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Business development cdm in wind enegry sectorr

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Business development cdm in wind enegry sectorr

  1. 1. ``Summers Project Suzlon Energy Ltd. 1/83 CONTENTS Topic Page Number Chapter 1 1.0.0 Executive Summary 6 Chapter 2 2.0.0 Objective Of Study 10 Chapter 3 3.0.0 Scope Of the Project 13 Chapter 4 4.0.0 Company Profile 16 4.1.0 Mission 17 4.1.1 Vision 17 4.1.2 Corporate Philosophy 17 4.1.3 Company Details 17 4.2.0 Competitors 18 4.3.0 Marketing Policy 19 4.4.0 Organization Structure 20 4.4.1 Marketing Organization Chart 20 Chapter 5 5.0.0 Introduction 23 5.1.0 UNFCC & Kyoto Protocol 25 5.2.0 Annexure 1 Parties 26 5.3.0 Annexure 2 Parties 27
  2. 2. ``Summers Project Suzlon Energy Ltd. 2/83 Chapter 6 6.0.0 Market segmentation 31 6.1.0 Target Segment 31 6.2.0 Product Life Cycle 32 6.3.0 Marketing Strategies 33 Chapter 7 7.0.0 Research Methodology 36 7.1.0 Type of Questions 37 7.1.1 Objective of study 37 7.1.2 Secondary Data 38 Chapter 8 8.0.0 United Nation Framework For Convention on Climate Change 43 8.1.0 Kyoto Protocol 43 8.1.1 International Emission Trading (IET) 44 8.1.2 Joint Implementation (JI) 45 8.13. Clean Development Mechanism (CDM) 45 8.1.4 Activities Implementation Jointly. (AIJ) 46 8.2.0 Types OF Eligible Projects 47
  3. 3. ``Summers Project Suzlon Energy Ltd. 3/83 Chapter 9 9.0.0 Project cycle for the CDM 51 9.1.0 CDM and wind Project 55 9.1.1Types of Wind Turbines: 56 9.1.2Sizes of Wind Turbines 56 9.1.3Construction of Wind Turbine 57 Chapter 10 10.0.0 Service Provided by Senergy Global 61 10.1.0 Project Approval Process 62 Chapter 11 11.0.0 Data Analysis 65 11.1.0 Findings 73 11.2.0 Limitation of Study 75 11.3.0 Conclusion 76 11.4.0 Suggestions 77 Chapter 12 12.0.0 Bibliography 80 12.1.0 Questionnaire 81 12.2.0 Customer Status Sheet 83
  4. 4. ``Summers Project Suzlon Energy Ltd. 4/83 EXECUTIVE SUMMARY
  5. 5. ``Summers Project Suzlon Energy Ltd. 5/83 Chapter 1 EXECUTIVE SUMMARY
  6. 6. ``Summers Project Suzlon Energy Ltd. 6/83 EXECUTIVE SUMMARY It s a pleasure to do a project in a company like Suzlon Energy Ltd, which is a market leader in wind mill sector. It s an honor given by the company to us to work for two months on new International environmental concept of carbon trading i.e. Clean Development Mechanisms. The ultimate goal behind undertaking this project work was to know and make aware to Public about global warming and their effect to biosphere and contribution of wind (Non conventional) energy to protect the global environment from green house gas with its consequences. Suzlon Energy Ltd is one of India s leading wind power generators having its branches in USA, GERMANY, AUSTRALIA DENMARK, NETHERLAND and CHINA. Suzlon has been committed to a clean and green environment. Suzlon specializes in providing total solutions in Wind Power generation with cohesive integration of consultancy, design, manufacturing, installation, finance, operation and maintenance services. The start of this millennium saw Suzlon capture the largest market share in Asia and feature amongst the top five in the world. Suzlon has developed some of the largest wind parks of over 338 MW in Dhule, 163.75 MW in Sangli. Senergy global a sister concern of Suzlon energy is implementing the CDM projects in India. The targeted customers are Suzlon windmill owners, as windmill projects are eligible for CDM benefits. Senergy global is assisting Consumers to avail CDM benefits. It helps them to get registered from UNFCCC and to get them optimum possible benefits. This comes as value added service since Suzlon is concerned about its customer long term benefits & customer retention policy. Through this project one can get insight of carbon trading which is fast evolving, as a weapon to counter act increasing green house gas emission thus saving our environment .The main job is to educate consumer about CDM benefits and convey the schemes of Senergy global and help them to register for CDM benefits. Many options under CDM could create significant co-benefits in developing countries, addressing local and regional environmental problems and advancing social goals. For developing countries that might otherwise give priority to immediate economic and environmental needs, the prospect of significant ancillary benefit should provide a strong inducement to participate in CDM
  7. 7. ``Summers Project Suzlon Energy Ltd. 7/83 As in the present scenario Government is promoting Green Power Projects as an alternative option for conventional energy projects hence there is wide potential in green power projects. At the same time all the wind power plants are eligible to get the CDM benefits hence it is also a promising field of extra revenue for clients and also a great carrier opportunity in marketing field. After the small and mid sized companies, big players like Reliance, Airtel, Birlas are next to explore options of cashing in on efficient production technologies to boost the profitability, as polluting foreign companies rush to meet international deadlines starting next year. India is the largest producer of carbon credits. Senergy Global is a reliable player in this field and is providing their clients not only consultancy but also it helps their clients in actual sale of the CER s in the market as it has a wide range of the products and also expertise in this sector. This gave me a great opportunity to get into this field and an option for promising future carrier. I have opted this as my summer project as I was going to get opportunity to work right from giving presentation to client, follow up and finally executing the agreement. Our field of operation was mostly in 1) Pune 2) Mumbai 3) Kolhapur 4) Ichalkaranji 5) Sangli 6) Hubli. As major client base of Suzlon is located in Western region and our target customers were the existing customers of SUZLON. During the course project I came across 50 clients out of which I made 22 agreements for Senergy Global and some are on hold waiting for the client feedback. The major finding of our project was that there is great potential in CDM and on the other hand there is less awareness about the CDM concept.
  8. 8. ``Summers Project Suzlon Energy Ltd. 8/83 OBJECTIVE OF STUDY
  9. 9. ``Summers Project Suzlon Energy Ltd. 9/83 Chapter 2 Objective Of Study
  10. 10. ``Summers Project Suzlon Energy Ltd. 10/83 OBJECTIVE OF THE STUDY 1. To study the Clean Development Mechanism, which provides knowledge of global warming and its effect on biosphere & its application in business revenue cycle 2. To know how global warming compels United Nations to think on it, and formation of UNFCCC. 3. To obtain the information of Kyoto protocol and its resolution for reducing carbon level of environment by 5.2% of 1990 level. 4. To study and gain knowledge of wind power (Non- conventional Resource) and it s role in carbon trading. 5. To find out awareness and penetration of CDM project through primary and secondary research methodology. 6. To give extra benefit to the customers for their satisfaction and customer retention by executing the deals till PDD documentation 7. To study how developing countries will get benefit from the project activities resulting in certified emission reductions (CERS) and on the other hand how developed countries will get benefit by using the CERs to meet their commitments. This project gives the idea of how the consumer receives the extra benefits and their inclination towards the extra income. The prime purpose of this study was to find out consumer behavior as a part of marketing mix and understand why and how the companies provides extra benefits to achieve customer satisfaction & customer retention to have edge on competitors.
  11. 11. ``Summers Project Suzlon Energy Ltd. 11/83 SCOPE OF THE PROJECT
  12. 12. ``Summers Project Suzlon Energy Ltd. 12/83 Chapter 3 Scope Of the Project
  13. 13. ``Summers Project Suzlon Energy Ltd. 13/83 SCOPE OF THE PROJECT Scope: 1. There is wide potential in wind power sectors due to growing need of electricity in each and every sector and hence these projects can fetch a large amount of revenue through CDM benefits. 2. Production of electricity (non-conventional resource) gets continuous encouragement from Ministry of Environment and Forestry (MOEF) Clean Development Mechanism provides extra revenue to the investors along with tax benefits in non-conventional resource sector.
