Wind Power Project

Development in
Maharashtra
A Case Study Report

By Kush Ramesh Jain

ID: 2017A3PS0425G

Submitted to:

Prof. M.K. Deshmukh

In Partial Fulfillment of the Course:

Wind Electrical System (EEE F473)

ABSTRACT

The aim of this report is to provide insight into Wind Power Development in the state of
Maharashtra, India. The report aims to give information about the current state and historical
development of Wind Power in India with the focus on the same for the state of Maharashtra. A
detailed explanation of the study of Wind Resource Assessment done to select a prospective site
for Wind Power Development and the cost-benefit analysis, which includes the economic and
environmental aspects (benefits and drawbacks) of installation is also analyzed. The current wind
power generation sites installed across Maharashtra have been studied and documented in this
report, along with the technology, wind farm design, electrical systems, grid integration and
funding for the projects. The market trends in wind energy have also been documented in this
report.

1
TABLE OF CONTENTS

● Abstract
● Introduction
● Current Energy Scenario in India
● Current Energy Scenario in Maharashtra
● Historical Wind Power Development in Maharashtra
● Procedure for Installation made by Maharashtra Energy Development Agency
○ Selection of prospective Wind Power generation sites
○ Financial Analysis of Prospective Wind Power projects
○ Planning and Development of the site
● Research and Development in Wind Power Technology
○ Government-funded research in Wind Power Technology
● Economic Aspects of Energy Market in Maharashtra
○ Private sector investments
○ Current market needs and demands of Wind Energy
○ Incentives provided by the Government
● Environmental Aspects
○ Benefits of installation of Wind Energy Technology
○ Drawbacks of installation of Wind Energy Technology
● References

2
INTRODUCTION
The State of Maharashtra has been a success story in the case of wind energy
development. This case study report aims to analyze the growth of the wind energy
sector by roughly breaking it down into three main aspects:
1.Policy and Government bodies: The governmental committees (regional, state,
national) responsible for policymaking and regulation of wind energy development.
2. Technical aspect: The current wind energy technology used by manufacturers
and the ongoing research in the field by private and public researchers.
3.Financial aspect: The financial condition of the energy market and trends in the
foreseeable future and the impact of renewable energy on the energy market and
industry.
The political aspect will aim to provide the reasoning of underlying guidelines on
ideal participation of the government for incubating wind project on the state level.
The analysis will try to highlight how the government stimulates the growth of wind
energy development by various tools such as policies, incentives, research grants,
awards, availing accurate information for masses, etc. The report will provide a
detailed explanation of the methodology of deciding prospective sites, planning of
prospective wind power-plants and issuing tenders to private manufacturers.
The technical aspect will depict the current technology installed and in use by market
leaders in the state. The wind energy technology will be explained from a mechanical
and electrical engineer point of view in the form of turbine design, electrical
subsystems, electrical storage, and transmission, etc. The domain will also provide
information on standards, analysis tools and methods used in the industry. The
ongoing research in hybrid systems and optimization of systems will be highlighted.
The financial analysis will help us to understand the current and future demand for
wind energy and how it will affect the supply of wind energy. The effects of
government regulation on consumers and suppliers will be highlighted. Future and
current investments by private and public sectors will be analyzed.

3
Current Energy Scenario

India is blessed with immense renewable energy resources. Evaluating the potential
of wind energy resources in changing the energy scenario in the country is vital for
development of wind turbine installations in near future. Wind power contributes
about 4% of India’s total electricity.

4
Wind power generation capacity in India has significantly increased in recent years.
As of 31st March 2019, the total installed wind power capacity was 36.625 GW, the
fourth largest installed wind power capacity in the world. The potential for wind
power generation for grid interaction has been estimated at about 1,02,788 MW
taking sites having wind power density greater than 200 W/sq. m at 80 m hub-height
with 2% land availability in potential areas for setting up wind farms @ 9 MW/sq.
km.
In Maharashtra, the Wind Energy program is implemented through Maharashtra
Energy Development Agency (MEDA). MEDA has enabled conductive policy
framework to increase private sector investment in Maharashtra
Assessed wind power potential in the country is about 49130 MW, while in
Maharashtra it is 5439 MW. Sites with Annual Mean Wind Density above 200 W/m2
are considered suitable for wind power projects. 339 such sites have been identified
in the country, of which 40 sites are in Maharashtra.

