2 - 25% - 5.01Z3 - 30% - 4.18Z4 - 32% - 3.92
4.155.64 (J,J,B)5.93 (others)
4.50 5.92 4.70
Zone - CUF - TariffZ1 - 20% - 6.58Z2 - 22% - 5.98Z3 - 25% - 5.27Z4 - 30% - 4.39Z5 - 32% - 4.11
Zone - CUF - TariffZ1 - 20% - 6.34Z2 - 22% - 6.20Z3 - 24% - 6.00
7 Tariff if AD Availed -Z1 - 5.33, Z2 - 4.69,Z3 - 3.91, Z4 - 3.67
-5.31 (J,J,B) 5.57 (others)
- - -Z1 - 5.87, Z2 - 5.34,Z3 - 4.70, Z4 - 3.92Z5 - 3.67
-
8 Tarif Period (in years) 20 13 25 25 20 25 25 13 20
9 Valid upto31-07-2014 extended till next order
31-03-2015 extended upto 31-07-2015
10-08-201631-03-2015 1st year of MYT
October 9, 2018 31-03-2016 31-03-2015 31-03-2016 MYT can be adopted
10 Wheeling Charges40% on normal chages WEGs shall have to bear actual line losses in kind
Normal wheeling charges and losses
66 KV and above: Normal OA charges/losses applicable
<66 Kv: Normal OA charges and losses @10% applicable
<66 Kv (only one WTG): Normal OA charges and losses @7%
Normal OA charges 5%Exempted (2% in case of 3rd party sale)
Exempted -Shall be exempted like Andhra Pradesh
11 Banking
Non-REC (Allowed): Banking period April to March Unutilized energy to be paid at 85% of FIT REC (Allowed Monthly) Surplus power after a month considered lapsed
Not Allowed Surplus power after setoff shall be purchased by licensee as: Credit for energy injected should be provided strictly on 15 minute time block basis.
Surplus energy after setoff with OA consumer’s consumption in same 15 min. block shall be purchased at APPC (provided licensee would be able to meet its RPO through purchase of such surplus energy)
For TPS: Banking not provided.
For CPP (not opting REC): Banking (slot-wise) allowed for 1 month, Surplus power purchased at 85% of FIT
For CPP (opting REC): Banking not provided.
Allowed only for Captive consumption (Monthly basis) Unutilized banked energy upto 10% will be paid at 60% of Industrial tariff. Unutilized banked energy, in excess of 10% shall lapse
Non-REC (Allowed Annualy) Unutilized energy purchased at 85% of FIT REC (Allowed Monthly) Unutilized energy purchased at APPC Settlement @ difference of UI charges
Permitted
Allowed (April to March)
No drawal permission for 5 months (Feb-June)
Unutilized energy purchased at 50% of APPC
-Shall be allowed on yearly basis
12 Banking Charges 0.94 `/kWh 2% 2% 2% 2% - Minimum
13 Third Party Sale Not permitted permited permitted permited permitted permitted permitted - Shall be permitted
14 APPC `/kWh3.38 or 75% of 3.51 (FIT) For 2014-15
3.76 3.02 3.073.06 For 2015-16
2.79 For 2015-16
3.38 -Can refer AP for time being
15 CDM Sharing
100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
100% with the Generator100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
75:25 between Generator and Consumer
100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
90:10 between Developer and Discoms
100% to Developer for the 1st yr, thereafter reduction of 10% each yr upto 50:50 with developer & consumer
No Sharing with Discoms like AP, may follow MH
16
RPO Obligation total (For 2015-16) in %
11.00 9.00 9.00 9.00 10.00 7.00 7.00- In line with NAPCC
(Non-Solar + Solar) 9 + 2 8.50 + 0.50 7.5 + 1.5 7.50 + 1.50 10 + 0.25 6 + 1 6.80 + 0.20
17 Electricity Duty Exempted for first 10 years Exempted except for 3rd party saleExempted for captive consumption
Exempted for 5 years Exempted for 10 years Exempted Shall be exempted
8 Indian Wind Power April - May 2015
Moreover, though RPO enforcement is mandatory, it is being implemented without imposing penalties. In a lighter vein, it is said that the “REC market is wrecked”. Based on industry demand, the Central Electricity Regulatory Commission has extended the validity of the certificate from one year to two years as a one-time measure. The policy makers have to decide as to how to make this REC market a realistic and vibrant model and also encourage states to adopt RPO obligations in a serious manner.
In April 2015, the Appelate Tribunal (APTEL) gave its judgment in a petition filed by various associations asking the APTEL to give directions to the State Electricity Regulatory Commissions (SERCs) to comply with RPO regulations. The order is likely to make the routine carry forward and waiver of RPO that has been observed in the last few years much more difficult.
Floor and Forbearance price for Non-Solar : ` 1500 and ` 3300 for each REC.
Floor and Forbearance price for Solar : ` 3500 and ` 5800 for each REC.
1.1 Policy and Regulatory Issues at National Level
² Regulatory non-uniformity across states.
² Absence of long term feed-in-policy.
² RPO non-enforcement.
² Weak financial health of distribution licensees.
² Delay in GBI payments
² Non-implementation of open access in states
² Very high transaction for inter-state wind power sale.
² No policy on hybrid (solar and wind) and offshore power projects.
² Power evacuation
² Environmental Clearances
Month, YearOpening
Balance (A)REC Issued
(B)
No. of REC Redeemed
Total E=(C+D)
Closing Balance
(F=A+B-E)
RECs Redeemed through Power
Exchanges (C)
RECs retained by RE
Generators (D)
May, 2014 6968438 568843 31375 - 31375 7505906
June, 2014 7505906 471982 141108 - 141108 7836780
July, 2014 7836780 1485060 38442 - 38442 9283398
Aug, 2014 9283398 702700 51844 - 51844 9934254
Sep, 2014 9934254 859795 24013 25000 49013 10745036
Oct, 2014 10745036 1074046 74381 20000 94381 11724701
Nov, 2014 11724701 731207 197162 25457 222619 12233289
Dec, 2014 12233289 1087197 337782 60400 398182 12922304
Jan, 2015 12922304 411590 569149 46085 615234 12718660
Feb, 2015 12718660 593085 792356 57747 850103 12461642
Mar, 2015 12461642 453091 723967 13543 737510 12177223
Apr, 2015 12177223 810257 64134 8563 72697 12914783
Total 22651840 9480262 256795 9737057
1.2 State Issues
1.2.1 Andhra Pradesh
² State has around 9,457 MW installations as of Feb 2015.
² Andhra Pradesh Wind Power Policy released in Feb 2015, targeted 4,000 MW in 5 years.
² Discoms achieved 4.1% (Non-Solar) and 0.20% (Solar) for FY 2013-14.
ISSUES
² RPO – Petition filed by Discoms for waiver of shortfall and reduction of RPO target.
² ROW Issues – Land Owners are asking for more money for ROW.
² Capacity allotment issues – Capacity allotted to non-serious players are idle.
² Tariff – Comparatively others, state wind tariff of ` 4.70/kWh is no more attractive. State to encourage captive consumption, wheeling & banking & group captive sale.
² Bifurcation of state might have tremendous impact on deployment of wind power generation as there is ambiguity in PPA, resource allocation & administrative delays etc.
² AP lacks evacuation infrastructure in the wind potential areas and the development has been in snail pace which has already impacted development of wind power projects in the last 2 years.
10 Indian Wind Power April - May 2015
1.2.2 Gujarat
² State has around 28,423 MW installations as of Feb 2015.
² Gujarat Wind Power Policy in place from July 2013 up to March 31st, 2015.
ISSUES
² RPO non-compliance since 2010 – The GERC order allowing carry forward of RPO can lead to reduction in installation and penetration.
² Tariff – Tariff of ` 4.15/kWh needs revision at the earliest and also projects are not viable with CUF of 23%.
1.2.3 Karnataka
² State has around 14,545 MW installations as of Feb 2015.
² Present RE Policy valid up to 2014.
² Discoms of the state decently meeting RPO target.
² Retail tariff for HT consumers high as compared to other states.
ISSUES
² Wind potential sites spread across Western Ghats – a Heritage site by UNESCO.
* Long forest land allocation process.
* No clarity on the boundary of Western Ghats.
² Restriction on private land purchase by corporates is a major issue and deterrent to environment.
² Compensatory Afforestation Land (CA Land) – Identification of Non-forest lands for Compensatory Afforestation (CA), has become very difficult. The conversion of revenue land to forest land has made Compensatory Afforestation very difficult to obtain. Besides this CA charges has been increased from approximately 50,000/Hectare to 2,50,000/Hectare.
² Land for Wind Energy Projects – Revenue lands should be allowed to set up wind power projects without going through the restrictions on such lands, i.e. Reserved for Grazing, Gomal or Hullubanni etc. (The Wind Power Projects do not bar or hinder grazing of cattle in the project lands).
² Standardization of Rates – Rates for SMC based on National Watershed Development Department, Medicinal Plantation/dwarf Tree Plantations and fire protection should be standardized. Currently there are no clear cut conditions or standards for deciding the rates. Besides that as per regulations
up to 65-70% of the land can have medicinal plantations but no lower limit has been specified. Officials are considering flat 70% and this is creating difficulties to projects.
² Transfer of leases to the end users, without linking to compliances – Payments to the manufacturers are held by clients because of the delay in transfer of land lease. At present, the transfer of lease will not happen if any obligation is yet to be fulfilled by the manufacturers.
1.2.4 Madhya Pradesh
² State has around 14,920 MW installations as of Feb 2015.
² Wind Power Policy – 2012
² Ambitious policy of 700 to 1000 MW per annum.
² Amendment to its Wind Policy order dated 18.03.2015 – Now developer can approach any time without any proposals.
² Lacking of Transmission system to support wind power.
ISSUES
² Restriction on evacuation: not following CEA norms on evacuation of wind power.
² Evacuation infrastructure is limited in the potential areas. Moreover, state transmission entity is averse to comply with latest technologies, standards and specifications prescribed by CEA, the nodal agency for setting standards and specifications for transmission and distribution systems across the country. Evacuation will become an issue after 15-16.
² Policy doesn’t encourage wind monitoring by private developers / investors as there is no priority given to those who installed masts and carried out wind assessment.
