Wind Force Newsletter Nov, Edition, 2011

Enabling High Efficiency and Reliable Wind Power Projects
1

WinDForce Achievement

On October 30, Cairo, Mr. Jami Hossain (Co-Founder WinDForce) has been elected as
Treasurer of the Bonn based World Wind Energy Association (WWEA). Earlier Mr. Hossain
has functioned as auditor of WWEA.

MNRE's Renewable Energy (Akshay Urja), October Issue has covered broadly articles /
findings of Mr. Hossain. The key topics covered under Developments and Trends in Wind
Technology are:
1) Potential for Utilisation of Wind Energy;
2) Wind Technology - Major Technological Trends;
3) Other Technological Developments – Blade Design, Blade Materials & Manufacturing,
Mechanical Transmission, Variable Speed Vs Fixed Speed WTGs and Challenges.

Full version of issue can be downloaded from:
http://www.mnre.gov.in/akshayurja/akshayurja-october-2011/index.htm
http://www.mnre.gov.in/akshayurja/akshayurja-october-2011/all%20page%20of%20magazine.pdf

www.windforce-management.com

2

Policy and Regulatory
1. Tariff Hike by Karnataka DISCOMs
Karnataka DISCOMs have announced revision of electricity tariff for FY 2011-12. Earlier it
was proposed to increase the energy charges by 88 paise per unit, but after the court
hearings it is now decided to increase it by 30 paise per unit. The new tariff details are as
below:

HT Industrial

Particulars Existing Tariff New tariff

Demand Charges Rs 170/KVA Rs 170/KVA

Energy Charges - -

Cons.< 1 lakh units/ month 4.6 4.9
Cons.> 1 lakh units/month 4.9 5.2

HT Commercial



Energy Charges - -

Cons.< 1 lakh units/ month 6 6.3


2. Amended Wheeling and Banking Agreement issued by KERC

KERC (Karnataka Electricity Regulatory Commission) has amended earlier wheeling and
banking agreement. The key highlights of the amendment are as followings:
Ÿ Company (wheeling the power for own use or wheeling to its consumer) has to pay
Wheeling charges for using the distribution network as per as per KERC orders dated
09.06.2005 and 11.07.2008 which is 5% of metered energy.
Ÿ The Company shall be permitted to “Bank” the energy generated by the WPP with
Utility for its own use at later months or for Wheeling to its Consumers in accordance
with the norms prescribed by the KERC in its order dated 11-07-2008.
Ÿ Energy generated at the plant shall be banked on Water/Wind year basis and will be
permitted to be carried forward from month to month within the same water/wind
year. No carry forward of Banked energy is permitted from Water/Wind year to
Water/Wind year. Where “Water year” shall mean “from 1st day of July to 30th day of
June of next year” and “Wind Year” shall mean “year commencing from April to March
of next year”.
Ÿ Banking charges are 2% of energy banked.


3

Ÿ Company shall submit a list of “Exclusive Consumers” and “Partly Exclusive consumers'
to whom it proposes to wheel power using the Utility transmission and distribution
network at least 15 days in advance of date of commencement of wheeling. The Utility
shall, subject to availability of transmission and distribution network, approve the
same. Any addition / deletion to the list or change in allocation should be approved by
the Utility. An agreement shall be entered into between Company and consumer(s)
agreeing to all the relevant conditions of this agreement and shall be made available to
the Utility before commencement of wheeling.

Ÿ The Company should wheel power only to those stipulated HT consumers who are
having no arrears with the utilities. In case of “Partly Exclusive Consumers”, who avail
power both from the Company and the ESCOM, the first charge shall be the power
supplied by the Company through wind project.

Ÿ Neither the Company nor its Exclusive consumers are entitled to any rebate / remission
or reduction in demand charges and shall pay the demand charges to ESCOM as per the
Applicable Tariff till such time KERC notify the prescribed grid support charges. In
respect of Energy Wheeled to these “Exclusive Consumers” payments for energy
Wheeled shall be made by these consumers directly to the Company. However,
ESCOM is to prepare bill for demand charges only to Exclusive Consumers who has to
pay the same accordingly to ESCOM.

Ÿ In respect of “Partly Exclusive Consumers” the bills for quantum of energy drawn from
the ESCOMs account will be prepared and sent to the consumer and these Consumers
shall pay both Energy and Demand charges directly to ESCOM to that extent.

