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Term-Paper Of Project Management. Submitted To:- Mr. Puneet Bawa Submitted By:-

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Page 1: · Web viewEnergy is a basic requirement for economic development. Every sector of Indian economy agriculture, industry, transport, commercial, and domestic – needs inputs of energy

Term-PaperOf

Project Management.

Submitted To:-

Mr. Puneet Bawa

Submitted By:-

Page 2: · Web viewEnergy is a basic requirement for economic development. Every sector of Indian economy agriculture, industry, transport, commercial, and domestic – needs inputs of energy

A term paper as this would not have been written without the significant inputs and efforts

of many people. I would thus like to first thank Mr. Puneet Sir for his guidance

and help during the course of the making of this term paper. Without his support this term paper would have not been made.

I would also like to thank my friends for helping with the correct format of the term paper. It is his contribution that has led to a clear and more readable form of this manuscript. Though full care has been taken, I welcome any suggestions regarding the work.

THANKING YOU

TOPIC

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“PROJECT ON SOLAR WIND ENERGY PLANT”

Energy is a basic requirement for economic development. Every sector of Indian economy agriculture, industry, transport, commercial, and domestic – needs inputs of energy. The economic development plans implemented since independence have necessarily required increasing amounts of energy. As a result, consumption of energy in all forms has been steadily rising all over the country.

This growing consumption of energy has also resulted in the country becoming increasingly dependent on fossil fuels such as coal and oil and gas. Rising prices of oil and gas and potential shortages in future lead to concerns about the security of energy supply needed to sustainour economic growth. Increased use of fossil fuels also causes environmental problems both locally and globally.

Against this background, the country urgently needs to develop a sustainable path of energy development. Promotion of energy conservation and increased use of renewable energy sources are the twin planks of a sustainable energy supply.

Fortunately, India is blessed with a variety of renewable energy sources, the main ones being biomass, biogas, the sun, wind, and small hydro power. (Large hydro power is also renewable in nature, but has been utilized all over the world for many decades, and is generally not included in the term ‘new and renewable sources of energy’.) Municipal and industrialWastes can also be useful sources of energy, but are basically different forms of biomass.

The Ministry of Non-Conventional Energy Sources has been implementing comprehensive programmers for the development and utilization of various renewable energy sources in the country. As a result of efforts made during the past quarter century, a number of technologies and devices have been developed and have become commercially available. These include biogas plants, improved wood stoves, solar water heaters, solar cookers, solar lanterns, street lights, pumps, wind electric generators, water-pumping wind mills, biomass gasifies, and small hydro-electric generators. Energy technologies for the future such as hydrogen, fuel cells, and bio-fuels are being actively developed.

India is implementing one of the world’s largest programmers in renewable energy. The country ranks second in the world in biogas utilization and fifth in wind power and photovoltaic production. Renewable sources already contribute to about 5% of the total power generating capacity in the country. The major renewable energy sources and devices in use in India are listed in Table 1 along with their potential and present status in terms of the number of installations or total capacity.

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Introduction

Wind energy has been utilized by mankind for sailing, grinding, and other mechanical applications for centuries. In the recent past, wind energy has emerged as a viable renewable energy option withIncreased application in water pumping, battery charging, and large power generation. It is environmentally benign and does not emit greenhouse gases (GHG).

Wind Power Generation

Generation of electricity has emerged as the most important application of wind energy world-wide. The concept is simple: flowing wind rotates the blades of a turbine, and causes electricity to be produced in generator unit. The blades and generator (housed in a unit called ‘nacelle’) are mounted at the top of a tower.

TechnologyWind turbines generally have three rotor blades, which rotate with wind flow and are coupled to a generator either directly or through a gear box. The rotor blades rotate around a horizontal hub connected to a generator, which is located inside the nacelle. The nacelle also houses other electrical components and the yaw mechanism, which turns the turbine so that it faces the wind. Sensors are used to monitor wind direction and the tower head is turned to line up with the wind. The power produced by the generator is controlled automatically as wind speeds vary. The rotor diameters vary from 30 metres (m) toabout 90 m, whereas the towers on which the wind electric generators (WEGs) are mounted, range in height from 25 to 80 m.

