The wind power development in the country started in early 1990s and in 1994 100% Accelerated Depreciation benefit was introduced for wind turbines. Ministry issued guidelines for healthy and orderly growth of wind power in the country. State also issued conducive policies for generation of power from wind energy. At the end of 9th Five Year Plan (FYP) the cumulative wind power installed capacity was only 1.7 GW, during 10th FYP 5.4 GW capacity was added and during 11th FYP 10.3 GW capacity was added. More than 15 GW wind capacity added during 12th FYP. The present wind power installed capacity in the country is around 32.5 GW which is approximately 55% of the total renewable installed power generation capacity. Now, in terms of wind power installed capacity India is globally placed at 4th position after China, USA and Germany.
Government of India has set an ambitious target of reaching 175 GW of renewable power capacity in the country by 2022 of which 60 GW to come from wind. The country has further set a goal of having 40 percent of its installed electric capacity powered by non-fossil-fuel sources by 2030 and would reduce its “emissions intensity” by 33 percent to 35 percent below 2005 levels by 2030. Wind energy being clean energy has to play a major role in achieving these goals to meet the challenges of climate change.
In spite of the sharp increase in wind power capacity in the country, only a fraction of the country’s wind potential has been tapped till date. As per recent assessment of National Institute of Wind Energy (NIWE) the potential for onshore wind at 100 meter above ground level is over 302 GW.
The vast untapped potential of wind power could be harnessed to meet India’s policy goals, addressing energy security challenges and achieving low carbon growth, in a cost effective manner.
In this endeavour, the Ministry has adopted a multi-dimensional approach, which aims at large-scale commercialization of cost–effective generation of grid-quality wind power. The wind power programme includes comprehensive wind resource assessment programme, research and development; implementation of demonstration projects to create awareness; development of infrastructural capability; capacity to manufacture, installation, operation and maintenance of wind turbines and conducive policy formulation.
Figure 1: Year-wise cumulative wind power installed capacity in India (MW)
Wind Potential
Wind Energy is intermittent and highly site-specific and, therefore, an extensive Wind Resource Assessment Programme is essential for selecting the potential sites. Therefore, Ministry placed emphasis on Wind Resource Assessment from the beginning and today India has abundant data, collected from over 800 wind monitoring stations installed all over India.
The Wind Resource Assessment Programme is being implemented in the country through the National Institute of Wind Energy (NIWE), an autonomous institution of the Ministry.
As per recent assessment conducted by NIWE with actual land availability estimation using NRSC Land Use Land Cover (LULC) data, indicates a gross wind power potential of about 302 GW @ 100 m in the country. This potential assessment has been carried out at a very high spatial resolution of 500 m, using the advanced meso-micro coupled numerical wind flow model, and with the corroboration of almost 1300 actual measurements spread all over India, which can be stated as first of its kind. State-wise present wind power potential at 100 m height is given in Table 1.
Commercial Development
Technology Development and Manufacturing Base
The Wind Electric Generator technology has evolved very rapidly in the country. State-of-the-art technologies are now available in the country for the manufacture of wind turbines. All the major global players in this field have their presence in the country. The unit size of machines has gone up to 3.00 MW. Over 50 different models of wind turbines are being manufactured by more than 20 different companies in India, through (i) joint ventures under licensed production (ii) subsidiaries of foreign companies, and (iii) Indian companies with their own technology. The current annual production capacity of domestic wind turbines is about 10,000 MW. The focus is to promote a technology suitable for low wind regimes of India.
Wind turbines and wind turbine components are exported to the US, Australia, Europe, Brazil and Asian countries. Around 70-80% indigenisation has been achieved with strong domestic manufacturing in the wind sector. The cost of Indian wind turbines is one of the lowest in the world.
Deployment
The annual growth picked up after enactment of Electricity Act, 2003. A total wind power capacity of around 32.3 GW was operational as on 31 March 2017. Year-wise cumulative wind power installed capacity is given in Figure 1. With an installed wind power capacity of over 7.86 GW, Tamil Nadu is top ranked in the country. During 2016-17, wind power capacity of 5,502 MW was added, which is the highest capacity addition ever achieved in a single year. The state-wise wind power capacity added during 2016-17 and cumulative wind power capacity as on 31 March 2017 is given in Table 2.
Generation
Central Electricity Authority (CEA) started compiling the renewable energy generation data from 2014-15 onwards. The State-wise quantum of energy produced from wind energy during 2014-15, 2015-16 and 2016-17 is given in Table 3.
