Tamil Nadu Wind at Crossroads - The Way Forward

1. Tamil Nadu Wind at Crossroads
– The Way forward
March 20, 2014
Chennai, India

2. India – 5th Largest global wind market
Wind in Tamil Nadu 2
91,424
61,091
34,250
22,959
20,150
10,531 8,552 8,254 7,803
4,772
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
InstalledCapacity(MW)
Top 10 Countries - Cumulative Installed Capacity(MW)
As of 31 December 2013 Source : Global Wind Energy Council

3. And, Tamil Nadu is the leader in India
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7,251
3,472 3,384
2,734 2,312
648 386 35 4
35.85%
17.17% 16.73%
13.52%
11.43%
3.20%
1.91%
0.17% 0.02%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
ShareofthetotalInstallations
CumulativeInstalledCapacity(MW)
Cumulative Installed Capacity(MW)
Cumulative Installed Capacity(MW) % Share
As of 31 January 2014 Source : MNRE

4. Tamil Nadu – Exceeding Potential
Wind in Tamil Nadu 4
Source : C-WET
Installable Potential : 5374 MW(@ 50 m agl) – Actual Installations : 7,251 MW(31.01.2014)

5. Tamil Nadu - Wind dominates in renewables
Wind in Tamil Nadu
Source : Central Electricity Authority
Thermal, 10,0
64
Nuclear, 524
Hydro, 2,182
Renewables,
7,946
Tamil Nadu - Installed
Capacity(MW)
Total : 20,716 MW
As of 31 January 2014
Non-
Wind
9%
Wind
91%
Share of Wind in Renewables

6. Then why is at the Crossroads?
Wind in Tamil Nadu 6
44
134
371
679
858
578
381
431
602
997
1,083
175 150
0
200
400
600
800
1000
1200
MW
Annual Wind Capacity Addition in Tamil Nadu
Source : MNRE, RESolve Analysis

7. What led to the drop in installations?
Wind in Tamil Nadu 7
• Withdrawal of Accelerated Depreciation Benefits
• Temporary withdrawal of Generation Based Incentives(GBI)
Policy and
Regulatory
• Rs. 3.51/kWh
• One of the lowest among the leading wind states(Gujarat –
Rs 4.23/kWh, Maharashtra – Rs. 3.78 to Rs.
5.67/kWh, Rajasthan – Rs. 5.18 to Rs. 5.44 /kWh)
Tariff
• Lack of Transmission Lines
• Grid ManagementEvacuation

8. Troubled Wind power evacuation
Wind in Tamil Nadu 8
239
792
2,153
2,283
2,137 2,194
1,507
291
267
1,858
2,195
1,604
1,394
964
749
118
0
500
1000
1500
2000
2500
April May June July August September October November
MillionUnits(kWh)
Wind Power Generation in Tamil Nadu
2012-13 2013-14
• ~2500 Million Units less evacuation during the above period(2013-14) compared to previous year(2012-13)
• Backing down of windmills - 6 to 22 hours per day during high wind season. “Must Run” condition not
followed(Source: Indian Wind Power Association)
• Loss of Rs. 3,000 Crores in Year 2013 for Wind Mill Owners (Source: Indian Wind Power Association)
Source : SLDC

9. Why is evacuation a problem?
• Wind farms can be built in a few months
• But erecting transmission lines can take years
• Infirm nature of wind – Intra-day variation as high
as 3000 MW
• Grid stability and security issues
• Challenge – balance the variations, operations of
conventional power plant efficiently
Wind in Tamil Nadu 9

10. The Way Forward
Wind in Tamil Nadu 10

11. What could be done?
Wind in Tamil Nadu 11
• Restoration of Accelerated Depreciation Benefits
• Generation Based Incentives(GBI) – Already
restored
Policy and
Regulatory
• Make tariff more attractiveTariff
• Expedite Transmission lines
• Improve Grid Management capabilitiesEvacuation

12. Initiatives to improve evacuation
• Dedicated Sub-stations by TNEB
• 23 Sub-stations in Tirunelveli area
• 21 Nos. in Udumalpet area
• Green Energy Corridors by TANTRASNSCO
• Phase-I – 740 km, 400 kV Transmission lines with 2 new 400 kV substations.
Expected date of commissioning March 2014.
• Phase-II – 445 km, 400 kV Transmission lines with 4 new 400 kV substations.
• Phase-III –Proposed. All the generating stations of wind energy are proposed to
be connected with the high capacity Transmission corridor proposed in Phase – I
& II.
Wind in Tamil Nadu 12

13. Other Opportunities
Wind in Tamil Nadu 13

14. Higher potential at higher hub heights
State Name Installable Potential MW
Andaman
& Nicobar Islands
365
Andhra Pradesh 14497
Arunachal Pradesh* 236
Assam* 112
Bihar 144
Chhattisgarh* 314
Dieu Damn 4
Gujarat 35071
Haryana 93
Himachal Pradesh * 64
Jharkhand 91
Jammu & Kashmir * 5685
Karnataka 13593
Kerala 837
Lakshadweep 16
Madhya Pradesh 2931
Maharashtra 5961
Manipur* 56
Meghalaya 82
Nagaland * 16
Orissa 1384
Pondicherry 120
Rajasthan 5050
Sikkim * 98
Tamil Nadu 14152
Uttarakhand * 534
Uttar Pradesh * 1260
West Bengal* 22
Total 102788
Wind in Tamil Nadu 14
Revised potential : 14,152 MW at 80 m agl Vs Current installation of 7251 MW
Source : C-WET

15. Repowering
• Tamil Nadu : A pioneer of wind power in India
• Several sub-500 kW operational wind turbines
• Low performing old turbines can be replaced with
high performing new turbines
• About 685 MW which is suitable for repowering in
Tamil Nadu. (Source: World Institute of
Sustainable Energy)
Wind in Tamil Nadu 15

16. Off-shore Wind
• Draft “National off-shore Wind Policy” released
in May 2013
• Potential of 1 GW each along the
Rameshwaram and Kanyakumari coasts in Tamil
Nadu.
• Tamil Nadu has the opportunity to become a
pioneer in the Off-shore wind segment as well.
Wind in Tamil Nadu 16

17. The Takeaways
Wind in Tamil Nadu 17

18. Tamil Nadu Wind – Down but not out..
• Down, because
– Of non-availability of Accelerated Depreciation benefits
– Low tariff
– Evacuation
• Not out, because
– Evacuation Infrastructure being improved
– Repowering
– Off-shore wind
– Revised higher potential
Wind in Tamil Nadu 18

19. Thank you
Madhavan Nampoothiri
Founder and Director
madhavan@re-solve.in
www.re-solve.in
Wind in Tamil Nadu 19

20. About RESolve
• Advisory firm with strong capabilities in Strategic, Regulatory , Commercial and
Technical aspects of renewable energy(Solar PV and Wind) projects
• Founded by professionals from India and Germany with strong global exposure
• Offerings in
– Advisory on Concept-to-Commissioning of PV projects
– Policy and Regulatory advice
• Clients include
– World Bank, Washington DC, USA
– Tata Power Solar
– ICTSD, Switzerland
– iPLON, Germany
– Confidential Client, Canada
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