The power generated by wind turbines is conditioned properly so as to feed the local grid. The unit capacities of WEGs presently range from 225 kilowatt (kW) to 2 megawatt

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(MW), and they can operate in wind speeds ranging between 2.5 m/s (metres per second) and 25 m/s.

Wind speed data of potential locations is compiled for a period of one to two years, to identify suitable sites for the installation of WEGs. Thereafter, WEGs are installed on the sites with appropriate distancesbetween them to ensure minimum disturbance to one another. After the identification of sites, wind turbines generally take two to three months for installation. The equipment is tested and certified by agencies to ensure that it conforms to the laid-down standards, specifications, and performance parameters. The machines are maintained by the respective manufacturers after installation.

Wind Power Potential in India

India’s wind power potential has been assessed at 45 000 MW. The current technical potential is estimated at about 13 000 MW, assuming 20% grid penetration, which would increase with the augmentation of grid capacity in potential states.

The success of Wind Energy in India

The next section will try to examine the policies and measure that were implemented, as well as other reasons that have allowed India to move so quickly in terms of wind energy deployment. It will look at the government policies, economic incentives, some technical and social factors, and lastly the infrastructural factors, that allowed wind energy to take off with such a boom.

Economic and Financial instruments responsible for the wind energy boom

The most relevant and powerful fiscal incentives did not come about on their own. It was government policy that gave the private sector a really strong motivation to set up wind turbines and get into the renewable energy business. These were,

100% accelerated depreciation on investment on the capital equipment in the first year of installation itself.

Five year tax holiday on Income from sale of power generated by wind energy. Industry status, entitling to capital subsidy in certain states. Banking and Wheeling facility. Buy back of power generation by State Electricity Board at a remunerative price. Third party sale of power generation in certain states.

The 100% accelerated depreciation rule had the greatest effect in stimulating industry interest. What it meant was that if a company’s taxable income (outside the wind power

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project) for the financial year was, for instance, Rs. 10,000, the company could show investments on WEG to the tune of Rs. 10,000 and get away by paying no tax at all.

This meant that some of India’s most prosperous businesses and industries, looking for tax breaks queued up in front of the MNES in order to sign installation contracts. The huge capital cost of wind-farm installation did not attract smaller entrepreneurs. This was a deliberate move by the Ministry to heavily reward installation and capital cost acquisition, a barrier which usually prevents industries such as that of wind energy from taking off, and succeed it did.

Also, recognizing the limitations of conventional banks to shoulder large installation costs, the MNES created the IREDA (Indian Renewable Energy Development Agency) in 1987 in order to finance renewable energy technologies. By 1997, IREDA gave out loans amounting to RS 676 million (US $16.2 M) which enabled the development of over 267 MW of wind power projects. This first confident move by the government spurred other groups to come forward to sponsor wind projects, such as the Gujarat Industrial Development Corporation Limited, the Industrial Development bank of India, and the Industrial Credit Investment Corporation of India.

Furthermore, the MNES streamlined the recognition and handling of wind-power plant financing by national and state-banks by drawing up “Guidelines for Clearance of Wind-Power Projects” in July 1995. It became mandatory for all State electricity boards and nodal agencies (which constitute the State bodies implementing wind-power development) to comply with conditions such as:-

Declare the schedule of envisaged capacity additions based on the power evacuation facilities at identifies windy sites every six months, and ensure grid compatibility.

Seek Detailed Project Reports (DPR’s) from independent consultants for (capacities above 1 MW) and verify project capital cost and generation against certified wind turbine power curves and wind data at the site before granting approval for projects.

