A Multi Stakeholder Perspective

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Agenda

• Wind Vision Initiative

• Setting up of Wind Vision : 200 GW by 2032

• Recommendations

– Wind Project Development

– Regulatory Incentives

Financing Wind Vision 2032– Financing Wind Vision 2032

– Grid Integration of Wind Energy in India

– Wind Solar Hybrids,

– Small Wind Turbines

– Repowering

• Actions to Scale up Market to 200 GW by 2032

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Wind Vision Initiative

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Key Drivers of Wind Power in India…1/3

Energy Security Concerns

Climate Energy Energy

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Key Drivers of Wind Power

Climate Change

Cost Competitiveness

Energy AccessEnergy Access

Eco-System Readiness

Eco-System Readiness

• Energy Security:

– India ranks 4th and 6th globally as the largest importer of oil, and of

petroleum products and LNG, respectively

– Oil import bill: USD 64 billion in FY2016 (19.6% of Gross Imports)

– India’s Oil imports dependency is 81% of total consumption

• Climate Change:

Key Drivers of Wind Power in India…2/3

• Climate Change:

– India targets to reduce the emissions intensity of its Gross Domestic Product

(GDP) by 33%–35% by 2030

– This would require generating 40% of the electricity through non-fossil fuel

sources including Wind

• Increasing Cost Competitiveness:

– Wind Energy is moving towards Grid Parity

– INR 4.16 – 4.82 per unit of Wind Energy as compared to fossil fuel-based

generation of INR 4 – 5 per unit5

• Eco-System Readiness:

– Manufacturing capacity already exists

– FIT Policy regime is in place

– Capital cost* (1.08 USDm/MW) among the lowest in the world [as compared

to Germany: 1.36 MnUSD/MW, China: 1.60 MnUSD/MW, USA: 1.83

MnUSD/MW]

Key Drivers of Wind Power in India…3/3

MnUSD/MW]

• Poor Energy Access:

– At 620 kgoE, India’s per capita energy consumption is one of the lowest in the

world (1,807-China, 1,361-Brazil & 4,927- Russia)

– Per Capital Electricity consumption is lowest among BRICS (Brazil – 2.5 times;

Russia – 6.5 times, China – 3 times; South Africa – 4 times)

– Significant population still without access to electricity

– India has wind energy resources in abundance, can be tapped & used locally

*World Energy Perspective from WEC

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Identify Electricity

Develop RE contribution Identify

Calculate Equivalent

Capacity

Setting of Wind Vision Target

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Define Target Year

Electricity Requirement per annum

based on 18th

EPS of India

contribution trajectory based on NAPCC Targets

Identify Wind

Generation Requirement

Capacity based on

Generation Requirement and set it as a

Target

Deriving Wind Vision Target

Particulars 12th FYP

(FY 2016-17)

13th FYP

(FY 2021-22)

14th FYP

(FY 2026-27)

15th FYP

(FY 2031-32)

Projected electricity requirement per annum

(@ power station bus bars) based on 18th

EPS (billion units)

1,355 1,905 2,710 3,710

RE contribution based on NAPCC targets

(%) 12% 17% 22% 27%

1. Contribution of Renewable Energy is projected to be in the range of 27% by 20322. It is important that Wind Sector should contribute significantly

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RE generation requirement (billion units) 163 324 596 1,002

Wind generation requirement in billion units

(BUs) (assuming 40% of total RE

requirement)

65 130 238 401

Cumulative wind installed capacity required

in GW (assuming average capacity

utilisation factor [CUF] of 23%)

32 64 118

199

(approx.