  14. 14. ``Summers Project Suzlon Energy Ltd. 14/83 COMPANY PROFILE
  15. 15. ``Summers Project Suzlon Energy Ltd. 15/83 Chapter 4 4.0.0 Company Profile 4.1.0 Mission 4.1.1 Vision 4.1.2 Corporate Philosophy 4.1.3 Company Details 4.2.0 Competitors COMPANY PROFILE
  16. 16. ``Summers Project Suzlon Energy Ltd. 16/83 Suzlon Energy Ltd is the flagship company of the dynamically growing Suzlon group. Renowned for its in-depth technical expertise and strong financial base, Suzlon specializes in providing total solutions in wind power generation with cohesive integration of design, manufacturing, installation, operation and maintenance services. The start of this millennium saw Suzlon captures largest market share in the growing Asian markets and featuring amongst the top ten in the world. Sustained superior performance by Suzlon wind turbine generator (WTG) over the years have carved out a strong reputation for the company and fuelled vigorous growth. To meet the rapid growth plans; the company s human resource base worldwide has crossed the 10,000 mark. Suzlon selected nearly 28 sites of wind park in states if Maharashtra. Already two major wind park i.e. Kaudya Dongar wind park Supa in Ahmednagar and Vankusawada wind park in Satara is filled with wind turbine generators of 57 MW, 201.6 MW capacity respectively. The site has a mean annual wind speed of 22.08 kmph at 30m height, producing a average of 26,00,000 unit of electricity from 1MW Wind Turbine Generator. Suzlon has different range of WTGs i.e. 350 KW, 600KW, 1MW, 1.25MW, 1.5MW and 2MW. Senergy Global (SG) the sister concern of Suzlon started in India working with Suzlon on the project on Clean Development Mechanism having corporate office at New Delhi. Senergy Global s objective is to work with Suzlon s existing customer along with the new customers and providing them extra benefits from carbon trading through Kyoto protocol of UNFCCC. Senergy Global renders following services to national and international project developers from within India and other developing countries: 1. Purchase of generated Certified Emission Reductions (CERs) from CDM projects. 2. Banking of Certified Emission Reductions (CERs) and trade advisory services. 3. Project identification consultancy 4. Technical assistance in completing various stages of project development. 5. Documents review & analysis 6. International negotiations for sale of Certified Emission Reductions. 7. Technology transfer and overseas Equity Participation assistance. 8. Spot CERs delivery for meeting commitments/delivery targets. 9. Kyoto risk assessment & management facilities for existing as well as upcoming activities.
  17. 17. ``Summers Project Suzlon Energy Ltd. 17/83 MISSION: Suzlon has been committed to a clean, green and healthy environment. Torchbearers of eco- friendly energy, Suzlon has taken proactive steps to create awareness amongst the corporate community for the need of a Greener Tomorrow. It has consistently been part of the mission to educate, inspire and empower people towards protecting the environment. VISION: Asia s fasted growing fully integrated wind power company ranking among world s top ten has a vision to be number one in wind sectors. Other visions are Create Global Market. Adapt Global Technology. Maintain Global standard and Quality. Build Global team and Global Rewards. CORPORATE PHILOSOPHY: To Integrate the company and its people into wholesomeness and to be competitive enough to bridge the past, the present and future with common Thread. Suzlon s main philosophy is WE ARE BECAUSE OF INNOVATIVES . COMPANY DETAILS: February 16, 2000 Suzlon Green Power Limited becomes operational March 1, 2001 Formation of AE Rotor Holding B.V, The Netherlands, a wholly owned subsidiary of Suzlon Energy Limited March 9, 2001 Germanischer Lloyd, the premier International Certifying Agency, type certifies Suzlon's 350KW Capacity Model June 8, 2001 AE Rotor Holding B.V, The Netherlands, becomes operational March 19, 2002 Suzlon Energy Gmbh, Germany, becomes operational March 21, 2002 Center for Wind Energy Technology (C-WET) grants type test certification to Suzlon's 350KW Capacity model March 30, 2002 Suzlon crosses the 300MW mark at Site: Vankusawada, Dist: Satara (Maharashtra) February 12, 2003 Suzlon adds another feather in its cap by successfully commissioning its first Wind Turbine in USA February 21, 2003 Center for Wind Energy Technology (C-WET) grants type test certification to Suzlon's S-60 1000KW Capacity model
  18. 18. ``Summers Project Suzlon Energy Ltd. 18/83 July 1, 2003 Production of first 100 sets of Blade - AE31 by Rotor Blade Unit (Daman) of Suzlon Energy Limited January 15, 2004 Formation & commencement of operations of Suzlon Energy Australia Pty. Limited, Australia, a wholly owned subsidiary of Suzlon Energy Limited, India January 30, 2004 Germanischer Lloyd, the premier International Certifying Agency, type certifies Suzlon's S66 1250KW - 75m hub height Capacity Model February 19, 2004 Suzlon crosses the 500MW mark by commissioning 6.00MW for Tirumala Tirupathi Devasthanum (A.P.), thus marking its maiden presence in Andhra Pradesh Competitors: - Enercon Ltd Vestas Ltd G E Wind NEG Micon MITCON PWC
  19. 19. ``Summers Project Suzlon Energy Ltd. 19/83 MARKETING POLICY: Suzlon includes corporate marketing strategy in their marketing policy. Suzlon have appointed specialized marketing officers to attract industrialized and celebrity to invest in wind turbine to create non-conventional electricity to meet the demand of industries. Suzlon is India's leading manufacturer of wind turbine generators. Its accumulated sales were 1,488.69 MW as of November 30, 2005. Suzlon has also installed 42.8% of the total capacity installed in India during the year ended December 31, 2004. It has the sixth largest wind turbine manufacturer in the world in terms of annual installed capacity for the year ended December 31, 2004. (Statistical Performance of Suzlon.) ORGANIZATIONAL STRUCTURE
  20. 20. ``Summers Project Suzlon Energy Ltd. 20/83 Marketing organization Chart: VP Finance VP Operations VP Int. Business VP Marketing VP R&D VP MARKETING GM MARKETING DGM MARKETING WESTERN ZONE-AGM SOUTH ZONE-AGM MARKETING EXECUTIVES MARKETING EXECUTIVES C M D VP HR
  21. 21. ``Summers Project Suzlon Energy Ltd. 21/83 INTRODUCTION& CONCEPTUAL BACKGROUND OF THE STUDY
  22. 22. ``Summers Project Suzlon Energy Ltd. 22/83 Chapter 5 5.0.0 Introduction 5.1.0 UNFCC & Kyto Protocol 5.2.0 Annexure 1 Parties 5.3.0 Annexure 2 Parties
  23. 23. ``Summers Project Suzlon Energy Ltd. 23/83 INTRODUCTION & CONCEPTUAL BACKGROUND OF THE STUDY Only the Earth has an atmosphere of the proper depth and chemical composition. About 30% of incoming energy from the sun is reflected back to space while the rest reaches the earth, warming the air, oceans, and land, and maintaining an average surface temperature of about 15 ºC. The chemical composition of the atmosphere is also responsible for The chemical composition of the atmosphere is also responsible for The atmosphere carries out the critical function of maintaining life-sustaining conditions on Earth, in the following way: each day, energy from the sun (largely in the visible part of the spectrum, but also some in the ultraviolet, and infra red portions) is absorbed by the land, seas, mountains, etc. If all this energy were to be absorbed completely, the earth would gradually become hotter and hotter. But actually, the earth both absorbs and, simultaneously releases it in the form of infrared waves (which cannot be seen by our eyes but can be felt as heat, for example the heat that you can feel with your hands over a heated car engine). All this rising heat is not lost to space, but is partly absorbed by some gases present in very small (or trace) quantities in the atmosphere, called GHGs (greenhouse gases). Greenhouse gases (for example, carbon dioxide, methane, nitrous oxide, water vapour, ozone), re-emit some of this heat to the earth's surface. If they did not perform this useful function, most of the heat energy would escape, leaving the earth cold (about - 18 ºC) and unfit to support life. Greenhouse Gases covered by the Kyoto Protocol Carbon dioxide (CO2) Methane (CH4) Nitrous Oxide (N2O) Hydro fluorocarbons (HFCs) Per flourocarbons (PFCs) Sulphur hexafluoride (SF6)
  24. 24. ``Summers Project Suzlon Energy Ltd. 24/83 However, ever since the Industrial Revolution began about 250 years ago, man-made activities have added significant quantities of GHGs to the atmosphere. The atmospheric concentrations of carbon dioxide, methane, and nitrous oxide have grown by about 31%, 151% and 17%, respectively, between 1750 and 2000. The principal reason for the mounting thermometer is a century and a half of industrialization: the burning of ever-greater quantities of oil, gasoline, and coal, the cutting of forests, and the practice of certain farming methods. These activities have increased the amount of "greenhouse gases" in the atmosphere, especially carbon dioxide, methane, and nitrous oxide. Such gases occur naturally -- they are critical for life on earth; they keep some of the sun's warmth from reflecting back into space, and without them the world would be a cold and barren place. But in augmented and increasing quantities they are pushing the global temperature to artificially high levels and altering the climate. The 1990s appear to have been the warmest decade of the last Millennium, and 1998 the warmest year. The average sea level rose by 10 to 20 cm during the 20th century, and an additional increase of 9 to 88 cm is expected by the year 2100. (Higher temperatures such countries as Bangladesh, cause the disappearance of some nations entirely (such as the island state of the Maldives), foul freshwater supplies for billions of people, and spur mass migrations. Agricultural yields are expected to drop in most tropical and sub-tropical regions -- and in temperate regions, too, if the temperature increase is more than a few degrees C. Drying of continental interiors, such as central Asia, the African Sahel, and the Great Plains of the United States, is also forecast. These changes could cause, at a minimum, disruptions in land use and food supply. And the range of diseases such as malaria may expand. Global warming is a "modern" problem -- complicated, involving the entire world, tangled up with difficult issues such as poverty, economic development, and population growth up with difficult issues such as poverty, economic development, and population growth. Dealing with it will not be easy. Ignoring it will be worse.