² PPA is signed only after commissioning of projects unlike other states, where PPA will be signed pre-commissioning.
² Land issues and Land Record issues are also prevalent in the state.
1.2.5 Maharashtra
² State has around 36,100 MW installations as of Feb 2015.
² Integrated Policy for Renewable Energy in place to be launched soon.
² MSEDCL achieved 8.03% target against specified 8.5% cumulative by 2013-14.
11Indian Wind PowerApril - May 2015
² Retail Tariff for HT consumers high compared to other states.
² Expenditure incurred towards infrastructure development like transmission lines and road reimbursed.
ISSUES
² MSEDCL – Major Discom company has expressed concerns in signing PPA at current rate.
² Banking – The recent order of Wheeling and Banking with a 15 minute interval can be a major deterrent both for existing and new projects. Matter has been taken by few developers to High Court in Maharashtra.
² Issues with local community delaying the projects.
² Collection of mining royalty from wind energy sector should be abolished.
² Gram panchayat tax levied should be uniform and as per the capacity.
1.2.6 Rajasthan
² State has around 15,400 MW installations as of Feb 2015.
² Wind policy 2012 in place with a target of 500 MW for 2015-16.
² Expected to achieve RPO targets in 2015-16.
ISSUES
² Delay in payment from Discoms.
² Thefts of cables in wind farms had resulted in huge replacement costs.
² Shortening of Banking from 6 months to 1 month & that too limited to captive within the state which was earlier for 3rd party as well.
² Limiting Capacity Addition – The state proposed to impose a limit of 600MW capacity addition in 2014-15 while as the projects in pipeline are more than 1000MW.
² Grid needs to be strengthen for more wind power projects in the state.
² Normal OA charges are applicable in case of captive use & 3rd party sale which was earlier 50% of normal charges.
² An accurate study is required to estimate the correct potential of Rajasthan.
1.2.7 Tamil Nadu
² State has around 22,370 MW installations as of Feb 2015
² No specific policy on Wind Energy.
² Low preferential tariff coupled with backing down of WTGs in Windy season hampered investors’ morale.
² TANGEDCO among the front runner in achieving the Non-Solar RPO target considering huge capacity
² Higher PLF sites available, however lacks evacuation infrastructure.
ISSUES
² IDC deduction – TANGEDCO deducting difference in IDC from reimbursement amounts against all SS commissioned and handed over to them.
² Evacuation – Five 400kv sub-stations were planned by TNEB. While Kayathar substation is energized, realistic update is required on Theppakundu, Aanaikadavu, Rasipalayam and Kanaarpatti.
² Commissioning of Substations – While backing down of wind projects have come down this year, higher penetration is possible only when the balance 4 x 400 KV substations are commissioned and issuance of permission for 33 KV substations by generators under 10/1 is possible.
² Repowering – Tamil Nadu can take a lead role in repowering policy as this state has higher number of first generation turbines of over 15 years old.
² 5D x 7D Spacing Norm – Need new look and review on the 7D x 5D norms for issuance of NOC for installing wind turbines.
² Frequency Band Tightening and Restriction of 150 MW – Frequency band has been tightened by CERC and has imposed a restriction for deviation from schedule above 150MW for all states. 150MW is very less for Tamil Nadu with a demand more than 13000MW and around 25% of wind penetration.
² LVRT Compliance
² Levy of System Operation Charges from Sale to Board Generators by TANGEDCO
² Backing down of wind power resulting in the revenue loss of 60% in FY 2013-14.
² Chronic payment delays.
12 Indian Wind Power April - May 2015
Amar Variawa, Director Head of Public Affairs, Vestas Wind Technology India Private Limited, Mumbai
Wind Power - Policy and Regulatory Affairs
The year 2014 brought new hopes for the Indian RE industry. The change of guard at the Centre has made all stake-holders quite optimistic. The year ends with a set of promises that makes 2015 an extremely interesting year to look forward to. The initiatives like Make in India, Swatch Bharat, Pradhan Mantri Jan Dhan Yojana, Smart Cities, have certainly created loads of opportunities for many sectors. Undoubtedly, Renewable Energy is one of them. It’s not a buzz word any more for the country like India where approx 60% of energy needs are satisfied by coal and rest by fossil fuel and for both these elements, our dependency on import is quite high. Also they have huge impact on climate with high carbon footprint.
Venturing in RE, especially in wind energy is a safe bet, not only from a climate or environmental perspective, but also from a macro-economic perspective. Do we know the price of oil in the future? What about the price of carbon, gas or even Water? What will be the cost on the environment and societies? The answer to all these questions is the same “we simply don’t know”. But what we know is that wind energy relies on a stable and predictable cost model. There are no costs of fuel or carbon, no cost of water and there are virtually no environmental costs (No pollution). Wind energy is likely to continue improving in cost effectiveness as the technology develops further. So all in all wind energy is a safe bet, not only for a more sustainable but also for a most cost effective future.
As we all know, Denmark has been a pioneer in wind power, having installed its first turbines in the mid-1970s when oil shocks sent the import-dependent nation on a quest for energy security. In 2014, the country has set a new world record by getting 39.1% of its overall electricity from wind. This puts the Northern European nation well on track to meet its 2020 goal of getting 50% of its power from renewables. “We have set a one-of-a-kind world record,” said Denmark’s Climate and Energy Minister Rasmus Helveg Petersen. “And it shows that we can reach our ultimate goal, namely to stop global warming”.
India must learn from them as what they do differently to achieve such glorious results.
Where do we stand in 2014?
Wind energy is making a visible impact in the country’s energy mix. As of 31 Dec 2014, of total installed capacity 257.1 GW, Wind has contributed approx 22.5 GW i.e. 8.8%.
² In terms of cumulative installed capacity as on Dec 2014, India holds 5th rank with 6.1% share (22465 MW) followed by China, USA, Germany and Spain.
² In terms of installed capacity from Jan to Dec 2014, India holds 5th rank with 4.5% share (2315 MW) followed by China, USA, Germany and Brazil.
² In terms of total number wind turbine installation, India holds 4th rank with 1660 Turbine followed by China, USA and Germany.
India : Higher Purpose, Higher Aim
Prime Minister sets the higher purpose of “providing 24x7 electricity to all households”. This has put more emphasis on renewable energy sector. Accordingly, the MNRE has revised the installation targets to 175 GW (100 GW Solar + 60 GW Wind + 10 GW Bio-mass + 7 GW Hydro) RE by 2022. It means that for the wind, every year at least 5 to 6 GW of capacity needs to be added to meet the goal. Today, renewable energy is seen as a potential component in addressing country’s energy security concerns. India has had a lot of learning in the wind sector so far. If we are able to capitalize on this learning and make standards, there could be an exponential growth and we can achieve high targets.
What are the Headwinds for Wind/RE?
Despite many favorable elements in the recent time, few pieces of jigsaw puzzle remain missing that hold Wind/RE back.
² The absence of a master plan – a comprehensive and lucid national framework in terms of either legislation or policy.
13Indian Wind PowerApril - May 2015
* Absence of stable & predictable policy regime to achieve 60 GW by 2022.
* Policy that does exist is limited by weak enforcement or low ambition (e.g. Some RPOs), poor design (GBIs, AD, FiTs) or uncertainty (e.g. Capital subsidies, other incentives).
² Higher Cost of capital and Lack of financial support mechanism.
* Not enough willingness and credit worthy buyers.
* Discoms the primary purchaser of RE, perceive that the cost of RE is higher than the conventional energy.
* According to developer the overall RE project development environment is unnecessarily & prohibitively difficult.
² Poor transmission and distribution infrastructure
* There is an urgent need to expand grid infrastructure and upgrade state, regional, and national grid technology and operations procedures to integrate intermittent RE into the grid.
² Lack of coordination among key institutions – grid operators, discoms, state revenue departments, and environmental permitting agencies – leads to time and cost overruns in project development.
* Difficulties related to project licensing, Land, and logistical infrastructure.
Likely Recommendations for Policy
1. Master Plan or National RE Law/Policy:
A master plan or the policy should be established which is comprehensive, transparent, long-term and definitive to incorporate the ambitious target in a SMART (Specific, Measurable, Achievable, Relevant, Timely) way for the center and the states. All the states would be equally responsible to meet a common national target. The enforcement of RPO target should be higher as compare to the current scenario and the penalties for non-compliance should be manifold. The laws/policies need to:
² Establish national energy commission (on the lines of similar body in China).
² Establish a clear and overarching independent rationale for RE.
² Emphasis the importance of RE as compared to fossil fuel-based generation.
² Consider RE as a “Resource of National importance” like other fossil fuel resources (Coal, Oil, Natural Gas, etc.).
² Spread awareness that RE addresses some fundamental national objectives such as energy security, reduction of trade deficit, enhanced land/water availability for non-energy purpose (e.g. Agriculture), Cutting edge industrial and R&D growth, increased employment, etc.
2. Support for High Cost of Capital, Disbursal Mechanism:
Wind Technology, unlike fossil based energy technologies, has high capital cost but very low operating costs spread over the period of 20 to 25 years. Thus, cost of finance (Currently ranging from 12-14% in India) forms a significant component of the power tariff from these sources. Interest rate subvention of wind project would reduce tariff and hence scale up demand for RE.
There are many factors affecting the cost of capital like inflation rate, economic conditions, state of financial market, etc. and hence, it is neither desirable nor possible to make intervention in financial markets. The intervention thus has to be sector specific. For RE, it is desirable to reduce the cost of capital at multiple phase :
Phase I : De-risk the risk by reducing the perception and hence managing investors’ return expectations
Phase II : “Increasing the pool of fund available” and “Reducing the cost of such fund”. This can be done by:
a. Allowing special green bonds – such as tax-free and/or capital gains tax exempt bonds – in line with infrastructure bonds. For example YES Bank has successfully issued India’s 1st Green infrastructure bond raising an amount of 1000 Cr INR.
b. Allowing pension funds, insurance companies, and sovereign funds with long-term horizons to invest in RE projects through securitization markets.
c. Allowing long tenure loan from the infrastructure debt fund.
d. Reducing the sovereign guarantee fee for non-banking financial companies (NBFCs)/public-sector entities involved in financing RE projects.
