Volume : 2 Issue : 12 December 2014 ` 10/-

From the Editor’s Desk...INDIAN WIND POWER ASSOCIATIONNATIONAL COUNCIL

Office Bearers :ChairmanProf. Dr. K Kasthoorirangaian, C.M.D., RSM Autokast, Coimbatore Vice President, WWEA, Bonn, Germany

Vice ChairmenShri S V Arumugam, M.D., Shiva Texyarn, CoimbatoreShri Rajiv Samant, Head - BD, Wind,The Tata Power Company Ltd., Mumbai

Honorary SecretaryShri Chetan Mehra, M.D., Weizmann, Mumbai

Honorary TreasurerShri A Raja Sukumar, President, Indo Wind Energy, Chennai

EditorDr. Jami Hossain

Council Members :

Dr. V Bapeshwar Rao, V.P. Marketing, Suzlon Energy, Chennai

Shri T Balachandran, M.D., Arvind Green Infra, Karur

Shri Balram Mehta, S.V.P., Renew Power Ventures, Gurgaon

Shri Chandra Shekhar Khunteta, Director, Indocot, Jaipur

Shri M K Deb, M.D., Consolidated Energy Consultants, Bhopal

Shri Devansh Jain, Director, Inox Wind, Noida

Shri V Dev Anand, Director, Violet Green Energy Pvt. Ltd., Rajasthan

Dr. Jami Hossain, Chief Mentor & Founder,WindForce Management Services, GurgaonTreasurer, WWEA, Bonn, Germany

Shri T S Jayachandran, V.P., F & A, Premier Mills, Coimbatore

Shri Jitendra L Thakkar, CMD, Elveety Industries India, Hubli

Dr. N. Karunamoorthy, ED, AWT Energy pvt ltd, Mumbai.

Shri R Kannan, Senior Vice President, Beta Wind Farm, Chennai

Shri V K Krishnan, E.D., Leitwind Shriram Manufacturing, Chennai

Shri Madhusudan Khemka, M.D., Regen Powertech, Chennai

Shri K R Nair, GM, (Liaison), Wind World (India), Mumbai

Shri Rajsekhar Budhavarapu, CTO-Renewable Investments,IL & FS Energy Development Company, Gurgaon

Shri Rajeev Karthikeyan, MD, Leap Green Energy Pvt. Ltd., Coimbatore

Shri K V S Subrahmanyam, V.P.-Power, MSPL, Bangalore

Shri Sunil Jain, CEO & ED, Hero Future Energy, New Delhi.

Shri U B Reddy, MD, Enerfra Projects (India) Pvt Ltd., Bangalore

Dr. R Venkatesh, President, Power Quality Solutions, EPCOS India, Nashik

POWERING A GREENER TOMORROW

INDIAN WIND POWER ASSOCIATIONDoor No. E, 6th Floor, Tower-1, Shakti Towers

No. 766, Anna Salai, Chennai 600 002Phone : 044 4550 4036 | Fax : 044 4550 4281

E-mail : iwpahq@windpro.org, Website : www.windpro.org

(For Internal Circulation Only)

Challenges and Opportunities - 2015!

The industry and the country enter the new year (2015) with a new hope. In recent times the some of the policy bottlenecks to investments in wind sector have been removed. Accelerated Depreciation and GBI are back in place. The RPO and REC

mechanism is being strengthened through an amendment in the Electricity Act. The government has now indicated of targets that were not being talked about earlier. A target of achieving nearly 40 GW of wind power by 2020, more than what has been achieved in last 30 years! On the other hand PGCIL is working on green corridor to remove some of the infrastructural bottlenecks to wind power development. There still remain some constraints such as state level issues that continue to impede development work, however, given that the center has come so far, it is possible that many of the state level impediments will also be resolved.

For a long time, Wind Industry has complained of insensitivity from different wings of the government or authorities. It seems this difficulty has been more or less resolved or will soon get resolved. We may take a few more months to fully understand the new policy environment but soon the projects should start getting implemented on a scale that was not envisaged earlier. One expects a flurry of activity from developers and project developers across the country after a month or two.

Yet there remain some major challenges that are not entirely in the hands of the government. Bringing down the cost of electricity generated from wind energy is one such challenge. With the scale of economy - large projects, large machines, large procurement and a larger scale management - the cost of electricity generated from wind should also come down. It is essential for this cost to come down because with the envisaged increase in wind energy penetration in the power system, the average cost of the pool of electricity will also increase resulting in serious issues of affordability for the distribution companies as well as the consumers.

It is important for the wind industry also to contemplate ways of reducing Rs./kWh of electricity by going in for advanced cutting edge and efficient technologies that capture more energy per megawatt of installed capacity. The trends are already there.

2

List of Advertisements Page No.Cape Electric Corporation 1st Wrapper

Wind World (India) Ltd. 2nd Wrapper

RRB Energy Limited 3rd Wrapper

Gamesa Wind Turbines India Pvt. Ltd. 4th Wrapper

Pioneer Wincon Pvt. Ltd. 9

Kay Arr Engineering Agency 13

Revathi Power Transmission 19

Suzlon Energy Ltd. 20 - 21

Consolidated Energy Consultants Limited 25

V. Krishnan, Wind Mill Consultant 27

Evergreen Solar Systems India Pvt. Ltd. 33

Contents... Page No.

Editorial 1

From the Chairman's Desk 3

Proposed MNRE Workshop in Chennai on 29th & 30th January 2015 on Renewable Energy Management Centre (REMC) & Wind Energy Integration – Request for Permission

7

Order for the Study on Corridor and other Capability for Exporting 3000 MW of Wind Generation from Tamil Nadu during the year 2015

10

IWPA Memorandum to TNEB Chairman - Encl 1 11

Experts of Interview given by IWPA Rajasthan State Council Secretary Sri Chandra Shekhar Khunteta 13

Developer wise Future Plan – Green Energy Corridors 14

Introducing Competitive bidding processes for renewable energy plants - will it be worth it? 15

Letter to Varsha Joshi, Joint Secretary, MNRE 22

Letter to Smt. Nirmala Sitharaman 23

Presentation by Indian Wind Power Association on Optimising Wind Generation 28

Letter received Rajasthan State Government regarding Action taken on Cable Theft Matter 29

Renewable Energy News Digest 30

Most wind turbine manufacturers are developing wind turbines that have larger rotor diameter and taller towers, while keeping the megawatt rating constant. Suzlon has recently launched a wind turbine at 120 m height while all other major wind turbine suppliers have introduced wind turbines at around 90 – 100 m towers as against 80 m towers over the last 2- 3 years. Some suppliers have also talked about 135m high towers. Limits of engineering practicality will also set in somewhere. It seems, we would need to settle on a larger sized wind turbine model pretty soon. May be a 3 - 4 MW wind turbine at 120 – 130 m height with a rotor diameter of around 120 -130 m.

Yet another bottleneck that may come up is the ability of National Institute for Wind Energy (NIWE) to process certification requests for different kinds of wind turbine models. Variability in wind output that has been an area of concern for quite some time now, is yet another aspect that needs to be addressed both, by the industry and the utilities. Scheduling and forecasting of wind power output will be essential component the modern power system management.

There are opportunities and there are challenges, lets make the most of it!

3

From the Chairman's DeskDear Friends

As the year 2014 draws to a close, it is good to take stock of the events that passed us by.

2014 has been an eventful year for Renewable Energy. The new Government is giving importance to the growth of the Renewable Energy Sector.

Some of the more important developments in the last few weeks are as follows:

1. Amendments to Electricity Act 2003 being readied to be placed in the parliament:

a. Banking for Wind Energy

High winds is a national asset in States like Tamil Nadu. The MSME and the textile industry are largely dependent on this cheap wind energy generated for their economical running and export competitiveness in the world market against Chinese competition. This sector has an aggregate installed capacity of 7,300 MW of wind mills. 50% of the wind energy generated is captively consumed by these units. The viability and the well-being of this segment in the MSME and textile industry is largely dependent upon the trade winds available between May and September. They generate their entire energy required during these windy months and bank the surplus energy for consumption during the lean wind season between October and April. Tamil Nadu has been doing this year round banking for the last twenty years. Now TNEB want to remove this year round banking on the pretext that banking is not mandatory as per the Electricity Act 2003.

We humbly seek an amendment to the Electricity Act to make available banking mandatory for Renewable Energy which is seasonal and variable. This is vital for the “Make in India” movement to succeed.

b. RPO obligation

In order to ensure increased absorption of cleaner green renewable energy and rapidly replace the polluting fossil fuel based energy, it is imperative that compliance of the RPO (Renewable Purchase Obligation) has to be made mandatory so that the RECs remaining unsold will have a market.

c. Request to Government of India for early installation of REMC

REMC (Renewable Energy Management Centre) slated under the 12th Five Year Plan has since been pushed further to 2017 after the setting up of the Green Energy Corridor. Possibly you are aware that three billion units of clean cheap wind energy given by Mother Nature is being wasted annually in Tamil Nadu alone. Setting up of the REMC to be completed on a war footing before the next wind season starting in May 2015 in Tamil Nadu and other windy States, will help avoid this wastage of clean energy. The PGCIL and the German consultants GiZ should be given the directions by the Government to set up the REMC immediately to avoid wastage of precious wind energy due to non-evacuation.

d. Repowering of old wind mills

± Repowering is to be allowed for sub MW capacity wind mills that have completed 10 years’ service.

a. AT THE NATIONAL LEVEL

• In the case of repowering, the permissible claim allowance of A.D should be given at the rate of 1.25 times as compared to that of fresh installations

• All the cost of additional infrastructure and green corridors for evacuation in the case of repowering should be borne by Centre by utilising the National Clean Energy Fund or Green Corridor fund.

b. AT THE STATE LEVEL:

• New wind mills installed replacing older wind mills should get the current tariff and not the old tariff.

• The current 3D / 5D rules as prevailing in Tamil Nadu and few other States need to be relaxed to 2D / 3D when permitting repowering.

• In very special cases, wherever feasible intercropping of the taller new machines is to be permitted among a cluster of shorter older machines; so that the older machines consume

4

lower layer of winds while the new taller machines use the upper layers of wind.

• The additional MW power connectivity for the repowered wind farm is to be allowed and permitted for evacuation.

• (IDC) Infrastructure Development Charges to be levied only for additional MW installed and not for entire of new wind farms.

2. Meeting with Chairman and senior officials of TNEB:

On December 09, 2014 we greeted the new Chairman of TNEB Dr. Sai Kumar IAS, who gave us a patient hearing and we requested that the erstwhile system of having a periodical Coordination Meeting at the CE level with Association representatives be reintroduced. Most of the problems could be solved across the table at such discussions, we explained. We gather that efforts are afoot to reintroduce such meetings. We insisted that TNEB send a positive reply to SRPC on wind evacuation and TNEB orders IWPA early to install WEIF facility in TNEB grid.

In our discussion with senior officials of TNEB we explained that TNEB saying ‘ YES ’ to SRPC proposal would enable full evacuation of wind energy from Tamil Nadu. Avoid penalties on TNEB for injecting wind energy and reduce cost of banking as it would enable swapping.

3. Meeting with Chairman and other members of TNERC:

On December 24, 2014 IWPA team with Mr. Jayachandran and Mr. Manmathan of Premier Mills met the Chairman of TNERC and other members. We explained how SRPC agreeing to wind evacuation will benefit TNEB financially and wind generators with full evacuation. They appreciated our efforts in this direction.

4. Meeting with Power Grid Corporation officials:

We had met the PGCIL officials at New Delhi on December 04, 2014 and had made a presentation to them of evacuation losses in Tamil Nadu. We learn that PGCIL has already completed a major portion of the work like laying of OFC cables and other infrastructure.

