Presentation by

Mr Sarvesh Kumar

GLOBAL OPPURTUNITIES

1

GLOBAL : An Overview

2

• Reduces climate change and other environmental pollution.Reduces climate change and other environmental pollution.

• Creates employment, regional growth and innovation.Creates employment, regional growth and innovation.

• Diversifies energy supply, eliminates imported fossil fuels.Diversifies energy supply, eliminates imported fossil fuels.

• Provides energy security and prevention of conflict over Provides energy security and prevention of conflict over

natural resources.natural resources.

• Reduces poverty through improved energy access.Reduces poverty through improved energy access.

• Provides a hedge against the price volatility of fossil fuels.Provides a hedge against the price volatility of fossil fuels.

• Fuel source is free, abundant and inexhaustible.Fuel source is free, abundant and inexhaustible.

• Global wind resource is bigger than global power demand.Global wind resource is bigger than global power demand.

• Delivers utility-scale power supply.Delivers utility-scale power supply.

• Modular and rapid to install.Modular and rapid to install.

The Global Benefits of Wind Power

3

Harnessing Wind Power

• 12% of the World's electricity can be supplied by wind; 11 billion tonnes of CO2 emissions can be saved by 2020.

• By 2020, 1250 GW of wind power can be installed.

- Wind Force 12

4

Contribution of wind energy to national electricity

demand (end of 2005)Country % of national

Electric supplyInstalled Power in GW

Germany 7 18.5Spain 6 10.0 U S A 0.35 9.2INDIA 0.9 4.4Denmark 2.0 3.1Netherlands 2.0 1.0EU (15) 4.0 40.5World 0.55 59.0

5

6

7

Global Development

1980

2005 Factor

Rotor size 15 m

126 m 8.4

Installed power largest wind turbine 55 kw

5,000 kw 90

Wi nd energy plant capacity 100 kw

200,000 kw 2 , 000

Installed power (world) 100 mw

59000 mw 500

Contribution to electricity supply

(Europe)

0.001% 4.5%

10,000

 

8

Wind PowerWind Power – Ends pollution – Ends pollutionWind PowerWind Power – Ends pollution – Ends pollution

Every installation of a Wind Turbine saves 0.2 Acres of land from mining usage.

Wind power production

entails very minimal use of water.

Technology Water Required Liters/kWh

Nuclear 2.30

Coal 1.90

Oil 1.60

Combined Cycle

0.95

Wind 0.004

India's total Wind installation of 4335 MW, has virtually saved - 867 Acres of land from Mining activities.

9

Wind PowerWind Power – Ends pollution – Ends pollutionWind PowerWind Power – Ends pollution – Ends pollution

A single 750 KW Wind turbine operated for one year at a site with Class IV wind speeds (Wind averaging 6 - 7 M/sec @ 50 Meters height) can be expected to displace a total of

1179 tons of Carbon dioxide

6.9 tons of Sulpher dioxide

4.3 tons of Nitrogen Oxide More “Wind Power” means

Less smog Less acid rain and Less Green House Gas (GHG) emissions

10

India : An Overview

11

WIND POWER DEVELOPMENT(Installed Capacity in Megawatt)

32 37 41 54 11

5 35

1

73

3 90

2

96

8

10

24

11

67

13

40 16

28 18

70

24

83

35

95

43

35

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Ma

rch

19

90

Ma

rch

19

91

Ma

rch

19

92

Ma

rch

19

93

Ma

rch

19

94

Ma

rch

19

95

Ma

rch

19

96

Ma

rch

19

97

Ma

rch

19

98

Ma

rch

19

99

Ma

rch

20

00

Ma

rch

20

01

Ma

rch

20

02

Ma

rch

20

03

Ma

rch

20

04

Ma

rch

20

05

De

c 2

00

5

Month & Year

Ins

tall

ed

Ca

pa

cit

y i

n M

W

12

Advantage India

• The largest democracy in the world, politically stable, on a high growth path.

• Cost effective labour.

• Availability of world-class engineering goods and services.

• Well established financial and banking system.

• Time tested legal systems.

• Only country in the world to have a dedicated Ministry of Non-conventional Energy Sources (MNES).

• No prior approval is required for Foreign Direct Investment for establishing of wind turbine manufacturing facilities.

• Dividends can be repatriated without restrictions.

• Disinvestments can be done with prior permission from Reserve Bank of India (RBI) and disinvestment proceeds can be repatriated.

13

Why To Invest In India

One of the largest and fastest growing economies in the World.

Strategic locations – access to the vast domestic and south asian market.

Skilled man power and professional managers are available.

Long history of market economy infrastructure.

One of the largest manufacturing sectors in the world.

One of the largest schools of scientists, engineers and technicians in the World.

Well developed R&D infrastructure, technical and marketing services.

A sophisticated legal and accounting system.

Foreign brand names are widely accepted.

14

Business Opportunities

India is a land of opportunity for investors in Wind Energy Projects.

In India we provide consultancy services for setting up of manufacturing plants and projects on turnkey basis.

Indian and foreign investors can contribute to technology development, manufacturing of Wind Electric Generators and also participate as developers of large scale wind farm projects.

