Scope of Wind Energy in Hotel Industry

8/12/2019 Scope of Wind Energy in Hotel Industry

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A

PROJECT REPORT

ON

Scope of Wind Energy in Hotel Industry in Pune

FOR

SUZLON ENERGY LIMITED

UNDER THE GUIDANCE OF

Mr. Santosh Mahadik

Sr. General Manager - Marketing

TOWARDS PARTIAL FULFILLMENT OF

THE REQUIREMENTS FOR THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION IN Marketing

SUBMITTED BY SUBMITTED TO

Manali Sawardekar Mr. Santosh Mahadik

Sri Balaji Society Sr. General Manager-Marketing

Marketing Section C


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ACKNOWLEDGEMENT

Firstly I would to thank my college Balaji Institute of Modern Management(BIMM) for

giving me this opportunity to do this project and understand the different aspects in the

company and getting opportunity to learn new activities.

Then I would like to thank Mr. Santosh Mahadik the Senior General Manager (Marketing)

for helping and giving guidance as to the information about the company and heping me in

carrying out different activities.

At last I would like to thank my mentor Mr. Ankur Garg for helping and guiding me at every

step and explaining every detail about the activities to be carried out.


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INDEX

S.No. PARTICULARS PAGE NO.

1 Acknowledgement 2

2 Executive Summary 4

3 Introduction 5

4 Company & Product Profile 7

5 Secondary Research Data 27

6 Conclusions 28

7 References 29


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EXECUTIVE SUMMARY

OBJECTIVE

The objective of this project is to analyse the consumption pattern of the different hotels in

Pune.

To check if the hotels use the renewable sources of energy and their source.If they do not use

then if they would like to have the renewable sources like windmills or wind turbines.

METHODOLOGY

In this approach, we conducted cold calling to companies. We had segregated the companies

as High Tension users ( Contract Demand more than 1000 kVA).It was conducted by visitingcustomer premises. We interacted with client & provided the information about company.

Electricity bills were collected from customers.

Data collected about high tension users from electricity board of Pune. Details like contract

demand, connected load, area, and address were collected.

Data collection(Electricity Bills) through meeting with the Electrical Department Managers,

Supervisors

LIMITATION

Interacting with people gave us an insight that there was a lack of understanding about thepotential benefits of wind energy available and the main point of consideration of purchasing

is investment, payback period and internal rate of return.

CONCLUSION

Thus it can be concluded that the following was observed

Availability of wind energy as free resource

source.

-renewable sources

of power of state boards.


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INTRODUCTION

Suzlon Energy Limited, ranked as the worlds fifth largestwind turbine supplier, interms of cumulative installed capacity and market share, at the end of 2013.

The companys global spread extends across Asia, Australia, Europe, Africa andNorth and South America with over 24,200 MW of wind energy capacity installed,

operations across over 30 countries and a workforce of over 10,000.

The Group offers one of the most comprehensive product portfoliosranging fromsub-megawatt onshore turbines at 600 Kilowatts(KW), to the worlds largest

commercially-available offshore turbine at 6.15 MWwith a vertically integrated,

low - cost, manufacturing base.

The Groupheadquartered at Suzlon One Earth inPune,Indiacomprises SuzlonEnergy Limited and its subsidiaries, including Senvion SE.

The company is listed on theNational Stock Exchange of India and on theBombayStock Exchange.

India has emerged as a hub of wind turbine manufacturing , with a capacity of over3000 MW per annum .

India ranks 3rd worldwide in terms of total installed wind power . India is one of the few countries in the world to have a Ministry of New and

Renewable Energy (MNRE) dedicated to promoting the use of clean, green and

environment-friendly renewable energy
http://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Senvionhttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Senvionhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pune


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SUZLON EDGEEND TO END SOLUTIONS

Suzlon provides End-to-End Solutions for the Indian markets in the wind powerdomain.

Suzlons End-to-End Solutions include the following stages:1. Land and Site Identification2. Supply of WTG & Accessories3. Site Infrastructure Development4. Installation and Commissioning5. Power Evacuation6. Life Cycle Operations & Maintenance7. Assistance for Approvals & Loan Processing8. Wind Resource Mapping


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COMPANY PROFILE

Conceived in 1995 with just 20 people, Suzlon is now a leading wind power company

with:

Over 16,000 people in 25 countries Operations across the Americas, Asia, Australia and Europe Fully integrated supply chain with manufacturing facilities in three continents Sophisticated R&D capabilities in Belgium, Denmark, Germany, India . Suzlon Market Share (Combined with REpower)rose to 9.8% thereby making Suzlon

3

rd

* largest wind turbine manufacturing company in the world

The headquarters of the company is located in Pune, India. All over the world the company is present in 21 countries

Namely : Australia, Belgium, Brazil, Canada, China, Denmark, Germany, Greece, India,

Italy, New Zealand, Nicaragua, Portugal, Romania, Spain, Sri Lanka, The Netherlands,

Turkey, Ukraine, UK, USA .