Other financially related aspects that are relevant are

Power cuts (due to load shedding) during the summer months were a handicap for industries, especially in regions such as Tamil Nadu. Incidentally the wind generation during the summer months was at a peak and this incentivized both the TNEB and the local industries.

The industries that invested heavily in wind energy came from the textiles and cement industry, which had earned huge profits and were eager to adopt wind energy to earn the 100% depreciation.

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Technical and Social Factors

On the technical side, India has been fortunate in two ways. Firstly, they have discovered a good number of windy sites (recall that MNES identified 160 potential sites and 20, 000MW total available). Secondly, though they may not have previously been too familiar with wind technology, there are a large number of highly trained engineers and technicians who are graduates of institutions such as the IIT’s (Indian Institute of Technology). These provide the technical expertise that has allowed adaptation of foreign wind turbines for local use and their deployment in different parts of the country.

Wind Energy adoption has had almost no social or environmentally charged backlash, as far as can be told from the wealth of information on the subject. Unlike the United States or Europe, neither the problem of noise nor avian death, have been significant obstacles that needed to be overcome. There has been widespread acceptance of the technology from the Indian public and environmental groups and this has undoubtedly been a factor enabling the rapid proliferation of wind turbine use.

Infrastructural Factors

A number of infrastructural situations have also spurred wind energy use. For this particular instance we shall look at the state of Tamil Nadu and analyze some of the characteristics that made it the leader among Indian states in installed capacity. Among these are:-

The windy sites were close to towns for accessibility in bringing labor and providing accommodation for the personnel involved in the projects.

The sites were well interlinked with highways. Grid network by Tamil Nadu Electricity board (TNEB) was well connected and

mainly passing through the sites. Most of the wind turbine manufacturers/suppliers were located in Tamil Nadu and

so gave investors confidence in the supply of machines and after-sales service of the machines.

Chennai port of Tamil Nadu has excellent facilities for import of heavy machinery of the turbine components and this facilitated inter-state and international transportation.

Government Policy

This was perhaps the strongest initiator in promoting wind power adoption and investment. The policies adopted allowed all the other factors to flow together in a way that made wind energy very attractive to businesses and investors. Apart from the

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ongoing efforts of the MNES, which first of all instilled confidence in the technical and commercial viability of wind energy by performing the Demonstration Program, monitoring the entire country for windy sites, and putting the tax incentives in place, a few other policy initiatives by the State government of Tamil Nadu are also to be noted. These are:-

Active promotional steps were taken by TNEB and the Tamil Nadu Development Agency (TEDA). For example TNED took the first steps in setting up wind farms at sites like Muppandal, Kayathar and Kethanur to prove the viability of wind farms.

TNEB extended all facilities for private entrepreneurs like consultancy services, processing of the application for issuance of No Objection Certificate (NOC), and other clearances, extending grid connections to wind farms and executing new dedicated sub-stations.

TNEB established an effective system for registering the energy generation by each turbine and so enabled turbine owners to adjust their energy bill in accordance, or effect payment to those who sold to TNEB.

National Wind Power ProgrammeThe Wind Power Programme in India was initiated towards the end of the Sixth Plan, in 1983–84. The programme aims at survey and assessment of wind resources, setting up demonstration projects, and provision of incentives to make wind electricity competitive. As a result, wind electricity has emerged as an option for grid-quality power generation. The costs in respect of wind monitoring stations are shared between the Ministry of Non-Conventional Energy Sources (MNES) and the state nodal agencies in the ratio of 80:20 (90:10 for north-eastern states). With 2980 MW of installed wind power capacity, India now ranks fifth in the world after Germany, USA, Spain, and Denmark. Most of the capacity addition has been achieved through commercial projects by private investors.