Investment & Job Creation
An investment of around Rs 6 crore per MW is required for establishment of wind power project. Considering this normative figure, an investment of around Rs 33,000 crore was made in the wind energy sector in the country during 2016-17. For reaching a target of 60 GW by 2022, an additional investment of around Rs 1.8 lakh crore would be required in the sector over a period of next five years.
In wind energy sector for each MW capacity around 5 Full Time Equivalent (FTE) jobs are created during the first year for manufacturing, construction and installation and around 1.2 FTE jobs are created for 20 years for O&M activities.
Guidelines for Setting up Projects
To bring about healthy and orderly growth of the wind energy sector and to achieve optimum generation of power in the most efficient and cost-effective manner, the Ministry had issued revised guidelines for wind power projects in 1996. These guidelines relate to preparation of Detailed Project Reports (DPR), micro-siting, selection of wind turbine equipment, operation & maintenance, performance evaluation, etc. These guidelines have created awareness in the State Electricity Boards, State Nodal Agencies, manufacturers, developers and investors about planned development and implementation of wind power projects. However, with advancement in the wind turbine technology and requirement to comply various standards and regulations issued by CERC, CEA and other regulatory bodies, it was felt to issue comprehensive guidelines for development of onshore wind power projects in the country. Accordingly, new Guidelines for Development of Onshore Wind Power Projects have been issued on 22 October 2016 incorporating requirement of site feasibility, type and quality certified wind turbines, micro siting criteria, compliance of grid regulations, real time monitoring, online registry and performance reporting, health and safety provisions, decommissioning plan, etc.
Promotional Policies
The Government promotes wind energy sector in the country through fiscal incentives such as accelerated depreciation, concessional custom duty on certain components of wind electric generators and loan from Indian Renewable Energy Development Agency (IREDA) & other financial institutions. In addition, 100 percent FDI through automatic route is allowed in the renewable energy sector including wind energy sector.
Till 2016-17 preferential tariff was being provided to increase wind energy generation in the potential states. Preferential tariffs in wind potential states during 2016-17 are given in Table 4.
GBI Scheme
The Scheme of Generation Based Incentives (GBI) for grid interactive wind power was initially introduced in 11th Plan on 17.12.2009 with the approval of the Cabinet for taking up 4,000 MW in 11th Plan. Under the scheme a GBI of Rs. 0.50 per kWh with a ceiling of Rs. 0.62 crore per MW was provided to wind power project. The incentive was to be availed in not less than four years and in maximum of 10 years with an annual ceiling of Rs. 15.5 lakh per MW in first four years. Indian Renewable Energy Development Agency (IREDA) was designated as the implementing agency for the Scheme. The Scheme was later extended for 12th Plan period with increased ceiling of Rs 1.0 crore per MW. The Scheme was applicable for projects commissioned by 31.03.2017. Over 13,500 MW capacity wind power project registered under wind GBI Scheme and an amount of Rs 3020 crore has already been released to IREDA for disbursement of wind GBI claims.
New Initiatives
Amendment in Tariff Policy
Renewable Purchase Obligation (RPO) was introduced through Electricity Act 2003 mandating the obligated entities to procure a minimum percentage of their total energy procurement from renewables. The State regulators have declared the RPO level which ranges from 3% to 12% for the year 2016-17. The amended Tariff Policy notified in January 2016 provides for purchase of renewable energy by different states in more or less same proportion. The policy further provides for prescribing long term growth trajectory of RPO by Ministry of Power in consultation with MNRE. The MoP has issued RPO trajectory upto 2019 notifying uniform RPO across the country as under:
As the wind power potential is concentrated in 7-8 windy states to facilitate the inter-state transmission of wind power from windy state to other states of the country, the Tariff Policy provides for waiving of the inter-state transmission charges and losses for inter-state sale of wind power. The Ministry of Power (MoP), on 30 September 2016 issued order for waiver of ISTS charges and losses for wind power with following conditions:
i. The waiver is for projects commissioned till 31.03.2019 and for 25 years from the date of commissioning of the projects. Further, the waiver is available for projects having PPA with discoms for compliance of RPO.
ii. The waiver is allowed only for projects awarded through competitive bidding process.
Forecasting & Scheduling
Wind power is variable in nature and therefore, its large volumes possess challenges for grid security and stability. Many times, the wind power generators are backed down or put off the grid on this account. The issue could be addressed through proper forecasting and scheduling of wind power.
