SHORT PRESENTATION BY IWTMA

CHENNAI 25.11.08

About IWTMA
‡ ‡ ‡ Founded in 1997 to bridge the gap between demand and supply of power and to compliment other forms of energy Voice of the industry and the Umbrella body of Wind Turbine Manufacturers of India Presently represented by ten members o Elecon Engineering Company Ltd, Enercon India Ltd, GE Wind Energy India, LM Glassfiber, Pioneer Wincon Pvt Ltd, RRB Energy Ltd, Shriram EPC, Southern Wind Farms, Suzlon & Vestas Wind Technology. o Founder member of Global Wind Energy Council (GWEC), one amongst the seven associations in the world, European Wind Energy Association, American Wind Association etc. o Member Governing Council of Centre for Wind Energy Technology (CWET)

Background
‡ Wind installed capacity 9000 MW ‡ Members are able to bring to the table, state-of-the-art technology of stall, pitch and variable speed & gearless. ‡ Declared policy in 10 states and operational in eight states ‡ The Current capacity of Wind Turbines ranges between 225 KW 2100 KW. ‡ Turnkey solutions to customers¶ needs ± one stop shop ‡ Effective operation and maintenance to build customer¶s confidence ‡ Some manufacturers are into export of WTG components as well as WTG exports ‡ Privately installed metmast to study larger and new areas of wind farm development ‡ Private participation in installing substations.

Background (Contd)
‡ Holding the fourth position in the world. Almost 90% has come from private investment ± therefore, less cost to the exchequer ‡ Typical example, wind power in Tamil Nadu ± plays a vital role of wind energy complementing other power sources ‡ It has contributed to direct and indirect employment and has visibly changed the lifestyles in rural hamlets of Coimbatore District, Kanyakumari and Tenkasi ‡ Wind energy contribution to prevent Global Warming ± threat that is challenging the universe

KEY DRIVERS
‡ Profit making companies taking advantage of Income Tax Act Accelerated Depreciation. ‡ Advantage of Section 80 - IA of Income Tax Act benefit. ‡ State policy using generated power for captive generation arresting of power cost escalation. ‡ Carbon Credit : To play a vital role in accelerating the momentum . India can earn 26.95 mn Euros for existing wind power projects through Carbon Credits. Manufacturers are able to offer Carbon Credit as an extended service.

Wind Power Growth
*8712 MW as on 31st Mar-08 *Fourth Largest in the World

Wind Power Growth
* % growth on declining trend * Growth directly related with µPolicies¶

Wind Sector ± Policies*
‡ ‡ ‡ ‡ ‡ Policy certainty (Clear Term) Tariff certainty (Fixed Term) Operational certainty (Must Run Status) Wheeling and Banking (W & B) Renewable Purchase Obligation (RPO) / Renewable Purchase Specifications (RPS) ‡ Transmission and distribution sector support ‡ Flexible and progressive norms for installations of Wind Mast/ Mills

COST OF WIND ENERGY
‡ Everyone complains for the wind energy equipment are expensive and they are meant for the rich. ‡ We manufacturers (almost most of us) outsource components and assemble together where our contribution is only technology. ‡ Therefore the value addition in assembly and site related project work are almost minimal. ‡ The global shortage situation of renewable energy equipment and components needs to be seen as a positive factor to fight climate change and not as a seller¶s market.

Issues of Concern
‡ No national policy for wind (Renewable Energy Law). ‡ Order on RPO/RPS by State Commissions. ‡ Must Run Status (a clear order is necessary)

IWTMA¶s PROJECTIONS
‡ Capacity Addition by Wind in FY07-08 was 1595 MW. ‡ If the policy regime favours we plan to add 14000 MW during the 11th plan

WISH LIST
‡ Repowering and intercropping for maximum exploitation of land which is a finite source. ‡ Special interest subsidies as demonstrated in TUF (Textile Upgradation Fund) and to encompass power intensive sectors to attract private investment. ‡ Development of Off ± Shore ‡ Hybrids in wind and Bio fuel ‡ All of us need to join together to make wind energy and other renewable energy source investor-friendly for attractive return and viable option ± investor in the country as other alternatives.

FUTURE
‡ Generation based incentive to attract Foreign Direct Investment and IPP. ‡ Real Time Forecast as wind power is seen as unstable and infirm power by utilities. ‡ Higher realisation on CDM projects

QUOTES
‡ We would require 1 Million MW of power by year 2030, compared to 160,000 MW at present. ‡ To meet the demand in the future, they can be met by Hydel, wind and coal based energy projects. However, coal reserves would not last for more than 45 years. - Kirit S Parikh - Member ± Planning Commission.

CASE STUDY : THE CHINA MODEL
Quote from Jufeng Li, Secretary General, China Renewable Energy Industries Association

QUOTE : ³ China is witnessing the start of a golden age of wind power development, and the magnitude of growth has caught even policymakers off guard« It is widely believed that wind power will be able to compete with coal generation by as early as 2015. That will be the turning point in China, which by then will be the world¶s largest energy consumer.´ UNQUOTE In India to achieve this magnitude, we require ³Social, Commercial & Political Will´ (ARE ALL OF US LISTENING?)

THANK YOU

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