Here we need to understand that though the Green Corridors and REMC (Renewable Energy Management Centre) planned to be set up by using Government and Kfw funds, but the input of real time wind energy generation data should be provided by the State SLDCs. TNEB has not done any efforts to gather such data. Therefore, your Association has submitted to TNEB a proposal of volunteering to set up the WEIF (Wind Energy

Integration Facility) in Tamil Nadu, which is very vital for the overall implementation of forecasting by REMC. TNEB is yet to accept your Association’s offer to set up the facility until now. It has to be done if we all want to avoid wastage of cheap wind energy in evacuation losses from 2015 onwards.

5. Meeting with SRPC regarding Forecasting of Wind Energy:

We had a two meetings with SRPC and this has resulted in SPRC initiating action by writing to TNEB about the proposal to treat wind as a common pooled resource at the Regional level. This will help in providing the full evacuation.

Your Association welcomes this development and hope to see that evacuation problems would be sorted out soon.

6. Stakeholder’s Meeting at MNRE:

On December 03, 2014, a stakeholder’s meeting was held by the MNRE wherein I and K.R. Nair had attended. Global investors meet with our PM at Delhi on 15th & 16th February 2015 was discussed at the meet.

7. Meeting with USAID officials:

We had met the USAID officials at New Delhi on December 04, 2014 and had a fruitful discussions. Your Association is trying to take the help from all quarters so that in the coming wind season in 2015 we should not have any backed down problems.

Shri A D Thirumoorthy, our Chief Technical Advisor made a presentation to the USAID officials when our chairman, Mr Kannan from OGPL, Mr.K.R Nair & Mr.Jami Hossain from IWPA NRC were present.

8. Meeting with Danish Embassy :

On December 09, 2014 the Trade Representative of the Embassy visited us at Chennai and had discussions with us. Our Chief Technical Advisor and a few of our National Council members like Mr.Kannan of OGPL & Mr. Krishnan from Nu Power were also present. We made our presentation regarding the proposed WEIF and sought their help. He advised us that the Danish Embassy can help us in arranging for a trip to Denmark where a delegation of grid managers from India especially from Tamil Nadu could witness the process of wind integration at Denmark. Moreover he could organize expert grid managers to visit India and give a talk and interact with the grid managers in India. Your Association is also trying to organize a program which will sensitize the grid managers and bring about a change in their mindset that

5

integration of renewables is indeed necessary and can be done.

9. Meeting with German Consultants GiZ:

We utilized the opportunity at Delhi to meet the Government appointed German Consultants who have been given the task of preparing a Detailed Project Report for REMC and Green Corridors. We insisted the need to expedite installation of REMC in 2015 instead of in 2017.

10. Filing of petition in high court against TANGEDCO restraining the collection of Scheduling and System Operation Charges in respect of “Sale to Board” category:

Your Association has decided to file a petition to safeguard the interests of our members who have been affected by the newly introduced charges of Rs. 2000 per day towards Scheduling and System Operation Charges in respect of “Sale to Board” category.

Association’s endeavour is to maintain a harmonious relationship with Electricity Boards. But when faced with situations wherein our members’ interests are affected then we cannot shy away from our responsibility. We would like to make it clear that we oppose any irrational charges but we do not deprive the Board of its rightful dues. In the instant case collecting Systems Operation charges from “Sale to Board” category members is not logical and hence the petition. Had the monthly interaction between your Association and TNEB been conducted probably this situation could have been avoided. The affected members are requested to send their support to National Office.

11. Price discovery of Renewables

There is a move that the price for renewables could be firmed up through the process of competitive bidding. We have had several discussions as to whether competitive bidding could be the appropriate process of price discovery for renewables. It is felt that bidding is not the appropriate method to arrive at mutually beneficial price. MNRE has expressed similar view.

An interesting article by a German author on whether auctions for renewable energy procurement is appropriate is given on page 15.

Perhaps our policy makers make take a cue on this. I invite members to give their views so that at the appropriate time your Association can make a representation on this vital topic to MNRE & MOP

12. Renewable Energy Policy / Law being drafted :

It will benefit all our members if the proposed Renewable Energy Policy / Bill is introduced, which we hear is under preparation. When this RE Policy / Act comes into effect a good number of our problems are expected to be solved and growth would take a fast pace.

In this connection I would like to briefly draw a few lessons from “The Renewable Energy Law of the People’s Republic of China”. (Source: The Renewable Energy Law of the People’s Republic of China and IRENA website)

The Chinese Government had decided in 2004 to adopt Renewable Energy in a big way. China announced its plans to develop a Renewable Energy Law and also establish a Renewable Energy Fund. From the time the top brass in the Chinese Government took this decision it took them only eighteen months to craft the RE legislation and got it passed it into a law.The above law was approved and passed on February 28, 2005 which came into effect w.e.f. January 01, 2006. In 2009 there was an amendment to it. They are continuously working on improving its efficacy.

Experts in Renewable Energy opine that passing such comprehensive renewable energy legislation is a remarkable feat for any country. This reflects support for the RE Law by China’s top leadership.

This Renewable Energy Law is designed to:

1. help protect the environment

2. safeguard energy security

3. diversify energy supplies

4. prevent energy shortages

5. reduce dependence on imported energy and

6. realize a sustainable development of the economy and society.

This law ensures that the China Electricity Grid is obligated to purchase all the electricity generated by approved Renewable Energy facilities.

Since China is ahead of the learning curve when it comes to implementing the RE Act, we need to take a cue from them and need not reinvent the wheel.

Given below is the map which gives the countries that account for the RE potential. China as you can see, the huge orange balloon accounts for 20%. But just a few years back, the RE mix was negligible in China.The changes started when the CNREC (China National

6

Renewable Energy Centre) was formed. China took help from Denmark in the setting up of CNREC.

If you see the map below, Denmark is represented by just a small orange dot and accounts for less than 1% of the RE potential but is a pioneer when it comes technology and experience regarding wind energy.

China when it launched its 12th Five Year Plan in 2010,declared “renewables” as an emerging strategic industry. This and the backing of the RE Law passed in 2006, resulted in China installing more new renewable energy capacity than all of Europe and the rest of the Asia Pacific region in 2013. Wind became China’s second largest source of renewable power in 2013.

The RE law directs the Education authorities to incorporate the knowledge and technology on RE into the Curriculum. It also stipulates that real estate development should factor RE integration like rooftop solar in the design and construction of buildings.

The RE further states that the price of RE power is to be determined on the principle of being beneficial to the development and utilization of RE Energy.

The RE Law protects the legal rights and interests of the developers and users of RE.

China has used a unique “push & pull” strategy for the expansion of renewable energy over the past decade. The first step occurred in 2006 with the creation of a market for renewable generation based on a FiT programme that drew heavily on the experience of other such schemes elsewhere, particularly in Germany. As a result, a renewable electricity market was developed that created bankable project developments for new wind turbines.

At the same time, China has actively encouraged the establishment of a local wind industry and a solar PV industry. These “push” mechanisms have included R&D programmes, financial support for renewable energy technologies and local content requirements which have driven a significant expansion of the domestic manufacturing base.

The Grid’s buying price for “renewables” is set by the National Development and Reforms Commission (NRDC). The National Energy Administration (NEA) was given the responsibility of monitoring compliance on a monthly basis. Renewable energy certificates would be used to track the fulfilment of targets, but the certificates had not been made tradable

The failure to meet targets negatively impacts on managers’ performance evaluations. All generators and grid companies regulated by the RPS are state-owned enterprises, and their managers are evaluated annually by the State-owned Assets Supervision and Administration Commission

(SASAC).State-owned enterprises have so far resisted these new requirements, which were still under debate in mid-2014.

China’s Industrial policies for renewable energy

There are important socio-economic benefits of renewable energy deployment such as increased income, industrial development and job creation. Hence in addition to policies that focus on renewable energy use, China uses specific supply-side tools to support the development of a national renewable energy industry. One of them is financial support for research and development (R&D).

I take this opportunity of wishing all our members a very prosperous and happy 2015. We are very hopeful that 2015 will be a watershed point for renewable energy in India.

7

December 23, 2014

The Secretary / Joint SecretaryMinistry of New and Renewable Energy,CGO Complex,Lodhi Road, New Delhi - 110003

Ref: Our letter to Joint Secretary dated 11th Dec 2014

Dear Sir / Madam,

You are aware that 2.5 billion units of wind energy was not evacuated in Tamil Nadu in 2013 as well in 2014. When we are looking for investments in the order of 10,000 MW per year, we have to find a way to infuse confidence in the mind of investors in India that evacuation losses will be avoided from 2015 onwards.

IWPA had discussed with SRPC and SRLDC. They manage a 6 States grid of size 35,000 MW. The wind fluctuation in 3500 MW size of wind energy during June – September in Tamil Nadu can be dissipated in this large grid than in 12,000 MW size of Tamil Nadu State grid. Realizing the need, the proposal of SRPC by carving out a separate Tamil Nadu wind evacuation area and handling of the evacuation separately was discussed and the members of 6 States committee has approved such a move. SRLDC after analyzing availability of transmission corridors facility from Tamil Nadu has also agreed to the proposal. SRPC has written to TNEB citing that such move will,

1. Enable full wind energy evacuation in Tamil Nadu during windy months

2. Avoid penalties on Tamil Nadu SLDC for variations in wind energy injection into grid

3. Reduce cost of managing year round banking in Tamil Nadu to minimal. Tamil Nadu nod is expected by SRPC.

Power grid using funds from National Clean Energy Fund (NCEF) & KFW is laying green corridors and installing REMC which is likely to be completed by end of 2017. That calls for looking for other ways to avoid annual losses of billions of units of energy in 2015 to 2017. IWPA discussed this issue with PGCIL, German GIZ who are implementers of Kfw fund based investments. We have requested REMC alone to be set up early in 2015 ahead of completion of green corridor in 2017.

Even when REMC is installed, power grid who would operate REMC would call for data like real time wind energy generation in the State, along with days met data like wind velocity and direction from Tamil Nadu State grid. TNEB has not installed any facility to provide such data to REMC to function.

This is why IWPA has come forward to install smart meters with sim card in all 110 wind energy pooling sub stations in the Tamil Nadu grid. Installing servers / cloud arrangement to synthesize all data into one to present it on the computer monitor of grid manager of SLDC /SRLDC. Most grid managers are not yet aware of this arrangement.

Proposed MNRE Workshop in Chennai on 29th & 30th January 2015 on Renewable Energy Management Centre (REMC) &Wind Energy Integration – Request for Permission

8

During our discussion with PGCIL, German GIZ, USAID, Danish embassy and SRLDC, they have agreed to come to Chennai in January 2015 and convince TNEB and other State grid managers to convince them as to what they should do in tandem at an early date to avoid huge losses in evacuation of wind energy.

Investors are hesitant to invest in wind mills in the absence of assured evacuation. Grid managers of State utilities would not participate in workshop on this subject unless it is sponsored by MNRE.

Though IWPA can organize such a workshop on its own, it should be done under the banner of MNRE to enable grid managers of State participating in it and make the effort beneficial to all concerned.

In this context we have written on 11th Dec 2014 to Joint Secretary, MNRE requesting approval of the scheme accepting chairmanship of workshop and a token funding. TEDA has agreed for involvement in this activity. We are arranging the meet in a star hotel in Chennai. The inauguration can be like by MNRE Secretary, CERC chairman, State regulators, State electricity minister, TNEB chairman and the alike. Time available is short.

IWPA appeals for early approval by MNRE. Please feel free to call for any clarification to my mobile - 98422 55908.

We enclose herewith a CD to hardcopy and video clipping to email.

Thanking you in anticipation.