The CERC has already notified mechanism for scheduling and forecasting in case of inter-state transmission of solar and wind power. The states of Andhra Pradesh, Karnataka and Rajasthan have already finalized regulations for intra-state transmission of wind and solar power and the states of Gujarat, Madhya Pradesh and Tamil Nadu have notified draft regulations.
NIWE had undertaken forecasting and scheduling exercise in the state of Tamil Nadu in association with wind industry to provide forecast for the whole state. Proper forecasting by NIWE has resulted in better management of transmission system for evacuation of wind power in the state and during 2016-17 around 12 BU of wind power evacuated as compared to around 7 BU during previous year. Similar initiatives have been carried out by the states Rajasthan and Gujarat.
For proper forecasting and scheduling, it is necessary to put in place metering and communication infrastructure at all pooling stations for real time generation of data. PGCIL is working on establishment of Renewable Energy Management Centres (REMCs) initially in the renewable resource rich states.
Green Energy Corridors
Wind power potential is concentrated in 7-8 wind resource rich states. These windy states may not consume wind power beyond their RPO limit and therefore, wind power is to be evacuated from these resource rich states to the off-taker states. This requires strengthening of transmission intra-state as well as inter-state transmission infrastructure.
Green Energy Corridors Project that has identified transmission requirement for the renewable power capacity addition during the 12th Plan period is under implementation. Intra-state transmission infrastructure projects of total cost over ` 10,000 crore in eight states have already been approved and Central Government is providing 40% of the project cost as grant from National Clean Energy Fund and another 40% of the project cost is available as soft loan from German Bank KfW. The project is at different stages of implementation in states.
Repowering Policy
Most of the wind-turbines installed up to the year 2000 are of capacity below 500 kW and are at sites having high wind energy potential. It is estimated that over 3,000 MW capacity installations are from wind turbines of 500 kW or below. In order to optimally utilise the wind energy resources, repowering is required.
Ministry issued repowering policy in August 2016. The main features of the repowering policy are:
• Wind turbine generators of capacity 1 MW and below would be eligible for repowering under the policy.
• IREDA will provide an additional interest rate rebate of 0.25% for repowering projects.
• Benefits available to the new wind projects i.e. Accelerated Depreciation or GBI as per applicable conditions would also be available to the repowering project.
• In case augmentation of transmission system from pooling station onwards is required the same would be carried out by the respective State Transmission Utility.
• Additional generation would either be purchased by Discoms at Feed-in-Tariff applicable in the state at the time of commissioning of the repowering project or allowed for third party sale.
• State will facilitate acquiring additional footprint required for higher capacity turbines.
• For placing of wind turbines 7D x 5D criteria would be relaxed for micro siting.
• During the period of execution of repowering, projects would be exempted from not honouring the PPA.
Draft Wind-Solar Hybrid Policy
Solar and wind power being infirm in nature impose certain challenges on grid security and stability. Studies have revealed that solar and winds are almost complementary to each other and hybdridation of two technologies would help in minimising the variability apart from optimally utilising the infrastructure, including land and transmission system.
Accordingly with the objective to provide a framework for promotion of large grid connected wind-solar PV system for optimal and efficient utilisation of transmission infrastructure and land, reducing the variability in renewable power generation and thus achieving better grid stability Ministry issued draft wind-Solar Hybrid Policy.
The goal of the policy is to reach wind-solar hybrid capacity of 10 GW by 2022 and it policy aims to encourage new technologies, methods and way-outs involving combined operation of wind and solar PV plants. The Policy is under process of approval.
Wind Bidding Scheme
To enable Discoms of the non-windy states to fulfil their non-solar RPO obligation, through purchase of wind power at a tariff determined by transparent bidding process, a Scheme for Setting-up of 1000 MW Inter-State Transmission System (ISTS) connected Wind Power Projects was sanctioned by MNRE on 14 June 2016.
PTC India Ltd was selected as trading company to sign Power Purchase Agreement (PPA) with successful bidders and to sign back-to-back Power Sale Agreement (PSA) with state utilities or bulk consumers under the scheme. Solar Energy Corporation of India (SECI), the implementing agency of the Scheme issued bid documents on 28.10.2016 and e-reverse auction was conducted on 23 February 2017.
The first wind bid was concluded at record low wind tariff of Rs 3.46 per kWh of wind energy. The SECI issued Letter of Award (LoA) to five selected bidders on 5 April 2017 and the projects under the scheme are likely to be commissioned by October 2018.
After success of first wind bid, SECI has floated bids for another 1000 MW wind power projects and the bids were closed on 14 July 2017. In addition, states of Tamil Nadu and Gujarat have also started bidding process for procurement of 500 MW wind power each.