The manufacturing plants in india are at :Maharashtra, Pondicherry, Gujarat, Daman , Padubidri

Suzlon is the third largest wind power supplier having a market share of about 9.8%of worlds wind energy market.

The company has about 14,000 employees who are from 23 nationalities. It is listed in BSE and NSE (India) , it is also

listed in S&P CNX Nifty Index .

By the end of year 2009 Suzlon supplied over 8,000 MW across all over the world ,registering 100% growth rate year on year.


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BRANDING & MARKET COMMUNICATION STRATEGIES

Branding is crucial for products and services sold in markets. Its also important inB2B transactions because it helps us stand out from our competition. It bringscompetitive position and value proposition to life, it positions as a certain

something in the mind of your prospects and customers. Your brand consistently

and repeatedly tells your prospects and customers why they should buy from us.

Key differentiators policy for branding :1. TURNKEY SOLUTIONS2. VERTICAL Integration3. GLOBAL INTEGRATION4. QUALITY MANAGEMENT & HSE

TURNKEY SOLUTIONS

Turnkey services range from complex front-end engineering design, construction,installation and commissioning to long-term operations and maintenance as well as

the length, breadth and depth of customer requirements across the wind energy value

chain.

Key benefits we offer clients range from development, to construction to operations. Manufacturing-driven supply chain strengths and global expertise help offer

customers the best in quality services.

VERTICAL INTEGRATION

Foresight of the current economic challenge and adopting a visionary strategy has setus forth to become the most vertically integrated wind turbine maker in the world.

Suzlon has gained the critical competitive advantage with:a) Better control over time, cost & quality

b) Long-term service support to customersc) Turbine technology integration


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d) Faster product rollout

GLOBAL INTEGRATION

Suzlons global experience, local expertise approach to talent capital has ensured a23-nationality multi-faceted talent pool that goes wide and deep.

This gives the advantage of leveraging local talent and creating a truly global expertworkforce.

The continuing growth in its operations in all key international wind energy marketsand presence in all emerging markets is further strengthening global integration.

QUALITY MANAGEMENT & HSE

Establishment of an independent Quality Management Organization within Suzlonhelped define a strategic roadmap with which to drive the organization on a focused

goal from quality control to quality excellence .

Quality Management at Suzlon seeks to continually leverage upon its size bystrengthening its execution capability to deliver a customer satisfied, reliable and

robust user friendly product .

Suzlon HSE (Occupational Health, Safety & Environment) is a global initiative thatestablishes a company-wide practice of setting up and maintaining the highest HSE

standards with a dedicated approach and organizational commitment.


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PRODUCTS

1.S9X Series2.1 MWThe latest offering from Suzlon is the S9X series comprising of S97 and S95 featuring

Doubly Fed Induction Generator (DFIG). This product is specially designed and built to

efficiently harness winds from low to moderate wind regimes, typically found in India. With

a promise of more cost perk Wh efficiency and higher yield for customers, the S9X series

will address the requirement of a technology solution needed to unlock the wind power

potential of areas with low wind speeds. Since its launch in April 2011, the S9X turbine suite

has exceeded 1000 MW (1GW) in global orders, majority of which have come from India

S882.1 MW

S88-2.1 MW is a proven turbine platform suited for class II applications. This turbine concept

is based on a robust design with pitch regulated blade operation, a 3-stage gearbox with 2200

kW rating and flexible coupling to the asynchronous induction generator.

S82 - 1.5 MW

The S82-1.5 MW has a well-suited ratio between rotor diameter and generator for most sites

in a medium wind speed regime. The wind turbine concept is based on robust design and is

efficiently handled by the Suzlon controller. These technologies are all well-known in the

wind power industry and have proven themselves over time.

S66/S64 - 1.25 MW

The S66-1.25 MW has a well-suited ratio of rotor diameter to generator for most sites in a

medium wind speed regime. The wind turbine concept is based on robust design and is

efficiently handled by the Suzlon controller. These technologies are all well-known in the

wind power industry and have proven themselves over time.

S52 - 600 kW

The S52- 600 kW has a well-suited ratio between rotor diameter and generator for most sites

in a medium wind speed regime. The wind turbine concept is based on robust design and

efficiently handled by the Suzlon controller. The technologies used in the S52-600k are allwell-known in the wind power industry and have proven themselves over time.