Wind Resource Assessment Programme

The Wind Resource Assessment Programme is being implemented by C-WET (Centre for Wind Energy Technology) in coordination with state nodal agencies. An annual mean wind power density greater than 200 W/m2 (watts per square metre) at 50-metre height has been recorded at 211 wind monitoring stations, covering 13 states and union territories, namely Andaman and Nicobar Islands, Andhra Pradesh, Gujarat, Karnataka, Kerala, Lakshadweep, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Uttaranchal, and West Bengal. Handbooks titled Wind Energy Resource Survey in India have been published covering the wind data already generated.

Master plans

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Master plans are available for 97 potential sites for wind power in Andhra Pradesh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, and West Bengal. The master plans provide information on the availability of wind, land, grid availability, and accessibility to the site, which enables project promoters and state nodal agencies to undertake proper planning and implementation of the projects. The master plans have been provided to the state nodal agencies and are made available to project promoters, developers, and consultants through C-WET at a nominal cost.

Cost of Wind Power Projects

The cost of wind power generation varies between Rs 4 and 5 crores per MW, depending upon state characteristics. The machines can be maintained at a cost of Rs 0.25 to 0.60/kWh. The projects are estimated to have a pay-back period of five to eight years.

Promotional Incentives

Wind power projects have been set up through private investment. The promotional incentives available are listed below.

80% accelerated depreciation in the first year. Concessional import duty of 5% on five specified wind turbine components and their

parts. Favorable tariffs and policies in several states.

Manufacturing Base for Wind Turbine

Wind turbines are produced in the country by about a dozen manufacturers, mainly through joint ventures or under licensed production agreements. A few foreign companies have also set up their subsidiaries in India. A few Indian companies are manufacturing WEGs without any foreign collaboration. A list of manufacturers of wind turbine models possessing valid approvals, along with their foreign collaborators, is given in Table 2 (A and B). Indian-made wind turbines are also being exported to some countries.

The Problems faced by Wind Energy in IndiaTo a large extent, wind energy in India can be said to be as much of a failure as a success. There are many more problems that are being encountered with the implementation of the technology than there have been successes. We shall now take a scrutinizing look at some of the reasons for the failures.

Economic causes

One of the first things that are pointed to for being responsible for the slump in wind energy use is the introduction of the Minimum Alternate Tax (MAT). This was a new tax of 12.9% in the 1996/1997 budget for companies going for “zero-tax planning” and also reduction in the

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marginal corporate tariff tax to 35% from 46%. Companies that had used wind turbine installation as a tax-shelter were affected because MAT forced companies that had been going for this zero-tax planning to pay at least 12.9% corporation tax on their book profits. And so MAT made it slightly less financially beneficial to invest in wind. Another reason for failure has been dire lack of financing institutions to back the huge capital cost investment that wind farms require. The wind power plant sector is still predominantly debt-based for 60-75% of the project cost. IREDA and the handful of other banks were not enough to meet the installation needs and so in many states, wind energy did not even take off.

However probably the most damaging factor for the wind industry was the very thing that really started the boom, namely the 100% accelerated depreciation. This rule had a number of negative impacts. Among these are:-

Enabled large-company finance officers to make hasty decisions around the time of tax-filings to install wind plants. These hasty decisions often led to bad siting of machines and consequent low performance.

The rule relies on the ability of promoters of the technology to absorb the tax benefits - this restricted the number of potential entrepreneurs to companies with huge profits, such as the textile and cement industries, which were actually big investors in the technology. Smaller entrepreneurs were not incentivized.

Led to an increase in capital cost of locally made wind turbines, as they were “gold-plated”. For example the rise in cost/MW in 96/97 over 92/93 was 27.5% with the rupee depreciating by 15.45 against the dollar. However the price of Danish machines for example has been falling and so import of machines is encouraged even though these may not be the optimal designs for Indian terrain.

The worst impact this rule has had is that it placed no reward on the actual performance of wind turbines. Since this was not a part of the package that was rewarded by tax breaks, simply installation of wind turbines, whether they were well sited, efficient or not, was the only thing that counted. This led to very poor performance of the machines themselves.