Phase III : IREDA or PFC could pool various sources of funds which could be administered and managed to lend debt at lower interest rates.
Other financial support mechanism
There has been continuous revisions and wide range of variations in the state level policy which has made financial subsidies mechanism redundant for RE developers. What is needed to expedite the growth of RE is –
14 Indian Wind Power April - May 2015
a. A uniform, simple financial support and disbursal mechanism targeted to buyers.
b. It should be transparent and provide certainty over a reasonable period of time.
3. Grid Infrastructure and Integration
At present, different states have limited visibility about neighboring states’ grid condition and power demand. There is also a need of facilitating bilateral and inter-regional exchange. RLDC shall effectively ensure the integrated operation of power system among various states in the respective region. Above all, a single national-level load dispatch center has been established to ascertain the amount of balancing resources needed and how these can be procured and dispatched among different states. The seamless integration and effective synchronization among all above centers shall improve inter-state and inter-region power dispatch scenario.
Technology Upgrade
In today’s scenario, Technology and Innovation can really help moving to the next level.
² Most of the transmission companies and Load Dispatch Centers have initiated grid technology upgrades in recent times –for example, the introduction of smart-grid pilots.
² Centralized RE forecasting mechanisms need to be tightly integrated with system operations.
² Advanced decision-making and control systems need to be implemented that enable system operators to respond significantly faster to changed grid conditions.
² Grid Codes : System operators around the world — especially those encountering a high share of RE on their grid – are continually updating their grid codes to ensure that RE additions do not affect the grid adversely. Grid codes need to explicitly acknowledge attributes unique to RE generators and, consequently, require appropriate capabilities.
² Forecasting, Scheduling and Dispatching: In order to reduce uncertainty, variability and improve predictability as well as accurate site specific power from wind, Forecasting and scheduling should be made mandatory. Currently, in India, scheduling occurs on a day-ahead basis (8 revisions currently allowed as per IEGC 2010) while dispatch occurs on a 15-minute basis. System operations technologies and protocols need to be updated to “Global benchmark” scheduling and dispatch of all resources connected to the grid and automated incorporation of RE forecasts.
4. National Energy Commission – for One Stop Shop solution
In order to bring more harmonized coordination among key institutions and stake holders, Govt should form a National level Energy commission which will streamline the project development process which is quite lengthy and costly today. This commission will act as a “One Stop Shop” to ease out contracting process, making available relevant information, assessment of RE resources, facilitate support in access to land, infrastructure development etc. This will reduce the inefficiency of the current system to a large extend which in turn will reflect into speed of execution and hence cost avoidance.
At Last, I would like to quote the thought of the former Member (Energy), erstwhile Planning Commission of India aptly mentioned that “We should not get into the mindset that RE is the intruder and conventional energy is the main player. Why not consider RE to remain occupants of the ‘house’ and then work out the rest of the system around RE, essentially, because RE is the future?”.
For a hundred years, conventional fossil-fueled power plants were at the core of power systems around the world. But Renewables are different. For India, to capture the benefits of renewables as “the main occupant of the house” will require the rethinking and reengineering of organizations, the redefinition of policies/laws, the re-tuning of power grids and infrastructure, and the replacement of old habits with new ones. This is very critical and difficult; however, not impossible!
The theme of the next issue of
"Indian Wind Power" is
“ Grid Management”.
We invite relevant articles to the theme.
We solicit your cooperation.Editor
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16 Indian Wind Power April - May 2015
C A Sivakumar Ramjee, Wind Industry Tax Consultant E-mail: [email protected]
² GST is expected to be a landmark reform in the field of indirect taxation and would have a beneficial impact on the economy of the country. Government should reach out to State Governments and come out with a plan of implementation at the earliest.
² It is requested that the due consultative process with the industry should be observed and draft legislative framework should be placed in the public domain so that industry can gear up for a smooth transition to the new system of taxation.
² Industry would like to reiterate that all the taxes levied by the Centre and the States on goods and services must be subsumed in the proposed GST including stamp duty, purchase tax, APMC fees, royalties, property tax, tax on motor vehicles, tax on goods and passengers, duty on electricity, entry tax, octroi, etc.
² It is further urged that the GST should be extended to all sectors of the economy without exception especially to power sector to bring down Cost of Energy. Revenue Neutral Rate should be specified taking into account the interests of all the stakeholders including consumers and taking note of the expected buoyancy in tax collections in the GST regime.
² The first white paper on GST was published by the Central Government long ago. The trade and industry so far has not been updated on the status of various aspects of proposed GST like threshold limits, rates, items under the Negative List, GST compliance, the IT infrastructure, administrative structure etc. in greater details. At present there is no clarity on these areas of GST, as only the newspaper reports are available. Therefore it is imperative that the Government comes out with a detailed paper on GST.
² Further for smoother and a seamless transition, the draft modalities of the proposed GST may be circulated at least 6 months in advance for eliciting the industry’s views.
Specific Expectations of the Wind Turbine Industry
² Electrical energy / Power should be brought under GST with full credit on inputs which are expected to be at a lower rate or zero-rate, which will enable power producers to avail credit if any (or refund) of GST charged by Wind Turbine OEMs, GST charged by power producers to Government utilities should also be creditable till the last leg reaches ultimate consumer and this will mean the whole product value chain suffers GST only on the value added by the key players in the value chain till the consumer of electricity.
² Government should explore an option of replacing the Central Excise duty (0% ED) exemption to Wind Turbine manufacturing with “Zero-rating” mechanism by which the Output CGST (equivalent of Excise duty in GST) would continue to be 0% with a refund of Input CGST (Local ED), IGST (Equivalent of CVD & SACD) by the Central Government. This would continue to incentivize Wind Energy considering the ambitious targets.
² Alternatively all power generating devices like Wind Turbine generators, Solar power generators and other renewable energy generators should be brought under the Lower rate bracket. This will ensure a smooth flow of GST tax credit through the product value chain. The effective GST rate (lower rate) should not exceed 6% both CGST and SGST put together i.e. CGST 3% + SGST 3% or IGST 6%.
² The government can also explore the possibility of zero rating the manufacture/sale of wind turbines, by which there would be no output tax, at the same time, none of the input taxes becomes cost, as they would be refunded by the government. This would incentivize the WEG industry.
² Additional origin based Non-creditable GST of 1% which is proposed for initial 2 yrs on Inter-state transaction recently introduced in the GST
Wind Industry and GST
17Indian Wind PowerApril - May 2015
constitutional amendment bill should not be implemented as it will seriously impact Power sector on both sides for the first 2 years and would lead to inflationary trend.
² Status-quo / continuation of MNRE concession on Basic Customs Duty (BCD) on specified items like Gear box, Yaw components, Wind turbine controllers, blade rotors etc. However CVD / SACD would be subsumed in GST and an IGST would be levied on the imports with full credit of IGST paid on imports.
² Proposal to levy Integrated GST (IGST) on stock transfer would increase transaction cost for Project based industry like renewables and should not be considered or should be zero-rated for Renewable Energy Sector.
² If CGST is brought on WTG manufacture from 1st April 2016, government should permit the OEMs to avail credit of central taxes and duties which were incurred on the input side for the manufacture as transitional credit as the Output product would suffer CGST.
² Electricity duty levied by State Government is currently not proposed to be subsumed in SGST, it is important that electricity duty is subsumed in SGST.
² Industry should lobby with States where VAT is currently 0% to continue the benefit as a Net GST refund (after initially paying the Net GST) which can be given as “VAT subsidy” by the State industries department subject to certain prescribed investment in the State (e.g. Rajasthan, MP).
Power Sector Total Loan from BanksAs per the data, the total outstanding loan to the power sector from various banks were at ` 5,82,269 crore at the end of December 2014. The State Bank of India had the highest exposure to the power sector with a total loan amount of ` 1,00,085 crores, followed by Canara Bank (` 45,620 crores), Punjab National Bank (` 33,779 crore), Central Bank of India (` 33,263 crore), Bank of India (` 30,791 crore), IDBI Bank Ltd (` 26,502 crore), ICICI Bank (` 13,646 crore) and HDFC Bank ` 8,962 crore.
Source: PTI, 20 March 2015
AP to Add Over 1,000 MW Wind Energy Projects This FiscalAndhra Pradesh expects to add over 1000 mw of wind energy projects and 300 mw of solar photovoltaic power capacity during 2015-16. The State has added 285 mw of wind energy capacity last fiscal, taking the installed capacity to 1080 mw. Addressing a press conference Ajay Jain, Secretary, Energy, Andhra Pradesh, said, “Even though the `Power for All’ scheme had projected a capacity addition of 800 mw through wind farms in the State, we expect to augment additional capacity of 1000 mw this fiscal.”
Source: Business Line
CERC: Proposed Framework for Forecasting, Scheduling & Imbalance Handling for Renewable Energy
CERC has notified Framework for Forecasting, Scheduling & Imbalance Handling for Wind and solar generations.
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MAKE’s Global Wind Turbine OEM Market Share Rankings for 2014
1. Siemens, 2. GE, 3. Vestas, 4. Goldwind, 5. Enercon, 6. United Power, 7. Gamesa, 8. Mingyang, 9. Envision and 10. XEMC
Courtesy: MAKE’s Global Wind Turbine OEM 2014 Market Share analysis
NITI Aayog Plans National Energy Commission
The government is considering a proposal to set up a National Energy Commission to coordinate among ministries for implementing an upcoming overarching energy policy. India meets more than three-fourths of its energy requirements through imports. The imports, worth around $150 billion annually, is expected to double by 2030 unless a planned strategy to reduce demand for fossil fuel is put in place at the earliest.
The NITI Aayog has prepared a background paper outlining the broad structure of the National Energy Policy last year. The Niti Aayog paper has proposed the need to work towards developing energy-related infrastructure, human resource and enhanced use of technology for optimum utilisation of available resources.
To meet the targets while also reducing imports of fuels, it is aiming to increase production of renewable energy fivefold to 300 billion units by 2019 and raise coal production to 1.5 billion tonne from about a third of that at present. The idea is to reduce energy imports by 10% by 2022 and cut it down further by 50% by 2030.
