NewsletterNewsletterSep 2011
Issue 01
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Enabling High Efficiency and Reliable Wind Power Projects
From WinDForce Team
WinDForce, from its humble beginnings in 2008 has emerged as the leading wind
energy consulting firm. Co-founded by Jami Hossain, a wind energy expert of
international repute and Emergent Ventures (EVI), the company through its adherence
to sound engineering and business principles, quality and neutrality has consistently
delivered high value services to its clients and now has the status of a preferred service
provider. In a short period, WinDForce has established its foot print in highly advanced
countries like Japan as well as in developing countries and economies such as
Mauritius and Kenya.
All Stakeholders engaged with WinDForce have immensely benefitted from it's
services due to a very high level quality of services that have enabled sound investment
decisions, risk mitigation and high performance wind energy projects. The
appreciation of clients of the WinDForce services is reflected in repeat orders.
Growth and appreciation of WinDForce as the leading service provider in wind energy
sector is driven by its core values and philosophy of no compromise on business
rationality and the scientific and engineering principles.
Some of the examples of major interventions as Owner's Engineers in project
execution by WinDForce includes recommendations to carry out detailed due
diligence after a desktop study of assets, to abandon a windfarm site due to poor wind
resource assessed by us, to abandon a given site due to low soil bearing capacity, to
redesign of the foundation in keeping with soil conditions, to completely replace rotor
blades due to damaged blades having been delivered at site, to completely reconstruct
Wind Turbine Generator foundation because of consistent failure under strength tests.
Apart from some of these major decisions, WinDForce has been able to ensure high
industry standards due to the consistent and round the clock monitoring of all activities
during project execution.
The wind sector in India is on the verge of a major change as is evidenced by a slew of
important policy and regulatory changes such as Generation Based Incentive (GBI) and
enabling issue and trading of Renewable Energy Certificates (REC), to name a few.
Highest megawatts installed in 2010-2011 point to the growing interest in this sector in
India. The rate of growth is also likely to grow significantly in the current financial year.
From its very inception, WinDForce has strived to keep various stake holders informed
of the new developments in policy and technology and to educate them on potential
pitfalls and risks in wind energy investments. In this endeavor to show the way on how
to build sound wind energy assets, WinDForce is now initiating this Newsletter. We
hope the WinDForce Newsletter serves the purpose of crucial information update to
investors.
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Ÿ Wind Resource Assessment (WRA)
Ÿ Structuring of PPA/ Sale of power and
management
Ÿ Owner’s Engineer during the complete
project implementation & post
commissioning
Ÿ Detailed Project feasibility Study
Ÿ Detailed Project Report
Ÿ Contract Advisory
Ÿ Technical Due Diligence of proposed
as well as existing wind farms
Ÿ Technical Due Diligence of New
Manufacturing Facility
Ÿ Environment Impact Assessment
Ÿ Development/ Co-development of
Wind Power Projects at Identified sites
by WinDForce
Ÿ WRA for more than 2000+ Mws
Ÿ Owner’s Engineer for 150+ Mws
Ÿ Technical Due Diligence for 800+ Mws
Ÿ Integrated Development Services (IDS)
for 100+ Mws
Ÿ Own Project Development for 100+
Mws
Ÿ Detailed Project Report for more than
300+ Mws.
DPR for the Reliance Power upcoming
project (200 MW in Maharashtra) has been
prepared by WinDForce.
WinDForce has been selected as a Project
Management Consultant by KTDA for 10-
50 MW Wind Power Project in Kenya. The
assignment involves whole gamut of
services for a wind power project starting
from site identification, mast installation,
wind data collection and analysis, site
acquisition, environmental impact
assessment, tendering & contracting,
assistance in financial evaluation, owners
engineer during project implementation,
commissioning etc.