  25. 25. ``Summers Project Suzlon Energy Ltd. 25/83 Variations of the Earth's surface temperature for the past 140 years The Earth s surface temperature is shown year by year (red bars) and approximately decade by decade (black line, a filtered annual curve suppressing fluctuations below near decadal time-scales). There are uncertainties in the annual data (thin black whisker bars represent the 95% confidence range) due to data gaps, random instrumental errors and uncertainties, uncertainties in bias corrections in the ocean surface temperature data and also in adjustments for urbanization over the land. Over both the last 140 years and 100 years, the best estimate is that the global average surface temperature has increased by 0.6 ± 0.2 °C. THE UNFCCC & THE KYOTO PROTOCOL Increasing scientific evidence of human interference with the global climate system, along with growing public concern about the environment, pushed climate change onto the political agenda in the mid-1980s. In 1988, the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO) established the Intergovernmental Panel on Climate Change (IPCC) to provide policymakers with authoritative scientific information. The IPCC, consisting of hundreds of leading scientists and experts on global warming, was tasked with assessing the state of scientific knowledge concerning climate change, evaluating its potential environmental and socioeconomic impacts, and formulating realistic policy advice. Two years later in 1990, the IPCC published a report concluding that the growing accumulation of human-made greenhouse gases in the atmosphere would enhance the greenhouse effect, resulting on average in an additional warming of the Earth s surface by the next century, unless measures were adopted to limit emissions. The report confirmed that climate change was a threat and called for an international treaty to address the problem. Later that same year, the Second World Climate Conference echoed the same call.
  26. 26. ``Summers Project Suzlon Energy Ltd. 26/83 The United Nations General Assembly responded by formally launching negotiations on a framework convention on climate change and establishing an Intergovernmental Negotiating Committee to develop the treaty. Negotiations to formulate an international treaty on global climate protection began in 1991 and resulted in the completion, by May 1992, of the United Nations Annex 1 Country Parties Developed countries. Adopt policies and measures to limit their anthropogenic emissions of GHGs and protect/enhance their GHG sinks and reservoirs to demonstrate that they are taking the lead in modifying longer-term trends. Australia Netherlands Austria New Zealand Belarus Norway Belgium Poland Bulgaria Portugal Canada Romania Croatia Russian Federation Czech Republic Slovakia Denmark Slovenia Estonia Spain European Community Sweden Finland Switzerland France Turkey Germany Ukraine Greece United Kingdom of Great Britain and Northern Ireland Hungary United States of America Iceland Lithuania Ireland Luxembourg Italy Monaco Japan Latvia Liechtenstein
  27. 27. ``Summers Project Suzlon Energy Ltd. 27/83 Annex 2 Country Parties Under Article 4.2 of the UNFCCC, developed country parties included in Annex II (Annex 1 countries minus the economies in transition) have the following additional commitments: Provide new and additional financial resources to meet the agreed full costs incurred by developing country Parties in complying with their obligations under Article 12. Provide financial resources, including transfer of technology to meet the agreed full incremental costs of measures to be undertaken by developing country Parties under Article 4. Promote, as appropriate, the transfer of, or, facilitate and finance access to, environmentally sound technologies and know-how to other Parties, particularly the developing ones to enable them to implement the provisions of the Convention. Afghanistan Cameroon Egypt Albania Cape Verde El Salvador Algeria Central African Republic Equatorial Guinea Angola Chad Eritrea Antigua and Barbuda Chile Ethiopia Argentina China Fiji Armenia Colombia The former Yugoslav Republic of Macedonia Azerbaijan Comoros Gabon Bahamas Congo Gambia Bahrain Cook Islands Georgia Bangladesh Costa Rica Ghana
  28. 28. ``Summers Project Suzlon Energy Ltd. 28/83 Barbados Cuba Grenada Belize Cyprus Guatemala Benin Côte d'Ivoire Guinea Bhutan Democratic People's Republic of Korea Guinea-Bissau Bolivia Democratic Republic of the Congo Guyana Bosnia and Herzegovina Djibouti Haiti Botswana Dominica Honduras Brazil Dominican Republic India Burkina Faso Ecuador Indonesia Burundi Cambodia Iran (Islamic Republic of) Israel Mexico Republic of Korea Jamaica Micronesia (Federated States of) Republic of Moldova Jordan Mongolia Rwanda Kazakhstan Morocco Saint Kitts and Nevis Kenya Mozambique Saint Lucia Kiribati Myanmar Saint Vincent and the Grenadines Kuwait Namibia Samoa Kyrgyzstan Nauru San Marino Lao People's Democratic Republic Nepal Sao Tome and Principe Lebanon Nicaragua Saudi Arabia Lesotho Niger Senegal
  29. 29. ``Summers Project Suzlon Energy Ltd. 29/83 MARKETING STRAGIES
  30. 30. ``Summers Project Suzlon Energy Ltd. 30/83 Chapter 6 6.0.0 Market segmentation 6.1.0 Target Segment 6.2.0 Product Life Cycle 6.3.0 Marketing Strategies
  31. 31. ``Summers Project Suzlon Energy Ltd. 31/83 Marketing Mix Used During The Project:- Market Segmentation: - Any market is made up of several sub markets, or sub groups of consumers distinguished from one another from their varying needs and buyer s behavior. It is feasible to disaggregate the consumers into segments into such a manner that it needs characteristics and buying behavior the members would vary significantly among or across segment but would be homogenous into each segment Market Segmentation for CDM: - Basically our market segment was Non conventional energy sectors which is widely divided into Non-Conventional Energy Sectors Target Segment: - Through market segmentation a firm divides a market into many segment and all these segments need not form its target market. Target market signifies only those segments that it wants to adopt as its market. A selection is thus involved in it. In choosing the target market firm basically carries out an evaluation of various segments and selects those segments that are appropriate to it. Since we were working in Suzlon Energy Ltd our target segment was wind turbine investors, which were the existing customers of Suzlon. Hydro Wind Solid waste Fuel S/Wing NuclearBio Gas
  32. 32. ``Summers Project Suzlon Energy Ltd. 32/83 Product Life Cycle: - Product passes certain distinct stages during its life and these stages are called product life cycle. There are four distinct stages in product life cycle Market Pioneering Stage (introduction) Market Growth Stage Market Maturity Stage Market Decline Stage a) Market Pioneering Stage (introduction):- During market pioneering stage the product is in introductory stage at this stage there may not be ready market for the product sales are low, the product undergoes teething troubles, demand has to be created or developed and the customers have to be promoted to try out the product. b) Market Growth Stage:- During the market growth stage demand for the product increases and size of the market grows, pioneers sales and profit grows up during this time competitors may increase c) Market Maturity Stage: - In the market maturity stage demand tends to reach saturation point and there is enough supply from several competing sources Pioneering may try out various packaging, modifications and promotional deals and makes special offers to new market segments so that I has sales volumes do shrinks. Long term and short term marketing plans are implemented so as to prolong the maturity stage. d) Market Decline Stage: - In the decline stage sales begin to fall demand for the product shrinks probably due to new and functionally advanced products being available into market. Firms do perceive in this stage the impending total decline stage and prepare for a gradual phasing out of the product. Successful firm do keep new products ready in que to fill in the vacuum created by the decline of existing product.