Wind bidding guidelines under Section 63 of Electricity Act, 2003 are likely to be issued by the Ministry of Power, which will enable the States to bid for wind power projects.
Development of Offshore Wind Energy
India has vast coastline of 7,600 km considering the development of offshore wind energy in the Indian Exclusive Economic Zone (EEZ), the National Offshore wind energy policy was approved and notified in October 2015. The Ministry of New & Renewable Energy (MNRE) has been authorized as the Nodal Ministry for use of offshore areas within the Exclusive Economic Zone (EEZ) of the country and the National Institute of Wind Energy (NIWE) has been authorized as the Nodal Agency for development of offshore wind energy in the country and to carry out allocation of offshore wind energy blocks, coordination and allied functions with related ministries and agencies.
Initial studies carried out by National Institute of Wind Energy indicate offshore wind energy potential in the coasts Gujarat and Tamil Nadu. For assessment of offshore wind power potential NIWE is in the process of installing LiDAR (Light Detection and Ranging) at an identified offshore site near Gujarat.
National Institute of Wind Energy
NIWE formerly known as Centre for Wind Energy Technology (C-WET), established at Chennai in 1998, is an autonomous institution under MNRE and serves as technical focal point for wind energy technologies. A Wind Turbine Test Station (WTTS) has also been established at Kayathar, Tamil Nadu, with the technical support and partial financial assistance from Danish International Development Agency (DANIDA), Denmark.
NIWE is providing its value added services including Wind Resource Assessment, Micro-siting, Due-Diligence Analysis of Wind Power Projects, Feasibility and Preparation of DPR, Wind Turbine Testing, Certification, Evaluation of Certificates, Research and Development with multi-institutional collaboration, preparation of standards, empanelment list of Small Wind Energy Systems (SWES) and their field performance testing, National and International training programmes. NIWE has been implementing on a mission mode Solar Radiation Resource Assessment (SRRA) all over the Country by having installed 119 real time networked SRRA monitoring stations.
NIWE has technical collaboration with international agencies. An MoU has been signed with Vortex, Spain for capacity building in wind power forecasting. Under this NIWE is successfully conducting forecasting and scheduling of wind generation in the State of Tamil Nadu. With GIZ, Germany collaborating for data quality checking, data analysis and automation of report generation and involvement in the SolMAP (Solar Atlas) preparation for India. NIWE in collaborations with TUV-Rhineland has started activity of type certification of wind turbines.
Small Wind Energy Systems
Small wind energy systems were being promoted by the Ministry through a scheme on “Small Wind Energy and Hybrid systems (SWES)”, wherein hybrid system consisting of both aero-generator/ small wind turbine and solar photovoltaic technologies were being installed. So far, a total of around 3155 kW small wind energy systems have been installed in 23 states or UT. The scheme was operational till 31.03.2017. An evaluation of the scheme was undertaken and it is proposed to redesign the scheme to increase its coverage.
Issues & Future Perspective
The Government has kept a target of reaching 60 GW by 2022. This means a capacity of around 27.7 GW is to be added in next five years with annual capacity addition of 5.5 GW. Most of the wind power capacity will now be installed for inter-state transmission as the windy states have almost fulfilled their non-solar RPO obligation and will not absorb variable wind power beyond a certain limit. Government has already taken positive step by waiving interstate transmission charges and losses for interstate sale of wind power; this will facilitate non-windy states to fulfil their RPO requirement by buying wind power from windy states. To further accelerate the process, bidding has already been introduced to have a suitable price discovery mechanism for interstate sale of wind power. In order to provide long-term visibility the ISTS waiver, which is available for projects to be commissioned by March 2019, should be extended upto March 2022.
With successful auction of wind power all the wind capacity is likely to be added through bidding route only. For projects to be established through bidding process around 21 months’ time is required (3 months for bidding process and 18 months for completion of projects). Bidding has started recently and therefore, wind projects selected through bidding process would not be commissioned during 2017-18, this may affect achievement of targets during 2017-18 and also 2018-19.
Focus is required on Repowering and Wind-solar hybrid by formulating promotional programmes and schemes. Wind power generators are facing certain challenges at State level that includes delay in payment, non-signing of PPAs, not-honouring ‘Must-run’ status and curtailment of wind-power, etc., and this is adversely impacting the wind sector. For achieving target of 60 GW of wind power capacity by 2022 conducive policy framework and programmes for RPO, repowering, Inter-state sale and hybrid technologies are required to be put in place.
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