18 Indian Wind Power April - May 2015
The REC Mechanism launched by CERC in 18th November, 2010, is a market based instrument to promote renewable energy deployment in the country and facilitate compliance of Renewable Purchase Obligation (RPO) by the Obligated Entities (OEs). It seeks to address mismatch between availability of renewable energy sources and the requirement of the obligated entities to meet their RPO by purchasing green attributes of renewable energy in the form of RECs. One REC represents 1MWh of energy generated from renewable sources.
Current Scenario
The installed grid connected renewable energy in our country is now 35,777 MW and a mere 14% of total installed RE capacity (4,773 MW) is registered under the REC framework. The table below depicts an integrated picture of the market including capacity accredited, capacity registered, total REC issued, RECs traded and unsold inventory, based on the data available in the REC Registry maintained by NLDC.
Accredited Capacity (MW)
Registered Capacity (MW)
RECs Issued RECs Traded Balance
Non-Solar 4,393 4,208 20,090,827 9,171,935 10,670,660
Solar 587 565 1,858,996 244,193 1,614,803
Source: REC Registry India
In the last fiscal, a total of 96 lacs RECs were issued, of which 30.6 lacs were traded cumulatively on both the power exchanges and 2.5 lacs RECs were retained by the generators for their own use, implying annual clearing ratio of just about 32%.
REC Market and the Recent Regulatory Developments
Shruti Bhatia, Vice President - Policy and Communications Indian Energy Exchange
16,7
98
16,1
42
50,7
43
13,6
09
15,7
36
8,99
4
36,4
11
93,1
00
1,77
,960
3,93
,081
3,45
,184
2,79
,205
38,4
81
29,2
4,97
6
36,1
5,69
5
31,6
6,86
3
42,4
1,24
4
39,4
9,01
6
43,4
2,30
7
47,6
6,94
1
49,4
6,76
3
53,1
3,97
4
67,2
0,19
3
60,2
5,63
8
53,1
1,67
0
53,2
1,69
3
010,00,00020,00,00030,00,00040,00,00050,00,00060,00,00070,00,00080,00,000
No.
of R
ECs
Month and Year
Buy Bids (REC) Sell Bids (REC)
Non-Solar REC Demand and Supply
19Indian Wind PowerApril - May 2015
² In the Solar Segment, 14 lacs RECs were issued, of which 1.6 lacs RECs were traded and 12.6 lacs RECs were left unsold
² In the Non-Solar Segment, 82 lacs RECs were issued, of which 29 lacs RECs were traded and 2.5 lacs RECs were retained by the generators for their own use leaving almost 51 lacs unsold RECs.
The total inventory of unsold RECs at 1.22 crores clearly shows that the scheme has been unable to deliver to the intended aspiration and objectives. The graphs above illustrates month wise demand and supply of RECs – both solar and non-solar – for the fiscal 2015. The inability of the demand to keep up with supply leading to a large inventory of unsold RECs in the market is amply evident in the illustration.
Over the last two years, the REC market, especially non-solar, has experienced a sharp decline since both the capacity as well as number of projects registered under the mechanism saw a downward trend. The solar RE projects did see an increase in capacity in fiscal 14, when almost 120 new solar projects with 307 MW capacities registered under the scheme. However, in the last fiscal even solar RECs saw a decline both in capacity and in number of projects registered. The correction in floor and forbearance price of solar RECs as made effective through December’14 order of CERC is perhaps the likely reason for reduction in solar capacity under REC.
823
469
636
498
367
264
232
245
366
30,6
50
26,7
26
39,3
85
6,72
1
1,47
,937
1,78
,986
1,47
,026
1,79
,581
1,50
,091
1,61
,260
1,87
,483
2,41
,063
2,35
,972
6,88
,581
9,87
,764
10,1
3,72
5
9,80
,521
0
2,00,000
4,00,000
6,00,000
8,00,000
10,00,000
12,00,000
No.
of R
ECs
Month and Year
Buy Bids (REC)
Sell Bids (REC)
Solar REC Demand and Supply
Source: REC registry India
Key Recent Developments & their likely impact on the REC Market:
Some of the recent regulatory RPO/REC related developments along with their likely to impact the REC Market are as enumerated below:
² Revision of Floor and Ceiling Price of Solar RECs, introduction of Vintage Multiplier and Extension of validity
In December’14, the CERC notified third amendment to the REC Regulation and revised the floor and forbearance price of Solar RECs to ` 3,500 per REC and ` 5,800 per REC respectively. To isolate Solar REC projects that were commissioned before the date of the order from the reduced price, the concept of vintage multiplier was introduced. The amendment allows solar generating companies registered under REC framework prior 1st January 2015 get vintage multiplier for the period from 1st January 2015 upto 31st March 2017. The solar generating companies registered under REC framework prior to the date of effect of the Third REC Amendment Regulations would be eligible for 2.66 REC for one megawatt hour of electricity generated and injected into the grid and this dispensation would be available to such projects for the period upto 31st March, 2017, after which the said projects would be eligible for one REC for one 1 MWh generated.
Since the revision of forbearance and floor prices of solar RECs, there has been significant increase in
22 Indian Wind Power April - May 2015
traded volumes of Solar RECs. In the last three sessions of the fiscal 2014-15, a total of 1.46 lakhs Solar RECs were traded in comparison to only about 17 thousand traded in the fiscal, before the revision of prices.
The amendment also allows a distribution licensee to seek issuance of RECs if it has procured renewable energy in excess of the RPO specified by the SERC or in the NAPCC or in the Tariff Policy, whichever is higher. In case there is any shortfall in procurement of RE against the RPO, it will first be adjusted and only the remaining additional procurement shall be considered for issuance of RECs. To prove the same, the distribution licensee has to obtain a certification from the SERC, towards procurement of renewable energy and will have to apply to the Central Agency within three months from the date of obtaining the certification from SERC. This initiative is likely to further increase in supply of RECs in the market.
Giving a fresh lease of life to RECs nearing extinction, the CERC order also extends life of RECs to 1,095 days from the date of issuance, provided that the RECs which expired in the financial year 2014-15 and the RECs issued till the date of effect of these regulations shall remain valid for 1,095 days from the date of issuance or up to 31st March 2017, whichever is later.
² Recent APTEL Judgments related to RPO / RECs
The Appellate Tribunal of Electricity (APTEL) in its recent Judgment (OP1/2013) has mentioned that the SERCs have failed to implement their regulations in meeting RPO under Section 86(1)(e) and 61(h) of the Electricity Act since many ERCs allowed deferment or exemption of RPO, despite the availability of RECs.
As per the judgment, SERCs should decide RPO targets before commencement of MYT period and preferential tariff before start of financial year so that distribution licensees can plan their procurement of renewable energy and also enter into PPAs. Discoms should also submit a plan for RE /REC purchase as part of tariff petition to SERCs for annual performance review as per the RPO regulations, monitoring of which should be carried out periodically. SERCs should carry forward /review RPO strictly as per the regulations keeping in view that non availability of REC is a pre-condition for carry forward as per APTEL judgment in Appeal no. 258 of 2013 & 21 of 2014. In case of default, penal provision as provided by state regulations should be exercised by SERCs and the power to relax and exempt RPO should be exercised judiciously and only under exceptional circumstances.
In a separate Judgment on waiver of RPO by GERC for the shortfall in RPO by the Discoms for FY 2012-13, APTEL judgment stated that REC is a valid instrument for fulfilling RPO and it follows the mandate of Electricity Act under section 86(1)(e) for promotion of renewable energy sources. SERCs can revise RPO before/during or after passing a year only owing to supply constraints or other factors beyond the control of the licensee. If the RPO is revised, SERC has to ensure it is uniform for all entities and it should not defeat the purpose of Electricity Act. If the SERC is convinced that the OE has faced genuine difficulty in meeting RPO due to non-availability of RE power or RECs it may allow carry forward however non-availability of RECs is a pre-condition for carry forward. The judgment also noted that the SERC should ensure
0 62307
197
2015
1175
491 4450
20
144
103
335
299
9460
0
50
100
150
200
250
300
350
400
0
500
1000
1500
2000
2500
2011-12 2012-13 2013-14 2014-15
Num
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ts
Capa
city
(MW
)Solar capacity Non-solar capacity Solar projects Non-Solar Projects
23Indian Wind PowerApril - May 2015
that Discoms do not deliberately alter the technology specific RPOs (solar and non-solar) and directed GERC to pass consequential order by July 2015.
Both the judgments are pro-REC Market and are likely to much needed create demand side push in the market.
² Draft CERC Framework for Scheduling & Deviation of Renewable Energy
In view of the revised target of 175 GW of renewable energy MW by 2022, there is an impelling need for integration of renewables in the pan-India grid. In March, 2015, the CERC issued draft regulatory framework for forecasting, scheduling and imbalance handling for RE generating stations based on wind and solar energy at the inter-state level. All wind and solar generators whose scheduling is done by the Regional Load Despatch Centre (RLDC) are proposed to be covered under this framework.
The generators as well as RLDC have to forecast the generation from wind and solar energy sources. The forecast by generators will be used for scheduling whereas the forecast done by RLDC will be in view of secure grid operation. Scheduling will be done by RLDC in the same manner as done for conventional generators and would be paid as per scheduled generation and not actual generation. As regards charges, there will be transmission charges, reactive energy charges and losses that would be applicable on all generators unless exempted.
The framework also addresses the problems faced by RE generators on variability of deviation settlement charges linked to system frequency, the operating band of which has been stipulated as ±12%. The framework has been devised assuming the tariff for wind and solar generation to be in the range of Rs 5/kWh and Rs 7/kWh respectively. In accordance with the assumed tariffs, the DSM charges for generation between 88-100% of schedule have been fixed at Rs 3/kWh and the charges for generation below 88% of schedule is fixed at Rs 4/kWh.
Under the proposed framework, if an RE generator under-injects, he would receive the payment as per the schedule and will be liable for under-injection for which the generator would pay charges to the DSM pool for the shortfall in energy component and would procure RECs for balancing of green attribute. In case of over-injection for upto 112% of schedule, the RE generator would be incentivized from the DSM pool at Rs 4/kWh for excess generation and would be issued equivalent RECS. However, for over-generation beyond 112% of schedule, only RECs would be issued and no payments will be made from the DSM pool.