With Best Wishes & Regards,

For Indian Wind Power Association,

Prof. Dr. K. Kasthurirangaian Chairman

Copy to Joint Secretary – wind, MNRE, Delhi

Mr. Dilip Nigam,Director,MNRE, Delhi

Mr. Sudeep Jain, CMD, TEDA, Chennai

Mr. K.R. Nair, VP, IWPA - NRC, Delhi

9

10

December 25, 2014

Power Research & Development Consultants Pvt Ltd

# 5, 11th Cross, 2nd Stage,

West of Chord Road, Bangalore - 560 086

Kind Attention: H.R Venkatesh, General Manager –Business Development

Ref: Your quotation dated 23rd Dec 2014

Dear Sir,

We have pleasure in placing our order for study as per the scope of work in your quotation and give us a detailed report on

interstate capability of exporting 3000 MW of wind generation from Tamil Nadu all through the year 2015.

Draft report to reach us in 2 weeks and final report within 1 week thereafter. We agree to pay Rs 6 lakhs (Rupees Six lakhs

only) along with tax of 12.36%, Rs 2 Lakhs (Rupees Two lakhs ) paid as advance, another Rs 2 Lakhs (Rupees Two lakhs

) on submission of draft report in time and final payment of Rs 2 Lakhs (Rupees Two lakhs ) after receipt of final report.

By a copy of this order I am requesting IWPA office to issue a cheque for Rs 2 lakhs (Rupees Two lakhs ) as advance.

Dr. Balaraman and PRDC people to be available to defend the report whenever and wherever necessary. Contact person at

IWPA end would be Mr. Thirumoorthy, our Chief Technical advisor.

Thanking you in anticipation,

With Best Wishes & Regards,

For Indian Wind Power Association,

Prof. Dr. K.Kasthurirangaian

Copy to Dr Balaraman, Mr.Thirumoorthy & IWPA National Office Chairman

Order for the Study on Corridor and other Capability for Exporting3000 MW of Wind Generation from Tamil Nadu during the year 2015

11

December 09, 2014

Dr. M Sai Kumar, IASChairman & Managing DirectorTamil Nadu Electricity BoardN.P.K.R.R. MaaligaiNo. 144 Anna Salai, Chennai - 600 002

1) Request early reply to SRPC’s letter to TNEB and

2) TNEB’s order to IWPA to set up visibility of real time wind generation in the whole State.

Respected Sir,

Consequent to our meeting of PGCIL at New Delhi and the German Consultants (GiZ) appointed by the Ministry of Power for installing REMCs (Renewable Energy Management Centre) under the 12th Plan in various States and also our letters addressed to the meets of SRPC on 16.10.2014 and 12.11.2014 (copied to TANGEDCO), SRPC has taken a positive stand about its managing wind control area for wind energy generated in Tamil Nadu.

SRPC has written to TNEB requesting concurrence on the initiatives and decisions taken by SRPC for handling wind power. When TANGEDCO writes concurring with SRPC’s initiative to create separate control area that will result in:-

1. Increase balancing area for better management of variability:- When control area is increased from State to Region from 12,000 MW to 35,000 MW area, variability can be better managed.

2. Host State not to be penalized:- Tamil Nadu as a host State not to be liable for payment of UI charges for any wind induced change in frequency beyond the present tight limits and also not liable to pay for any excess variation in the scheduled injection of wind energy.

3. Banking not to hurt TANGEDCO:- It also protects and helps Tamil Nadu because whatever is the excess wind generation, can either be sold outside. What is banked by the Tamil Nadu wind generators can be re – banked / swapped with utilities in other States during June – September to be returned back during subsequent November – April, resulting in huge savings for TNEB.

Need for having a set up for visibility for Wind in Tamil Nadu:- For measurement of real time generation of wind energy for the whole State and synthesizing it to make it available on the screen of the grid manager handling separate wind control area, along with a forecaster appointed by SRPC / PGCIL would synthesize real time wind generation and the day’s meteorological data and historical data to give forecast of wind generation after half an hour, 1 hour, 4 hours and 24 hours to the grid manager who can conveniently schedule wind energy.

IWPA Memorandum to TNEB Chairman - Encl 1

12

Though initially the forecasting error may be high to the tune of 30% – 40 %, by constant practice and experience the error can be brought down to much lower levels within a year, say the experts.

Measuring real time wind generation:- Wind generation for the whole State of Tamil Nadu needs fixing of energy meters with communication facility in all wind energy pooling stations in the State which we gather is 110 as per preliminary estimations. Real numbers to be confirmed by actual survey and investigation.

A detailed project report (DPR) has to be prepared by IWPA with information, support, co-operation and guidance from field Sub Station level TNEB staff, CE-NCES, CE-Operations, Director-Generation and MD –TANTRANSCO. Now we need the TNEB order to permit / enable IWPA Chief Technical Advisor and his people to reach the TNEB staff at various levels and places in Tamil Nadu grid to survey and gather information and later to install.

After survey, IWPA will prepare DPR, call tenders from reputed service providers and install the set up with the co-operation, supervision and support from TNEB field level and top level officials.

We request TNEB not to levy any charges like meter testing, service charges for installation and the like for making the set up as of no levy. Ground level or Cloud level Servers to be installed to show on a monitor, the needs of grid manager. SRPC / PGCIL to name the forecaster. The operation of set up can start partly functioning in six months from zero date. To set up the initial phase might take anything like 6 months to 1 year and final phase to be completed in 2 years’ time.

IWPA is willing to accept any payment for the above setting up of visibility of real time wind energy generation or WEIF in whole State if offered by TNEB.

We humbly request:

i. TANGEDCO’s positive reply to SRPC’s letter and

ii. TNEB to issue early orders permitting IWPA to start work on WEIF.

Thanking you

With Best Wishes and Regards,

Yours faithfully

Copy to: Director Generation, TANGEDCO, Chennai For Indian Wind Power Association

Prof. Dr. K KasthurirangaianChairman

Shri Pratap B. Salunkhe Council Member, IWPA

Maharashtra State Council submitted a petition on

wind energy policy of Maharashtra to the Hon’ble

Energy Minister of Maharashtra Shri Chandrashekharji

Bawankule at Nagpur on 24th December 2014.

Shri Salunkhe had also discussed the Issues and

problems faced by developers in Maharashtra.

Maharashtra wind energy policy is expected to be

announced before 28th Feb 2015.

13

Experts of Interview given by IWPA Rajasthan State Council Secretary Sri Chandra Shekhar Khunteta

14

December 11, 2014IWPA Circular No. 128 of 2014

Dear Members,

As you may be aware, PGCIL (Power Grid Corporation of India Ltd.) is implementing Green Energy Corridors – Inter State Transmission Scheme (GEC – ISTS) in various wind rich States like Gujarat, Rajasthan and Tamil Nadu. Wind Energy when integrated with the GEC - ISTS system will facilitate the Inter-State transfer of wind energy. This will go a long away in alleviating the issues faced in evacuation of wind energy.

PGCIL had convened a meeting on November 24, 2014 at New Delhi to discuss these issues wherein IWPA representatives were also present. In order to plan the transmission capacity of the system, PGCIL will like to factor in not only the existing WEGs but also the proposed capacity additions. Therefore, they have now requested for information as per the following format.

Sl. No.

ComplexDeveloper-wise Firm Plan

Developer-wise Future Plan(Tentative Plan)

Name of the Developer

Capacity (MW)

Expected Commissioning (Month / Quarter)

Name of the Developer

Capacity (MW)

1 Bhuj (Gujarat)

2 Banaskantha/Patan (Gujarat)

3 Banswara/Chittorgarh (Rajasthan)

4 Ajmer (Rajasthan)

5 Bhadla (Jodhpur)

6 Akal/Pokaran (Rajasthan)

7 Tirunelveli (Tamil Nadu)

Members are requested to treat this as URGENT and send the details by return mail before 14th Dec 2014 Since IWPA has to consolidate and report to PGCIL.

Thanking you

With Best Wishes and Regards,

For Indian Wind Power Association

Prof. Dr. K KasthurirangaianChairman

Developer wise Future Plan – Green Energy Corridors

15

Eva Hauser, IZES gGmbH, hauser@izes.de

Introducing competitive bidding processes for renewable energy plants

will it be worth it?The introduction of auctions for renewable energy procurement, foreseen by the European Commission (in its “Guidelines on State aid for environmental protection and energy 2014-2020”1) to begin from 2017,will mark an important policy change for many member states.2

The European Commission’s objectives in publishing these new guidelines include strengthening “the internal market, promoting more effectiveness in public spending through a better contribution of State aid to the objectives of common interest, greater scrutiny on the incentive effect, on limiting the aid to the minimum necessary, and on avoiding the potential negative effects of the aid on competition and trade.” (Guidelines, para.12).

In general, proponents of tenders give three main reasons for the favourability of auctions in comparison with other instruments employed to finance the expansion of renewable energies:

± First, the supposedly higher (static) economic efficiency compared to the administrative setting of tariffs,

± second, a more targeted controllability of renewable energy expansion and

± third, the conviction that decisions on the financing of renewable energies would be taken more neutrally by ‘the market' than by politicians or by the administration charged with this task.

In general, all newly built renewable energy plants should only receive ‘aid’ via a competitive bidding processes, but different exceptions may be applied: they can be limited to specific technologies (cf. Guidelines, para.126) and they may be restricted

to plants whose installed capacity is lower than 1 MW or, for wind energy, not exceeding 6 MW or 6 generation units. Furthermore, the European Commission already defines (in Guidelines, para.126) three possible exceptions to this general rule, each depending on member states demonstrating that:

± only one or a very limited number of projects or sites would be eligible,

± a competitive bidding process would lead to higher support levels (for example by strategic bidding) or

± a competitive bidding process would result in low project realisation rates (as a consequence of underbidding).

These exemptions show that the European Commission itself seems to be aware that competitive bidding processes may not always lead to lowering prices or to high project realisation rates. Therefore, it is quite interesting to look at other countries where auctions for renewable energies have already been introduced.

In a recent study about auctions for wind turbines, we took a closer look at whether and to what degree expectations have been fulfilled in some European and non-European states that useauctions to determine the amount of remuneration tariffs or the number/ capacity of wind turbines being installed.

Having considered the recent examples of the Netherlands, Italy, South Africa and Brazil, we observethere is no uniform picture of auctions leading to lower remuneration tariffs for wind turbines.

Generally, it is not advisable to directly compare the prices that have been determined in auctions across countries. These prices

16

depend on many different factors like wind conditions, interest rates, costs of grid connection, accessibility of plant sites, costs of authorisation procedures, possible compensations for inflation,and also on the delay between the deposal of the bids and the start of the operation of a wind power plant.

There is another point that needs to be taken into account when examining auction results: Feed-in-tariffs may be determined following an annual regression path which can vary according to a regional pattern, i.e. to wind conditions. For example, Germany (like other countries) applies a bandwidth of tariffs according to the so called ‘reference yield model’. Assuming the recently adopted EEG 2014 with its regression path and a future inflation rate of 2 % over the twenty years of guaranteed payments for electricity fed into the grid, wind turbines installed in Germany with a commissioning date in 2016 will receive revenues ranging from 46 €/MWh up to69 €/MWh (discounted values). This represents a bandwidth between the most and the least profitable location in absolute terms of 23 €/MWh, or about 50 %.

In those countries where the remuneration tariff has been fixed in auctions (with the exception of the Netherlands, where a different auction mechanism applies, see below), prices went down during the first two or three auction rounds; in Brazil, where the tendering system has been in place for a longer period, a subsequent increase of the prices can be observed:

± Due to technology-neutral tendering in the Netherlands with sequential bidding windows, in which the market premium is augmented in each sequence (taking place roughly every 6 weeks except during summer time), a direct comparison

is not possible. In the Dutch auctions, it is thus not the remuneration level that is determined, but the capacity that may be realised with the available amount of money.

± In the first two bidding rounds in 2012 and 2013 in Italy, the tariff fell from 140 €/ MWh while the quota system was applied before the introduction of auctions to approximately 108 €/ MWhin the second round and to tariffs ranging from roughly 85 – 90€/ MWh in this year’s auction round. The auction result list shows that six among the fifteen bidders admitted in 2014 had participated in the 2013 round.This may have enabled them to lower their bid prices, as parts of the necessary project development or authorisation costs had already been paid in 2013.