3. Karnataka ESCOMs revised ARR
ESCOMs in Karnataka (BESCOM, MESCOM, GESCOM, HESCOM, and CESC) have filed a
revised ARR with KERC. The key points discussed in ARR are as follows:

a. Revision in HT Industrial and Commercial Tariff

HT Industrial

Particulars Existing Tariff New Tariff


Energy Charges - -

Cons.< 1 lakh units/ month 4.6 4.9



4

HT Commercial



Energy Charges - -

Cons.< 1 lakh units/ month 6 6.3


b. Time of Day Tariff

BESCOM, MESCOM, HESCOM, GESCOM, CESC

Existing New

22.00 Hrs to 06.00 Hrs (-) 80 paise per unit (-) 125 paise per unit

06.00 Hrs to 18.00 Hrs 0 0

18.00 Hrs to 22.00 Hrs + 80 paise per unit + 100 paise per unit

Existing New

Wheeling Wheeling Wheeling Wheeling
charges (Paise losses (%) charges (Paise losses (%)
per unit) per unit)

BESCOM 10.00 2.99% 10.0 2.94%

MESCOM 17.00 4.70% 19.0 4.35%

HESCOM 24.00 9.70% 20.0 9.38%

GESCOM 21.00 5.90% 20.0 5.98%

CES Corp. 17.00 5.92% 18.0 5.13%

The wheeling charges as determined above are applicable to all the open access
transactions for using the ESCOM's network, except for energy wheeled from NCE sources
to the consumers in the State. In case the NCE energy is wheeled from the State to a
consumer/others outside the State, the wheeling charges in such cases would be as per the
wheeling charges determined above. For the wheeling of NCE energy within the State, the
wheeling charges shall be 5% of the injected energy and for wind and mini-hydel sources
of energy, additional banking charges of 2% are applicable, irrespective of the network
used.

a. Cross subsidy surcharge- Commission has decided to retain the cross subsidy surcharge
at zero.
b. Tariff for Green Power - As in the Commission Order 7.12.2010, the Commission decides
to continue Green Tariff at Rs 1.00 per unit as the additional tariff over and above the
normal tariff to be paid by HT-consumers, who opt for Green Power.


5

What's New

1. Network Augmentation Charges for Non Conventional Energy generators in Karnataka
Karnataka Power Transmission Corporation Ltd. (KPTCL) Bangalore, has filed a petition
before the Commission under sections 86 and 94 of the Electricity Act, 2003, seeking
approval of Network Augmentation Charges at Rs. Five Lakhs per MW for Non
Conventional Energy Generators in the state of Karnataka.

Network Augmentation Charges were collected from NCE generators in the areas where
there were constraints in transmission network and capacity as these network
constraints were posing problems for evacuation of power.

The Commission also held a Public Hearing on 16.11.2011 at 3 p.m. in the Court Hall of the
Commission to hear the petition and elicit the views of interested persons in the matter.

2. Power Exchanges raised REC Trading Charges
IEX and PXIL have raised trading charges of most of the power trading products. However,
REC trading charges have only been revised by IEX. REC trading charges at IEX are now Rs
20/REC (up from Rs 10/REC). At PXIL, charges remain at Rs 10/REC. These revised fees have
been effective from trading day- 27th October 2011, for all REC Traded on 27th October and
thereafter.

3. Rajasthan DISCOMs' pooled cost of power purchase (APPC)
Rajasthan DISCOMs have recently announced their pooled cost of power purchase for
2011-2012 which is as follows:

Name of DISCOM Provisionally allowed by Commission for FY 2011-12 (Rs./kWh)

JVVNL 2.57

AVVNL 2.57

JdVVNL 2.57

Since audited accounts of previous year are not available and are likely to take some more
time, the Commission has allowed the pooled cost of power purchase for FY 2011-12 on
provisional basis.

Commission has directed the DISCOMs to file a fresh petition for determination of final
pooled cost of power purchase for FY 2011-12 based on audited accounts of FY 10-11. After
the issue of Commission's order for the final pooled cost, the difference with the
provisional pooled cost of power purchase shall be adjusted equally in the bills of next
four months or as decided by the Commission in that order. Already 7 numbers of WPPs
totalling to 39.95 MWs has been accredited under REC scheme in Rajasthan out of which 4
numbers totalling to 27.65 MWs has already got the registration at Central Agency.