With this framework, RE generators will have new avenues apart from selling under long term preferential tariff based contracts. Further, integration of RECs into the framework for issuance of RECs in case of under and over generation is a welcome step for the development of the REC market. However expanding the framework to include RE projects at State Level, relaxing the operating band from ±12% to atleast ±20% as well as integrating renewable sources other than solar and wind under the framework would go a long way in enhancing scheduling and integration of renewable energy in the pan-India grid.
² Electricity Amendment Bill, 2014
As per the draft Electricity Amendment Bill, 2014, thermal generating company would have to meet Renewable Energy Generation Obligation (RGO). Here it would be prudent to also allow RE generators buy RECs in case they are unable to install new RE capacity in order to offset RGO. Such an initiative will further help revive demand in the stagnant REC market. The Amendment Bill also proposes to increase the ‘Power to Penalise’ vested with the electricity regulators as well as make them more accountable to the Appellate Tribunal on Electricity (APTEL). From RE perspective, such provisions will improve enforcement of RPO by the obligated entities OEs which in turn will boost the REC market.
² The proposed Warehousing Scheme
Concerned about the large unsold inventory of over 1.2 crore RECs in the market worth over ` 2,100 Crore, recently, the Ministry of New and Renewable Energy constituted a task force comprising of members from CERC, NLDC, MNRE, IREDA, IEX, PXIL etc. to assess the viable methodology for warehousing the unsold RECs in order to provide much needed interim financial support to REC based renewable generators.
Under the proposed warehousing scheme, the RE inventory above a certain age, will be allowed to leverage the certificates with a nominated agency for warehousing and get financial support at some level of floor price. The warehousing would provide much needed cash flow to the generator to meet his financial obligations while the warehousing agency will trade the certificates at the behest of the generator. Once the warehoused certificates are traded, the developer would be given remainder payment. It is proposed to seek the initial funding for this scheme through NCEF with an attempt to eventually make the scheme self-sustaining through increased and regular sale of RECs along with the processing charges levied on the RE projects.
Introduction of warehousing mechanism for RECs is likely to restore trust of investors in the REC market and will go a long way in bringing the much needed vibrancy in the market.
24 Indian Wind Power April - May 2015
It has been observed that a number of people in power sector are using PLF (Plant Load Factor) & CUF (Capacity Utilization Factor) two ‘power plant performance’ related term interchangeably and tend to represent the same parameter. However there is a difference between both these terms and this knowledge post is to enlighten you on the same. Please find below an illustrative distinction between PLF & CUF. This is only for those who are unaware of this distinction.
Capacity Utilization Factor (CUF)
CUF is defined as the ratio between the gross energy generation of a power plant and the maximum gross energy generation possible in the period under operation i.e. period under which it is in running condition (eg.
330 days). The same can be represented as:-
Energy Generating during the periodCUF(%) = x 100
C x Hop
Where C is the installed capacity of the unit and HOP is the total operating hours (i.e. not including outages)
in the period.
Calculation of CUF (Example):
Assumptions:
Rated capacity : 2.1 MW or 2100 kW
Assumed annual generated : 48,00, 000 kWh
energy
Actual number of WTG : 330 days
operating days
Actual number of operating : 330 × 24 = 7920 hours
hours
Substitute the values in the above formula
CUF (%) = [48,00,000 / (2.1 X 1000 X 7920)] X 100
= 28.86%
PLF and CUF are Different Parameters
Plant Load Factor (PLF)
According to the Central Electricity Authority in India, PLF is defined as the ratio between the gross energy generation of a power plant and the maximum gross energy generation possible in the total monitoring period under consideration (in our case, a year).The same can be represented as:-
Energy Generated during the periodPLF(%) = x 100
C x Htotal
Where C is the installed capacity of the unit and H total is the total hours (i.e. not including outages) in the monitoring period under consideration (in our case, a year).
Calculation of PLF (Example):
Assumptions:
Rated capacity : 2.1 MW or 2100 kW
Assumed annual generated energy : 48,00, 000 kWh
Annual monitoring period : 365 days (Here we take the total number of days in a year; it could be 366 also)
Annual number of operating hours : 365 × 24 = 8760 hours
Substitute the values in the above formula
PLF (%) = [48,00,000 / (2.1 X 1000 X 8760)] X 100 = 26.09%
Compiled by:
Nitin Raiker Suzlon Energy Limited, Mumbai
Source: TÜV SÜD Industrie Service GmbH · 80684, Munich · Germany
25Indian Wind PowerApril - May 2015
GST: What it Means to Wind Industry?
R. Chandrasekaran, Consultant M/s. Regen Powertech Private Limited, Email: [email protected]
The much awaited Goods and Services Tax (GST) is likely to be implemented with effect from 1st April 2016 and a bill to this effect was introduced in the Lok Sabha by Finance Minister Sri Arun Jaitley on 28th February 2015. There has been much talk in the trade and industry circles that GST which is targeted to be a simple, efficient, transparent, and comprehensive system of indirect taxation, not alone will boost the country’s GDP by one or two percent but also will bring down cost of goods and services, as it aims to remove all cascading effect on taxes, prevailing under the current system of taxation. The implications of the proposed GST with relevance to wind industry are briefly discussed in this article.
Present Scenario
Indian Wind industry plays a crucial role in augmenting the renewable source of energy in India and enjoys some privileges and fiscal incentives from the government- both Centre and States. Most of the wind energy equipment’s manufacturers, apart from sale of their components to customers are also involved in the erection and commission of projects on turnkey basis. Nearly 30% of the raw materials are imported from various countries and the balance is sourced domestically from within and outside the state of their manufacturing locations. Likewise, they receive and also render lot of services in their course of business involving multiplicity of Central and State taxes. With this background we have to analyze the provisions of GST and its impact on wind industry.
Adjustment of Input Tax Suffered on CST Purchases
Under the present VAT system, input tax suffered on purchase of raw materials on VAT basis alone is given set off against VAT/CST payable on output. In the absence of a set off facility (against output facility) not being available, certain tax elements become cost to the manufacturers. Whereas GST provides for adjustment of all input taxes suffered against output CST/IGST and as such there will be a great relief on this front. This will greatly reduce the cost of raw materials to the equipment’s manufacturer.
At present most of the imported raw materials are subject to Special Additional Duty (SAD) and Countervailing Duty
(CVD) apart from Basic Custom Duty (BCD). In the proposed GST, there will be only one levy i.e. BCD and all the other levies such as SAD and CVD, etc. will be completely subsumed in GST. Even if GST is levied, complete set off will be available on the GST paid on imports of goods and services and thus would be a pass through.
GST, Works Contract and Service Tax
In the case of works contract awarded to varied contractors engaged especially in the erection and commission work at wind mill sites, tower manufacturing, etc., splitting of transaction value in to value of goods and value of services is required for the purpose of taxation which leads to complexities in tax administration. In some states, both service tax and VAT are levied on the full contract value which is totally unjustifiable and against the fundamental principles of VAT. GST being a comprehensive tax, no splitting of value of goods and services are required for the purpose of taxation and hence the tax administration will be simple.
GST Subsumes Majority of Taxes
GST subsumes several central and state taxes, of course, with some exceptions which are briefed below:
TAXES TO BE SUBSUMED UNDER GST
Central Taxes State Taxes
Central Excise Duty VAT/Sales Tax
Additional Excise Duty Entertainment taxes
Service Tax Luxury Tax
Special Additional Duty of customs – 4%
Taxes on lottery, betting and gambling
Countervailing Duty State cesses and surcharges relating to goods and services
Surcharges Entry tax not in lieu of octroi
Cesses
*There are a few other indirect taxes that may or may not be subsumed under the proposed GST regime as there is no consensus among states and between states and center.
26 Indian Wind Power April - May 2015
All complexities in the present day tax system will disappear leading to a simple, effective tax administration enabling free flow of tax credit in intra and inter-state trade.
Reduction in Prices of ComponentsUnder GST, the tax is effectively paid not on the value of the output but only on the value of addition made to the output, as set off will be allowed at each stage of value addition and as such there will not be any cascading effect. This will pave the way for a reduction in the sale price of the components.
Reduction in Purchase Price of InputsThere is every scope for getting raw material/inputs at a reduced price in the GST regime than in the present system. As there won’t be any cascading effect on purchase of inputs by our supplier, to that extent, his cost of production will come down, which in turn will push down his supply price to manufacturers.
GST and Excise DutyManufacture of wind mills and components are exempted from levy of excise duty at present. However, some of the components like transformer, electrical goods, etc. which are used in this industry are considered as generic products (meaning used in other industries also) and are subject to excise duty. Over and above, VAT/CST is also levied on the excise component resulting in cascading effect. In GST regime, excise duty will be completely vanished paving way for a reduction in supply price.
GST and Tax LinkageThe benefits of GST can be reaped by the ultimate customer/consumer only when there is no break in supply
chain. In other words, there should be an event of taxation happening at every stage. When once the chain is broken, (i.e. inputs taxed, but output is exempt), inputs tax cost are stuck in the hands of breaker, who adds up input tax to his product cost and the purpose is lost.
GST and Logistics
The components of wind mills are over-dimensional, uneven and heavy consuming a lot of time in their movement to the erection site from the manufacturing locations. Transport carriers are forced to waste their valuable time at the check post in the name of checking of documents, Octroi, entry tax, etc. According to one study, nearly 30% of the time is wasted by the transporters at the check posts. In the GST, hub and spoke system will gradually get established there by movement of components will happen from factory to site directly without any hurdles. Moreover, most of the check-post will also be removed resulting in savings of time, energy and money. Logistics cost of moving a material is expected to come down by even 30-40% according to World Bank estimates which in turn will boost the cost competitiveness of key manufacturing sectors by 3-4% of net sales. This will be a great relief to logistic stakeholders of the wind industry.
GST and Wind Farm Developers
As cascading effect of taxes will get eliminated under GST, it is the customer/the wind farm developer who will get the ultimate benefit of the GST. Likewise export oriented units will become internationally more competitive as entire taxes in supply chain would be refunded/zero rated.
Let the Wind Industry whole heartedly welcome GST.