  33. 33. ``Summers Project Suzlon Energy Ltd. 33/83 As per the Kyoto protocol signed in 1997 the first crediting period is fro 2008 to2012 and most of the Annex I countries have started to buy CER s from Annex II countries to fulfill their commitment given to UNFCCC. So in India the CDM market is just at the beginning stage and it is going to grow in coming future so we can say that CDM market is going to be a boom in near future. During our project in first stage we have created awareness about CDM concept and in the latter half we have targeted customers in that particular segment by executing deals Marketing strategy: - Marketing strategy is a complete and unbeatable plan designed specifically for attaining marketing objectives of the firm for the business unit. Marketing objectives indicate what the firm wants to achieve and marketing strategy provides design for achieving them. Right now Senergy Global is concentrating on Wind Power Sector, because all the wind power are eligible to get CDM benefit and they form the ready market for Senergy Global through the project Suzlon also tries to give extra benefits to the existing customer for customer retention. In current situation Senergy Global is only concentrating on Suzlons existing clients for creating its reliable brand in CDM market. In future Senergy Global is also going to target other non-conventional energy sector for CDM projects to extend their arm of action. Introd. Growth Maturity Decline Time S A L E
  34. 34. ``Summers Project Suzlon Energy Ltd. 34/83 RESEARCH METHODOLOGY
  35. 35. ``Summers Project Suzlon Energy Ltd. 35/83 Chapter 7 7.0.0 Research Methodology 7.1.0 Type of Questions 7.1.1 Objective of study 7.1.2 Secondary Data
  36. 36. ``Summers Project Suzlon Energy Ltd. 36/83 RESEARCH METHODOLOGY PRIMARY SOURCE Definition:- Research is a careful or critical inquiry or examination in seeking facts or principles, diligent investigation in order to ascertaining something. The process in which data/facts is collected to solve the problem in a most effective manner is known as Research Methodology. The data, which a researcher collects, is divided into two types, which are based on nature of collecting data. They are as follows: - PRIMARY DATA: It is the method in which the data is collected by on field research. These are the data collected or gathered specially for the project in hand. The sources of primary research are Personal Interviews Questionnaire Interviews Telephonic Interviews Survey Method Observations COLLECTION OF DATA THROUGH QUESTIONNAIRES METHOD: This method of data collection is quite popular, particularly in case of big enquiries. It is being adopted by private individuals, research workers, private and public organizations and even by governments. In this method, a questionnaire is sent to the persons concerned with a request to answer the questions and return questionnaire. A questionnaire consists of a number of questions printed or typed in a definite order on a form or set of forms. Our questionnaire was of following type Structured-non-disguised
  37. 37. ``Summers Project Suzlon Energy Ltd. 37/83 A structured questionnaire is a formal list of questions framed to get the facts. The interviewer asks the questions strictly in accordance with a pre-arranged order. . Structured-non-disguised - A structured-non-disguised questionnaire is one where the listing of questions is in a pre-arranged order and where the object of enquiry is revealed to the respondent. TYPES OF QUESTIONS In our research we have Open ended questions, Dichotomous questions& Multiple- choice questions for our questionnaire. And their details are as follows The second important aspect in the designing of a questionnaire is to decide which types of questions are to be used. Questions can be classified in various ways. One way of classification is as follows 1. Open ended questions An open-ended or simply open or free answer question gives the respondent complete freedom to decide the form, length and detail of the answer. Open questions are preferred when the researcher is interested in knowing what is uppermost in mind of the respondent. However, open questions pose certain problems. At the time of actual interview, it becomes difficult for the interviewer to note down the respondent s answer verbatim. 2. Dichotomous questions a dichotomous question has only two answers in the form yes or no , true or false , use or do not use etc. There cannot be a third answer. However, in some cases, there may be a third answer, which may come from those who do not want to take a definite stand one-way or other. 3. Multiple-choice questions in this type the respondent is offered two or more choices. The marketing researcher exhausts all the possible choices and the respondent has to indicate which one is applicable in his case. OBJECTIVES OF THE STUDY:- a. To assess services provided by Suzlon Energy. b. To know about the general awareness about CDM. c. Most preferred sources of information. One of the objectives for carrying out survey is to assess the conditions of the services provided by the Suzlon Energy. Senergy Global is sister concern of Suzlon Energy hence a person who is satisfied by the services of Suzlon will only be willing to go with Senergy Global.
  38. 38. ``Summers Project Suzlon Energy Ltd. 38/83 SECONDARY DATA:- The secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. In this case he is certainly not confronted with the problems that are usually with the collection of original data. Secondary data may either be published data or unpublished data. Usually published data are available in: 1. Various publications of the central, state or local governments; 2. Various publications of foreign governments or of international bodies and their subsidiary organizations; 3. Technical and trade journals; 4. Books, magazines and newspapers; 5. Reports and publications of various associations connected with business and industry, banks, stock exchanges, etc.; 6. Reports prepared by research scholars, universities, economists, etc. in different fields. 7. Public records and statistics, historical documents, and other sources of published information. In case of our project the main sources of secondary data were from Company existing data, Internet , Technical and trade journals. Samples: Samples considered from universe were from the Non-conventional Energy sector. Sample Size: Sample size considered for our project was actually from the existing customers of Suzlon Energy Ltd. which was around Fifty. Sampling Techniques: Sampling technique used by us was Deliberate Sampling since the samples were selected from wind power sector and that too the existing clients of Suzlon Energy Ltd.
  39. 39. ``Summers Project Suzlon Energy Ltd. 39/83 Some of the secondary data collected from Internet is given below- A. (Kinds of wind project in India sector wise) KIND OF CDM PROJECTS IN INDIA 4% 2% 7% 44%13% 14% 7% 9% HFC BIOMASS WIND HYDRO BIOGAS SOLAR GAS TO ENERGY OTHERS B. (Market Share of Suzlon in India)
  40. 40. ``Summers Project Suzlon Energy Ltd. 40/83 C. (Market Share of wind farms in 2006) TOP TEN WTG SUPPLIERS IN WORLD,IN 2006 27.90% 17.70% 13.20% 12.90% 6.10% 5.50% 3.10% 2.60% 2.10% 2% 5% VESTAS GE WIND ENERCON GAMESA SUZLON SIEMENS REPOWER NORDEX ECOTECNIA MITSUBISHI OTHERS
  41. 41. ``Summers Project Suzlon Energy Ltd. 41/83 UNITED NATIONS FRAMEWORK FOR CONVENTION ON CLIMATE CHANGE
  42. 42. ``Summers Project Suzlon Energy Ltd. 42/83 Chapter 8 8.0.0 United Nation Framework For Convention on Climate Change 8.1.0 Kyto Protocol 8.1.1 International Emission Trading (IET) 8.1.2 Joint Implementation (JI) 8.1.3. Clean Development Mechanism (CDM) 8.1.4 Activities Implementation Jointly. (AIJ) 8.2.0 Types OF Eligible Projects
  43. 43. ``Summers Project Suzlon Energy Ltd. 43/83 UNITED NATIONS FRAMEWORK FOR CONVENTION ON CLIMATE CHANGE. The UNFCCC was opened for signature at the UN Conference on Environment and Development (the Earth Summit) in Rio de Janeiro, Brazil, in June 1992, and entered into force in March 1994. The Convention sets an ultimate objective of stabilizing atmospheric concentrations of greenhouse gases at safe levels. Such levels, which the Convention does not quantify, should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner. To achieve this objective, all countries have a general commitment to address climate change, adapt to its effects, and report their actions to implement the Convention. As of December 2001, the Convention currently has received 186 instruments of ratification. The Convention divides countries into two groups: Annex I Parties, the industrialized countries who have historically contributed the most to climate change, and non-Annex I Parties, which includes primarily the developing countries. The principles of equity and common but differentiated responsibilities contained in the Convention require Annex I Parties to take the lead in returning their greenhouse gas emissions to 1990 levels by the year 2000. They must also submit regular reports, known as national communications, detailing their climate change policies and programs, as well as annual inventories of their GHG emissions. KYOTO PROTOCOL. The Kyoto Protocol was adopted in December 1997. The Protocol creates legally binding obligations for 38 industrialized countries, including 11 countries in Central and Eastern Europe, to return their emissions of GHGs to an average of approximately 5.2 percent below their 1990 levels as an average over the period 2008-2012. The targets cover the six main greenhouse gases: carbon dioxide, methane, nitrous oxide; hydro fluorocarbons (HFCs); per fluorocarbons (PFCs); and sulphur hex fluoride. The Protocol also allows these countries the option of deciding which of the six gases will form a part of their national emissions reduction strategy. Some activities in the land-use change and forestry sector, such as deforestation and reforestation, which emit or absorb carbon dioxide from the atmosphere, are also covered. Negotiations continued after Kyoto to develop the Protocol s operational details. While the Protocol identified a number of modalities to help Parties reach their targets, it does not elaborate on the specifics. After more than four years of debate, governments finally in 2001 agreed to a comprehensive rulebook the Marrakech Accords on how to implement the Kyoto Protocol. The Accords also intend to provide governments with sufficient clarity to consider ratification.