Technical Problems

Poor design of turbines (either local or foreign) led to rotor blade failures Disregard for the earthing regulations and lightning protection led to damage by lightning

strike and unduly large breakdown of control systems resulting in expensive repairs and long “off-line” periods.

Foreign cooperation sometimes led to a mismatch between locally manufactured components and imported parts, weakening the reliability of the entire system.

Infrastructural Challenges

Grid problems: Wind turbines draw in a lot of power when starting up and so this sometimes caused the grids they were connected to experience voltage fluctuations – reducing power quality and having an undesirable effect on customer’s appliances. These fluctuations weaken a grid and have a negative feedback on the wind turbines

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themselves. In 1996 grid abnormalities induced a 20% loss in potential revenue due to ‘direct generation loss’ (inability of wind plants to operate when the wind is blowing). Half of all these losses are due to weak grids in the region.

There is a lack of servicing and maintenance expertise to handle wind farm upkeep. Utilities are suffering the burden of having wind farms connected to their grids. With the

notable exceptions of the usual suspects Tamil Nadu, Andhra Pradesh and Gujarat, the other states view wind farms more as a nuisance than a benefit, due to the low reliability and non-dispatch ability. Government policy has placed them in the position where they have to pay higher prices for wind-generated electricity. This has caused them significant financial hardship and has not heightened their enthusiasm and support of the technology.

Government Policy

Government policy also has a few barriers to overcome.

There are extensive bureaucratic procedures that discourage entrance into the sector. The Central government requires 22 clearances for wind power plant installation.

There are no qualifying benchmarks for power plant entrepreneurs to meet. The only requirement that the MNES has stipulated is a wind speed of at least 5 m/s. This is not a factory speed for a wind turbine to be economical.

There is a lack of standardization among wind turbine design and features. A large number of foreign and local manufacturers have made for difficulty in maintenance of wind turbines.

With the exceptions of a few States, again, there has been a lack of active support for wind power development by the State nodal agencies and the State electricity boards.

The biggest policy problem has been the lack of institutional infrastructure to support the booming wind industry. It is possible that the sector grew much faster than expected hence the institutional gap. This gap refers to the absence of authorities that are in charge of monitoring wind farms, certifying turbines, setting standards for designs and locations, research and development, funding institutions and so on.

Guidelines for Wind Power ProjectsComprehensive guidelines for wind power projects have been issued by the MNES from time to time. These guidelines relate to preparation of detailed project reports (DPRs), micro-siting, selection of windturbine equipment, operation and maintenance, performance evaluation, etc. Users of these guidelines include the state electricity boards (SEBs), state nodal agencies, manufacturers, developers, and investors. The certification requirement for wind turbines was reintroduced with a time-bound provision for self-certification. C-WET issues a list of manufacturers of certified wind turbine machines on a quarterly basis.

Success Stories

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A few examples of successful wind farms are briefly described below.

Muppandal–Perungudi (Tamil Nadu)

With an aggregate wind power capacity of 450 MW, the Muppandal–Perungudi region near Kanyakumari in Tamil Nadu has the distinction of having one of the largest clusters of wind turbines. About Rs 2500 crores has been invested in wind power in this region.

Kavdya Donger, Supa (Maharashtra)

A wind farm project has been developed at Kavdya Donger at Supa, off the Pune–Ahmednagar highway, about 100 km from Pune. This wind farm has 57 machines of 1-MW capacity each. Annual capacity utilization of up to 22% has been reported from this site. The farm is connected through V-sat to project developers as well as promoters for online performance monitoring.

Satara district (Maharashtra)

A conducive policy for private investment in wind power projects has resulted in significant wind power development in Maharashtra, particularly in the Satara district. Wind power capacity of about 340 MW has been established at Vankusawade, Thosegarh, and Chalkewadi in Satara district, with an investment of about Rs 1500 crores.