± In contrast, in Brazil, where some eleven auctions have taken place since 2009, the prices have tended to go up since December 2012 (see Figure 1). It is worth noting that in Brazil there is a compensation for inflation (based upon annual price indexes), which offers wind turbine operators an annually adjusted remuneration starting from the commissioning date.

± In South Africa, the average of the first onshore wind auction results in 2011 was nominally 1.143 South African Rand. In the last completed bid window, in April 2013, the average revenue fell to 737 South African Rand. The bid phase of the fourth round is completed; its preferred bidders are to be published at the end of 2014.

Figure 1 Weighted average auction results for wind turbines since 2009 [in R$/MWh]

17

Figure 2 Shares of wind turbine producers in the three past bid windows

Figure 3 Shares of developers in the three past bid windows

These results are quite interesting from another point of view: wind energy auctions in South Africa until now led to a narrowing of the number of successful turbine manufacturers and project developers during the first three auctions. While there were rather equal shares of five manufacturers who were successful in the first bid window, only three bidders won in the second round – with one manufacturer winning more than 50% of the allocated capacity. In the third round, four bidders were successful, but two received only a minor share (see Figure 2). When looking at the successful developers, the market concentration becomes even more visible. In each of bid windows 2 and 3, there was one developer that received nearly half of the contracted volumes (see Figure 3). This raises the question whether auctions lead

to oligopolistic structures that undermine competition and finally lead to higher support levels (as stipulated in the European Commission’s energy aid guidelines).

The example of Brazil - being the only country with more than six years of experience from eleven auction rounds - shows in fact that auctions do not necessarily achieve a continuous tariff reduction.

It is worth noting that there is little long-term experience in the countries currently working with renewables’ auctions that would allow a comparison with the regression paths generally pursued when using feed-in-tariffs.

18

The same applies to implementation rates, i.e. the de facto construction and commissioning of the wind turbines contracted during the auctions. As the auction schemes have only been introduced a few years ago (2009 in Brazil, 2011 in the Netherlands and South Africa, 2012 in Italy)and considering the specific challenges and procedures of wind turbine construction, it is too early for a final appreciation of implementation rates reached with auctions. Nonetheless, the results of an intermediate evaluation are rather disappointing.

± In the Republic of South Africa, only two out of the eight wind farms contracted in 2011 are in operation in June 2014. The remaining six are announced to be operational by the end of 2014.

± In the Netherlands, eleven wind parks were contracted in 2011. Eight of them have become operational by February 2014,meaningthat one quarter has not (yet) been realised. In 2012, only one single installation succeeded in the auction,which was subsequently completed. It will thus be interesting to follow possible changes of the implementation rate of former years and of the projects decided upon in 2013.

± An evaluation of the Brazilian experience will also take some more time as – by April 2014 – some 1.700 MW of wind turbines stemming from auctions are in operation, while more than 10.000 MW have been auctioned since 2009 (2010: 593 MW; 2011: 2966 MW; 2012: 289 MW und 2013: 4710 MW). When speaking in sheer numbers, only the capacity auctioned in 2009 has been installed– with roughly a five-years time lapse. It would therefore be worth tracing each wind park contracted since 2009 and whether it has been constructed or not. Of those not built, it would be useful to trace the reasons for this as they could either be related to problems of grid connection, grid deficiencies, or underbidding in the auction or others.

For a meaningful evaluation of auctions as a means to steer the expansion of renewables in a (more) targeted way, it will be necessary to observe several complete construction cycles. Only a medium-term analysis can show whether auctions are a successful instrument to achieve the goals set up in the EU member states following to the renewables directive 2009/73/EC, as possible low project realisation rates may be seen to justify exceptions to the rule of generalised auction procedures.

The possibility of low realisation rates leads to another issue that deserves the attention of decision-makers and the specialist community concerned with renewables’ tendering systems. Two main issues that need to be addressed are:

± First, how should the regulating bodies deal with possible non-fulfilment of contracts that are issued? One strategy to ensure renewable goals are reached could then be to auction capacity that includes a buffer, thereby exceeding

the political targets. If so, the question is whether there would be enough suitable project prospects to still enable sufficient competition during several auction rounds?

± Second, there is the question of how a necessary system of penalties can be designed. In the current tendering systems, bidders are usually asked to submit bid bonds when participating in the auction, the bonds are then refunded when the plants go into operation on time. As shown by the examples of England/Wales and Ireland, which applied auctions in the 1990s and at the beginning of the last decade, tendering systems without an effective control of the bidders’ seriousness lead to very low realisation rates (~ 20%). On the one hand, bid bonds and penalties should not form an obstacle for smaller players (co-operatives or SMEs), but on the other hand they are necessary for the evaluationof the soundness of the bidder and the seriousness of their proposals. To this end, further studies are needed to investigate the effect of bid bonds on different types of bidders, and the real enforcement of penalties in auction systems in detail, since this topic is (despite the recognised slippages and delays) currently only poorly understood.

Finally, when introducing tenders,political decision-makers need to ensure that their system does not only procure static efficiency (lowering prices per megawatthour), but also the ‘dynamic efficiency’. This means that auctions should also contribute to the different challenges raised by an increasing use of renewable energy in the context of the overallenergy system transformation. Some of the issues concerned are:

± a successful technological development of the renewable energy technologies;

± the grid and system integration of renewable energy (including the provision of ancillary services);

± a systemically favourable regional distribution of new renewable plants (to maintain a nation-wide (even Europe-wide) balance of investments and security of supply);and

± widely accepted rules regarding the distances to residential areas or for dealing with forest

± sites and conservation issues, to ensure public acceptance of the technology.

It becomes obvious that the requirements described above for a successful auction design weaken one of the claimed motivations for tenders: the transfer of responsibility over administrative determinations from politicians to the 'neutral' market. Even if auctions help politicians to dispose of the task of fixing the feed-in-tariff rates, this happens at the cost of even more requirements imposed to the regulator or auctioneer,which must be satisfied in order todevelop a functional and sustainable auction design – not to mention that many tendering systems include a ceiling price that needs to be determined by the administration, just as with the previous feed-in-tariffs.

19

In conclusion, it may be stated that international experience

clearly demonstrates that renewable auction systems contain

substantial trade-offs between the political goals of cost efficiency,

high realisation rates and a high diversity of market actors. So far,

there has been no case of a renewable tendering scheme in which

these three goals have been simultaneously and convincingly

achieved. Therefore, it seems appropriate to intensively monitor

auction results in non-EU-countries, as well as in EU member

states already using or introducing tendering systems. In the

meantime, it seems advisable

a) to widely use the exceptions concerning ‘small scale’

installations, i.e. renewable energy plants in general with an

installed capacity below 1 MW or wind energy projects up

until 6 MW or 6 generation units and

b) to cautiously design and test tendering mechanisms during

several complete construction cycles - possibly starting with

large plants and actors.

References:

1. The full text of the Guidelines (hereafter „Guidelines“) can be found at http://ec.europa.eu/competition/sectors/energy/legislation_en.html

2. This article is based on three related studies (in German) of the IZES gGmbH on this topic. All references cited in this article may be found in these studies.

Hauser, E./ Kochems, J.: Ausschreibungsmodelle für Wind Onshore: Erfahrungen im Ausland. Kurzstudie für den Bundesverband Windenergie, 2014, not yet published

Grash of, K.: Herausforderungen bei Ausschreibungsverfahren für Onshore-Windenergie und PV, Anlage C zu IZES/BET/Prof. Bofinger, Stromsystem-Design: das EEG 2.0 und Eckpfeiler eines zukünftigen Regenerativwirtschaftsgesetzes, 2013, unter http://www.izes.de/cms/upload/pdf/EEG_2.0_Anlage_C_zum_ Endbericht_Ausschreibung_IZES.pdf und

Hauser, E/ Weber, A./ Zipp, A./ Leprich, U.: Bewertung von Ausschreibungsverfahren als Finanzierungsmodell für Anlagen erneuerbarer Energienutzung. Bericht für den Bundesverband Erneuerbare Energien, 2014, unter http://bee-ev.de/Publikationen/IZES20140627IZESBEE_EE-Ausschreibungen.pdf

“We, The key power for generating power from wind”

Revathi Power Transmission99/2A, School Road, Chinnavedampatti, Coimbatore - 641049.

Cell No. : 98422-33586 Off No. : 0422-2533587E-Mail : revathigears@yahoo.com

Revathi Power Transmission is the one of the excellent Service sector for all type of Wind Mill Gear Box more than 10 years.

We are having all type of Pinion and Gears in ready condition for Gear box Service at any time.

20

21

22

December 1, 2014Ms. Varsha Joshi, IASJoint Secretary, MNRE, New Delhi -110003

Sub: 1. Renewable Energy Law of China – Information Enclosed

2. Enlarge Control Area for Tamil Nadu Wind to enable full evacuation

3. Help for installing Wind Energy Integration Facility (WEIF) – Financial Enabling

Letter to Varsha Joshi, Joint Secretary, MNRE

3. Wind Energy Integration Facility (WEIF) : - To enable visibility of real time wind generation to enable forecasting and scheduling in Tamil Nadu installation of Wind Energy Integration Facility which is also called Renewable Energy Management Centre (REMC) by CEA is needed. After a yearlong persuasion, TNEB is likely to permit IWPA to put at its cost Wind Energy Integration Facility into Tamil Nadu grid.

IWPA believes that like in other States, IWPA will also get 40% of the cost reimbursed by Centre, 40% by KFW, the German Banker and 20% to be bourne by IWPA. We request your help in such financial enabling.

Looking forward to see you at MNRE meet at 4 PM on 3rd Dec 2014.

Thanking you,With Best Wishes & Regards,

For Indian Wind Power Association,

Prof. Dr. K. Kasthurirangaian Chairman

Enclosure:

1. Renewable Energy Law of China

2. IWPA Suggestion to MNRE through CII, New Delhi

3. Gist of IRENA

Copy to – Mr.Dilip Nigam, Director, MNRE, New Delhi & IWPA N.O

Respected Madam,

When India has to bring out its own Renewable Energy Law before long and I am pleased to enclose herewith the comments of International Renewable Energy Agency (IRENA) and gist of the China’s Renewable Energy Law for your information and usage.

Also enclosed herewith some of the recommendation’s IWPA has sent to CII Renewable Energy Committee for your perusal.

1. Amendments to Electricity Act 2003: - As you are aware billions of units of Renewable Energy is wasted in Tamil Nadu year after year. We need 3 pronged efforts to eliminate such losses. Amendments to Electricity Act 2003 to disable such Electricity Undertakings to avoid cheap pollution free Wind Energy and instead buy costly thermal energy from the market.

2. Enlarge Control Area for Tamil Nadu Wind to enable full Evacuation:- TNEB had been complaining that they are not able to fully evacuate all available Wind Energy during high wind time June – September as Wind generation constitutes nearly 30% of their total daily handling of Tamil Nadu which is in the order of 12,000 MW. Southern Regional Power Committee during our discussions with them have agreed to create separate Control Area for Tamil Nadu Wind and handle them daily as a part of daily handling of 35,000 MW for whole of Southern Region. This move will avoid losses in penalty for TNEB in putting all the Wind Energy into their grid and enable full evacuation of Tamil Nadu wind.

23

Letter to Smt. Nirmala Sitharaman

December 27, 2014

Smt. Nirmala SitharamanMinister of State (Independent charge) for Commerce & IndustryCamp Coimbatore

A note submitted to the Hon’ble Minister by IWPA

Respected Madam

IWPA (Indian Wind Power Association) is a 1,300 member strong association of investors, generators and consumers of wind energy who have put up 11,670 MW of wind energy installations in India. We are glad that you have come all the way to Coimbatore to hear our grievances and we eagerly look forward to early redressal of the same.