The National Energy Conservation Act came into force on 1st March 2002. To
implement the Act, the Bureau of Energy Efficiency (BEE) has been established by
the Government of India in New Delhi. The improvement of energy efficiency in the
country is to be achieved through various regulatory and promotional instruments.

5
Historical Wind Power Development in Maharashtra

Development of wind power in India began in December 1952, when Maneklal

Sankalchand Thacker, a distinguished power engineer, initiated a project with the
Indian Council of Scientific and Industrial Research (CSIR) to explore the
possibilities of harnessing wind power in the country. The CSIR established a Wind
Power Sub-Committee under P. Nilakantan, which was assigned the task of
investigating the available resources that could be practically utilized, along with
researching the economic possibilities of wind energy.
In 1986, demonstration windfarms were set up in the coastal areas
of Maharashtra, Gujarat and Tamil Nadu with 55 kW Vestas wind turbines. These
demonstration projects were supported by the Ministry of New and Renewable
Energy (MNRE).
The potential for wind farms in the country was first assessed in 2011 to be more
than 2,000 GW by Prof. Jami Hossain of TERI University, New Delhi. This was
subsequently re-validated by Lawrence Berkley National Laboratory, US (LBNL)
in an independent study in 2012. As a result, the MNRE set up a committee to
reassess the potential and through the National Institute of Wind Energy (NIWE,
previously C-WET) has announced a revised estimation of the potential wind
resource in India from 49,130 MW to 302,000 MW assessed at 100 m hub height.

6
Current Wind Power Generation Technology in Maharashtra

Investor-friendly policies of the Government of Maharashtra and technical viability

of demonstration projects have attracted private investment of more than Rs 11895
crore in the wind sector so far. Nearly 2309 MW of private wind power projects have
been installed in the State. These projects have provided 7250 Million units of
electricity in Maharashtra till March 2008.
A few prominent Wind Power Projects in Maharashtra, which generate energy of
10MW or greater are:
1. Brahmanvel Windfarm at Dhule – 528 MW
2. Dhalgaon Windfarm at Sangli – 278 MW
3. Vankusawade Wind Park at Satara District – 259 MW
4. Vaspet Plant at Vaspet – 144 MW
5. Tuljapur Plant at Osmanabad – 126 MW

7
Wind Resource Assessment in Maharashtra

Guidelines for WRA Site Selection:

1. The site can be in any orographical region – homogeneous topography
2. It should have open environment all around or at least to the sectors of prevailing
wind direction so that the data collected will be representative of the area under
consideration.
3. The site should not be in very high roughness forest area which retards wind.
Forest area with open appearance that subsequently may not be available for power
project, should not be considered. However, such areas can be considered for
assessment of the wind potential for academic reason.
4. Sites with high potential for development of wind power project should be
preferred.
5. In case of site being selected in non-flat terrain then it needs to be in probable
locations which have the advantages of accelerating flow due to the complexity of
the region. The probable locations in such region could be ridges, hills and
mountains which are suitably oriented to the prevailing wind direction. Passes, gaps
and valleys, those can enhance wind also can be considered.
6. Sites prone to environmental hazards such as frequent thunderstorms, severe icing
and snow, floods, landslides, severe salt spray and areas of blowing dust, earthquake
etc. should be avoided as far as possible.
7. Areas of high turbulence, strong wind shear and extreme winds shall be considered
with caution.
8. Easy accessibility to the site is an important criterion. But in case a site offers
good potential with considerable area availability but lacks accessibility in the
beginning. Such site shall be considered as road formation at a later stage may be
viable.
9. The sites near load centers should be preferred as evacuation cost is very less at
those sites.
10. The sites should not be near to bird habitat.