6

4. Kerala announces Revenue Sharing policy for Tribals
UDF government in Kerala has announced a revenue sharing policy for tribals who assign
their land to set up wind energy units in the state. As per an order issued, the owners would
get five per cent of the revenue from the sale of power generated at the wind farms set up in
their lands. The order would be applicable to all tribal lands in the state where there was
possibility of setting up wind energy farm units, the release added.

Tenders
1. Rajasthan Renewable Energy Corporation Limited has come out with an NIT inviting
bids for setting up of ~20 MW WPP in Rajasthan.
2. Rajasthan State Mines & Minerals Limited has come out with an NIT inviting bids for 10
MW WPP in Rajasthan on LSTK basis.
3. Rayala Wind Power Company Private Limited has come out with an NIT inviting bids for
execution of 100 MW WPP at district Anantapur, Andhra Pradesh.
4. NREDCAP Tender has come out with an NIT inviting bids for setting up of 8 MW WPP at
Rekulakaunta, Anantapur district, Andhra Pradesh.
5. Bharat Heavy Electricals Limited (BHEL) seeking partner for technology collaborator for
Wind Energy Generator and has come out with EoI.

Upcoming Events
Ÿ Challenges & Opportunities in the Power Sector on Wednesday, November 30, 2011 in
Ahmadabad, organized by IPPAI
th th
Ÿ Wind IPP Summit 2012 to be held on 17 -18 January at Mumbai, organized by
Renewable Markets India
rd
Ÿ 3 International Wind Conference & Exhibition WE 20 by 20-20,Coimbatore, Feb 05-07,
2012


7

India Installation FY 12 - H1
State-wise Installation

SR.NO STATE CAPACITY ADDITION (MW)

1 Andhra Pradesh 11.5
2 Gujarat 251
3 Karnataka 93.3

4 Madhya Pradesh 54.2

5 Maharashtra 150.8

6 Rajasthan 226.35
7 Tamil Nadu 624.3

Total 1411.45

Manufacturer-wise Installation

SR.NO STATE CAPACITY ADDITION (MW)

1 Suzlon Energy 510.35
2 Enercon 315.2

3 Regen Powertech 199.5

4 Gamesa 165.75

5 Vestas Wind 86.1

6 INOX Wind 42

7 Leitner Sriram 31.5

8 Global 20

9 RRB Energy 13.8

10 Kenersys 8

11 Pioneer Wincon 7.5

12 WinWind 5

13 Shriram EPC 3.5

14 C-Wel 3.25

Total 1411.45


8

REC Trading

The above graph indicates that the equilibrium price of REC traded at both the exchanges is
increasing every month. Moreover traded volume at both the exchanges is also increasing.
In the recent trading held on 27th October 2011, there were buy bids for ~2,35,404 RECs
against sell bids for ~1,38,625 RECs, where as in the last trading held on 28th September
2011, there were buy bids for ~2, 27,000 RECs RECs against sell bids for ~85,600 RECs RECs.
In the last trading at IEX, RECs have been sold @ Rs. 2700/ Mwh.

Electricity Price

From the above graph it can clearly be said that during the last one and a half year, most of
the time, except 1-2 month, short term market price of electricity in bilateral arrangement is
higher than that at power exchanges. This analysis includes only inter-State transactions.
Electricity price in bilateral arrangements, in year 2011 is lesser than price in year 2010
showing a clear decrease in prices. This may be due to excess power added in the system
with the same transmission capacity availability resulting in more and more transmission
constraint, especially in southern regions / grid.


Contact Us Corporate Office
Kindly write to us if you have any comments on this Newsletter. Your valuable WinDForce Management Services Pvt. Ltd.
feedback on this would motivate and help us in improving the quality and enriching 5th Floor, Universal Trade Tower
the content. We are eagerly waiting for your kind response to the articles presented in Gurgaon - Sohna Road
this Newsletter. Gurgaon - 122001, Haryana
Tel: +91 - 124-4353100
Parish Gupta Fax: +91-124-4102980
Mob: +91 98717 11445 Web: www.windforce-management.com
E-mail: parish@windforce-management.com

Rupesh Singh
Mob: +91 96507 58884
E-mail: rupesh@windforce-management.com

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.


Wind Force Newsletter Nov, Edition, 2011

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