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Product Size of Turbine (MW) Annual Generation

(Lakh units)

Price (Crores)

S9X Series 2.1 45 15

S88 2.1 36 12

S82 1.5 30 10

S66/S64 1.25 20 7

S52 0.6 12 4

PRODUCT INNOVATIONS

Suzlon at present is manufacturing wind turbines for production of power. Howeverthe company can capture a larger share of market by the production of various other

equipments which use other renewable source of energy.


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WIND ENERGY

Introduction -

Globally it has now been well recognized that wind energy is probably the most potential

source of electricity among all renewable energy sources. Main strengths of wind energy

projects are:

(a) Enormous wind energy potential across the globe

(b) Protection against inflation or escalation in electricity generation cost over the project

life

(c) Ease of putting up a wind farm

(d) Low operations and maintenance requirements

(e) Scalability

(f) Short gestation period and others.

Now, wind electricity can be a viable source not only to supplement conventional electricity

from fossil fuels but also to compete with it in many situations.

Most wind electricity projects have one or more of following objectives:

i) For industrial and other electricity users, setting up a wind farm can be predominantly for

captive use, with pragmatic renewable/ wind energy policies of central and state governments

and wheeling facilities available under them.

ii) Financial investor can put up a wind energy project primarily as an investment proposition

to supply electricity to the local power utilities at a predetermined rate fixed under wind

energy policy of the state duly approved by State Electricity Regulatory Commission

(SERC).

iii) Financial investor can also put up a wind energy project primarily for third party sale and

trade in electricity markets now being opened up across the country, now permitted by

various state governments, with implementation of Electricity Act 2003 and active role being

played by Power Trading Corporation and other similar agencies.

iv) With Renewable Power Purchase Obligation up to 10% imposed on public sector and

private sector electricity utility companies, many of them have been actively pursuing wind

energy projects as an investment option.


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Why Wind Energy

The project is environment friendly. Good wind potential to harness wind energy. A permanent shield against ever increasing power prices. The cost per kwh

reduces over a period of time as against rising cost for conventional power

projects.

The cheapest source of electrical energy. (on a levelled cost over 20 years.) Least equity participation required, as well as low cost debt is easily available to

wind energy projects.

A project with the fastest payback period. A real fast track power project, with the lowest gestation period; and a modular

concept.

Operation and Maintenance (O&M) costs are low. No marketing risks, as the product is electrical energy. A project with no investment in manpower.


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Components of wind electric generator

Main components of a wind electric generator are:

1. Tower

2. Nacelle

3. Rotor

4. Gearbox

5. Generator

6. Braking System

7. Yaw System

8. Controllers

9. Sensors

Essential requirements for a wind farm

An area where a number of wind electric generators are installed is known as a wind

farm. The essential requirements for establishment of a wind farm for optimal

exploitation of the wind are

1. High wind resource at particular site

2. Adequate land availability

3. Suitable terrain and good soil condition

4. Proper approach to site

5. Suitable power grid nearby

6. Techno-economic selection of WEGs

7. Scientifically prepared layout


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The main advantages of power generation from wind energy are

1. The capital cost is comparable with conventional power plants. For a wind farm, the

capital cost ranges between 4.5 crores to 6.85 crores per MW, depending up on the type

of turbine, technology, size and location.2. Construction time is less.

3. Fuel cost is zero.

4. O & M cost is very low.

5. Capacity addition can be in modular form.

6. There is no adverse effect on global environment. The whole system is pollution free

and environment friendly.

The pollution saving from a WEG having an average output of 4,00,0.00

kWh per year has been estimated as:

Sulphur - dioxide (SO2): 2 to 3.2 tonnes

Nitrogen - oxide (NO) ; 1.2 to 2.4 tonnes

Carbon - dioxide (CO2) : 300 to 500 tonnes

Particulates : 150 to 280 kg. nes

Particulates : 150 to 280 kg.

Limitation

1. Wind machines must be located where strong, dependable winds are available most

of the time.

2. Because winds do not blow strongly enough to produce power all the time, energy

from wind machines is considered "intermittent," that is, it comes and goes. Therefore,

electricity from wind machines must have a back-up supply from another source.

3. As wind power is "intermittent," utility companies can use it for only part of their

total energy needs.

4. Wind towers and turbine blades are subject to damage from high winds and lighting.

Rotating parts, which are located high off the ground can be difficult and expensive to

repair.

5. Electricity produced by wind power sometimes fluctuates in voltage and power

factor, which can cause difficulties in linking its power to a utility system.