8
11. Consideration of ecological indicators like the deformation of vegetation by
winds can be used to locate windy sites.
12. Analysis of available data along with contour maps should be studied to locate
probable windy sites.
13. Opinion of local people regarding wind in region should be considered before
finalizing a site for wind monitoring.

Methodology for Monitoring:

An instrumented 80 m /50 m mast (tower) needs to be installed at selected sites for
collection of at least one/two years continuous wind data. Wind speed and direction
parameters are measured at 80, 78.5,50 and 20 m level for 80 M mast and at 50 &
30 m for 50 m mast.

9
Procedure for Installation made by Maharashtra Energy
Development Agency (MEDA)

This methodology is applicable to the wind power projects included in the composite
policy for new and renewable (non-conventional energy sources) power projects
dated 20th July 2015. The policy prescribes a target of 5000 MW in respect of wind
power projects.

The policy dated 20th July 2015 shall be applicable to all wind energy projects
developed at locations declared by the Ministry of New and Renewable Energy /
National Institute of Wind Energy (NIWE), Chennai and / or at locations where wind
monitoring is done by private developers and data is certified by National Institute
of Wind Energy (NIWE).

The following guidelines will be applicable for issuance of grid connectivity consent
/ permission to the wind power projects:
- It will be necessary for the project developer to submit application for grid
connectivity in the prescribed format to MEDA. The application should
include, along with other details, details about the project capacity, project site
location, details of nearest MSEDCL/MSETCL sub-station etc.
- There will be a preliminary scrutiny of the application by MEDA office,
subsequent to which the developer and MSETCL/MSEDCL will be informed
for the purpose of technical feasibility report. MSETCL/MSEDCL shall
prepare the technical feasibility report and furnish its copy to MEDA.
- On receipt of the technical feasibility report, MEDA will verify its conformity
with the wind power generation area and make recommendation to
MSETCL/MSEDCL for grid connectivity.
- The application for grid connectivity by the project developer will be
scrutinized by the Committee for grid connectivity constituted by MSETCL
in which thorough consultation will be done.

10
 - The project developer will be required to deposit Rs. 1 Lakh per MW in the
form of Demand Draft as commitment fee (refundable) to
MSETCL/MSEDCL for timely transmission of power from the project to the
substation.
The Wind Turbine Generators which are mentioned in the approved list of wind
generators maintained by National Institute of Wind Energy (NIWE), Chennai as
per the policy of the Ministry of New and Renewable Energy, shall only be allowed
to be installed under this policy.

The wind power projects to be set up under this policy will be required to be
registered with Maharashtra Energy Development Agency (MEDA).
The wind power projects will be eligible to execute power purchase agreement or to
seek open access approval or to sell energy through Renewable Energy Certificates
only upon obtaining project registration from MEDA.
The project registration will be granted up to the limit of the target of 5000 MW
prescribed under this policy.

The project developers / project holders are required to deposit commitment fee of
Rs 5 lakh per MW (refundable) to MEDA. It is necessary to commission the wind
power project within a period of nine months from the date of registration of the
project. The commitment fee of the project which is not commissioned within nine
months will be forfeited.

Based on the annual mean Wind Power Density (WPD) declared by C-WET and
MEDA programme, or the value of private wind site data vetted by C-WET.
The effective area for each windy site declared by C-WET under MNRE or MEDA
programme, and for the private windy site data vetted by C-WET, shall be 10 km
radial distance from the location of the wind mast, which will be the reference point.
The developer/investor is required to optimize all technical parameters for maximum
generation from the wind power project classified as per this procedure.

11
Research and Development in Wind Power Technology

National Institute of Wind Energy (NIWE) has been established in Chennai in the
year 1998, as an autonomous R&D institution by the Ministry of New and
Renewable Energy (MNRE), Government of India. It is a knowledge-based
institution of high quality and dedication, offers services and seeks to find
complete solutions for the kinds of difficulties and improvements in the entire
spectrum of the wind energy sector by carrying out further research.