  44. 44. ``Summers Project Suzlon Energy Ltd. 44/83 The Protocol establishes three cooperative mechanisms designed to help industrialized countries (Annex I Parties) reduce the costs of meeting their emissions targets by achieving emission reductions at lower costs in other countries than they could domestically. International Emission Trading (IET) Joint Implementation (JI) Clean Development Mechanism (CDM) Activities Implementation Jointly.(AIJ) (A) International Emission Trading (IET) International emission trading permits countries to transfer parts of their allowed emissions ( assigned amount units ).An emission trading is a market-driven means of lowering the cost of reducing greenhouse gas emissions. By putting a market value on emissions reductions, emissions trading gives companies a positive incentive to reduce emissions. Emissions trading transfers certified emissions reduction credits from sellers who are able to reduce emissions cheaply to buyers who have only limited options or who would incur higher capital investment costs for reducing their own emissions relative to the cost of purchasable credits. In this win-win transaction, sellers make a profit and buyers are able to apply the credits to their emissions reductions targets and meet their own or regulated emissions reduction targets. Companies are also better able to promote economic efficiency and better resource planning. Emissions trading give businesses greater flexibility in achieving their emissions reduction targets. Because this type of trading provides profits to sellers and reduces costs for buyers, businesses prefer this approach to legislation, which can be difficult and expensive to comply with and implement. As well, the uniform nature of legislation and its focus on point sources, rather than mobile and area sources may not effectively address emissions created by certain sources or industry sectors. However, the extent to which industry will reduce emissions without legislation remains in question, as the most successful emissions trading market, CO2, is largely due to legislation that enforces emissions limits and imposes penalties for non-compliance.
  45. 45. ``Summers Project Suzlon Energy Ltd. 45/83 (B) Joint Implementation (JI) Joint implementation allows countries to claim credit for emission reductions that arise from investment in other industrialized countries, which result in a transfer of equivalent emission reduction units between the countries. Joint implementation" is a Programme under the Kyoto Protocol that allow industrialized countries to meet part of their required cuts in greenhouse-gas emissions by paying for projects that reduce emissions in other industrialized countries. In practice, this will likely mean facilities built in the countries of Eastern Europe and the former Soviet Union -- the "transition economies" -- paid for by Western European and North American countries. The sponsoring governments will receive credits that may be applied to their emissions targets; the recipient nations will gain foreign investment and advanced technology (but not credit toward meeting their own emissions caps; they have to do that themselves). The system has advantages of flexibility and efficiency. It often is cheaper to carry out energy-efficiency work in the transition countries, and to realize greater cuts in emissions by doing so. The atmosphere benefits wherever these reductions occur. The operation of the joint implementation mechanism is similar to that of the "clean development mechanism" and similarly complicated. To go ahead with joint implementation projects, industrialized countries must meet requirements under the Protocol for accurate inventories of greenhouse-gas emissions and for detailed registries of emissions "units" and "credits" (steps that also are required for the international trading of emissions on the "carbon market"). If these requirements are met, countries may carry out projects and receive credits beginning in 2008. (C) Clean Development Mechanism (CDM) The Clean Development Mechanism (CDM) is an emissions trading mechanism between industrialized and developing countries that allows industrialized countries to invest in low cost emissions reduction projects in developing countries and to earn credits for the emissions reductions that result. These credits from climate-friendly sustainable development projects can be applied against corporate and national emissions reduction targets as set out in the Kyoto Protocol. The benefits of these investments will encourage developing countries to become fully engaged in climate change initiatives. Under Article 12 of the Kyoto Protocol, the Clean Development Mechanism has three goals: To assist in the achievement of sustainable development in developing countries that support initiatives to slow climate change. To contribute toward meeting the overall emission reduction targets outlined in the Kyoto Protocol. To help industrialized countries meet their emissions reduction targets.
  46. 46. ``Summers Project Suzlon Energy Ltd. 46/83 CDM initiatives can be either bilateral or multilateral, project-based collaborations between industrialized and developing nations. The CDM is the only Kyoto Mechanism that permits a transfer of credits from developing countries not bound by the Kyoto Protocol to governments seeking to meet Kyoto obligations. As well, it is the only mechanism that can be implemented for credit immediately. Other Kyoto Mechanisms do not provide credits prior to 2008. CDM allows emission-reduction projects that assist in creating sustainable development in developing countries to generate certified emission reductions (cers) for use by the investor. The mechanisms give countries and private sector companies the opportunity to reduce emissions anywhere in the world wherever the cost is lowest and they can then count these reductions towards their own targets. Through emission reduction projects, the mechanisms could stimulate international investment and provide the essential resources for cleaner economic growth in all parts of the world. The CDM, in particular, aims to assist developing countries in achieving sustainable development by promoting environmentally friendly investment from industrialized country governments and businesses. D) Activities Implemented Jointly. (AIJ) Activities Implemented Jointly allows countries to claim credit for emission reductions that arise from investment in other industrialized countries, which result in a transfer of equivalent emission reduction units between the countries. Activities Implemented Jointly is a Program under the Kyoto Protocol that allow industrialized countries to meet part of their required cuts in greenhouse-gas emissions by paying for projects that reduce emissions in other industrialized countries. The sponsoring governments will receive credits that may be applied to their emissions targets. The system has advantages of flexibility and efficiency. It often is cheaper to carry out energy-efficiency work in the transition countries, and to realize greater cuts in emissions by doing so.
  47. 47. ``Summers Project Suzlon Energy Ltd. 47/83 Types of Eligible Projects: There are many opportunities for developed or developing countries industry, non- governmental organizations and all levels of government to get involved in CDM projects. Projects might include: Renewable Energy Small-scale hydro-power Biomass fuel sources, such as anaerobic digesters Wind energy Solar photovoltaic and solar thermal technologies Irrigation using wind pumps Fuel Switching Cogeneration technologies Recovery and use of coal bed methane Fuel wood gasification with pulp residues Alternative combustion technologies Biogases-based electricity cogeneration. Industrial Applications Efficiency improvements in equipment Energy-saving processes Use of zero-emission fuel cells Electricity production and distribution Forestry Biodiversity protection through sustainable forest management Sustainable forestry Silvi culture activities and community woodlots Agriculture Developing biomass fuel sources Soil tillage alternatives and sustainable agriculture Agro-forestry projects Flood control activities Waste management activities
  48. 48. ``Summers Project Suzlon Energy Ltd. 48/83 Annex I Parties must refrain from using CERs generated through nuclear energy to meet their targets. In addition, for the first commitment period (2008-2012), the only sink projects allowed are those involving afforestation or reforestation, and Annex I Parties can only add CERs generated from sink projects to their assigned amounts up to 1% of their baseline emissions for each year of the commitment period. Further Guidelines for carbon sink projects will be developed to ensure they are environmentally sound. In order to make small projects competitive with larger ones, the Marrakech Accords establish a fast track for small-scale projects with simpler eligibility rules renewable up to 15 MW, energy efficiency with a reduction of consumption either on the supply or the demand side of up to 15 giga watt-hours/yr, and other projects that both reduce emissions and emit less than 15 kilotons of CO2 equivalent annually. The Executive Board has been tasked with defining modalities and procedures for the fast track, and will submit them to the Eighth Conference of the Parties (COP 8), to be held in New Delhi in October 2002. The Executive Board The CDM is supervised by an Executive Board, which itself operates under the authority of the Parties. The Executive Board is composed of 10 members, including one representative from each of the five official UN regions (Africa, Asia, Latin America and the Caribbean, Central and Eastern Europe, and OECD), one from the small island developing states, and two each from Annex I and non-Annex I Parties. The Executive Board held its opening meeting at the Marrakech talks in November 2001, marking the launch of the CDM. The Executive Board will accredit independent organizations known as operational entities that will validate proposed CDM projects, verify the resulting emission reductions, and certify those emission reductions as CERs. Another key task is the maintenance of a CDM registry, which will issue new CERs, manage an account for CERs levied for adaptation and administrative expenses, and maintain a CER account for each non-Annex I Party hosting a CDM project. Project Identification and Formulation The first step in the CDM project cycle is the identification and formulation of potential CDM projects. A CDM project must be real, measurable and additional. To establish additionally, the project emissions must be compared to the emissions of a reasonable reference case, identified as the baseline. The project participants according to approved methodologies on a project-specific basis establish the baseline. These baseline methodologies are being developed based on the three approaches in the Marrakech Accord:
  49. 49. ``Summers Project Suzlon Energy Ltd. 49/83 CDM PROJECT CYCLE
  50. 50. ``Summers Project Suzlon Energy Ltd. 50/83 Chapter 9 9.0.0 Project cycle for the CDM 9.1.0 CDM and wind Project 9.1.1 Types of Wind Turbines: 9.1.2 Sizes of Wind Turbines 9.1.3 Construction of Wind Turbine
  51. 51. ``Summers Project Suzlon Energy Ltd. 51/83 Project cycle for the CDM: CDM PROJECT CYCLE HOST INVESTOR Project Development Design & Financing Monitoring Executive Board Operational Entity Validation / Registration Verification Certification Certified emission reductions (CERs)
  52. 52. ``Summers Project Suzlon Energy Ltd. 52/83 The CDM project cycle as shown on the figure has seven basic stages: project design and formulation, national approval, validation and registration, project finance, monitoring, verification/certification and issuance of CERs. The first four are performed prior to the implementation of the project, while the latter three are performed during the lifetime of the project. Existing actual or historical emissions; Emissions from a technology that represents an economically attractive investment; or, The average emissions of similar project activities under taken in the previous five years under similar circumstances and whose performance is among the top 20% of their category. CDM projects must also have a monitoring plan to collect accurate emissions data. The monitoring plan, which constitutes the basis of future verification, should provide confidence that the emission reductions and other project objectives are being achieved and should be able to monitor the risks inherent to baseline and project emissions.