WinDForce Services
WinDForce Achievements
Enabling High Efficiency and Reliable Wind Power Projects
Policy & Regulatory
GBI structure under evaluation by MNRE
MNRE is evaluating the current GBI scheme and mulling on the idea to extend the
same beyond 31st March 2011. It also desires to study the barriers, constraints like
capping @ Rs 62 Lacs per MW. MNRE has finalized a consultant to study the above
including the effect of GST and Direct Tax Code (DTC) on GBI. As of now, Captive
power users are not eligible for GBI; however, MNRE wishes to study inclusion of these
projects in the new GBI scheme. GBI was introduced as a parallel scheme to support
the investors (especially Indian and foreign IPPs) to invest more in Wind Sector in India.
The GBI being a generation based incentive was also envisaged to bring about
improvement in technology as against any possible remedial measures in already
existing scheme.. MNRE also intends to study the possibility to increase the current rate
per kWh (@ Rs. 0.50/ Kwh).
Karnataka DISCOMs to increase energy charges
For Wind Projects, the inter DISCOM open access charges are one of the highest in
Karnataka. Local DISCOMs have proposed to increase the energy charges by 88 paisa
per unit for both HT commercial and HT industrial consumers. With increase in the HT
tariff for Industrial and Commercial Consumers, Captive Use and/ or third party sale of
Power generated from Wind Project is likely to catch up fast in order to freeze the steep
(~ 20%) increase in cost of power bought through DISCOMs.
Beginning of a new Era in Indian Wind Energy Sector
Till now, most (>97%) of the wind projects in India have been developed by the
Original Equipment Manufacturers(OEMs) on turnkey basis - the OEM implements the
projects from concept to commissioning (including land arrangement, supply of WTG,
project implementation etc.) for any investor. In this an investor doesn’t have a choice
for WTG and usually the same WTG model is installed in different wind regimes
leading to sub-optimal throughput. Off-late the market is taking a turn towards
developer driven scenario (which is prevalent in other countries as well), where the
investor (sometimes along with regional developers) do the site development and
decides the OEM for supply of WTG and some allied work. In this, the investor have an
inherent advantage of selection of WTG best suitable (technically and commercially)
for the specific site(s) to achieve optimal throughput.
In India, most of the established OEMs are open to this model as this leads to lesser
hassle in the project implementation issues like land and power evacuation
arrangements which are taken care of by the Investor/ project developer.
One more positive, and most desirable outcome of this model, is decreased reliance on
the OEMs by the investor and hence it should lead to reduction in capital cost per kWh
to the investor(s). This benefit to investor is likely to get augmented further with the
arrival of some large Chinese WTG OEMs in India who are aggressively exploring the
Indian market. This is likely to induce a price war amongst the OEMs and is expected to
result in decrease of the capital cost per kWh.
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What’s New
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Enabling High Efficiency and Reliable Wind Power Projects
Chinese Wind Turbine Manufacturer
China's largest wind turbine manufacturer Sinovel (world's second largest after
Vestas), has tied up with the Maharashtra-based Ghodawat Energy for renting
Ghodawat's manufacturing facilities to produce its 1.5 MW WTGs.
Other Chinese WTG manufacturers like Ming Yang Wind Power Company, Shanghai
Electric Company, Dong Fang etc. are also interested in entering Indian market.
R-Power to set up 200-MW wind farm
Reliance Power plans to set up a 200 MW wind power project at Vashpet in the Sangli
district of Maharashtra. R-Power plans to install 80 2.5-MW Global Wind Power
Limited’s wind turbine generators that are based on the technology of Fuhrlander,
Germany. The project is to be commissioned by September 2012. R-Power has already
entered into a long-term power purchase agreement with Reliance Infrastructure for Rs
5.37 per unit. R-Power has opted for availing GBI benefit.
Ÿ Indiabulls Power Limited has come out with an NIT inviting bids from different
bidders for development of ~ 5 MW Wind Power Project on LSTK basis
Ÿ ONGC has reopened the NIT for Construction of 102 MW Wind Power Project in
Rajasthan under International Competitive Bidding (Two bid system) through e-
procurement.