Opportunity to trade on carbon emissions.

Unlimited potential.15

The Indian Power Sector - A Quick Glance

• Per capita electricity consumption : 606units • Installed power generation capacity (utilities) : 1,23,668 MW (DEC.2005)• Overall generating capacity (includes thermal, : 120,000 MW

hydro, nuclear & wind) • Distribution of total installed capacity : 90 % owned by Public

Sector (60 % : State

Government 30 % : Central Government)

Rest 10 % is owned by the Private Sector

• Projected installed capacity (2012) : 210,000 MW • Power generation (2002-03) : 530 billion units• Energy deficits (Mar 2002) : 7.5 % • Peak deficit : 12.6 %

16

The Indian Power Sector - Projected Generation

• The Ministry of Power has proposed to add approximately 100,000 MW by 2012.• New additions planned :

– 10th Plan (2002-07) 62160 MW– 11th Plan (2007-12) 79156 MW

• Break-up of these additions (10th plan) (11th plan)• Central Sector 31080 MW 39443MW• State Sector 21370 MW 28258 MW• Private Sector 9710 MW 11185 MW• Total 62160 MW 79156 MW

17

Renewable Energy -Indian Scenario

•Estimated potential 1,00,000 MW.Estimated potential 1,00,000 MW.

•Achieved approx. 7000 MW ( Approx. 7%).Achieved approx. 7000 MW ( Approx. 7%).

•About 85% of total investment from the private sector.About 85% of total investment from the private sector.

•Growth rate 25% per annum.Growth rate 25% per annum.

•Wind, Solar, Small Hydro and Bio-mass are the major sources ofWind, Solar, Small Hydro and Bio-mass are the major sources of

renewable energy.renewable energy.

18

Tremendous business potential in India

Technology Units Estimated Potential Achievements World Position

Wind Power MW 45,000 4435 MW Fourth

Small Hydro power MW 15,000 1729 MW Tenth

(< 25MW)

Bio-Mass (POWER) MW 19,500 348 MW Fourth

Urban & Industrial Waste MW 2,700 42 MW -

Solar Photo VoltaicMW/Sq Km 20 121 MW Fifth

Annual turnover of RE industry in India is Approx. Annual turnover of RE industry in India is Approx. One Billion Euro.One Billion Euro. 19

Indian Wind Power Sector – At A Glance

• Gross Wind Power Potential 45,195 MW

• Total Installed Capacity 4,435 MW (DEC. 2005)

– Demonstration Projects 70 MW

– Commercial 4,365 MW

• Additional Target by Indian 9,000 MW by 2012

Government (Around 750 MW per Annum)

• More than 95% investment is by private sector

20

Growth of Wind Sector in India (MW)

Year Capacity Addition Growth %

2000-01 1340 173 15

2001-02 1628 288 21

2002-03 1870 242 15

2003-04 2484 615 33

2004-05 3595 1111 44

UP TO DEC05 4435 840 42

(1500MW by March 2006)

21

Forecast - India 10% of the proposed capacity addition of 100,000 MW in the

next 10 years would be from renewables and 75% of this 10% is expected to be from Wind.

10,000 MW of additional Wind Power capacity is expected to be added to the Indian grid-networks by the year 2012.

Cumulative Installed Capacity (MW) by end of March 2005

Installed capacity

(MW) in 2004-05

Forecast 2006-2008

Total Installed capacity between 2006-2008

Cumulative installed capacity (MW) by end of 2008

2006 2007 2008

3595 1111 1500 1800 1800 5100 9800

22

Swot Analysis - Industry

1. STRENGTH:-

(i) Ability to offer state of the art technology by six large players.

(ii) Annual Market size is around 1500 MW.

(iii) Growth in the last three years is phenomenal.

2. WEAKNESS:-

(i) Less R & D on technology adaptation and innovation.

3. OPPORTUNITY:-

(i) Fast track growth due to need and necessity of power.

(ii) Encouragement to FDI’s to invest in the sector.

(iii) Conducive policy in 7 States.

4. THREAT:-

(i) Risk factor associated with non uniform State policy.

23

Wind Power and Corporates

• Rising Power tariff of conventional power projects. • Low Gestation Period.• Hassle Free Operations and Maintenance.• Declining cost due to improving technologies.• Cost per Kwh is the lowest on full life cycle basis.• IRRs in the range of 10% - 25% for Investments in Wind Power generation.• Green power which qualifies generally for Carbon Credits.• Accelerated Depreciation of 80%.

Corporates have a major role to play in tapping the Wind Power potential available in the country.

24

India Shining

•Indian Economy on a resurgent mode.Indian Economy on a resurgent mode.

• GDP growth of 8.6 % in 2004-05. GDP growth of 8.6 % in 2004-05.

•Banks now funding projects at interest rates of 9%.Banks now funding projects at interest rates of 9%.

•Industry on an upbeat mood - New investments in automobile, steel and Industry on an upbeat mood - New investments in automobile, steel and power.power.

•Infrastructure development projects on high gear.Infrastructure development projects on high gear.

25

THANK YOU

26