Wind Energy for Water Pumping and Off-grid Power GenerationWater-pumping windmills, aerogenerators (small wind electric generators), and wind–solar hybrid systems have been found to be useful for meeting water-pumping and small-power requirements in a decentralized mode in rural and remote windy areas of the country. The MNES is implementing a programme on ‘Small Wind Energy and Hybrid Systems’ to promote utilization of water-pumping wind mills, aerogenerators, and wind–solar hybrid systems for water pumping and power generation.

Water-pumping windmill

A water-pumping windmill pumps water from wells, ponds, and bore wells for drinking, minor irrigation, salt farming, fish farming, etc. Available windmills are of two types, namely direct drive and gear type. The most commonly used windmill has a horizontal axis rotor of 3–5.5 m diameter, with 12–24 blades mounted on the top of a 10–20 m high mild steel tower. The rotor is coupled with a reciprocating pump of 50–150 mm diameter through a connecting rod.

Such windmills start lifting water when wind speed approaches 8–10 kilometres (km) per hour. Normally, a windmill is capable of pumping water in the range of 1000 to 8000 litres per hour, depending on the wind speed, the depth of water table, and the type of windmill. Windmills are capable of pumping water from depths of 60 m. Water-pumping

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windmills have an advantage in that no fuel is required for their operation, and thus they can be installed in remote windy areas where other conventional means of water pumping are not feasible.

However, water-pumping windmills have limitations too. They can be operated satisfactorily only in medium wind regimes (12–18 km per hour). Further, special care is needed at the time of site selection as the sites should be free from obstacles such as buildings and trees in the surrounding areas. The cost of the system being high, Many individual users do not find them affordable.

Cost

The cost of a water-pumping windmill varies from Rs 45 000 to Rs 150 000, depending on the type. In addition, Rs 10 000– Rs 20 000 is required for the foundation, storage tank, and the installation of the windmill. As the system involves moving parts, it requires frequent maintenance. The repair and maintenance cost of a windmill is about Rs 2000 per year.

The MNES provides a subsidy of up to 50% of the ex-works cost of water-pumping windmills, subject to ceilings of Rs 20 000, Rs 30 000, and Rs 45 000 in the case of direct drive, gear type, and AV-55 Auroville models, respectively. For non-electrified islands, subsidy of up to 90% of the ex-works cost is provided for the above types of windmills, subject to ceilings of Rs 30 000, Rs 45 000, and Rs 80 000, respectively.

Aero generator

An aero generator is a small wind electric generator having a capacity of up to 30 kW. Aero generators are installed either in stand-alone mode or along with solar photovoltaic (SPV) systems to form a wind– solar hybrid system for decentralized power generation. An aerogenerator is suitable for power generation in unelectrified areas having adequate wind speeds. It consists of a rotor of 1–10 m diameter having 2–3 blades, permanent magnet generator, control devices, yaw mechanism, tower, storage battery, etc. The aerogenerator rotor starts moving at a wind speed of 9–12 km per hour. However, it produces optimum power at the rated wind speed of 40–45 km per hour. The limitation of not being able to provide power as and when it is required is overcome by storing it in a battery bank.

Aerogenerators cost about Rs 2.00–2.50 lakhs per kW. In addition, the cost of installation including civil works is estimated at Rs 5000 per kW. The repair and maintenance cost is about Rs 2000 per kW per annum.

Wind–solar hybrid systems

When an aerogenerator and an SPV system are interfaced, the power generation from these is mutually supplemented, and the resultant hybrid system offers a reliable and

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cost-effective electric supply in a decentralized mode. The wind–solar hybrid system mainly consists of one or two aerogenerators along with SPV panels of suitable capacity, connected with charge controller, inverter, battery bank, etc. to supply AC power. The major advantage of the system is that it meets the basic power requirements of non-electrified remote areas, where grid power has not yet reached. The power generated from both wind and solar components is stored in a battery bank for use whenever required.