  53. 53. ``Summers Project Suzlon Energy Ltd. 53/83 The monitoring plan can be established either by the project developer, or by a specialized agent. The baseline and monitoring plan must be devised according to an approved methodology. If the project participants prefer a new methodology, it must be authorized and registered by the Executive Board. The project participants must choose whether the crediting period shall be 10 years or 7 years with a possibility to be renewed two times (a maximum of 21 years). Approval designated national authority (DNA) All countries wishing to participate in the CDM must designate a National CDM Authority to evaluate and approve the projects, and serve as a point of contact. Although the international process has given general guidelines on baselines and additionality, each developing country has the responsibility to determine the national criteria for project approval. Together with the investor, the host country must prepare a project design document with the following structure: General description of the project; Description of the baseline methodology; Timeline and crediting period; Monitoring methodology and plan; Calculation of GHG emissions by sources Statement of environmental impacts; Stakeholder comments. The National CDM Authority issues the necessary statements: that the government participates voluntary in the project and confirms that the project activity assists the host country in achieving sustainable development. Validation and Registration (DOE) A designated operational entity will then review the project design document and, after public comment, decide whether or not it should be validated. These operational entities will typically be private companies such as auditing and accounting firms, consulting companies and law firms capable of conducting credible, independent assessments of emission reductions. If validated, the operational entity will forward it to the Executive Board for formal registration.
  54. 54. ``Summers Project Suzlon Energy Ltd. 54/83 Monitoring, Verification and Certification The carbon component of a mitigation project cannot acquire value in the international carbon market unless submitted to a verification process designed specifically to measure and audit the carbon component. Therefore, once the project is operational, participants prepare a monitoring report, including an estimate of CERs generated, and submit it for verification by an operational entity. Verification is the independent ex-post determination by an operational entity of the monitored reductions in emissions. The operational entity must make sure that the CERs have resulted according to the guidelines and conditions agreed upon in the initial validation of the project. Following a detailed review, an operational entity will produce a verification report and then certify the amount of CERs generated by the CDM project. Certification is the written assurance that a project achieved the reductions as verified. The certification report also constitutes a request for issuance of CERs. Unless a project participant or three Executive Board members request a review within 15 days, the Executive Board will instruct the CDM registry to issue the CERs. National Value and Benefits The basic principle of the CDM is simple: developed countries can invest in low-cost abatement opportunities in developing countries and receive credit for the resulting emissions reductions, thus reducing the cutbacks needed within their borders. While the CDM lowers the cost of compliance with the Protocol for developed countries, developing countries will benefit as well, not just from the increased investment flows, but also from the requirement that these investments advance sustainable development goals. The CDM encourages developing countries to participate by promising that development priorities and initiatives will be addressed as part of the package. This recognizes that only through long-term development will all countries be able to play a role in protecting the climate. From the developing country perspective, the CDM can: Attract capital for projects that assist in the shift to a more prosperous but less carbon- intensive economy; Encourage and permit the active participation of both private and public sectors; Provide a tool of technology transfer, if investment is channeled into projects that replace old and inefficient fossil fuel technology, or create new industries in environmentally sustainable technologies; and, Help define investment priorities in projects that meet sustainable development goals.
  55. 55. ``Summers Project Suzlon Energy Ltd. 55/83 Specifically, the CDM can contribute to a developing country s sustainable development objectives through: Transfer of technology and financial resources; Sustainable ways of energy production; Increasing energy efficiency & conservation; Poverty alleviation through income and employment generation; and Local environmental side benefits The drive for economic growth presents both threats and opportunities for sustainable development. While environmental quality is an essential element of the development process, in practice, there is considerable tension between economic and environmental objectives. Increased access to energy and provision of basic economic services, if developed along conventional paths, could cause long-lasting environmental degradation both locally and globally. But charting a different course and providing the technological and financial assistance to follow it could avoid many potential problems. UNFCCC FUND 2% Out of the total revenue generated from CDM projects UNFCCC takes a share of 2%of it and is put as an fund used for creating awareness regarding Green House Gases Global Warming and its effect on the enviourment. It also utilizes this fund as a relief fund for suffers of natural calamities such as Tsunami, Draught, Cyclone and Floods etc. UNFCCC also runs its separate department for CDM where project Registration, Verification and Issuance etc is carried out. The activities of these offices are carried out from this fund. CDM AND WIND PROJECT Wind is a form of solar energy. The uneven heating of the atmosphere by the sun, the irregularities of the earth s surface, and rotation of the earth cause winds. Wind flow patterns are modified by the earth's terrain, bodies of water, and vegetation. Humans use this wind flow, or motion energy, for many purposes: sailing, flying a kite, and even generating electricity The terms wind energy or wind power describes the process by which the wind is used to generate mechanical power or electricity. Wind turbines convert the kinetic energy in the wind into mechanical power. This mechanical power can be used for specific tasks (such as grinding grain or pumping water) or a generator can convert this mechanical power into electricity
  56. 56. ``Summers Project Suzlon Energy Ltd. 56/83 So how do wind turbines make electricity? Simply stated, a wind turbine works the opposite of a fan. Instead of using electricity to make wind, like a fan, wind turbines use wind to make electricity. The wind turns the blades, which spin a shaft, which connects to a generator and makes electricity. Take a look inside a wind turbine to see the various parts. View the wind turbine animation to see how a wind turbine works. Types of Wind Turbines: Modern wind turbines fall into two basic groups: the horizontal-axis variety, as shown in the photo, and the vertical-axis design, like the eggbeater-style Darrieus model, named after its French inventor. Horizontal-axis wind turbines typically either have two or three blades. These three- bladed wind turbines are operated "upwind," with the blades facing into the wind. The other common wind turbine type is the two-bladed, downwind turbine. Horizontal axis turbines are the most common type used today. DOE research focuses on development of horizontal axis turbines. Sizes of Wind Turbines Utility-scale turbines range in size from 350 kilowatts to as large as 2 megawatts. Larger turbines are grouped together into wind farms, which provide bulk power to the electrical grid. Single small turbines, below 350 kilowatts, are used for homes, telecommunications dishes, or water pumping. Small turbines are sometimes used in connection with diesel generators, batteries, and photovoltaic systems. These systems are called hybrid wind systems and are typically used in remote, off-grid locations, where a connection to the utility grid is not available. Suzlon energy ltd has different wind turbine generators i.e. 350 kilowatt, 600 kilowatt, 1meggawatt, 1.25 megawatt & 2 megawatts.
  57. 57. ``Summers Project Suzlon Energy Ltd. 57/83 Construction of Wind Turbine: Anemometer: Measures the wind speed and transmits wind speed data to the controller. Blades: Most turbines have either two or three blades. Wind blowing over the blades causes the blades to "lift" and rotate. Brake: A disc brake, which can be applied mechanically, electrically, or hydraulically to stop the rotor in emergencies. Controller: The controller starts up the machine at wind speeds of about 8 to 16 miles per hour (mph) and shuts off the machine at about 65 mph. Turbines cannot operate at wind speeds above about 65 mph because their generators could overheat. Gearbox: Gears connect the low-speed shaft to the high-speed shaft and increase the rotational speeds from about 30 to 60 rotations per minute (rpm) to about 1200 to 1500 rpm, the rotational speed required by most generators to produce electricity. The gearbox is a costly (and heavy) part of the wind turbine and engineers are exploring "direct-drive" generators that operate at lower rotational speeds and don't need gearboxes.
  58. 58. ``Summers Project Suzlon Energy Ltd. 58/83 Generator: Usually an off-the-shelf induction generator that produces 60-cycle AC electricity. High-speed shaft: Drives the generator. Low-speed shaft The rotor turns the low-speed shaft at about 30 to 60 rotations per minute. Nacelle: The rotor attaches to the nacelle, which sits atop the tower and includes the gearbox, low- and high-speed shafts, generator, controller, and brake. A cover protects the components inside the nacelle. Some nacelles are large enough for a technician to stand inside while working. Pitch: Blades are turned, or pitched, out of the wind to keep the rotor from turning in winds that are too high or too low to produce electricity. Rotor: The blades and the hub together are called the rotor. Tower: Towers are made from tubular steel (shown here) or steel lattice. Because wind speed increases with height, taller towers enable turbines to capture more energy and generate more electricity. Wind direction: This is an "upwind" turbine, so-called because it operates facing into the wind. Other turbines are designed to run "downwind", facing away from the wind. Wind vane: Measures wind direction and communicate with the yaw drive to orient the turbine properly with respect to the wind. Yaw drive: Upwind turbines face into the wind; the yaw drive is used to keep the rotor facing into the wind as the wind direction changes. Downwind turbines don't require a yaw drive; the wind blows the rotor downwind. Yaw motor: Powers the yaw drive.