We submit the following for your kind consideration

1. GST – implications on Renewable Energy

In Tamil Nadu currently Electricity Tax is levied @ 5%; and tax @ 10 paise / unit is levied for the Wind Energy as Electricity Consumption Tax.

We submit that when GST comes into effect, these additional taxes should not be levied. If for some reason it has to be levied then the corresponding amount should be given back as “Input Tax Credit”.

2. Amendment to Electricity Act

a. Banking for Wind Energy

High winds is a national asset in States like Tamil Nadu. The MSME and the textile industry are largely dependent on this cheap wind energy generated for their economical running and export competitiveness in the world market against Chinese competition. This sector has an aggregate installed capacity of 7,300 MW of wind mills. 50% of the wind energy generated is captively consumed by these units. The viability and the well-being of this segment in the MSME and textile industry is largely dependent upon the trade winds available between May and September. They generate their entire energy required during these windy months and bank the surplus energy for consumption during the lean wind season between October and April. Tamil Nadu has been doing this year round banking for the last twenty years. Now they want to remove this year round banking on the pretext that banking is not mandatory as per the Electricity Act 2003.

We humbly seek an amendment to the Electricity Act to make available banking mandatory for Renewable Energy which is seasonal and variable. This is vital for the “Make in India” movement to succeed.

24

b. RPO obligation:

In order to ensure increased absorption of cleaner green renewable energy and rapidly replace the polluting fossil fuel based energy, it is imperative that compliance of the RPO (Renewable Purchase Obligation) has to be made mandatory so that the RECs remaining unsold will have a market.

3. Immediate installation of REMC requested

REMC (Renewable Energy Management Centre) was originally slated under the 12th Five Year Plan has since been pushed further to 2017 after the setting up of the Green Energy Corridor. Possibly you are aware that three billion units of clean cheap wind energy given by Mother Nature is being wasted in Tamil Nadu alone. Setting up of the REMC on a war footing before the next wind season before May 2015 in Tamil Nadu and other windy States, will help avoid this wastage of clean energy. The PGCIL and the German consultants GiZ should be given the directions by the Government to set up the REMC without further delay to avoid wastage of precious wind energy due to non-evacuation.

4. Repowering

± Repowering is to be allowed for sub MW capacity machines that have completed 10 years’ service.

a. AT THE NATIONAL LEVEL

In the case of repowering, the permissible claim allowance of A.D should be given at the rate of 1.25 times as compared to that of fresh installations

All the cost of additional infrastructure and green corridors for evacuation in the case of repowering should be borne by Centre by utilising the National Clean Energy Fund or Green Corridor fund.

b. AT THE STATE LEVEL

New wind mills installed replacing older wind mills should get the current tariff and not the old tariff.

The current 3D / 5D rules as prevailing in Tamil Nadu and few other States need to be relaxed to 2D / 3D when permitting repowering.

In very special cases, wherever feasible intercropping of the taller new machines is to be permitted among a cluster of shorter older machines; so that the older machines consume lower layer of winds while the new taller machines use the upper layers of wind.

The additional MW power connectivity for the repowered wind farm is to be allowed and permitted for evacuation.

(IDC) Infrastructure Development Charges to be levied only for additional MW installed and not for entire of new wind farms.

Thanking youWith Best Wishes and Regards,

For Indian Wind Power Association

Prof. Dr. K KasthurirangaianChairman

List of Holidays for IWPA National OfficeSl. No. Festival Date Day

1 Pongal 15.01.2015 Thursday

2 Republic Day 26.01.2015 Monday

3 Telugu New Year’s Day 21.03.2015 Saturday

4 Tamil New Year’s Day 14.04.2015 Tuesday

5 Independence Day 15.08.2015 Saturday

6 Ganesh Chathurthi 17.09.2015 Thursday

7 Gandhi Jayanthi 02.10.2015 Friday

8 Deepawali 10.11.2015 Tuesday

25

Government sets up an Independent Government Company - POSOCO for Reforms in Power Sector

The government has decided to set up of Power System Operation Corporation (POSOCO) as an Independent Government Company. In the process, the institutional framework for an independent, secure and reliable power system operation entity at the national level has been put in place as mandated under the Electricity Act 2003. POSOCO operates the National Load Despatch Centre (NLDC) and Regional Load Despatch Centres (RLDCs) which are also responsible for operating the vibrant electricity market working in the country. POSOCO is also designated as the nodal agency for major reforms in the power sector such as the Renewable Energy Certificate (REC) Mechanism, transmission pricing, short term open access in transmission, Deviation Settlement Mechanism, Power System Development Fund (PSDF), etc.

The need for independent Government Company in light of the introduction of competition as per Electricity Act 2003 which resulted in tremendous growth in the Indian power sector by the private sector participation in generation, transmission, distribution and trading. With transmission coming under competition and multiple transmission licensees operating, need was felt to ensure the independence and neutrality of the system operation function.

The Enquiry Committee set up following the July, 2012 grid disturbances, has recommended inter alia putting in place zero tolerance systems including setting up of an Independent System Operator.

It has been decided to establish POSOCO as a wholly owned Government of India Company under Ministry of Power thereby giving a big thrust to bringing in further reforms in the power sector at the Central level. The decision also creates an example for implementing similar reforms at the State level to ensure independent system operation by the State Load Despatch Centers (SLDCs).

The strengthening of the institutional mechanism of System Operation would help bring in innovation in the power sector as the RLDCs/NLDC operated by POSOCO by achieving economy and efficiency in the power system operation and facilitating implementation of various Government of India policies for Power Sector as well as provide feedback to the policymakers, regulators and planners.

RM/ND (Release ID :113627)

26

27

28

Presentation by Indian Wind Power Association onOptimising Wind Generation

by Prof. Dr. K Kasthurirangaian, Chairman, IWPA

Wind Generation Statistics

± Total Number of Wind Mills in TN - 12000

± Total Aggregate Capacity in TN - 7400 Mw

± Peak Generation in 2014 - 4300 Mw

± Expected peak - 4500 Mw

Anticipated Loss of Green Power

± It has been estimated that more than 2.3 billion units of green power per year has not been absorbed for reasons like :

± High variability of wind with high penetration

± Smaller balancing/control area of the state

± Repeated penalties for home state relating to integration

± Inadequate load for absorbing all wind energy

± Tamil Nadu not being able to schedule whole wind energy due non availability of real time measurement of wind energy and forecasting mechanism

Abstract of 25th Southern Regional Power Committee Meeting

± In 25th SRPC meeting held on 26th July,2014 it has been observed that Wind Energy in Tamil Nadu to be treated as pooled common energy so that all states benefit from this gift of Nature

± We from IWPA salute and appreciate the stand taken by SRPC and that IWPA shall fully support the initiative

IWPA Support

± IWPA shall support the stand taken by SRPC and also lend its hand in implementing the scheme and for successful outcome.

± IWPA shall collect necessary technology and offer to help in establishing Wind Energy Integration Facility and make available the Data to all the Grid Managers

Forecasting and Scheduling

± As per CERC Guidelines Wind Energy to be forecast for effective scheduling and facilitate interstate transfer of power during excess Generation

± Individual Wind Mill forecasting found inadequate, not cost effective and time consuming

± IWPA proposes Pooling Substation wise measurement of real time wind Generation and forecasting. The scheme to

be implemented by IWPA and Data made available to Grid managers to enable scheduling

Scheduling ± As correctly observed by SRPC that Wind Energy is a Pooled

Common Asset of all states benefit, IWPA puts forth to SRPC that the Wind Generation to the tune of 4500 MW be scheduled by SRLDC as a common power of all the southern states

± This would relieve Tamil Nadu of penalties related to injecting wind energy into the Grid the need to dissipate variability of Wind Generation at State level

Wind Energy of Tamil Nadu as a separate control area ± SRPC also concurred with the idea of IWPA that Tamil Nadu

wind power of 7400 MW be carved out as a separate control area for scheduling

± TN wind power to be accurately measured and forecast, to enable SRLDC to schedule the wind power and make it available to other states

PGCIL Initiative ± Power Grid Corporation of India Limited has proposed High

Capacity 765 kv Green Corridor to facilitate transfer of Green Power across the country

± Once this corridor is in connects all wind generating places, the transfer of power interstate will be facilitated

± To facilitate this to happen forecasting and scheduling is a prerequisite

Climate Change Mitigation ± The available Wind Energy to be fully Evacuated reducing

coal power Generation mitigating carbon emission

± World over people are finding ways and means to reduce carbon emission adopting various techniques.

± We have wind power on hand and let us fully utilise it to reduce carbon emission.

USAID ± We expect cooperation in providing technology from USAID

in the field of real time measurement of wind generation and forecasting and scheduling so that the green power utilisation is optimized

± We would Greatly appreciate your help in coordination of wind generators, Grid managers and providing technologies

± Let us all work together in Mitigation of Climate Change

29

Letter received Rajasthan State Government regarding Action taken on Cable Theft Matter

30

Renewable Energy News Digest

Think electric cars are truly green? Not if their power comes from coalPeople who own all-electric cars may think they are helping the environment. But a new study finds that if their electrical power comes from coal, their vehicles actually make the air dirtier, worsening global warming.

Ethanol isn’t so green, either.

“It’s kind of hard to beat gasoline” for public and environmental health, said study co-author Julian Marshall, an engineering professor at the University of Minnesota. “A lot of the technologies that we think of as being clean ... are not better than gasoline.”

The key is where the source of the electricity all-electric cars. If it comes from coal, the electric cars produce 3.6 times more soot and smog deaths than those powered by gas, because of the pollution made in generating the electricity, according to the study that is published Monday by the Proceedings of the National Academy of Science (PNAS). They also are greater producers of heat-trapping carbon dioxide that worsens global warming, it found.

The study comes out as the International Energy Agency issued a report finding that global demand for coal will “continue marching higher,” breaking the 9-billion-ton level by 2019. China, India and other Asian countries are expected to drive demand, the report said, while the United States and Europe will see declines.

The PNAS study examines environmental costs for cars’ entire life cycle, including where power comes from and the environmental effects of building batteries.

“Unfortunately, when a wire is connected to an electric vehicle at one end and a coal-fired power plant at the other end, the environmental consequences are worse than driving a normal gasoline-powered car,” said Ken Caldeira of the Carnegie Institution for Science, who wasn’t part of the study but praised it.

The states with the highest percentage of electricity coming from coal, according to the Department of Energy, are West Virginia, Wyoming, Ohio, North Dakota, and Illinois.

Still, there’s something to be said for the idea of helping foster a cleaner technology that will be better once it is connected to a cleaner grid, said study co-author Jason Hill, another University of Minnesota engineering professor.

The study finds all-electric vehicles cause 86 percent more deaths from air pollution than do cars powered by regular gasoline. Coal produces 39 percent of the country’s electricity, according to the Department of Energy.

But if the power supply comes from natural gas, the all-electric car produces half as many air pollution health problems as gas-powered cars do. And if the power comes from wind, water or wave energy, it produces about one-quarter of the air pollution deaths.

Hybrids and diesel engines are cleaner than gas, causing fewer air pollution deaths and spewing less heat-trapping gas.

But ethanol isn’t, with 80 percent more air pollution mortality, according to the study.

“If we’re using ethanol for environmental benefits, for air quality and climate change, we’re going down the wrong path,” Hill said.

Source: CBS News

Climate change summit: Countries demand focus on adaptation and financeThe roadmap to Paris is fraught with contentious debates over the focus of contributions from countries and whether it was enough to take only mitigation seriously as developed nations are doing at the UN climate talks here.

From Friday onwards, countries will finalise the elements of the Intended Nationally Determined Contributions (INDC) and the draft negotiating text for Paris before the high level segment begins next week. The main issues that are dividing countries are centred on the excessive focus on mitigation, which is opposed by the developing countries. Mohammed Adow, senior advisor, Global Advocacy and Alliances, said the main question is if the draft texts have enough clarity on the deal to be finalised in Paris, and whether it includes a review process to examine the contributions put forward by countries and if they are falling short of globally required targets.

