Focus: Wind Energy | Winds of Change

Focus  /  Aug 15 2018

The largest programme to tap renewable sources for power generation is being implemented in India. The Government of India is leaving no stone unturned towards accomplishing its set target of 175 GW through renewable sources by 2022. No doubt the emphasis is more on harnessing solar energy but things are likely to change even on the Wind energy front. India ranks 4th globally with regard to wind power installed capacity after China, USA and Germany. By November 2017, a total of 62 GW Renewable Power got installed, of which 27 GW installed since May 2014 and 11.79 GW since January 2017. Lowest wind energy tariff of Rs. 2.64/ unit was achieved through transparent bidding and facilitation. The government has laid down its ambitious bidding trajectory for 100 GW capacity of Solar Energy and 60 GW capacity of Wind over the next 3 years. Sandeep Sharma takes a look at the wind energy sector....

FACTS AND FIGURESAs per the Ministry of New and Renewable Energy (MNRE) - Year End Review 2017 report, during the year 2016-17, wind power capacity addition of 5.5 GW was made, which is highest ever wind power capacity addition in the country during a single year. A total of around 69,784 MW of renewable energy capacity has been installed in the country as on 31.03.2018 from all renewable energy sources which includes around 34,145 MW from Wind, around 21,651 MW from solar, around 4,486 MW from Small Hydro Power and around 9,502 MW from Bio-power. Wind energy capacity increased by 1.6 times from 21 GW in 2014 to 34 GW.

RE TARGETS
The Government has set a target of installing 175 GW of renewable energy capacity by the year 2022 which includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro capacity. So far, 71.33 GW of renewable energy capacity has been installed in the country up to June 2018. To achieve the balance target of 103.67 GW, investment of around 76 billion US$ has been estimated at present capital cost which includes 53.20 billion US$ as debt and 22.80 billion US$ as equity for the debt-equity ratio of 70:30 as per Central Electricity Regulatory Commission (CERC) norms.

MANUFACTURING BASE
India has a strong manufacturing base of wind power equipment in the country. Presently, there are 20 approved manufacturers with 53 models of wind turbines in the country up to a capacity of 3.00 MW single turbines. Wind turbines being manufactured in India are of international quality standards and cost-wise amongst the lowest in the world being exported to Europe, USA and other countries.

POTENTIAL
The wind power potential of the country has been reassessed by the National Institute for Wind Energy (NIWE), it has been estimated to be 302 GW at 100 meter hub-height. India has long coastline where there is a good possibility for developing offshore wind power projects. The Off-shore locations from Tamil Nadu and Gujarat coast provides among the best locations from wind power generation. In order to harness this potential, the government of India have formulated offshore wind power policy and expression of interest for initial 1GW off-shore wind power have already been issued. The cabinet has cleared the National Offshore Wind Energy Policy and the same has been notified on 6th October 2015. First LiDAR installed and commissioned off Gujarat coast for gathering wind resource data.

MOUs for wind forecasting entered with Gujarat and Rajasthan based on the forecasting experience of Tamil Nadu with NIWE. Meso scale map is prepared for wind resource at 120 meter height, as most of turbine hub heights being installed are more than 100 meters. Total assessed wind resource of India would go up from 302 GW at 100 m to about 600 GW at 120 m); MESO scale map is also prepared for Offshore wind.

FALLING TARIFF

Due to the signing of PPAs/ PSAs for first SECI wind auction (1000 MW, tariff discovered was Rs. 3.46 in Feb 2017). The second wind auction of 1000 MW resulted in lowest tariffs of Rs. 2.64/ unit.

HYBRID MODEL
The Government of India has notified Solar-Wind hybrid policy in order to optimize land use and harnessing solar and wind energy potential optimally. The Policy seeks to promote new hybrid projects as well as hybridisation of existing wind/solar projects. The existing wind/solar projects can be hybridised with higher transmission capacity than the sanctioned one, subject to availability of margin in the existing transmission capacity.




The Policy provides for procurement of power from a hybrid project on tariff based transparent bidding process for which Government entities may invite bids. The policy also allows use of battery storage in the hybrid project, in order to optimise the output and further reduce the variability. It mandates the regulatory authorities to formulate necessary standards and regulations for wind-solar hybrid systems.

As part of the initiative, the Ministry of New and Renewable Energy has also brought out one tender for setting up 2000 MW solar-wind hybrid in existing projects.

PAN-INDIA RENEWABLE POWER MARKET

To push power generation through renewable energy sources and create a Pan-India renewable energy market, the government of India have waived the Inter State Transmission System charges and losses for inter-state sale of solar and wind power for projects to be commissioned by March 2022. This move is likely to encourage setting up of renewable energy projects in the states that have greater resource potential and availability of suitable land. The excess power generated could be transmitted to the resource poor states without additional financial burden.

GREEN ENERGY CORRIDOR
The Green Energy Corridor projects seek creation of grid infrastructure for renewable power evacuation and to reshape grid for future requirements. The intra state transmission scheme (InSTS) is being implemented by eight renewable rich States at an investment of Rs. 10,141 crore. The aim is to set up about 9400 ckm transmission lines and Substations of total capacity of approx. 19000 MVA is targeted to complete by March 2020.

GOING AHEAD
India is fast becoming the most favoured destination for harnessing renewable energy. During the last four years, more than US$ 42 billion worth of investment was made in renewable energy in India. Indian companies have begun to tap foreign stock exchanges for sourcing funds. Foreign participation is encouraged in the renewable energy space. The foreign investors can enter into joint venture with an Indian partner for financial and/or technical collaboration and for setting up of renewable energy-based power generation projects. 100% foreign investment as equity qualifies for automatic approval. Government of India is also encouraging foreign Investors to set up renewable energy-based power generation projects on build-own-operate basis. Going forward, the wind energy segment offers lucrative business for the private sector players. Most of the renewable energy projects in India are being implemented by the private sector developers selected through a transparent bidding process. In order to be competitive, the government of India is encouraging private sector developers to deploy most advanced technologies and also go in for hybrid model so as to have the most optimal renewable energy mix.

     
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