We need your Feedback
National Institute of Wind Energy – 2nd Wrapper
Regen Powertech Private Limited – 3rd Wrapper
RRB Energy Limited – 4th Wrapper
SKF – 9
Wind World India Limited – 15
Gamesa Wind Turbine Pvt. Ltd. – 20-21
Pioneer Wincon Private Limited – 27
LM Wind Power – 33
Suzlon – 37
Dear Reader,
It is our endeavour to make IWTMA magazine Indian Wind Power, “THE MAGAZINE” for the Indian wind Industry. Your feedback on the general impression of the magazine, quality of articles, topics to be covered in future, etc. will be of immense value to us. We are thankful to your response. Kindly address your mail to "[email protected]".
Thank You,
The Editor - “Indian Wind Power”
Indian Wind Turbine Manufacturers Association 4th Floor, Samson Tower, 403 L, Pantheon Road, Egmore, Chennai - 600 008. Tel : 044 43015773 Fax : 044 4301 6132 Email : [email protected]
www.indianwindpower.com
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28 Indian Wind Power April - May 2015
Introduction
With depletion of fossil fuel and ever growing electricity demand, the focus has shifted to renewable energy and small wind turbine is one viable source of energy. The market for small wind turbine (SWT) is gaining global interest. SWTs could be used for residential, commercial and industrial systems. It is seen that the cost of technology, wind evaluation tools and consumer awareness are the driving factors for the future of small wind turbine industry. With the growing concern over the carbon footprint left behind by us in the environment, there is an urgent need for the adoption of renewable energy practices. One such sources of energy is wind power. The extraction of wind energy is done using the Wind Turbines. Wind Turbines are broadly classified into large scale systems and small scale systems. Based on their swept area the international standardization body, the International Electro technical Commission (IEC), defines small scale wind turbines in standard IEC 61400-2 as turbines having a rotor swept area of less than 200, equating to a maximum rated power capacity of 50 KW generating at a voltage below 1000 V AC or 1500 V DC. The small wind turbines are of two types. The Horizontal Axis Wind Turbines (HAWT) and Vertical Axis Wind Turbines (VAWT)
Statistics
Global installed small wind capacity has already reached 576 MW by 2011. At the end of 2011, a total of 730,000
small wind turbines (SWT) have been installed [1]. The future of the small wind industry depends on the cost of the technology, the enactment of supportive policies and economic incentives, fossil-fuel prices, investor interest, consumer awareness, certification and quality assurance, permitting processes and regulations, and wind evaluation tools. Financial, wind, and energy experts anticipate high growth rates forth production of SWTs if consumer demand increases.
Deepak Valagam, Technical Director, Vaata Infra Limited, Chennai
Roadmap for Small Wind Turbines
18 %VAWT (60)
SWT Manufacturers by 2011
74 %HAWT (242)
2 %Others (6)HAWT/VAWT (19)
6 %
Data collected from 327 small wind manufacturers from the WWEA Small Wind Manufacturer Catalogue
29Indian Wind PowerApril - May 2015
The early HAWT technology has dominated the market for over 30 years. Based on the study of 327 small wind manufacturers as of the end of 2011, 74% of the commercialised one-piece small wind manufacturers invested in the horizontal axis orientation while only 18% have adopted the vertical design. 6% of the manufactures have attempted to develop both technologies. As the majority of the vertical axis models have been developed in the past 5 to 7 years, the scale of market share remains relatively small.
HAWT STATISTICS
Total number of HAWT Manufacturers 242
Total number of HAWT Models < 100 kW 717
Average rated capacity 10.8 kW
Median rated capacity 3 kW
Percentage of turbines < 10 kW 78.1%
Percentage of turbines < 5 kW 66.2%
VAWT STATISTICS
Total number of HAWT Manufacturers 60
Total number of HAWT Models < 100 kW 157
Average rated capacity 7.4 kW
Median rated capacity 2.5 kW
Percentage of turbines < 10 kW 88.5 %
Percentage of turbines < 5 kW 75.8 %
Market Forecast:
What is seen today as ‘’big wind’’ started in the size which is today defined as small wind. Until mid 1980’s most of the turbines had a capacity less than 100 kW. Most common applications of small wind turbine include:
² Residential
² Commercial & Industry
² Hybrid systems
² Pumping
² Desalination
² Research & Education
² Telecom base stations
Majority of the wind turbines installed are a grid-tied system with larger capacity. On the other hand, off-grid applications continue to play an important role in remote areas of developing countries. Off grid applications include rural residential electrification, telecommunication stations, off-shore generation, and hybrid systems with diesel and solar.
Horizontal Axis Wind Turbines (HAWT) vs. Vertical Axis Wind Turbines (VAWT)
Wind turbines come in several forms but are most easily categorized by the position of their axis of rotation relative to the oncoming wind. HAWTs have their axis parallel to the wind direction and are most recognizable as the ‘propeller type’ wind turbine. A VAWT on the other hand has its axis of rotation pointing in a direction perpendicular to the wind and can resemble an egg beater. While both concepts appear different, they each convert the wind’s momentum into a useable torque and are capable of a similar maximum theoretical performance. The VAWT possesses a key advantage in that it does not need to align itself with the prevailing wind direction and can exploit a rapidly changing wind resource which is otherwise difficult for a HAWT to operate in at high efficiency. A lot of debate has been going on over which is the preferable choice for the small scale application, the HAWT or the VAWT. The turbine also permits mounting of generator and drive train at ground level. These characteristics of VAWT offer high functionality in the small scale localized usage of VAWT for power generation. Moreover, while the HAWT has a negative sensitivity to yawed flow conditions (Off axis), the VAWT actually has a range of positive sensitivity to skewed flow.
Figure 2: Typical HAWT
Introduction to VAWT
There are different configurations of VAWT. The major classifications of VAWT in small scale are the Savonius type and Darrieus type.
a. The Savonius Type:
The Savonius type wind turbine is a class of VAWT invented by the Finnish engineer Sigurd Johannes Savonius patented in 1931. The turbine as shown in figure 3 mainly operates on the principle of drag force. The differential drag causes the Savonius turbine to spin. But one of the major drawbacks of the Savonius turbines is the negative drag exerted on the convex side of the blades. The torque of the rotor varies through a single rotation thus affecting the self-starting of rotor at different wind angles.
30 Indian Wind Power April - May 2015
Figure 3: Schematic of Two-scoop Savonius type VAWT
b. The Darrieus type:
This type is patented in the year 1931 by Georges Jean Marie Darrieus, a French aeronautical engineer. The full layout of the turbine as shown below is lift based i.e. the rotor movement is caused by the lift forces acting on the blades. This can be further classified into curved and straight bladed type. Straight bladed have span of blade aligned with axis of turbine, whereas curved bladed do not have.
Figure 4: Schematic of Darrieus type VAWT
Based on the different requirements in initial design phase of wind energy conversion systems (WECs), three main requirements functional requirement, performance requirement and constraints are used. For the trade-offs between the different designs options in order to choose the most suitable solution for the specific application, it is necessary to establish trade-off criteria. In other words, weight factors should be assigned to describe the importance of each requirement during the design phase selections. For the requirements with biggest importance a value of 10 is given, with medium importance are assigned a value of 8 and so on.
Trade-off criterion
Weight factor
HAWT VAWT
Efficiency 8 9
Considered more efficient
7
Availability 8 10
Technologically more mature
8
Safety 10 6
Blades anchored in one point
9
Blades anchored in two points
Noise 10 8 10
Operation in lower tip-speed
ratios
Omni-directional
8 4
Need yaw system
10
Omni directional operation
Skewed flow
8 4
Reduced efficiency in skewed flow
10
Increased efficiency in skewed flow
Aesthetics 6 6 10
Self-start 8 10 4
Not able to self start
Risk 10 8
Mature technology
4
Further research needed-
complicated aerodynamics
Total score 65 72
Figure 5: WECs Trade-off Criterion [2]
31Indian Wind PowerApril - May 2015
Research & Development on VAWT
Sandia National Laboratories in New Mexico is also conducting a research on evaluating feasibility of VAWT architecture for large scale deployment in offshore environment. One of the project’s lead researcher claims, total estimated reduction in COE from the baseline work is 28%. The most important COE reduction categories are the increased annual energy production and reduced operations and maintenance, support structure, and balance-of-system costs.
According to Sandia’s findings, road to success of VAWT lies on reliability and performance of VAWT. Several areas have been identified for R&D on VAWT,
² Reduce cost
² Reduce manufacturing cost
² Improve reliability
² Power Electronics
² Reduction in noise
² Improved analytical tools
² Distributed generation applications
² Improved control theory.
In India, VAATA is a company that takes up Research &
Development in VAWT. It is developing a wind turbine that
goes beyond just being efficient and cost effective to be
planet-friendly, across sectors as diverse as recyclable energy
and household care. With a goal of transforming extant
realities in rural areas in India drives to create products
to alleviate problems, like infrastructure limitations, faced
by agriculturists/farmers. It focuses on making energy
available to farmers for their lifestyle development. Small
Art, shortly known as SMART is a small 15 kW VAWT
developed from scratch, completely in-house. The main
objective of SMART is to provide a low-cost, sustainable
and reliable source of energy and income for farmers and
rural dwellings. With such intent, Research & Development
of this VAWT turbine has been going on for more than 4
years at their R&D centre and they have now reached their
goals. Prototype turbines are running in two sites in Tamil
Nadu. Also, it can be put in Hilly Terrain and Remote Islands
where bigger wind turbines cannot reach. Thus, replacing
the need for diesel generated power. SMART is designed
for infill within existing wind farms, providing power to
rural dwellings and cell-phone towers in remote areas.
Several other global research programmes are under study and some are already prototyped for offshore environments. Noticeable among are, Project ‘’INFLOW’’ is carried under the 7th European framework for wind energy. The project is a Floating Vertical Axis Wind Turbine (VAWT) with sophisticated semi-submersible platform for offshore environment.
Project ‘’Deepwind’’ is under research by the European Framework for Energy. The proposed Darrieus 5 MW floating offshore wind turbine concept consist of a long vertical tube that rotates in the water, a vertical axis rotor at the top, a bottom based generator and a sea-bed fixing system at the bottom rotates.