200 GW)

Segment wise Targets

(All figures in Giga Watt)12th FYP

(FY 2016-17)

13th FYP

(FY 2021-22)

14th FYP

(FY 2026-27)

15th FYP

(FY 2031-32)

Wind Vision Target 32 64 118 200

Offshore Wind

(10% of Wind Vision)6 12 20

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Small Wind 0.10

Repowering 1 4 9 20

Onshore Capacity 31 54 97 160

�Address both current and future issues

�Scale up the annual capacity addition from present 3 GW to 12-15 GW

Wind Capacity: Business as Usual Vs. Wind Vision 2032

88

116

144172

200

59.97

7590

105

120

135

-

50

100

150

200

250

Win

d C

ap

aci

ty, G

W Wind Capacity: Business as Usual Vs. Wind Vision 2032

Business as Usual

Wind Vision 2032

• Important to identify changes in Policies, Regulations, Business Models, Structures, to scale

up the annual capacity addition from present 3 GW to 12-15 GW

• In order to scale up capacity addition, new business models need to be explored for:

– Reducing Wind Power Costs - Cost improvements and advancements in Technologies

– Deploying wind in such a way that it is no longer considered as a variable source. Eg. Battery

Storage and better scheduling and forecasting system

– Long Term Sustainable Development- Consistency and long term vision in policies

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-

Potential Benefits of Wind Capacity Scale-up

•Considering emission factor (0.79 tCO2/MWh), GHG emission reduction overuseful life works out to 6158 Million tons of CO2 equivalent by FY 2031-32

•This translates to about 2.5 times of todays annual GHG emissions

Emission Reduction Potential

Job Creation Potential

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•Estimation based on average direct long term job creation of 4 persons/MW asper MNRE HRD report

•Total job creation potential is estimated to be 8.7 lakh till FY 2031-32

•This translates to an approx. 48k annual job creation potential

•Landed cost of imported coal -Rs 6000/ton with GCV of 5,500kCal/kg and Heatrate of 2,172 kcal/kWh as per CERC

•Cumulative import bill reduction potential over the useful life of wind projects isestimated at around Rs 18.4 lakh crore

Import Bill Reduction Potential

Recommendations on various issues

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Wind Project Development

Wind Resource

Assessment

Land Acquisition

Infrastructure-

Power

Evacuation and

Roads

Permissions/

Clearances

Segregation of Siting and WRA from Rest of Project Development Activities

Recommendations

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Site

Identification

Site

Development

Roads

• Manufacturers, IPPs, PSUs and WRA entities would be at par (Level playing field for all)

• Multiple project development initiatives in parallel � increase project pipeline, sharebusiness risks, reduce timelines

• SNA to be responsible for WRA, DPR quality and land matters

• Power evacuation to be planned at high voltage on MW/GW scale

• Confidence to the Project Developers/Investors

Mega Wind Projects

• Significant investment required to achieve ~12 to 15 GW/annum.

• Private capital may not be able to bear such a huge risk

• Government involvement will be critical for risk mitigation if not as a

direct investor

• “Solar Park” concept need to be introduced in Wind Sector

Recommendations

• Govt. should take up GW scale wind park development till clearance

stage for multiple developers with well defined selection criteria

• Involvement of private investors for WRA as a separate activity

• Government could offer either entire Mega Wind Project or parts

through bidding route to developers

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Regulatory Support Instruments

FIT / Preferential Tariff/ GBI

Renewable Concessions

• Consistent increase in RPO

• Strong compliance Regime

• Support should be continued till 2022 to restart wind economy

Recommendations

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Regulatory Incentives

Renewable Purchase

Obligation

RE Certificate Mechanism

Concessions to RE Open

Access Transactions

• Energy based charges instead of capacity based charges

• CERC tariff for initial inter-state transactions

• APPC+REC mechanism for competitive procurement

Financing Wind Vision 2032

• Investment required to achieve the target is INR 17.08 lakh crore by FY

2031-32, translates to INR 1.07 lakh crore per annum from FY 2016-17

• Developing a longer term bond market - New products to be introduced,

appetite of long-term investors need to be increased

• Development of refinancing market, under which an apex refinancing

body to be established for better governance of market

Recommendations

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body to be established for better governance of market

• RBI to modify its asset classification norms to bring more consistency

and similarity in NPA definition for bank and NBFC

• RBI to promote foreign currency long term deposits in banks from NRIs

and foreigners

• Introduction of New Financing Structures, primarily Yieldcos & REITs

Grid Integration of Wind in India

Planning:

• Lack of integrated generation & transmission planning considering RE

• Ageing and inadequate

Construction:

