Wind Energy: An Overview

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Wind Energy An Overview

• Presentation by
• Rakesh Kacker
• September 12, 2007

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Worldwide Developments

• Nearly 74,000 MW of wind power capacity has been
  installed all over the world
• There has been 29 average annual growth between
  1997-2006 and a ten-fold increase during this
  period
• At the end of 2006, Germany had the highest
  installed capacity of 20,622 MW followed by
  Spain(11,615 MW), US (11,603 MW) and India (7000
  MW)

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Worldwide Trends
Installed Capacity
Source WWEA
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Worldwide Trends
Annual Capacity Addition
Source WWEA
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Worldwide Projections
SourceWWEA
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Worldwide Drivers

• The IPCC Report of 2007 has created great concern
  across the world on the issue of climate change
• It calls for immediate action as against urgent
  action to arrest and counter GHG emissions
• Wind Energy is the only technology that can
  offset CO2 emissions on a utility and even
  national scales
• After the IPCC report, governments all over the
  world have come under pressure to promote wind
  energy projects through suitable mechanisms

• Energy security is a matter of concern for most
  of the developed countries
• Oil price hike in recent times, political
  developments in mid-east and gas crisis in the
  winter 2006-07 have further heightened the energy
  security concerns, particularly in Europe
• Energy Security is an equally important issue in
  the developing countries like India and China
• Wind Technology has become commercially viable

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Policy Mechanisms

• All over the world there are policy support
  mechanisms for windpower development
• Production Tax Credits
• Renewable Portfolio Standards
• Feed in - Law
• Tariffs in India

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Wind Energy Development India

• Wind Power Potential in excess of 65,000 MW
• 7082 MW set up by March 2007
• Power and energy shortages, RPS regime the main
  drivers for wind projects
• High industrial tariff is another reason
• A target of 10,500 MW of capacity addition from
  wind has been proposed till 2012 for the 11th
  five year plan of the Government of India.

• Freezes energy cost over a time horizon of 20-30
  years
• Modular can be set up on scales of 1-200 MW
• Short gestation period - 200 MW in six months
• No uncertainties associated with fuel and its
  price
• No fuel linkage, no fuel supply infrastructure
• Clean energy with no adverse environmental
  effects
• Additional revenue stream from CDM

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Source CWET
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Installed Capacity (MW) India
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Indiadevelopments
Source MNRE
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India capacity addition
Source MNRE
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IndiaPolicy Environment

• 80 accelerated depreciation allowed for
  investments in wind energy
• Section 80 IA benefits Power Generation cos.
  are exempt from payment of any tax for a period
  of 10 years under section 80 IA of the income tax
  Act.
• Electricity generated by the wind farm allowed to
  be wheeled to designated industrial unit
• State Electricity Regulatory Commissions (SERCs)
  orders on renewable portfolio obligation in place
• Tariff order of the SERCs for purchase of
  electricity from a wind source in place

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Price Trends Trading
SourceCERC
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Policy Issues

• Enforcement Mechanism for RPS
• Perception that Renewables are more expensive
• Perceived burden of developing renewables is on
  the renewable rich states

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Regulatory Issues

• Cost plus tariff setting lack of any other
  alternative
• Wide variety in regulatory regimes in different
  states
• Sharing of CDM benefits

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Market constraints

• Shortage of turbines
• Difficulties in getting suitable land
• Grid connections intra state and inter state
• Reliable data on wind resources
• Small wind turbines

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What is the true potential?

• 45,195MW estimated by MNRE in 2002
• Of this only 12875 MW feasible based on 20 grid
  penetration
• Tamil Nadu has already done 3500 MW as against
  Gross potential of 3050 MW and Net potential of
  1684 MW

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Why we need to grow faster

• Assuming 45,000 MW as the potential, an average
  of 22 capacity utilisation, marginal cost of
  electricity at Rs. 5.50 per unit and marginal
  cost of wind power at Rs 3.50 per unit
• Loss per annum is Rs. 14,000 crores

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Futuristic Designs
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LADDERMILL (KITEPLANES)
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Thanks !