wind assocham

Tamil Nadu Wind at Crossroads – The Way forward

March 20, 2014Chennai, India

Wind in Tamil Nadu 2

India – 5th Largest global wind market

China USAGermany

Spain India UK ItalyFrance

CanadaDenmark

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000 91,424

61,091

34,250

22,959 20,150

10,531 8,552 8,254 7,803 4,772

Top 10 Countries - Cumulative Installed Capacity(MW)

Inst

alle

d Ca

pacit

y(M

W)

As of 31 December 2013

Source : Global Wind Energy Council


And, Tamil Nadu is the leader in India

Tamil NaduMaharashtra

GujaratRajasthan

Karnataka

Andhra Pradesh

Madhya Pradesh Kerala Others0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

7,251

3,472 3,3842,734 2,312

648 386 35 4

35.85%

17.17% 16.73%

13.52%11.43%

3.20%1.91%

0.17% 0.02%

Cumulative Installed Capacity(MW)

Cumulative Installed Capacity(MW) % Share

Cum

ulati

ve In

stal

led

Capa

city(

MW

)

Shar

e of

the

tota

l Ins

talla

tions

As of 31 January 2014 Source : MNRE


Tamil Nadu – Exceeding Potential

Source : C-WET

Installable Potential : 5374 MW(@ 50 m agl) – Actual Installations : 7,251 MW(31.01.2014)

Wind in Tamil Nadu

Tamil Nadu - Wind dominates in renewables

Source : Central Electricity Authority

Thermal; 10,064

Nuclear; 524Hydro;

2,182

Renewables; 7,946

Tamil Nadu - Installed Capacity(MW)

Total : 20,716 MW

As of 31 January 2014

Non-Wind9%

Wind91%

Share of Wind in Renewables


Then why is at the Crossroads?

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014 (E)0

200

400

600

800

1000

1200

44

134

371

679

858

578

381431

602

997

1,083

175 150

Annual Wind Capacity Addition in Tamil Nadu

MW

Source : MNRE, RESolve Analysis


What led to the drop in installations?

• Withdrawal of Accelerated Depreciation Benefits

• Temporary withdrawal of Generation Based Incentives(GBI)

Policy and Regulatory

•Rs. 3.51/kWh•One of the lowest among the leading wind states(Gujarat – Rs 4.23/kWh, Maharashtra – Rs. 3.78 to Rs. 5.67/kWh, Rajasthan – Rs. 5.18 to Rs. 5.44 /kWh)

Tariff

• Lack of Transmission Lines• Grid ManagementEvacuation


Troubled Wind power evacuation

April May June July August September October November0

500

1000

1500

2000

2500

239

792

2,1532,283

2,137 2,194

1,507

291267

1,858

2,195

1,604

1,394

964

749

118

Wind Power Generation in Tamil Nadu

2012-13 2013-14

Mill

ion

Units

(kW

h)

• ~2500 Million Units less evacuation during the above period(2013-14) compared to previous year(2012-13)

• Backing down of windmills - 6 to 22 hours per day during high wind season. “Must Run” condition not followed(Source: Indian Wind Power Association)

• Loss of Rs. 3,000 Crores in Year 2013 for Wind Mill Owners (Source: Indian Wind Power Association)

Source : SLDC


Why is evacuation a problem?

• Wind farms can be built in a few months• But erecting transmission lines can take

years• Infirm nature of wind – Intra-day

variation as high as 3000 MW• Grid stability and security issues• Challenge – balance the variations,

operations of conventional power plant efficiently


The Way Forward


What could be done?

• Restoration of Accelerated Depreciation Benefits

• Generation Based Incentives(GBI) – Already restored

Policy and Regulatory

• Make tariff more attractiveTariff

• Expedite Transmission lines• Improve Grid Management capabilitiesEvacuation


Initiatives to improve evacuation• Dedicated Sub-stations by TNEB

• 23 Sub-stations in Tirunelveli area • 21 Nos. in Udumalpet area

• Green Energy Corridors by TANTRASNSCO

• Phase-I – 740 km, 400 kV Transmission lines with 2 new 400 kV substations. Expected date of commissioning March 2014.

• Phase-II – 445 km, 400 kV Transmission lines with 4 new 400 kV substations.

• Phase-III –Proposed. All the generating stations of wind energy are proposed to be connected with the high capacity Transmission corridor proposed in Phase – I & II.


Other Opportunities


Higher potential at higher hub heights

State Name Installable Potential MW

Andaman& Nicobar Islands

365

Andhra Pradesh 14497Arunachal Pradesh* 236

Assam* 112Bihar 144

Chhattisgarh* 314Dieu Damn 4

Gujarat 35071Haryana 93

Himachal Pradesh * 64Jharkhand 91

Jammu & Kashmir * 5685Karnataka 13593

Kerala 837Lakshadweep 16

Madhya Pradesh 2931Maharashtra 5961

Manipur* 56Meghalaya 82Nagaland * 16

Orissa 1384Pondicherry 120

Rajasthan 5050Sikkim * 98

Tamil Nadu 14152Uttarakhand * 534

Uttar Pradesh * 1260West Bengal* 22

Total 102788

Revised potential : 14,152 MW at 80 m agl Vs Current installation of 7251 MW Source : C-

WET


Repowering

• Tamil Nadu : A pioneer of wind power in India

• Several sub-500 kW operational wind turbines

• Low performing old turbines can be replaced with high performing new turbines

• About 685 MW which is suitable for

repowering in Tamil Nadu. (Source: World Institute of Sustainable Energy)


Off-shore Wind

• Draft “National off-shore Wind Policy” released in May 2013

• Potential of 1 GW each along the Rameshwaram and Kanyakumari coasts in Tamil Nadu.

• Tamil Nadu has the opportunity to become a pioneer in the Off-shore wind segment as well.


The Takeaways


Tamil Nadu Wind – Down but not out..

• Down, because– Of non-availability of Accelerated

Depreciation benefits– Low tariff– Evacuation

• Not out, because– Evacuation Infrastructure being improved– Repowering – Off-shore wind– Revised higher potential


Thank you

Madhavan NampoothiriFounder and [email protected]

www.re-solve.in

mailto:[email protected]

http://www.re-solve.in/


About RESolve

• Advisory firm with strong capabilities in Strategic, Regulatory , Commercial and Technical aspects of renewable energy(Solar PV and Wind) projects

• Founded by professionals from India and Germany with strong global exposure

• Offerings in – Advisory on Concept-to-Commissioning of PV projects– Policy and Regulatory advice

• Clients include– World Bank, Washington DC, USA– Tata Power Solar– ICTSD, Switzerland– iPLON, Germany– Confidential Client, Canada

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