32 Indian Wind Power April - May 2015
Growth in Size of Wind Turbines
Figure 6: Growth in Size of Wind Turbines since 1980 and Prospects
Wind energy is developing towards a mainstream, competitive and reliable power technology. Globally, progress continues to be strong, with more active countries and players, and increasing annual installed capacity and investments. India and other developing countries in Asia emerge by 2020 as an important market. Adapted from EWEA, 2009 the figure 6 shows Growth in size of wind turbines since 1980. The key point to be noted is ‘’scaling up turbines to lower costs has been effective so far, but it is not clear if the trend can continue forever’’. Hence need for small wind turbines which are highly reliable and robust have already emerged and will become more evident in the near future.
Economics of Wind Energy
The levelised cost of energy (LCOE) is the primary metric for describing and comparing the underlying economics of power projects. For wind power, the LCOE represents the sum of all costs of a fully operational wind power system over the lifetime of the project with financial flows discounted to a common year. The principal components of the LCOE of wind power systems include capital costs, operation and maintenance costs and the expected annual energy production. Assessing the cost of a wind power system requires a careful evaluation of all of these components over the life of the project.
The capital costs and the cost of the energy produced by small wind turbines are still higher than large-scale wind turbines (AWEA, 2011 and IEA Wind, 2010). The cost of small wind turbines varies widely depending on the competitiveness of the market and factors affecting installation, but costs for a well-sited turbine tend to range between USD 3 000 to USD 6 000/kW. The average installed price of a small wind turbine system in the United States
Figure 7: Typical Cost of Wind Energy, IRENA Wind Power Report 2012
is USD 4 400/kW and USD 5 430/ kW in Canada (AWEA, 2011 and CanWEA, 2010). Costs are significantly lower in China, and range between USD 1500 to USD 3000/kW depending upon the quality and reliability. The LCOE of small wind is in range of USD 0.15 to USD 0.35/kWh (IEA Wind, 2010), estimated operations and maintenance (O&M) costs range between USD 0.01 to USD 0.05/kWh (AWEA, 2011). It is worth mentioning that through continuous Research & Development, the capital cost and cost of energy production can be significantly reduced.
References
1. Small Wind World Report 2013, by World Wind Energy Association.
2. Systems and Knowledge Engineering Design of a Urban Vertical Axis Wind Turbine - Charilaos Kotsarinis TU Delft, 2009.
34 Indian Wind Power April - May 2015
Know Your Wind Energy State - Maharashtra - A Snapshot
Compiled by Mr. Nitin Raikar, Suzlon Energy Limited, Mumbai([email protected])
Topography & ClimateState brief:
Maharashtra encompasses an area of 308,000 km²
(119,000 mi²), and is the third largest state in India.
Maharashtra is bordered by the Arabian Sea to the west,
Gujarat and the Union territory of Dadra and Nagar Haveli
to the northwest, Madhya Pradesh to the northeast,
Chhattisgarh to the east, Karnataka to the south, Andhra
Pradesh to the southeast, and Goa to the southwest.
Maharashtra's physical features are quite homogeneous.
The most interesting part of the topography is the
presence of the Western Ghats and the Deccan Plateau.
The Western Ghats better known as Sahyadri, are a hilly
range running parallel to the coast. To the west of these
hills lie the Konkan coastal plains and the east of the Ghats
lies the flat Deccan Plateau. The Western Ghats form
one of the three watersheds of India, from which many
South Indian rivers originate, notable among them being
Godavari River, and Krishna, which flow eastward into the
Bay of Bengal, forming one of the greatest river basins in
India. Maharashtra experiences tropical monsoon climate.
Overall Power Scenario(Data as of 31 Mar 2015 & figures in MW)
Total installed capacity (all energy sources)
38170.18
Thermal (Coal+Gas+Diesel)
28145.20
Nuclear 690.14
Hydro 3331.84
RE (Grid connected)** 6003.00
Peak Demand (April 2014 - Feb 2015)
20147
Peak Met (April 2014 - Feb 2015)
19654
Deficit (%) (-2.4)
Wind Resource(Data as of 31 Mar 2015)
Installable Potential as per CWET Wind Atlas
5439 MW at 50m Hub Height/ 5961 MW at 80m Hub Height
Total Nos of Wind Monitoring stations established & Data recorded
140
Number of operational wind monitoring stations
12
Stations with Annual Average WPD > 200 W/sq m at 50 m height
36
Wind Passes Khandesh Region, Western Ghats
Windy Districts (having installation track record)
Dhule, Nandurbar, Sangli, Nashik, Ahmednagar, Satara
35Indian Wind PowerApril - May 2015
Wind Statistics(Data as of 31 Mar 2015)
Total Cumulative installed capacity (MW) 4437.00
Govt Demonstration Projects (MW) 8.98
Private sector Projects (MW) 4428.02
State Ranking in Wind Installation # 2nd
% of Wind Installations w.r.t all energy sources
11.62%
% of Wind Installations w.r.t all RE sources (Grid connected)
73.91%
Green Statistics(Data as of 31 Mar 2015)
Million tonnes of CO2 emissions offset by Wind powered projects in the state (p.a)
9.59 million tonnes
Million tonnes of Coal savings by Wind powered projects in the state (p.a)
6.9 million tonnes
No. of households tentatively powered 2.7 million homes
Wind Policy - Salient Features
Feed in Tariff (Sale to EB)
Without Depreciation : ` 5.70/unit in Zone 1
With Addl Depreciation : ` 5.33/unit in Zone 1
(As per MERC order Feed in tariff with Additional depreciation is calculated considering 20%+15% depreciation with WDV method)
HT Industrial (MSEDCL)
` 7.01 (Express feeder)` 6.33 (Non Express Feeder)` 7.79 (Seasonal Industry)
HT Commercial (MSEDCL)
` 10.45 (Express feeder)
` 9.83 (Non Express Feeder)
PPA Tenure (MSEDCL) 13 years
Transmission Fixed Charge
Re 0.38 per unit charge for FY 2015-16
T&D Loss 4.19% of generation
Wheeling Loss 11/22 kV : 9% & 33kV : 6%
Wheeling charges 11/22 kV : 60 paise per unit 33kV : 11 paise per unit
Unit adjustment in Open Access
In 15 min slots
Banking Not allowed
Buyback Rate for surplus
1) Max 10% of surplus will be encashed @ Lowest HT ToD Tariff
2) Balance surplus energy will be treated as lapsed
Reactive Power Charges
25 paise /kvarh with escalation of 5% per annum
Renewable Purchase Obligation (Non Solar)
8.50% RPO specified for FY 14-15
CDM Revenue Sharing
100% to Generator
Regulatory Agencies & State Utilities
Govt Regulatory & Nodal Agencies
Maharashtra Electricity Regulatory Commission (MERC)
Maharashtra Energy Development Agency (MEDA)
State Utilities Maharashtra State Electricity Board (Holding Company)
Maharashtra State Power Generation Co. Ltd. (MAHAGENCO)
Maharashtra State Transmission Co. Ltd. (MAHATRANSCO)
Maharashtra State Distribution Co. Ltd. (MAHADISCOM)
Private Utilities Tata Power Company Limited (Generation/Transmission/Distribution)
Reliance Power Limited (Generation & Distribution)
Torrent Power Limited (Distribution Franchisee)
Bombay Electric Supply and Transport Company (Distribution)
Miscellaneous Factoids
Project Commencement Year
Maharashtra's first demonstration Wind Power Project was commissioned at Deogarh in the May 1986. The Project comprised of 10 X 55 kW m/cs of VESTAS V16-55 make. The total Project capacity of this Demonstration Project amounted to 550 kW (0.55 MW).
36 Indian Wind Power April - May 2015
Snippets on Wind Power
CERC RE Tariff Order for 2015-16CERC has issued final RE tariff order on 31.03.2015 applicable for the FY 2015-16 & determined same tariff of Wind power plant as mentioned in Draft Order as given below:
Wind Zone
Leve
llise
d To
tal T
ariff
(F
Y 20
15-1
6)
(Rs/
kW
h)
Bene
fit o
f Ac
cele
rate
d De
prec
iatio
n (if
ava
iled)
(Rs/
kW
h)
Net
Lev
ellis
ed T
ariff
(u
pon
adju
stin
g fo
r Acc
eler
ated
De
prec
iatio
n be
nefit
) (if
ava
iled)
(R
s/ k
Wh)
Wind Zone - 1 (CUF 20%)
6.58 0.71 5.87
Wind Zone - 2 (CUF 22%)
5.98 0.64 5.34
Wind Zone - 3 (CUF 25%)
5.27 0.57 4.70
Wind Zone - 4 (CUF 30%)
4.39 0.47 3.92
Wind Zone - 5 (CUF 32%)
4.11 0.44 3.67
APERC: Tariff Regulation for Wind Power ProjectsAPERC has notified Terms and Conditions for Tariff determination for upcoming Wind Energy Power Projects Regulations, 2015.
Parameters Remarks
Review Period 5 Years
Tariff Period Useful life of the project
Determination of Tariff Suo-motu basis at the beginning of each year
Levellized Tariff Yes
Discount Factor Weighted average cost of capital
Must Run Status Yes
Capital Cost Consistent with its earlier orders dated 15-11-2012 and duly taking into account the capital indexation mechanism
Capital Cost Indexation Mechanism
As prescribed in the CERC RE Tariff Regulations, 2012
Loan Tenure 10 years
Interest Rate Average State Bank of India (SBI) Base rate prevalent during the first six months of the previous year plus 300 basis points.
Depreciation first 10 years
4.50%
Depreciation : Remaining useful life
3%
Return on Equity 16% with MAT/income tax as pass through
Interest on Working Capital
Average State Bank of India Base Rate prevalent during the first six months of the previous year plus 350 basis points.
Operation and Maintenance expenses
1.25% of the capital cost With 5.72% escalation
Capacity Utilization Factor
23%
Taxes and Duties Tariff exclusive of taxes
The Commission shall take into consideration any incentive or subsidy offered by the Central or State Government, including accelerated depreciation (AD) benefit if availed by the generating company, for the Wind Energy Power Projects while determining the tariff under these Regulations.