  59. 59. ``Summers Project Suzlon Energy Ltd. 59/83 SENERGY GLOBAL & ITS SERVICE
  60. 60. ``Summers Project Suzlon Energy Ltd. 60/83 Chapter 10 10.0.0 Service Provided by Senergy Global 10.1.0 Project Approval Process
  61. 61. ``Summers Project Suzlon Energy Ltd. 61/83 SERVICE PROVIDED BY SENERGY GLOBAL: According to the rule of Kyoto Protocol Suzlon through its sister concern Senergy Global, has formulated a novel scheme to provide the financial benefits of carbon emission reduction to wind energy projects. Suzlon have created various models for harnessing the CDM revenue, while minimizing the risks involved in CDM project development and revenue realization. The major plans of Senergy global provides to the customer are- Fixed Price method Success premium method Requirements of documents for development of PDD for your Wind Project: The following documents will be required at the first stage for preparation of PDD 1. Copy of decision of the company to invest in wind power project 2. Proof of consideration of CDM as one of the possible revenue stream to mitigate the generation risks during the repayment period of the project 3. Copies of loan application submitted to financial institutions 4. Copies of financial appraisal / loan sanction letter 5. Project financials proposed by the EPC contractor (cash flow, IRR & DSCR) 6. Copies of Purchase orders to EPC contractor 7. Copies of land acquisition documents 8. Proof of acceptance of Purchase Order by EPC contractor 9. Copies of Power Purchase Agreement / Wheeling Agreement 10. Copies of Commissioning certificate 11. Copies of Operation & Maintenance agreement 12. Micro-site drawings and with metering locations 13. Documents for export of power to the grid (JMR Sheets) 14. Actual project financials (cash flow, IRR & DSCR) 15. Barriers faced by project proponent during implementation of project like- arranging debt, regulatory risk etc. Option Customer will Absorb Senergy Global Absorb Fixed Price plan Validation Fee PDD Development Fee Project Registration Fee Annual Verification Fee ERPA/LegalAgreement Fee Success Price plan Validation Fee Project registration Fee Annual Verification Fee PDD Development Fee ERPA/LegalAgreement Fee.
  62. 62. ``Summers Project Suzlon Energy Ltd. 62/83 PROJECT APPROVAL PROCESS: Stage 0 MoU between Senergy Global Client Supply of documents by client Stage 1 Preparation of PIN - MoEF Preparation of PDD - UNFCCC Stage 2 Host Country Approval (MoEF / Indian DNA) Stage 3 Project Validation (DOE DNV / SGS/ TUV/ BVQI) Stage 4 Submission for Registration (UNFCCC) Stage 5 Issuance of CERs (DOE & UNFCCC) 60 Days 45 Days 0 Days 90 Days** 50 Days 395 Days
  63. 63. ``Summers Project Suzlon Energy Ltd. 63/83 DATA ANALYSIS
  64. 64. ``Summers Project Suzlon Energy Ltd. 64/83 Chapter 11 11.0.0 Data Analysis 11.1.0 Findings 11.2.0 Limitation of Study 11.3.0 Conclusion 11.4.0 Suggestions
  65. 65. ``Summers Project Suzlon Energy Ltd. 65/83 DATA ANALYSIS:- (A) ANALYSIS FROM QUESTIONNAIRE: 1. Awareness of Clean Development Mechanism in target segment . On the basis of answers obtained following Bar graph is plotted From above Bar graph, it is inferred that 74 customers out of 100 are aware of Clean Development Mechanism. Hence, here it becomes the responsibility of Suzlon Energy to educate his clients regarding CDM and help them to reap its benefit. This shows us awareness of CDM in Target Segment. 0 20 40 60 80 Awareness about CDM Series1 Yes No
  66. 66. ``Summers Project Suzlon Energy Ltd. 66/83 2. Source of information for CDM Based on the responses following Bar graph is plotted 0 1 2 3 4 5 Internet Consultant Print media Developer Source of information Number of respondent One comes to know that Print media is strongest source of information. 5 respondent out of 11 answered that they have obtained information about CDM from print media that is around 45.45% of person s looks print media as source of information. It is important to signify that print media includes newspapers, magazines, periodicals, journals and research studies. The second source of information is developer from whom the client got his WTG. The third source of information is from consultants that carry out functions of registering the client s project with UNFCCC. They work independently and contact various companies, which have their own WTGs and make them aware of CDM. The last source information is from Internet only 1 person among 11 has this information from Internet. Internet is second most preferred source of information after someone got little insight into the concept. When one gets information from print media, consultant or from developer he searches on Internet to get more information about the concept.
  67. 67. ``Summers Project Suzlon Energy Ltd. 67/83 3. Correspondence from Senergy Global. The responses are plotted as follows 0 1 2 3 4 5 6 7 YES NO Correspondance from Senergy Global Number of respondents Senergy Global has recently started its operations at Pune that is the reason why only 36.36% of respondents are aware of services provided by Senergy Global. With the passage of time, this figure will increase. Persons who have been already contacted by Senergy Global are in the process of registration or they are having some queries regarding CDM. So Senergy Global should contact more number of customers to increase their area of operation.
  68. 68. ``Summers Project Suzlon Energy Ltd. 68/83 4.Project other than Wind Mill (WTG) i.e., non-conventional . The results obtained are plotted as below Other non conventional energy projects 0 0.5 1 1.5 2 2.5 3 3.5 number of respondents 3 1 0 0 Solar energy Fly ash Biomass Small hydro projects According to assessment the number of clients having other projects apart from WTGs from this one comes to know that only 3 persons out of 25 are having solar projects but they are of small capacities. Apart from this, only one client is having fly ash utilization in tile making. The reason could be sited as in case of WTG the pay back period is of 5 yrs since one can show depreciation of up to 80% within first year of operation and rest 20% in coming five years. That is why it is one of the most preferred non- conventional energy resources for investment.
  69. 69. ``Summers Project Suzlon Energy Ltd. 69/83 5.Future investments in CDM. 0 5 10 15 20 25 YES NO Likely to invest in CDM Number of respondents All investors are interested to invest in CDM projects all the respondents answered yes. This shows that CDM promises good rate of return, which attracts the investors. So there is wide scope in near future for CDM projects.
  70. 70. ``Summers Project Suzlon Energy Ltd. 70/83 6.Option accepted by investors. 0 5 10 15 20 Fixed Price option Success fee option Preffered option Number of respondents The success fee option is most preferred one since it includes speculation. Success fee option is mostly suggested to companies having two or more than two WTGs. Accordingly there is some risk is also attached with it, if the price of CER s fall the investor has to bear it. However, a chance of it is very less. Fixed price option is suggested to those investors having small capacity WTG. Investor will get regular rate of return however the market would be. It is also noticed that some companies having more than 5 WTGs are willing to go with fixed price option. The reason for this is that they don t want to bear any risk for CDM. Fixed price option is hassle free option.
  71. 71. ``Summers Project Suzlon Energy Ltd. 71/83 7.Awareness of services provided by Senergy Global. The above graph shows that there is very less awareness about Senergy Global and its service offer in the CDM sector. So some special effort should be taken by Suzlon and Senergy Global to promote in the market. 0 50 100 Yes No Customers aware of services Provided by SG
  72. 72. ``Summers Project Suzlon Energy Ltd. 72/83 8. Awareness of CERs parking facility provided by Senergy Global. Parking facility is one of the advanced concepts adapted by CER traders. Senergy Global in CDM market in current scenario uniquely provides this parking facility. The bar graph indicates that out of 100 customer of Suzlon, nearly 72 are not aware of the parking facilities benefit provided by Senergy global. So it is required for both Senergy global and Suzlon to make aware the customer about the parking facility for better customer satisfaction so customer will go with SG. 0 50 100 Yes No Customers aware of Parking Facility provided by SG
  73. 73. ``Summers Project Suzlon Energy Ltd. 73/83 FINDINGS:- It is inferred that 74 customers out of 100 are aware of Clean Development Mechanism. Hence, here it becomes the responsibility of Suzlon Energy to educate their clients regarding CDM and help them to reap its benefit. From survey it comes to know that Print media is strongest source of information. 5 respondent out of 11 answered that they have obtained information about CDM from print media that is around 45.45% of person s looks print media as source of information. It is important to signify that print media includes newspapers, magazines, periodicals, journals and research studies. The second source of information is developer from whom the client got his WTG. The third source of information is from consultants that carry out functions of registering the client s project with UNFCCC. They work independently and contact various companies, which have their own WTGs and make them aware of CDM. The last source information is from Internet only 1 person among 11 has this information from Internet. Internet is second most preferred source of information after someone got little insight into the concept. When one gets information from print media, consultant or from developer he searches on Internet to get more information about the concept. Senergy Global has recently started its operations at Pune that is the reason why only 36.36% of respondents are aware of services provided by Senergy Global. With the passage of time, this figure increases. Persons who have been already contacted by Senergy Global are in the process of registration or they are having some quarries regarding CDM. The service provide by Suzlon on other projects apart from WTGs comes to know that only 3 persons out of 25 are having solar projects but they are of small capacities. Apart from this, only one client is having fly ash utilization in tile making. The reason could be sited as in case of WTG the pay back period is of 5 yrs since one can show depreciation of unto 80% with in first year of operation and rest 20% in coming five years. That is why it is one of the most preferred non-conventional energy resources. Parking facility is one of the advanced concepts adapted by CER traders. Senergy Global in CDM market in current scenario uniquely provides this parking facility. The bar graph indicates that out of 25 customer of Suzlon nearly 16 of are not aware of the parking facilities benefit provided by Senergy global. So it is required for both Senergy global and Suzlon to make aware the customer for better customer satisfaction.