Mr. Adow said the level of ambition was lacking among developed countries and the question is if targets put forward by countries are adequate. There is a need to ensure that adaptation is given equal weightage and there is financial commitment to help shift the development pathway.

Most developing countries were favouring a review process to assess contributions, though India remains totally opposed to such a process. As the debate got contentious, the co-chairs of the session were attacked for not allowing the views of countries to be heard and South Africa said that this was eroding the trust of parties. The like-minded developing countries (LMDC), which includes India and China, managed to pressure the co-chairs to set up a contact group to take the process further and discuss each of the elements of the draft text on Thursday evening.

31

Mr. Adow said the developed countries cherry-picked the issues, which suited them and were unwilling to engage with others on issues of adaptation and finance.

Taryn Fransen, of the World Resources Institute, said some movement can be expected on INDCs in the lead up to Paris, but it must include a mechanism to review the targets and scale them up if necessary.

India too has taken the firm position that adaptation and funding were crucial to reduce the vulnerability and risk due to the impact of climate change. It has emphasized the need for adaptation in the new agreement in a comprehensive and balanced manner. It has also demanded a long term global goal for Adaptation to be clearly articulated in qualitative and quantitative terms. Stressing on common but differentiated responsibility (CBDR), India called for enhanced support and cooperation for developing countries and for differentiating the role of parties.

Meanwhile Susheel Kumar, interim head of the Indian delegation here, said the INDCs should reflect mitigation, adaptation, finances, technology and capacity building and it should be a comprehensive contribution. India was in no hurry to announce its targets and would do so when it was ready, he said. Countries which are developing can raise domestic resources but they need international finances to do much more. The problem is a mitigation centred INDC and India will not budge from its stand that mitigation alone will not suffice. He said India had already taken steps to prepare the INDCs and studies on emission intensity and development were already underway by The Energy and Resources Institute (TERI), iRADE and Institute of Economic Growth to chart out a low carbon path. These reports should be out in January and the environment ministry will begin a consultative process after that involving various Stake holders.

He said India would be opposed to any review of its national contributions and asked if developed countries would mind an assessment of their financial commitments.

Mr. Kumar said a top down international mechanism would not work. China has announced that it favours a ten year commitment period for the climate agreement in Paris to be signed next year and India tends to agree.

Source: The Hindu

Wind power sector readies for consolidation as Govt aims bigIncreased impetus to ‘Make in India’ has made the sector an attractive investment opportunity all over again

The re-instatement of tax benefits and generation based incentives for wind power  seemed to have brought back the confidence of

the independent power producers (IPPs) in the sector. Besides, an increased impetus to ‘Make in India’ has made the sector an attractive investment opportunity all over again.

After being deprived of any policy for over a year, the Union Budget 2014 re-introduced accelerated depreciation of 80 per cent for wind power projects. It also approved continuation of Generation Based Incentive (GBI), of 50 paisa per unit of power produced. Wind power capacity addition fell by more than half during this period to 1,700 mw annually in 2013.

Officials in the know said the wind sectors majors were being pushed by the ministry of new and renewable energy to eye a target of 10,000 mw of capacity addition annually.

Tulsi Tanti, CMD,  Suzlon  told Business Standard that earlier the industry was pursuing the government to give the necessary assistance. But now the government is encouraging companies to scale up power generation and they are ready to give any policy push that’s needed.

As per market experts, consolidation in the sector is the way forward as smaller portfolios would find it increasingly difficult to access growth capital and compete with portfolios of plus 500 mw.

While the comparatively smaller companies are on offer for sale, big names in the industry are looking at raising funds to invest in big ticket projects. Wind power projects of capacity ranging from 100 to 150 mw of several companies such as Techno Electric, Orange, Powerica are on radar of buyers. The companies which ventured into wind power to earn tax benefits are also looking to sell off their assets.

“Large project would get access to cheaper sources of capital for additional growth. The next 2-3 years will see the emergence of 3 to5 gw plus companies and about 8 to 10 sub 200 to 500 mw portfolios that would be obvious targets for acquisition,” said Sanjay Chakrabarti, partner (cleantech) at E&Y.

Bharat Light & Power, which acquired the wind portfolio of DLF is on lookout for more such projects. “BLP is trying to establish itself as a major wind IPP player. The company is on look out to acquire wind projects of around 100 mw,” said a wind market expert. The company has 200 mw of wind projects, of which 150 mw was acquired from DLF.

The other major names scouting for projects are Green Infra which is IDFC?s green energy arm, Leap Green and Inox. Market buzz is that solar power players such as Hindustan Power Projects, Azure Power and Nu Power are also looking to expand their portfolios in the wind sector.

“The wind market is keenly awaiting the route that some of the larger  IPPs  take to provide returns and exits to promoters and

32

investors. The outcome would determine not only the next stage of renewable IPP growth in the country but also provide realistic market determined benchmarks to unfold consolidation for smaller players,” said Chakrabarti.

Hence, the next fiscal is likely to see fund raising activity by some prominent companies in the industry. Sumant Sinha promoted ReNew Power is looking for an IPO in another 6 to 8 months. Goldman Sachs made an initial investment of $375 million in the company.

Welspun Energy, which has a broad portfolio in clean energy is also looking for investors for its upcoming wind energy projects. IL&FS is on look out for the same. These two companies are actively involved in setting up wind power projects through the IPP route across the country, said a clean energy market expert.

“The wind industry as a whole ? manufacturing to IPP- is a classic role model for Make In India. The industry has the potential to deliver 5,000 to 7,000 mw on an annual basis and requires clear and consistent long term government policy that would enable the stakeholders to plan in advance, said Chakrabarti.

Out of the total renewable energy base of 32,000 mw in the country, wind is 21,900 mw and solar is 2,700 mw.

BANKING ON THE WIND

± Smaller companies, up to 100 mw wind projects up for sale

± BLP, Inox, Green Infra, Lear Green scouting for projects to acquire

± ReNew Power, Welspun, IL&FS to set up big projects, on look out for fund raise

± Solar Power companies could also enter the wind IPP industry

± Government is asking wind companies to cumulatively aim for 10,000 mw of capacity addition annually

± Current annual capacity addition: 1,700 mw last year. This year till yet: 800 mw, likely to reach 2,000 mw

Source: Business Standard

Nod for power transmission system in Tamil Nadu

December 11, 2014

The government on Wednesday approved the setting up of a inter-State power transmission system in Tamil Nadu at a total cost of Rs. 1,593 crore.

The project, approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, will be completed within three years, an official release said.

The activities envisaged in the Tamil Nadu project are establishment of 400-KV grid sub-station at Thannampatty, augmentation of various 230-KV grid sub-stations and associated transmission systems.

The cost on creating transmission infrastructure is proposed to be met through KfW loan (40 per cent), NCEF grant (40 per cent of the total project cost) and the remaining through state contribution.

The intra-State transmission system in the State will be created by 2016-17 for evacuation of renewable power.

Wind projects

In Tamil Nadu, a large number of wind projects are already working or under installation and the existing power transmission infrastructure is insufficient to cater to the existing and new renewable energy installations.

Source: The Hindu

Towards the climate conference PARIS – mapping the way towards 100% renewable energies

December 4, 2014

The COP20 Presidency has branded the related WBA/WWEA Side Event of 5 December as “Lima Climate Action Highlight” and will showcase a summary during the COP20 High-level Session on 11 December.

Regions, cities and communities leading the transformation towards 100 % renewables

Regions, cities and communities demonstrate that the transformation to a 100% renewable fuelled society is possible. The WBA and WWEA report here in Lima about examples already realized

– One example is a city with 170 000 inhabitants in central Europe (Pécs, Hungary)

In Pécs, the coal and gas fired boilers for district heat were completely replaced by two biomass boilers with a total capacity of 300 MW based on wood and straw generating now all the electricity and Heat needed in the city.

– The other example a rural region with 30 000 inhabitants (district Murau, Austria).

The district of Murau is implementing a renewable energy and climate model, coordinated by a climate manager aiming to promote electricity from hydropower, photovoltaics, wind, biomass as well as heat from biomass and solar thermal and mobility

33

300KW Solar Rooftop Project Done On Asbestos Roof

Sulochana Mills Campus, Mettupalayam Road, Vadamadurai, Coimbatore–641017Mob: 088705 03030, Tel: 0422 2642564, Fax: 0422 2642830, info@evergreensolar.in, www.evergreensolar.in

Our 2 MW Solar Plant with Single Axis Tracking installed near Coimbatore

Evergreen Solar Systems India Pvt Ltd

Upto

+25%Energy

25 Years Lifetime Avail REC Benefits Avail 100% Accelerated Depreciation Benefits Direct Reduction in Demand from GRID / Generator Supply Low Maintenance Cost due to solid state construction String Inverter Technology with 99.9% Uptime Remote Monitoring & Data Logging Facility Supplied with 100% German Inverters & Switch Gear Single Axis Tracking contributes upto 25% increased generation Shorter Payback Period due to increasing Power & Fuel Costs

Advantages:

Customers are welcome to visit our site to witness the performance and

quality of construction

Our Solar Modules are certified for: IEC 61215:2005 Ed. 2–Design Qualification & Type Approval. IEC 61730-1 & 2 Safety Class II IEC 61701: Salt Mist Corrosion Testing Mechanical Load & Heavy Snow Load @ 5400 Pascal.

Our Company is certified for:ISO 9001:2008 ISO 14001:2004OHSAS 18001:2007

MNRE Channel Partner

34

based on electricity. In 2013 the region produced 200% of the electricity needed with renewables, 70% of the heat needed and just started different projects of e-mobility. By 2020 also heat will be 100% renewable and transport will follow later.

The Global 100% Renewables campaign www.go100re.net has collected more examples of communities, cities and regions which have achieved 100 % renewable energy. Many other communities, many cities countries could follow these examples based on the gained experiences.

Finance as a key: Green Climate Fund to provide guarantees and grants

As reported by the WWEA, one major barrier for a fast switch towards renewable energy lies in mobilising the necessary financial resources. Renewables, although being cost-competitive, require a high share of initial investment. Hence capital access and capital cost are often decisive, in particular in the developing world.

The Green Climate Fund should hence provide guarantees for investors, in particular via national governments, e.g. by backing feed-in tariffs or microcredit schemes with public guarantees. The need for such guarantees is strongly supported by renewable energy investors in the developing world.

Based on such new mechanisms, the Green Climate Fund could leverage out of every dollar invested an investment of 20-50 dollar – so that the currently available 5 billion USD for mitigation could result in renewable energy investment of more than 200 billion USD.

What is needed?

± Green Climate Fund to support developing countries with large, dedicated renewable energy programmes by providing guarantees and grants

± No subsidies, no tax reduction or other government support for fossil fuels instead of higher taxation of fossil fuels

± Reliable stable supportive government policies in favour of renewable energies, better efficiency

± Awareness building, capacity building, training, financial support by governments

Background

Seen from a global climate perspective the world is moving into the wrong direction. From 2010 to 2012 the demand for fossil fuels increased by 5%, the GHG emissions by 4.7%. By 2012, the world consumed 590 Mtoe more fossil fuels than 2010 and 118 Mtoe more renewables, 67 Mtoe of which was biomass. The growth rate of fossil fuels was 5 time bigger than that of RES.

These figures are in plain contradiction to the dramatic reports on the status of the world’s climate published recently by the IPCC. Following the climate mitigation scenario of the IPCC the CO2 emissions should be only a third of the world’s actual emissions in 2012.

In addition,

– In the year 2013, the governments of the powerful G20 countries spent US$78 billion to support the exploration of new oil and gas fields.