For payment of bills of the generating company through letter of credit, a rebate of 2% shall be allowed. Where payments are made other than through letter of credit within a period of one month of presentation of bills by the generating company, a rebate of 1% shall be allowed.
Supreme Court Judgement on RPO ObligationsOn May 13, 2015 the Supreme Court pronounced a landmark judgment on the applicability of Renewable Purchase Obligations (RPO) regulations. The case in question is Hindustan Zinc vs Rajasthan Electricity Regulatory Commission (RERC).
In August 2012, the Rajasthan High Court had dismissed an appeal by Hindustan Zinc Ltd., Ambuja Cements Ltd., Grasim Industries Ltd. and 14 other companies that challenged RPO regulations enacted by the state regulator (Rajasthan Electricity Regulatory Commission; RERC). Now Supreme Court has also rejected their petition.
The experts say that order will provide support to the State Electricity Regulators to impose RPO regulations more forcefully and enforce them effectively.
38 Indian Wind Power April - May 2015
APTEL Order on RPO Obligation
IWTMA has filed petition together with InWEA in APTEL regarding compliance of Renewable Purchase Obligations (RPO) by the distribution licensees and other obligated entities as specified by the State Electricity Regulatory Commissions and Joint Electricity Regulatory Commissions.
APTEL has issued final order dated 20th April 2015 in this matter. Highlights of the order are as below.
APTEL gives the following directions to the State/Joint Commissions under Section 121 of the Act:
• The State Commission shall decide the RPO targets before the commencement of the Multi Year Tariff period to give adequate time to the distribution licensees to plan and arrange procurement of renewable energy sources and enter into PPAs with the renewable energy project developers.
• The Preferential Tariff for procurement of renewable energy by the Distribution Licensee for a financial year should also be in place before the commencement of the financial year and no vacuum should be left between the end of control period for the previous tariff and the beginning of control period of the new tariff.
• The State Commissions shall obtain proposal with supporting documents for renewable energy procurement by the distribution licensee as part of the tariff petition for the ensuing year/Annual Performance Review for the current year as per the RPO Regulations.
• If the distribution licensee is not able to tie up procurement of renewable energy to meet the RPO target, it may plan to purchase RECs to meet its RPO target as per the provisions of the Regulations.
• The monitoring of compliance of the RPO should be carried out periodically as provided for in the Regulations. After the completion of the financial year the State Commission may review the performance of the distribution licensees in respect of RPO and give directions as per the Regulations.
• Suggestions and objections of the public shall be invited in the review proceedings and decisions taken after considering the suggestions/objections, as per law.
• The State Commission shall give directions regarding, carry forward/review in RPO and consequential order for default of the distribution licensees/other obligated entities as per the RPO Regulations. If the Regulations recognise REC mechanism as a valid instrument to fulfill the RPO, the carry forward/review should be allowed strictly as per the provisions of the Regulations keeping in view of availability of REC.
• In case of default in fulfilling of RPO by obligated entity, the penal provision as provided for in the Regulations should be exercised.
• The State Commissions are bound by their own Regulations and they must act strictly in terms of their Regulations.
• The provisions in Regulations like power to relax and power to remove difficulty should be exercised judiciously under the exceptional circumstances, as per law and should not be used routinely to defeat the object and purpose of the Regulations.
RBI Declares Renewable Energy as Priority SectorReserve Bank of India vide its letter no. RBI/2014-15/573,FIDD.CO.Plan, BC.54/04.09.01/2014-15 April 23, 2015 circulated to all the Scheduled Commercial Banks, (excluding Regional Rural Banks) has added the Renewable Energy sector as Priority Sector. This is to channelize the resources to the areas that are deemed national priority.
Renewable Energy
Bank loans up to a limit of ` 15 crore to borrowers for purposes like solar based power generators, biomass based power generators, wind mills, micro-hydel plants and for non-conventional energy based public utilities Viz. Street lighting systems, and remote village electrification. For individual households, the loan limit will be ` 10 lakh per borrower.
As per the Common guidelines for priority sector loans the rates of interest on bank loans will be as per directives issued by our Department of Banking Regulation from time to time.
Annual Power Generation Crosses 1 Trillion UnitsFor the first time in India, the annual electricity generation in 2014-15 crossed one thousand Billion Units or one Trillion Units. Power generation during the 2014-15 was 1048.403 BU showing a growth rate of 8.4% over the previous year which is the highest growth rate in the last two decades.Since 1991-92, the Compounded Annual Growth Rate (CAGR) of electricity generation has been around 5 to 6.6%. The biggest contributor was generation from the coal based power stations which recorded an annual growth rate of 12.1%.
Courtesy: 17 April 2015 India Energy Sector.in
Snippets Compiled by:
Shri Abhijit Kulkarni General Manager, SKF India Ltd. Pune
and IWTMA Team
39Indian Wind PowerApril - May 2015
Photo Feature
LVRT Meeting Task Force Meeting
A Meeting regarding LVRT matters was conducted on 16th April 2015 at Chennai. Mr. A. Velayutham, Ex Member, MERC was the Chief Guest to discuss various
technical and other matters.
A view of the Task Force Meeting of Tamilnadu Task Force conducted on 16th April 2015
FKCCI GREEN Summit 2015Federation of Karnataka Chamber of Commerce and Industries organised FKCCI GREEN Summit 2015 at White Orchid Convention Centre, Bengaluru from April 23-25, 2015. Indian Wind Turbine Manufactures Association took active part in the Conference and Exhibition as Gold Sponsor and had put up a Business Lounge at the hall to facilitate the business discussions. The event deliberated on important issues connected with the wind sector. The Summit brought together leading policy makers, global experts, industry captains, investors and SMEs and other stakeholders and provided a unique opportunity to network, meet, learn, build business and chart the future of Renewable Energy in Karnataka and India. The Association members were the part of the panels in various sessions.
Sri Madhusudan Khemka, Chairman, IWTMA was on the panel of Secretaries Conclave 23rd April 2015
Session on India’s Challenging Windscape : Challenges and Opportunities: Innovative trends and New Prospects dated 24th April 2015. Sri D.V. Giri, Secretary General, IWTMA was the part of the panel.
Sri Madhusudan Khemka, Chairman, IWTMA was on the panel of CEO’s Conclave 23rd April 2015
Sri D.V. Giri, Secretary General, IWTMA was the part of the panel for Session on Focus on Renewable Energy to Combat Electricity Shortages: Make in India Campaign 23rd April 2015
40 Indian Wind Power April - May 2015
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 AkzoNobel India LimitedAkzoNobel is a leading global paints and coatings company and a major producer of specialty chemicals. Calling on centuries of expertise, they supply industries and consumers worldwide with innovative products and sustainable technologies designed to meet the growing demands of our fast-changing planet. Headquartered in Amsterdam, the Netherlands, they have approximately 47,000 people in around 80 countries. Their portfolio includes well-known brands such as Dulux, Sikkens, International, Interpon and Eka and they are consistently ranked as one of the leaders in the area of sustainability. AkzoNobel is committed to making life more livable and cities more human.
Since AkzoNobel’s inception in 1646 they have constantly been delivering technical and product innovation. The oldest companies that coalesced to form what AkzoNobel today are Sadolin in Denmark, which was founded in 1777, and Sikkens (the Netherlands) and Bemberg (Germany), both established in 1792. In Sweden, Sir Alfred Nobel, the famous scientist (also known for Nobel Prize), founded many thriving businesses, some of which are still part of the company today.
As the world’s leading coatings company, AkzoNobel businesses cover practically every application in the global coatings market. Their paints protect and enhance mobile phones, appliances, pipelines, construction machinery, ships, buildings, etc. They are highly committed to innovation and supply their customers with strong brands & leading technologies. AkzoNobel’s main development efforts focus on improving protection against harmful influences such as chemical corrosion, sunlight & heat, ensuring better adaptability to meet specific customer demands, improving ease of application, aesthetic value and reducing ecological impact.
Akzo Nobel India LimitedAkzoNobel started operations in India in 1994 and since then, as a result of their technical strength and global reach, has made significant inroads into the chosen markets sectors. They transform experience and expertise from their seamless operation, into technical excellence – delivering innovative coatings and service locally. Their business areas include Protective Coatings, Marine Coatings, Powder Coatings, Metal Coatings and Decorative Coatings.
AkzoNobel Protective Coatings offer an extensive range of high performance coatings for the following sectors: Oil & Gas, Power, Original Equipment Manufacturers, Mining & Metals and High Value Infrastructure. Their Protective Coatings products are marketed worldwide by their brand name ‘International’ which is the world market leader in heavy duty coatings for shipbuilding and repair, the largest manufacturer of high-performance protective coatings and fire protection for building construction and maintenance, and the leading supplier of yacht paints.
Mr. Rao, a chemical engineer and a management
graduate with over 23 years of experience in
manufacturing, R&D, erection and commissioning
and sales of industrial products. He is responsible
for India Sales for Protective Coatings. He has
showcased significant growth in AkzoNobel over
his tenure of 11 plus years under various roles. He
likes reading and following various sports.
P.V.R. Narasimha Rao Sales Manager Protective Coatings, India
The India operations of AkzoNobel are headed by Mr. Jayakumar Krishnaswamy (Jay) as Managing Director. He is also the India Business Director, looking after the Strategic Market Units (SMUs) in Performance Coatings. Jay is a Mechanical Engineer from Delhi College of Engineering and has over 26 years of experience across the automotive and engineering sectors as well as the FMCG and cement industries. Jay is an avid reader, keen sportsman and a passionate marathon runner.
Jayakumar Krishnaswamy Managing Director
Manufacturing Unit - 1 Unit - 2 Unit - 3 Unit - 4
Complete coating solutions for wind powerassets, with a track record to match
Hubs
Blades
Towers
Foundations
Nacelles
Components
87
87
At ReGen Powertech, we believe that simpicity is everything. Our technology partner Vensys Energy AG, Germany, a world leader in Wind Energy Converter design and development enables us to offer turbines that are highly advanced yet to simple.
The V87 is a fine example of ReGen Powertech’s expertise and commitment to offering turbines that are highly efficient, reliable and low maintenance.
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Registered with REGISTRAR OF NEWSPAPERS for India, New DelhiVide No. TNENG/2015/60605 Date of Publishing : 25.05.2015
April - May 2015