  74. 74. ``Summers Project Suzlon Energy Ltd. 74/83 When asked whether you are interested to invest in CDM projects all the respondents answered yes. This shows that CDM promises good rate of return, which attracts the investors. The success fee option is most preferred one since it includes speculation. Success fee option is mostly suggested to companies having two or more than two WTGs. Accordingly there is some risk is also attached with it, if the price of CER s fall the investor has to bear it. However, a chance of it is very less. Fixed price option is suggested to those investors having small capacity WTG. Investor will get regular rate of return howsoever the market would be. It is also noticed that some companies having more than 5 WTGs are willing to go with fixed price option. It is observed that 44% of customer rates Suzlon s service as good and nearly 40% rated service as very good and average. So performance of Suzlon is good.
  75. 75. ``Summers Project Suzlon Energy Ltd. 75/83 LIMITATION OF THE STUDY:- 1. It is difficult to know whether willing respondents are truly representative. 2. This method is likely to be the slowest of all. 3. The customers base is very small (Niche) as compare to other sectors of energy. 1. Very less awareness about CDM concept in the Market. 2. Time required for getting revenue through CDM project is more.
  76. 76. ``Summers Project Suzlon Energy Ltd. 76/83 CONCLUSION:- From the data analyzed, it is inferred that the awareness about CDM in target segment is not up to the mark and the persons who are aware of this concept come to know about it only from print media and from other consultancy. Therefore awareness about CDM should be increased. It is also inferred that companies are ambitious about the increasing rates of CER s hence they are going with Success fee option, which involves greater risk factor than fixed fee option. New flexible plan should be introduce along with existing plans. Since all the clients are willing to go with Senergy Global, it could be said that Suzlon energy services are good and clients are looking forward for some more investment in Suzlon. So there is wide scope in near future. The CDM s objectives of advancing the development goals of developing countries recognizes that only through long-term sustainable development will all countries be able to play a role in climate protection. With thoughtful planning and development of a national CDM strategy, it can also assist in addressing local and regional environmental problems and in advancing social goal.
  77. 77. ``Summers Project Suzlon Energy Ltd. 77/83 SUGGESTION:- As CDM projects are getting positive response from customers therefore its area of operation should be expanded. New flexible plan should be introduce along with existing plans. For solving queries of customers there should be better communication . While installing WTG prior information about CDM benefits should be given to investors that will automatically increase the level of awareness. Appropriate follow-up system for customers should be adopted.
  78. 78. ``Summers Project Suzlon Energy Ltd. 78/83 BIBLIOGRAPHY, QUESTIONNAIRE & CUSTOMER STATUS STEET
  79. 79. ``Summers Project Suzlon Energy Ltd. 79/83 Chapter 12 12.0.0 Bibliography 12.1.0 Questionnaire 12.2.0 Customer Status Sheet
  80. 80. ``Summers Project Suzlon Energy Ltd. 80/83 BIBLIOGRAPHY Books: 1. Research methodology By C.R.Kothari Second Edition (Page 100-104). 2. Marketing research By G.C.Beri. Second edition (Page 101). 3. Marketing management By Philip Kotler. 12th edition (Page 256-283). 4. The Economic Times 24th July 2006. Websites referred: 1. www.carbonpositive.com 2. www.rtcc.org 3. www.asiacarbon.com 4. www.zenithenergy.com 5. www.adb.org 6. www.enn.com 7. www.pwc.com 8. www.blogs.cgdev.org 9. www.abc.net.au/science/news/stories. 10. www.blonnet.com 11. www.indianwindpower.com 12. www.renewableenergyaccess.com 13. www.cerindia.com 14. www.euets.com 15. www.teriin.org 16. www.unfccc.int/cdm 17. www.gsn-trade.com 18. www.prototypecarbonfund.org 19. www.ifc.org 20. www.cdmwatch.org
  81. 81. ``Summers Project Suzlon Energy Ltd. 81/83 QUESTIONNAIRE Demography information of Wind farm investors :- Name of the company: - ________________________________________________ Address: - ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ Name of Concern Person : _____________________________________________ Designation & Department: ____________________________________________ Domain of Operation: ____________________________________________ Contact Details:- Telephone Numbers: Mobil No: ___________________________ Landline: ____________________________ __________________________ E-mail ID: __________________________ Details of Project/ Wind farm: Location of Wind farm: __________________________________________________ Number of WTG: ________________________________________________ Capacity of Wind farm (Numbers of units generated/ year): ______________________________________________ Distribution Pattern: ________________________________________________
  82. 82. ``Summers Project Suzlon Energy Ltd. 82/83 Questionnaire: Sr. No. Questions: Yes No 1 Are you aware of CDM (Clean Development Mechanism) & CER (Certified Emission Reduction) concept? 2 Are you aware of CDM & CER Benefits? 3 What was the source of information? Internet Consultant Journals/Print media Developer 4 Was there any previous correspondence from Synergy Global? 5 Are you aware of services provided by Synergy Global? 6 Do you have any project other than Wind Mill (WTG) i.e. Non- conventional? If yes details: __________________________________ 7 Are you aware of CER parking facility provided by Synergy Global? 8 Would you like to invest in CDM/CER project? 9 Which options are you wiling to accept? / In which option are you interested? Fixed Price Contract Success Fee Contract
  83. 83. ``Summers Project Suzlon Energy Ltd. 83/83 Customer Status Sheet:- Sr.No Name Customer Remarks Capacity 1 Sable Waghire MOU Signed (Fixed) 0.35Mw 2 Chaphalkar Brothers MOU Signed (Fixed) 1.25Mw 3 Jayshree Ploymers MOU Signed (Fixed) 0.60Mw 4 Premier Seals MOU Signed (Fixed) 0.60Mw 5 Pravin Masalewale MOU Signed (Success) 1.25Mw 6 Vajayshree Alloys MOU Signed (Fixed) 0.35Mw 7 Manav Promoters MOU Signed (Success) 1.25Mw 8 G I Energies MOU Signed (Fixed) 0.60Mw 9 Suttati Enterprises Waiting for Client F/b 10 Nanvalakha Translines Decision Pending 11 Rajiv Govind Joshi Done Agreement with PWC 12 Rajmal Lakhichand MOU Signed (Success) 4.0 Mw 13 Accurate Engg Not approach yet 14 Vanaz Engg Pvt. Ltd. Waiting for Client F/b 1.25Mw 15 S G Associates Waiting for Client F/b 16 Dishti Ind. Cant get the app. 17 CTR Ind. Ltd. MOU Signed (Success)Revised 1.25Mw 18 Raj Group Waiting for Client F/b 19 Sahyadri Ind. MOU Signed (Success)Revised 2.5Mw 20 Vaman Presstressing Waiting for Client F/b 21 Shah Promoters Placed order for 1.25Mw* 4 so all WTG of 8 turbines will be bundled in a single PDD ( Case will be handel by K.Patel) 22 Hotel Sheetal MOU Signed (Success) 1.25Mw 23 P. R. Patil MOU will be singed as per the client Availability 24 Shraddha Constructions Pvt. Ltd. MOU Signed (Success) 1.25Mw 25 Raj Promoters & Civil Engg. Pvt. Ltd. MOU Signed (Success) 1.25Mw 26 aerolex industries Waiting for Client F/b 27 ZF Steerings Gear(India)Ltd Waiting for Client F/b 28 Hercules(Mumbai) MOU Signed (Fixed for 20 paise) 2.5Mw
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