– Over the last months the oil price declined by 40%, a price decline that may trigger an additional increase in the use of fossil fuels and GHG emissions – unless proper government policies are implemented.

These are alarming facts. Unless the governments of the countries, represented here in Lima, start stronger efforts in the fight against climate change and in favour of the transition to renewable energies, the global efforts to comply with the 2°C target will fail.

According to an analysis of the IPCC reports, made by WBA, the world should increase the share of renewables in the global supply to more than 50% by 2035 and simultaneously reduce the combustion of fossil fuels by half, in order to comply with 2°C target. The Global100%Renewables campaign, co-founded by WWEA and WBA, suggests accordingly that new energy related investment should only be done in renewable energy from now on.

Source: WWEA

What plummeting oil prices mean for renewable energy

November 19, 2014

Lower fossil fuel prices have historically thrashed solar, wind and biomass markets. So why are clean energy companies unconcerned about the current trend?

The price of west Texas crude oil last week traded below $80 per barrel on the New York Mercantile Exchange for the first time in five years. Tuesday’s low of $75.84 per barrel was more than 25% below the prices of just this past summer.

Oil’s slippery price slope could get even slipperier as winter approaches. It’s simple supply-and-demand economics: a

35

worldwide slowdown in demand for oil, combined with the ongoing expansion of global production, thanks largely to aggressive extraction from US shale-rock formations, has sent the price of crude oil tumbling like a stone.

Where the bottom is and when it will be reached, nobody really knows. Goldman Sachs, which last week raised the specter of oil market oversupply in a report, slashed its price forecast for next year to $70 per barrel. Research analysts at the investment bank said they expect prices to recover to $80 per barrel in 2016 and beyond – which would remain well below west Texas prices over the last five years.

Consumers can rejoice over this reprieve at the pump – even environmentally conscious consumers, since collapsing prices “will achieve a slowdown in US shale oil production”, wrote Goldman Sachs analysts. Like extraction of natural gas from shale formations, shale oil production also relies on the  controversial drilling technique known as hydraulic fracturing, or “fracking”.

Little impact on renewable energy markets

But what about renewable energy markets? Will solar, wind and biomass buckle under the pressure of this low-priced petroleum glut?

Historically, lower fossil fuel prices have impacted renewable energy resources like kryptonite – for example in the 1980s and 1990s, when nascent solar, wind and geothermal markets in California keeled over as North America suddenly became awash in cheap oil and natural gas.

But energy markets dynamics have changed in the 21st century. In fact, when it comes to electricity, oil and renewables hardly mix at all anymore. That’s because diesel and other petroleum-based fuels account for only 5% of global power generation today, according to the International Energy Agency, compared to a full quarter piece of the pie in 1973. Diesel is even less relevant in US power markets, where it makes up only 1% of generation.

“As far as solar and wind go, the [impact] from lower oil prices is zero in North America and Europe, where power prices do not have any link to oil,” said Pavel Molchanov, a senior research analyst at Raymond James Financial, in an email.

In some emerging markets for wind and solar, however, such as the Middle East and North Africa, and even in a few established markets such as Japan, diesel does still play a bigger role in power supply – but not big enough to matter much considering current renewable energy prices, according to Molchanov.

“In the Middle East, and to a lesser extent post-Fukushima Japan, there is some relevance,” he said. But even at prices below today’s forecasts, “solar can compete effectively with diesel-fired generation”.

California-based SunPower, which is majority-owned by French oil giant Total SA, agrees. “The price of oil has almost nothing to do with future demand, even in [the Middle East],” Tom Werner, SunPower’s chief executive, told investment analysts during a conference call last week.

“We can price solar energy significantly below diesel-produced electricity,” he claimed. “You have to have substantially lower cost of barrel of oil to even come close to the numbers that you can hit with solar.”

‘Sunlight is essentially free’

Marc van Gerven, vice president of global strategic marketing at rival First Solar, said in an email that solar can provide a competitive advantage over diesel, coal or natural gas because fossil-fuel prices, even if low at this moment, have proven to be quite volatile over time.

“Fluctuations in oil prices have little impact on solar or many other renewable energy sources. This is partly why the economic proposition of solar is so compelling, unique and valuable,” he said. “For example, up to 50% of the cost of a fossil plant is the expense of the fuel over the life of the plant, while sunlight is essentially free.”

A recent energy cost analysis by Lazard not only backs up these views on oil’s diminutive impact on renewables. It goes further in calculating that the cost of energy from new utility-scale solar and wind power plants is increasingly competitive with more relevant conventional electricity fuels like coal, natural gas and nuclear power, even without subsidies in some markets.

One reason for this, the firm found, is that the average long-term cost of large-scale solar energy, for example, has dropped 20% just in the past year and nearly 80% in the last five years. Land-based wind energy costs have fallen by 15% in the last year, and by 60% in the past five years.

Garrett Hering is a San Francisco-based journalist covering energy, technology, business and the environment. His articles have appeared in  California  Energy Markets, the Seattle Post-Intelligencer, the Frankfurter Allgemeine Zeitung and elsewhere.

Source: The Guardian

Oil has dropped to $75 a barrel. What impact does this have on the renewable energy market? Photograph: Arctic-Images/Corbis

36

Impact of coal on water resources!!!Changes in coal use could have considerable implications for China’s water resources. Today, 85% of the country’s total power generation capacity is located in water-scarce regions and 15% of this capacity relies on water-intensive technologies. Northern China in particular is suffering from high demand for water from the coal supply sector. Currently, more than half of China’s industrial water usage is in coal-related sectors, including mining, preparation, power generation, coke production and coal-to-chemical factories. Coal mining and coal power generation sectors in the north accounted for 15% of China’s total freshwater withdrawals (98 billion m3) in 2010 (SA, 2013). National water consumption is projected to increase from 599 billion m3 to 630 billion m3 by 2020. By then, the coal sector will be responsible for 27% of withdrawals, with an estimated 34 billion m3 of water per year used by coal-fired power plants alone.

Source: IRENA

`Unfriendly’ norms: HC tells MERC to replyDecember 10, 2014

The Bombay high court on Tuesday gave Maharashtra Electricity Regulatory Commission (MERC) two weeks to file its reply to a challenge raised by the Indian Energy Exchange against “consumer unfriendly and discriminatory regulations”. The Exchange had moved the HC against regulations issued by the MERC.

The regulations not only debar consumers from obtaining power through the Exchange but also negate the salutary effect of the 2003 Electricity Act and National Electricity Policy, the Exchange said. The policy says open access is the future of power distribution in the country, said the Exchange which filed a petition against MERC’s regulations passed in 2014.

These regulations disallow power procurement from the Exchange on a day-ahead basis.

They restrict purchase only to renewable power, debarring power procurement by open access consumers through the Exchange from multiple-generating firms.

Source: The Times of India (Mumbai)

Electricity Act changes to usher supply overhaulChanges allow those using less than a Mw to choose supplier

The amendments to the Electricity Act are likely to change the business dynamics for power distribution companies.

It will provide small consumers a choice of suppliers and allow distribution companies to procure power from their own renewable energy plants to meet their renewable purchase obligation.

The Union Cabinet on Wednesday cleared changes in the Act. Union Power Minister Piyush Goyal earlier this week said the Bill would be tabled in Parliament soon.

Aimed at creating a competitive market for retail buyers, open access will allow consumers of less than one Mw to choose their supplier.

In the Electricity Act-2003, consumers of more than one Mw can change their distribution company.  

Power generators, too, will be allowed to sell their surplus outside a state. “Opening the sector will make sure the supply of power is in line with market realities,” said an executive in a distribution company.

Currently, state governments can appeal to the regulator to stop such sales in extraordinary circumstances. Distribution companies in other states are unable to freely procure such power.

“We end up scheduling costly power, which has pushed us to the wall. Banks have also withdrawn any support from the discoms,” said a senior executive with a Delhi-based private power distribution utility.

The distribution industry owes Rs 13,000 crore (Rs 130 billion) to power plants.

A big relief for the distribution sector is the separation of the content and carriage businesses. Building infrastructure for power supply and the supply of power will be two different business entities. Besides, any power supplier can use the infrastructure.

The bill also has an important insertion imposing a “duty to connect, supply to request”, where the last-mile supply will keep in mind the economics and viability.

“In most developed markets, the carriage business is controlled by the regulator and content, that is power supply, is market driven within a price band,” said the executive.

As a separate business, the onus of development of the network will rest with the carriage provider.

Distribution companies from across the country have written to the ministry of power seeking a clear demarcation of duties and responsibilities for content and carriage.

The distribution companies, which have repeatedly pointed to their financial stress as the reason for not complying with the renewable purchase obligation, have now been asked to generate renewable power to meet their targets.

37

Tobias Engelmeier Bridge to India

Tobias Engelmeier founded Bridge to India in 2007 as a strategic environmental consulting company based in New Delhi. Since then, his focus has been on developing strategic business models for international companies looking to enter the Indian solar market.

The Act proposes a National Renewable Energy Policy and a new Renewable Generation Obligation.

The head of oneof the  distribution companies said the sentiment among Indian consumers was that power should be cheap.

“All consumers think they are burdened with costly power, whereas the discoms struggle with recovering their cost.

In a situation like this, an unbundled distribution sector helps all,” said the executive.

NEW ELECTRICITY ACT: WHY, WHAT & HOW

± Open access for over 1 Mw allowed -- enabling inter-state transmission from surplus to deficit points

± Power supply business separate from setting infrastructure for supply -- opens the market for ancillary business, increases competition

± Choice to consumer to select his power supplier -- market driven tariffs, better supply and open ground for competition

± Time-bound distribution licence -- pressure on discom to perform better

± RGO along with RPO -- promotion of clean energy and its adoption

Source: Business Standard

What the miraculous transformation of a German utility giant means for India

December 15, 2014

Bridge to India’s Tobias Engelmeier examines the decision of German utilitity E.On to embrace renewables and sell off its fossil and nuclear assets and explores the lessons the move may hold for Indian utilities.

E.On is Germany’s largest power utility. The company operates a vast fleet of nuclear, gas and coal-fired power plants and also runs some wind parks. When Germany started its renewable energy transformation, they ignored it and just carried on with business as usual. As the country’s solar and wind capacities grew and grew, however, the traditional utility business stopped being “as usual” and E.On’s market valuation tanked. Now, in a move that is both daring and desperate, the company has decided to take the radical step of shrinking to half its size, divesting all fossil and nuclear assets and focusing on renewables. Will this be the future of Indian utilities too?

± E.On, like the other large German utilities, fatally slept through Germany’s tectonic energy changes

± It is the first large utility anywhere to completely transition its business model to renewables

± E.On’s move is at once a validation and a critique of Germany’s energy politics

± Indian utilities should take note: there are important lessons for them

The announcement shocked the market: At the end of another loss making year, Germany’s largest utility has decided that the old game is up and has flung itself headlong into a new game. For a typically risk-averse utility this is the final card to play. The term that comes to mind is “creative destruction.” The economist Joseph Schumpeter applied it to the market’s capacity to overturn the status quo and thereby produce innovation.

What used to be a straightforward, often monopolistic, very stable industry is now challenged by rapid technological progress and new regulations, massively lowering barriers to entry and creating a plethora of new players. Many of these have skill-sets that traditional utilities lack: flexibility, speed, customer orientation. In all developed countries, where new power sources tend to replace old ones, this has put utilities under huge pressure. Their reaction in Japan, the U.S., Germany or elsewhere has been to fight back. This was usually done through the policy process (access to grids, treatment of renewables, etc.). E.On’s case is so interesting, because it is the first large utility that has given up the struggle to protect its old business model and instead now wants to jump to the other side and become a “new” player. It is a rare case of corporate “creative self-destruction.”