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6. The noise made by rotating wind machine blades can be annoying to nearby

neighbors.

7. People have complained about aesthetics of and avian mortality from wind machines.

MARKET ANALYSIS

Global Level (Installed Capacity till Dec 2013):

Country Capacity(GW)

China 91USA 61

Germany 34

Spain 23

India 20

Others 89

Total 318

India Level (Installed Capacity till Dec 2013):

State Capacity(GW)

Tamil Nadu 7.2

Gujarat 3.2

Maharashtra 3

91

61

34

23

20

89China

USA

Germany

Spain

India

Others


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Rajasthan 2.7

Karnataka 2.1

Others 0.8

Total 19

Major Players

Company Market share in 2012

GEEnergy

15.5

Vestas 14

SiemensWind

Power

9.5

Enercon 8.2

Suzlon

Group

7.4

Gamesa 6.1

Goldwind 6

China

GuodianCorporati

4.7

7.2

3.2

3

2.7

2.1

0.8

Tamil Nadu

Gujarat

Maharashtra

Rajasthan

Karnataka

Others


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on

Sinovel 3.2

Ming

Yang

2.7

Renewable Energy Potential in Maharashtra (Till March 2013)

S.No Sources Potential(MW) Installed(MW)1. Wind Power 5439 3005.6

2. Bagasse

Cogeneration

1250 1033.9

3. Biomass 781 170

4. Small Hydro Power 732.63 278.6

5. Waste to Energy 637 8.7

6. Solar Energy 4-7kWh/m2/day

39.5

Total 8839.63 4536.3

15.5

14

9.58.2

7.4

6.1

6

4.7

3.22.7

Major Players in Wind EnergyGE Energy

Vestas

Siemens Wind Power

Enercon

Suzlon Group

Gamesa

Goldwind

China Guodian Corporation

Sinovel

Ming Yang


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POLICIES

1) Accelerated Depreciation (AD)

35% depreciation for the project in the first year.

2) Generation Based Incentives (GBI)-

Incentive @ Rs. 0.50/unit for electricity fed into the grid over and above the tariff approved

by the SERCs in states. (1 unit of electricity = 1kWh)

Mutually exclusive with Accelerated Depreciation scheme.

3) Renewable Energy Certificates (REC)-

Enables developers to trade the RECs based on energy generated and fed to the grid

This would enable the obligated entities (distribution utilities and open access

customers) across states to meet their RPO targets as recommended by the NAPCC(

National Action Plan for Climate Change)

4) Other Benefits:

10 year income tax holiday for wind power generation projects

100 % tax exemption from excise duty on certain wind turbine components


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Open Access:

Open Access is one of the most important features of the Electricity Act 2003, wherein,

Distribution Companies and eligible consumers have the freedom to buy electricity directly

from generating companies or Trading Licensees of their choice and correspondingly the

generating companies have the freedom to sell it to any Licensee or to any eligible consumer.

Eligibility for Open Access:

1. Any consumer whose Contract Demand is 1 MVA & above shall be eligible for Open

Access. 2. Open Access permission to source wind energy in addition to existing permission

will not be granted to the consumer. 3. Open Access permission will not be granted to the

consumers availing single point supply and sub-distributing it further to multiple consumers.

E.g. Commercial Malls, IT parks, commercial complexes, software technology parks etc. 4.

The open access consumer will be entitled to seek open access for sourcing 100% power

generated from a wind power project. Open access permission shall not be granted to avail

power from a wind power project in part or on percentage basis. 5. The wind generation units

will be allowed to get carried forward for getting adjusted in next energy bills if could not be

adjusted in same month till the end of that financial year, but the surplus units, if any, at theend of financial year will not be purchased by MSEDCL.


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METHODOLOGY

Methods Adopted During Internship -

a) Telemarketing: In this approach, we conducted cold calling to companies. We had

segregated the companies as High Tension users ( Contract Demand more than 1000 kVA)

b) Client Visits: It was conducted by visiting customer premises. We interacted with client &

provided the information about company. Electricity bills were collected from customers.

These bills are then analyzed and which model of turbine would be applicable will be seen

and accordingly provided to the companies.

Market Survey-

1. Source Of Data

Data collected about high tension users from electricity board of Pune. Details like contract

demand, connected load, area, and address were collected.

2. Approach

ctrical DepartmentManagers, Supervisors


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ELECTRICITY SAMPLE BILL


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Questionnaire on Scope of Wind Energy

1. Company Name ...........................................................2. Address

.........................................................................................................................................

.................................................................................................................................................

.......3. Contact Person ................................................ Designation

(.......................................)4. Contact Number ..........................................................