Ÿ NALCO has come out with an NIT for the appointment of Consulting Firm for
evaluation of bids to be received against the tender(RFP) to be floated by NALCO in
order to award EPC contract of 50 MW Wind Power Plant
WinDForce Participated in “5th Renewable Energy India 2011 Expo” held in New
Delhi as an exhibitor as well as, as a delegate and speaker.
Ÿ Mr. Vinod Kala (Chairman - WinDForce) was in a panel discussion on the topic of
Renewable Energy Certificate (RECs) and Generation Based Incentive (GBI), after
inauguration ceremony on first day.
Ÿ Mr. Jami Hossain (Chief Mentor & Co-founder of WinDForce) was one of the
panelist in a panel discussion during the last day of the conference.
Ÿ Power Trading Summit India 2011: 26th September, 2011 The Crowne Plaza, New
Delhi
Ÿ RENEWCON INDIA 2011: 27-30 September 2011 - Holiday Inn Mumbai
International Airport Mumbai, India
Ÿ RENEWTECH INDIA 2011: International Exhibition & Conference on Renewable
Energy from 10-12 November 2011 at Bombay Exhibition Centre, Goregaon,
Mumbai, India.
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Tenders
Events
Upcoming Events
Enabling High Efficiency and Reliable Wind Power Projects
rdCERC vide its Order Petition No 142/2011 (Suo Motu) dated 23 August 2011 has
notified the forbearance and Floor Price for the RECs for non solar projects which is
applicable from 1st April 2012 and shall remain valid for the control period upto
financial year 2016-17 as mentioned in the table below.
Stakeholders were expecting an order with longer control period (8-10 years,
approximately equal to the loan tenure). Still this order should be attractive to the
investors. With a certainty of a fixed REC prices for 5 years the banks, PEs and other
financial institutions are now showing more interest in REC based projects.
Graph showing trend over the last five months of REC trading
The above graph clearly indicates that the REC trading volume along with price is
increasing every month. This has started building confidence in investor as well as ndlenders for the REC based Wind Power Projects. In the recent trading held on 2
September 2011, there were buy bids for ~ 1, 83,305 RECs against sell bids for ~58,052
RECs.
During the last one year, except for the beginning, the short term market price of
electricity in bilateral deals was higher than the prices realised at the power exchanges,
as evident from the graph above. The graph depicts the prices for the inter-state
transactions only. The electricity price in bilateral arrangements in the year 2011 was
observed to be lower than that from year 2010 showing a decrease in prices. The ratio
of electricity traded on power exchanges to that of short term bilateral trades has
increased from ~22% in 2009-10 to ~36% in the year 2010-11.
Graph showing trend of Electricity Price in Short Term Market in FY 2010-11
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Renewable Energy Certificate (REC)
Parameter Current (till 31.03.2011) From 01.04.2012
Forbearance 3900 3300
Floor 1500 1500
Corporate Office
WinDForce Management Services Pvt. Ltd.th5 Floor, Universal Trade Tower
Gurgaon - Sohna Road
Gurgaon - 122001, Haryana
Tel: +91 - 124-4353100
Fax: +91-124-4102980
Web: www.windforce-management.com
Contact Us
Kindly write to us if you have any comments on this Newsletter. Your valuable
feedback on this would motivate and help us in improving the quality and
enriching the content. We are eagerly waiting for your kind response to the
articles presented in this Newsletter.
Parish Gupta
Mob: +91 98717 11445
E-mail: [email protected]
Rupesh Singh
Mob: +91 96507 58884
E-mail: [email protected]
A WinDForce Publication
Disclaimer - This Newsletter has been compiled by WinDForce Management Services Private
Limited for circulation among the stakeholders in the energy market. Though the contents of this
bulletin are correct to the best of our knowledge, WinDForce does not vouch for their accuracy.
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