It has decided to spin off the fossil fuel business (together with some other businesses, such as energy trading and exploration) and focus on renewables, on grid management and on “customer services.” The reason, according to E.On’s CEO Johannes Teyssen, is that the renewables and the conventional power business are “completely different.” He says, “The future is in renewables.” (A second reason, observers suspect, might be that E.On wants to extract itself from the costs and risks associated with shutting down its nuclear plants.) It is a big gamble. Whether or not the new E.On will succeed will, in my view, depend ultimately on whether it can change its corporate culture towards a much more innovative, fast-paced and customer oriented entity.

Whether or not the old energy business can be spun off successfully will depend on whether conventional power plants in

38

Germany can still earn money. They have been in trouble because renewables have preferential access to the grid and have taken up a large share of the generation capacity. As a result, there was oversupply and the trading prices for power dropped (even as the consumer prices rose). It became increasingly difficult to earn money with conventional plants and investments into new conventional plants came to a standstill. Now the utilities are lobbying the government for so-called “capacity markets” that pay conventional plants to be on stand-by as spinning reserves whenever demand peaks or renewable generation is low.

Germany has three more large utilities. Of these, the second largest, RWE, plans to stay on its traditional course. Its CEO, Peter Terium, seems to still be at an earlier stage of thought development, recognizing that “the situation is serious.” The other two, EnWB and Vattenfall, are now making serious efforts to grow their renewables portfolios and reduce their fleet of conventional plants. Yet, E.On has conducted the most substantial strategy change by far. According to Mr Teyssen, “we live in an age when energy utilities need to reinvent themselves,” but he admits that he has “no blueprint of what E.On will look like in ten years.”

Amongst large, industrialized countries, Germany has paced ahead with what it calls the “energy transition.” Through large-scale subsidies for solar, wind and biomass (amounting to more than €20 billion per year), it has changed its energy mix. In 2013, renewables contributed 23% to Germany’s power generation. On peak days this number rises to well over 60%. The goal is to achieve an annual average of 80% from renewables by 2050. In addition, after the Fukushima catastrophe in 2009, Germany decided to exit nuclear power, which until then contributed about 20% of its power, much more rapidly.

The way, in which the energy transition in Germany is handled is closely watched, sometimes praised, sometimes criticized and often observed with puzzlement, across the world. Currently the country is half way through the transition, neither here, nor there, incurring all the pains of transition without yet getting many of the benefits: Power prices are amongst the highest in the world, carbon emissions of the power sector are not falling as much as desired, and there are big, unanswered questions around how to create supply security in the future and integrate Germany’s plans into the wider European context. German energy minister Peter Gabriel recently said: “It is an open heart surgery,” adding, “The fact that we are broadly alright has more to do with the good constitution of the patient than with the skill of the doctors.”

The context in India differs from the German one in crucial ways. First of all, India needs much more power and hence will grow all power sources rather than replace one with the other. Secondly, India is not willing to pay more for power just because it is green. It simply needs all the power it can get, as cheaply and as quickly as possible. Thirdly, India’s grids are less reliable and capable. Also, they don’t supply power to everyone yet (a third of

the population is either unsupplied or undersupplied). However, despite these differences, Indian utilities should take note and read the writing on the wall.

The technological change, lowering the barriers of entry in the industry is global. Renewables are becoming ever more competitive. Soon, local and centralized storage will become widely economically viable. Digitization (metering, internet, software) makes energy management very simple and available to local providers and end consumers. The result is a much more flexible, diverse and crowded marketplace. Utilities anywhere, including in India, cannot afford to sleep through this monumental shift.

I believe there are three key lessons the E.On case holds for Indian utilities. Firstly, there is no time to lose. Utilities need to prepare for a different future now, while their traditional businesses are still intact. Secondly, what is required is not only a strategy shift, but also a cultural shift: to be successful in energy in the future, utilities will need people that can develop a customer focus (rather than the prevailing infrastructure focus). A third is that utilities quickly need to stop being part of the problem (seeking to stall change) and instead become part of the solution (working with all stakeholders to best manage the energy transition).

Source: pv magazine globalTobias.engelmeier@bridgetoindia.comTwitter: @TEngelmeier

Cabinet nod for setting up power transmission system in Tamil Nadu

December 15, 2014

NEW DELHI: The government today approved setting up of a inter-state power transmission system in Tamil Nadu at a total cost of Rs 1593 crore.

(The government today approved setting up of a inter-state power transmission system in Tamil Nadu at a total cost of Rs 1593 crore.)

39

The project, approved by the Cabinet Committee on Economic Affairs ( CCEA) chaired by the Prime Minister Narendra Modi, will be completed within three years, an official release said.

The activities envisaged in the Tamil Nadu project are establishment of 400 kV Grid Sub-Station at Thannampatty, augmentation of various 230 kV Grid sub-stations and associated transmission systems.

The cost on creating transmission infrastructure is proposed to be met through KfW loan (40 percent), NCEF grant (40 percent of the total project cost) and the remaining 20 percent of the total project cost as state contribution.

The intra state transmission system in the State will be created by 2016-17 for evacuation of renewable power.

In Tamil Nadu a large number of wind projects are already working or under installation and the existing power transmission infrastructure is insufficient to cater to the existing and new renewable energy installations.

Source: The Economic Times

Government of India Signs Agreements with Germany worth Euro 625 Million for Financial Cooperation to Support "Green Energy Corridors (GEC)" Project under Indo German Bilateral Development CooperationThe Government of India signed Note of Exchange with Government of Germany for financial cooperation to support “Green Energy Corridors (GEC)” project under Indo German bilateral Development Cooperation here yesterday evening. GEC project in power sector aims to create transmission infrastructure in the renewable energy potential rich states and facilitate evacuation of renewable energy (RE) into the national grid. Government of Germany in the year 2012 had indicated its willingness to support the GEC project with funds amounting to Euro 1 billion over a period of five years under the ambit of Indo-German bilateral development cooperation.

Government of Germany has committed funds amounting to Euro 500 million for GEC project this year. In this regard, the Note of Exchange, signed by the German Ambassador, was presented to Mr Rajiv Mehrishi, Finance Secretary, Government of India by Mr Heiko Warnken, Head of Development Cooperation, Embassy of Germany to India here yesterday. With this, the total commitment from Government of Germany for GEC project stands at Euro 750 million. In year 2013, Government of Germany had committed Euro 250 million.

On the occasion, three separate loan agreements were also signed for GEC project amounting to Euro 625 million. Mr Rajesh Khullar,

Joint Secretary, Department of Economic Affairs, signed loan agreements with German Government’s Development Bank KfW, for loan of Euro 76 million to the Government of Tamil Nadu and a loan of Euro 49 million to Government of Rajasthan for intra-state transmission schemes. Power Grid Corporation of India Limited signed loan agreement for Euro 500 million with KfW for inter-state transmission schemes.

During the ceremony, Agreements were also signed by the Department of Economic Affairs with KfW for a grant amount of Euro 2 million to provide technical assistance to “Himachal Pradesh Forest Ecosystems Climate Proofing project” and also for a grant amount of Euro 2 million for extending technical assistance for the ongoing “Tamil Nadu Urban Infrastructure Development Fund project”.

Germany and KfW are long-standing partners of India. Since the 1950s, sectors like Energy, Protection of the Environment and Natural Resources and Sustainable economic Development have received KfW support.

Source: Ministry of Finance

Govt plans to impose ` 1-Cr penalty on entities violating Electricity ActProvision part of proposed amendments; fine a huge jump from existing ` 1 lakh

December 21, 2014

Seeking to make penal provisions more stringent in the power sector, the government has proposed imposing a fine up to ` 1 crore on entities violating norms under the Electricity Act.

The proposed penalty limit will be a steep jump from the current ` 1 lakh under the existing provision.

The provision is a part of various amendments proposed by the government to the Electricity Act, 2003.

In this regard, the Electricity (Amendment) Bill, 2014 was introduced in the Lok Sabha on Friday and was later referred to the Standing Committee.

Amendment terms

If the proposed amendment comes into force, entities violating the norms will be liable for punishment that could also mean imprisonment for three months.

It could be both in the “case of continuing failure, with an additional fine which may extend to ` 1 lakh for every day during which the failure continues after conviction of the first such offence,” as per the Bill.

40

"Printed by R R Bharath, published by S Gnanasekharan, on behalf of Indian Wind Power Association and printed at Ace Data

Prinexcel Private Limited, 3/304 F (SF No. 676 / 4B), Kulathur Road, off NH 47 By-pass Road, Nellambur, Coimbatore - 641 062

and published at Indian Wind Power Association, Door E, 6th Floor, Tower - I, Shakti Towers, No. 766, Anna Salai, Chennai - 600 002.

Editor : Dr. Jami Hossain"

These norms will replace the provision in the current Electricity Act where the penalty can be only up to ` 1 lakh.

With respect to a generating company that produces renewable energy, the Bill states that in case of violations, the person concerned could face up to three months’ imprisonment. For the particular generating company, the penalty could extend up to ` 10 lakh and in case of continued failure to comply with the norms, the fine could be ` 10,000 per day.

According to the Bill, none of the proposed provisions will be applicable to the orders, instructions or directions issued under Section 121 of the Act.

This section pertains to the powers of the Electricity Appellate Tribunal.

Sector reforms

The government has said amendments proposed in the Bill will usher in the much-needed reforms in the power sector.

Among others, the Bill has also proposed measures to enhance safety and security of electricity grids, separation of carriage and content in the distribution sector, and promotion of renewable energy.

“It (amendment) will also promote competition, efficiency in operations and improvement in quality of supply of electricity in the country resulting in capacity addition and ultimate benefit to the consumers,” the government said.

Source: The Hindu Business Line

India has Wind Energy Potential of 102788 MW

December 01, 2014

There is untapped potential of power generation in the country through wind energy. There is wind power potential of 1,02,788 MW at 80 m height in the country, against which 22,167 MW has been installed so far. This was stated by Mr Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha today.

At present, 22,167 MW wind power projects are installed in the country. These projects can generate around 38 billion unit of electricity every year at a plant load factor of 20%.

During the 11 th Plan period, a target of 9,000 MW of wind power was kept against which an achievement of 10,259 MW was made.

State-wise break-up of wind power potential and installed capacity

Sl.No.

StatesPotential at 80 m (MW)

Achievement (MW)(Up to Oct. 2014)

Untapped Potential

(MW)

1. Andhra Pradesh 14497 894 13603

2. Gujarat 35071 3551 31520

3. Karnataka 13593 2545 11048

4. Kerala 837 35 802

5. Madhya Pradesh 2931 534 2397

6. Maharashtra 5961 4224 1737

7. Rajasthan 5050 2997 2053

8. Tamil Nadu 14152 7383 6769

9. Others 10696 4 10692

Total 102788 22167 80621

The Minister further stated that a target of 15,000 MW has

been kept for the 12 th Five Year Plan period. The Government

is promoting wind power projects through private sector

investment by providing fiscal and promotional incentives such

as Accelerated Depreciation benefit, concessional custom duty

on certain components of wind electric generators, excise duty

exemption to manufacturers. 10 years tax holiday on income

generated from wind power projects is also available. A Generation

Based Incentive (GBI) is available for the projects not availing

Accelerated Depreciation benefit, under which Rs. 0.50/unit

generated is provided with a ceiling of Rs. 1.00 crore per MW.

Loans for installing wind power projects are available from Indian

Renewable Energy Development Agency (IREDA) and other

Financial Institutions. Technical support including wind resource

assessment and identification of potential sites is provided by

the National Institute of Wind Energy (NIWE, erstwhile C-WET),

Chennai. This apart, preferential tariffs are being provided in

poten tial states, the Minister added.

Source: TIOL News Service

desi

gned

& p

rinte

d @

ace

data

, Coi

mba

tore

Registered with REGISTRAR OF NEWSPAPERS for India, New DelhiVide No. TNENG / 2012 / 47613

Postal Registration No. TN/ARD/87/13-15Date of Publishing : 27.12.2014

December 2014