Que.6What type of industry your company belongs to?

....................................................................................................................................................................

Que.9What is your the contract demand?

..................................................................................................................................................................

Que.10What is your Drawl voltage?

....................................................................................................................................................................

Que.11What is annual power consumption of your organisation and your other plants/offices (ifany)?

....................................................................................................................................................................

Que.12Do you believe that current electricity charges will become high in future?

a) Yes b) NoQue.15Do u have any renewable sources of energy?

a) Yes b) No(If yes then please mention which and its capacity and who is/are the company)Source ..............................................................Capacity ...............................................................

Company Name ...................................................................................................................

Que. 16Are you aware about wind energy which is a cheaper source of power generation?

a) Yes b) NoQue.17Are you aware about benefits available to wind power projects?

a) Yes b) NoQue.18Are you aware about Suzlon Energy Ltd.?

a) Yes b) NoQue.19Would you like to discuss about wind energy.

a) Yes b) NoQue. 20Any Suggestions and Recommendations


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....................................................................................................................................................................

....................................................................................................................................................................

...................................................

Thanking you in anticipation.


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ANALYSIS

ANALYSIS FOR COMPANY X

TOD Consumption Pattern of Customer X

Time

Zone

Month1 Month2 Month3 Monthly

Consumption

Yearly

Consumption

%

A 92763 87830 87700 89431 1073172 32%

B 104359 98809 98663 100610 1207320 36%

C 44786 42936 39887 42536 510432 15%

D 46382 43915 43850 44716 536592 17%

277293 3327516 100%

TOD Consumption Pattern of Customer X

Time Zone Time Slots Yearly

Consumption

% Yearly

Generation

A 2200 hrs-

0600 hrs

1073172 33% 1030709 42463

B 0600 hrs-

0900 hrs

1200 hrs-

1800 hrs

1207320 37% 1155643 51677

C 0900 hrs-

1200 hrs

510432 13% 406037 104395

D 1800 hrs-

2200 hrs

536592 17% 530971 5621

3327516 3123360 204156

TOD Consumption Pattern

at Honeywell

TOD Generation Pattern of

Wind Turbine S97 (2.1

MW) at Site

Net billable units after

adjustment


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Open Access Losses / WTG

S97

WTG

(2.1

MW)

S97

WTG

(2.1

MW) +0.6 MW

S88

WTG

(2.1

MW)

S88

WTG

(2.1

MW) +0.6 MW

1 WTG

Generation

(per

WTG)

4500000 5700000 3600000 4800000

2 Wheeling Loss 9% 405000 513000 324000 432000

3 Transmission

Loss

4.24% 190800 241680 152640 203520

4 Net unit available

for adjustment inElec. Bill

3904200 4945320 3123360 4164480

Open Access Charges / WTG

S97 WTG

(2.1 MW)

S97 WTG

(2.1 MW)

+ 0.6 MW

S88 WTG

(2.1 MW)

S88 WTG

(2.1 MW)

+ 0.6 MW

1 TransmissionCharges

(Rs./ kWh)

0.43 0.43 0.43 0.43

2 Transmission

Charges per

WTG (Rs.)

1678806 2126488 1343045 1790726

3 Wheeling

Charges

(Rs./kWh,

For 33 kV

injection and

22 kV

Drawl)

0.6 0.6 0.6 0.6

4 Wheeling

Charges per

WTG (Rs.)

2342520 2967192 1874016 2498688

5 Total

Charges

(2+4) per

WTG (Rs.)

4021326 5093680 3217061 4289414


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ANALYSIS

I have used secondary data for this research where i have used the electricity billswhich I have obtained from the different hotels in Pune.

Therefore through the electricity bills we see the consumption pattern of the different

hotels .

After the consumption pattern has been recognized a table is prepared for checking

the Time of Day(TOD) consumption which has to be computed.

Based on that the different models of wind turbines are taken and net billable units are

computed for them.

I have taken 84 companies out of which 25 electricity bills are given by companies

and 7 companies use renewable sources of energy.


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CONCLUSIONS

As an intern for Suzlon Energy Limited, I was able to learn the following aspects

related to wind energy as a sustainable business solution

her returns for investors ,reducing their dependency on non-renewable sources

of power of state boards.


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REFERENCES

http://www.suzlon.com

http://www.wikipedia.org

http://www.google.com/windenergy
http://www.suzlon.com/http://www.wikipedia.org/http://www.google.com/windenergyhttp://www.google.com/windenergyhttp://www.wikipedia.org/http://www.suzlon.com/

Scope of Wind Energy in Hotel Industry

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