• No uniform grid interconnection process

• Funds for transmission infra. Development

Operation:

• Issues pertaining to forecasting and scheduling

• Fault ride through capabilities of WTGs

Challenges

Recommendations

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• Ageing and inadequate transmission corridors • Right of Way (RoW)

issues and local challenges

capabilities of WTGs

• Reactive power issues

•Adopt Integrated Transmission-

Generation-Load Planning

•Amendments to Planning Codes

of the State Grid Codes

•Active participation of all

stakeholders including wind

generators in grid coordination

committee

Solutions

•Development of standard

interconnection process for RE

•Exploring PPP model or

Independent Private Transmission

Company (IPTC) model for RE Tx

Schemes

•Prioritize infrastructure projects

for RE

•Establishing visibility and

communication links between

wind farm pooling stations and

SLDCs.

•Establishment of REMCs

•Development of balancing

frameworks at state and regional

level.

Forecasting and Scheduling

• Need for visibility:

─ Additional IT infrastructure to be established for visibility of pooling stations

• Robust communication facility:

─ Need for establishing communication facility for tracking real-time generation ofpooling station at SLDC

─ Who would install? Who would bear the cost for establishing the communicationnetwork

Recommendations

network

• Need for uniform settlement mechanism:

─ Different practices for generator payment exist in different States.

─ Institutional Set up and deviation Settlement mechanism.

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100% metering at Pooling station

level

Establishing telemetry b/w

SLDCs & pooling SS

Appointment of QCAs at pooling

station level

Amendment of State Grid Codes

Implementation Roadmap

Wind-Solar Hybrids

• Introduction of RE Hybrid Policy at National level

• Funding support/Fiscal benefits for Wind-Solar Hybrid Projects

• Amendments in Metering, Energy Accounting and other procedures

• Preference in State/Central Transmission Utility and Evacuation

planning

Recommendations

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• Separate measurement of wind and solar generation and separate

treatment in respective RPOs

• Modification in RPO and Renewable Energy Certificate (REC)

Regulations for RE Hybrid Projects

Small Wind Turbine (SWT)

• In-depth assessment of the market for small wind power/solar-wind

hybrid systems (both off-grid & grid connected)

• R&D Support to identify and commercialize technologies suitable for

Indian environment

• With dropping storage prices, SWTs are expected to become financially

viable

Recommendations

viable

• Regulatory support for connecting small wind turbines to grid through

net/gross metering is required

• FIT/ GBI for gross generation from SWT, irrespective of location of

small wind turbine

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Repowering of old WTGs

• Government should initiate the continuous repowering program.

• For permitting re-powering, existing project should have maximum

balance life of 10 years and wind turbine capacity of each WTG < 1 MW

• All captive, third party sale and sale to State Discom projects to be

considered for re-powering,

Recommendations

• MoP Rules for Captive Generating Station should be relaxed in case of

repowering as more than 60% of old WTGs are in captive mode

• Micro-siting criterion may be relaxed in case of repowering project

• Appropriate re-powering ratio to ensure more energy yield

• Generation linked re-powering incentive for period uptp 10 years

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Actions to Scale up the Market to 200 GW by 2022

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Actions to Scale Up the Market to 200 GW by 2032

Regulatory, Policy

& Tax Incentives

Financing Wind

REC as Statutory Instrument

FiT/GBI & RE Law

Low Cost Increase Limit YieldCos and

Primary Responsibility

Govt. of

India

Govt. of

Short Term Medium Term Long Term

Themes

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Financing Wind

Sector

Wind Power Project

Development

Procurement of

Wind Power

Grid Integration of

Wind Energy

Green Corridor toInclude

Higher Targets

Creating of RE Transmission

Planning Authority

Development of Ancillary Markets

Strict RPO Compliance

Promoting –Inter-State Sale of Wind

Power

Developing Competitive

Bidding Framework

Nationwide Wind Resource

Assessment Study

Project Identification

Model

Low Cost Funding

Increase Limit of ECB

YieldCos and REITs

Govt. of

India

CTU/CEA

CERC/

SERC/

MNRE

SNA/

MNREMega Wind/ Hybrid Parks

Thank You

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