The cost of the system varies from Rs 2.50 lakhs to Rs 3.50 lakhs per kW depending on the ratio of wind and solar components. The approximate cost of installation, including civil works, is about Rs 10 000 per kW. Repair and maintenance cost is about Rs 3000 per kW per annum.

Subsidy of up to 50% of ex-works cost of the system is provided, subject to a maximum of Rs 1.25 lakhs per kW to individuals, industries, and R&D and academic institutions. The MNES provides a subsidy for community use and direct use by central/state government departments and defence and para-military forces of up to 75% of the ex-works cost of the system subject to a maximum of Rs 2 lakhs per kW. For non-electrified islands, subsidy of up to 90% of ex-works cost subject to a maximum of Rs 2.4 lakhs per kW is available.

System Availability and Repair/Servicing Facility

Water-pumping windmills, aero generators, and wind–solar hybrid systems are installed through state nodal agencies using central subsidy. A manufacturing base has been developed, and a non-exclusive list of manufacturers. The state nodal agencies are responsible for providing repair/service facilities through the respective manufacturers.

Potential and Achievement

Water-pumping windmills require only medium wind regimes. Considering the availability of required wind speeds and the level of the prevailing water table, potential exists for installing water-pumping windmills in almost all states, except in hilly and rocky regions. Aero generators and wind–solar hybrid systems require high wind speeds and good solar radiation. Potential exists for their installation in Andhra Pradesh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Uttaranchal, Uttar Pradesh, West Bengal, and the windy regions of Jammu and Kashmir and all northeastern states. So far, about 1000 water-pumping windmills and 380- kW aggregate capacity of aero generators/wind–solar hybrid systems have been installed in the country.

Some Recommendations for India

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A number of reports have analyzed the situation, most notably those by B. Rajsekhar and A. Jagadeesh, and the following recommendations were arrived at

Create electricity-production based incentives such that performance and reliability also receive more attention from the actual wind farm operators.

Take financial burden off the State utilities by subsiding the higher cost of wind energy. The source of this money could come from bilateral institutions such as the World Bank. There have also been calls for the establishment of a wind fund, which could serve this purpose.

Another financial move must be the bringing down of the equipment cost. The “gold-plating” practice must be stopped (by a certifying government body) and local production must provide affordable machines to entrepreneurs.

The establishment of regional service stations, in proximity to a cluster of wind farms, in order to provide maintenance and upkeep of the equipment. This is another area that entrepreneurs may be able to tap into once more incentives are given to actual performance of the turbines and investors want to ensure the smooth running and reliability of their machines. In having these stations close to a number of wind farms there will be significant savings on personnel cost.

A central governing body must be established responsible for certification, standardization of design and features, monitoring of wind farms and technological R&D. The GOI has already recognized this need in the establishment of C-WET (Wind Energy Center) at Chennai.

‘The promotion of renewable energy sources in the country requires widespread publicity and greater awareness of the potential of these energy sources and the products available. The Ministry of Non- Conventional Energy Sources is expanding several of its programmes so that these sources can contribute to sustainable development of the nation. The Ministry will work towards reducing the costs of renewable energy products and making them easily available to the people. The motto of the Ministry is “Akshay urja se desh vikas” and the ultimate goal is “Gaon gaon bijli,

ghar ghar prakash”.’

CONCLUSION

‘Energy is an important input for economic development. Since exhaustible energy sources in the country are limited, there is an urgent need to focus attention on development of renewable energy sources and use of energy

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efficient technologies. The exploitation and development of various forms of energy and making energy available at affordable rates is one of our major thrust areas.’

‘Today India is one of the few leading countries in the development and utilization of renewable energy. The country is blessed with various sources of non-conventional energy and I hope the efforts of Ministry of Non-Conventional Energy Sources will promote viable technologies that can reach the benefits of such sources to the poorest people in the far-flung regions of the country.’