The Indian government is on the mission of increasing investment in the

renewable energy sector by adopting an investor friendly approach. The
government is adopting an alternate approach as it does not invest directly into a
wind energy project but invests in R&D by putting up small demonstration
projects at remote locations. The Indian government had put up these
demonstration projects in Tamil Nadu, Gujarat, Madhya Pradesh and Karnataka
with the support of Danish International Development Agency (DANIDA). During
11th five-year plan (2007-2012) Indian government has spent $44.79 million on
R&D in wind energy.

12
Economic Aspects of Energy Market in Maharashtra

Direct Taxes:
1. 80% Accelerated Depreciation on specified Non-Conventional Renewable
Energy
devices/systems (including wind power equipment) in the first year of
installation of the projects.
2. Ten-year income tax holidays for Wind Power Projects.
Indirect Taxes:
1. Exemption of Excise duty on Wind operated electricity generators, its
components and parts, Water pumping windmills, wind aero generator and
battery charger.
2. 5% Customs duty rate on wind electric generator parts, devices, blades,
Parts for the manufacturer or the maintenance of the blades, Raw material
for the manufacture of the blades.

Green Energy Fund: Government of Maharashtra had announced constitution of

green energy fund for development of infrastructure facility required for non-
conventional energy sources.

Approach Roads: 100% expenditure for construction of approach roads for wind
energy projects will be met through Green Energy Fund.

Electricity Duty: No Electricity duty shall be leviable for first 10 years from the date
of commissioning of the projects for captive consumption and third-party sell.

Encouragement to Co-operative Sector: 11% Share Capital will be provided to

Cooperative Sector for setting up of wind power projects as a grant through Green
Energy Fund.

13
Environmental Aspects

Benefits:

Cost-effective: Land-based utility-scale wind is one of the lowest-priced energy

sources available today, costing between two and six cents per kilowatt-hour,
depending on the wind resource and the project’s financing. Because the electricity
from wind farms is sold at a fixed price over a long period of time (e.g. 20+ years)
and its fuel is free, wind energy mitigates the price uncertainty that fuel costs add to
traditional sources of energy.

A clean fuel source: Wind energy doesn't pollute the air like power plants that rely
on combustion of fossil fuels, such as coal or natural gas, which emit particulate
matter, nitrogen oxides, and sulfur dioxide—causing human health problems and
economic damages. Wind turbines don't produce atmospheric emissions that cause
acid rain, smog, or greenhouse gases.

Domestic source of energy: The nation's wind supply is abundant and

inexhaustible. Over the past 10 years, cumulative wind power capacity in the United
States increased an average of 30% per year, and wind now has the largest renewable
generation capacity of all renewables in the United States.

Can be built on existing farms or ranches: This greatly benefits the economy in
rural areas, where most of the best wind sites are found. Farmers and ranchers can
continue to work the land because the wind turbines use only a fraction of the land.
Wind power plant owners make rent payments to the farmer or rancher for the use
of the land, providing landowners with additional income.

Drawbacks:

Noise Pollution: Like all mechanical systems, wind turbines produce some noise
when they operate. Most of the turbine noise is masked by the sound of the wind
itself, and the turbines run only when the wind blows.

Visual Pollution: Because they must generally be sited in exposed places, wind
turbines are often highly visible.

Bat and bird mortality: Bird and bat deaths are one of the most controversial

14
biological issues related to wind turbines. The deaths of birds and bats at wind farm
sites have raised concerns by fish and wildlife agencies and conservation groups.

Mining: Service roads are required for wind farms, the materials required for service
roads come from mining, which is harmful to the environment.

Deforestation: Installation of service roads often requires felling of trees.

15
REFERENCES

https://mnre.gov.in/national-institute-wind-energy-niwe

https://www.ijrer.org/ijrer/index.php/ijrer/article/viewFile/1626/pdf_7

https://niwe.res.in/

https://www.mahaurja.com/meda/grid_connected_power/wind_power

https://en.wikipedia.org/wiki/Wind_power_in_India

16