a multi stakeholder perspective...fit/gbi & re law low cost increase limit yieldcos and primary...
TRANSCRIPT
A Multi Stakeholder Perspective
1
Agenda
• Wind Vision Initiative
• Setting up of Wind Vision : 200 GW by 2032
• Recommendations
– Wind Project Development
– Regulatory Incentives
Financing Wind Vision 2032– Financing Wind Vision 2032
– Grid Integration of Wind Energy in India
– Wind Solar Hybrids,
– Small Wind Turbines
– Repowering
• Actions to Scale up Market to 200 GW by 2032
2
Wind Vision Initiative
3
Key Drivers of Wind Power in India…1/3
Energy Security Concerns
Climate Energy Energy
4
Key Drivers of Wind Power
Climate Change
Cost Competitiveness
Energy AccessEnergy Access
Eco-System Readiness
Eco-System Readiness
• Energy Security:
– India ranks 4th and 6th globally as the largest importer of oil, and of
petroleum products and LNG, respectively
– Oil import bill: USD 64 billion in FY2016 (19.6% of Gross Imports)
– India’s Oil imports dependency is 81% of total consumption
• Climate Change:
Key Drivers of Wind Power in India…2/3
• Climate Change:
– India targets to reduce the emissions intensity of its Gross Domestic Product
(GDP) by 33%–35% by 2030
– This would require generating 40% of the electricity through non-fossil fuel
sources including Wind
• Increasing Cost Competitiveness:
– Wind Energy is moving towards Grid Parity
– INR 4.16 – 4.82 per unit of Wind Energy as compared to fossil fuel-based
generation of INR 4 – 5 per unit5
• Eco-System Readiness:
– Manufacturing capacity already exists
– FIT Policy regime is in place
– Capital cost* (1.08 USDm/MW) among the lowest in the world [as compared
to Germany: 1.36 MnUSD/MW, China: 1.60 MnUSD/MW, USA: 1.83
MnUSD/MW]
Key Drivers of Wind Power in India…3/3
MnUSD/MW]
• Poor Energy Access:
– At 620 kgoE, India’s per capita energy consumption is one of the lowest in the
world (1,807-China, 1,361-Brazil & 4,927- Russia)
– Per Capital Electricity consumption is lowest among BRICS (Brazil – 2.5 times;
Russia – 6.5 times, China – 3 times; South Africa – 4 times)
– Significant population still without access to electricity
– India has wind energy resources in abundance, can be tapped & used locally
*World Energy Perspective from WEC
6
Identify Electricity
Develop RE contribution Identify
Calculate Equivalent
Capacity
Setting of Wind Vision Target
7
Define Target Year
Electricity Requirement per annum
based on 18th
EPS of India
contribution trajectory based on NAPCC Targets
Identify Wind
Generation Requirement
Capacity based on
Generation Requirement and set it as a
Target
Deriving Wind Vision Target
Particulars 12th FYP
(FY 2016-17)
13th FYP
(FY 2021-22)
14th FYP
(FY 2026-27)
15th FYP
(FY 2031-32)
Projected electricity requirement per annum
(@ power station bus bars) based on 18th
EPS (billion units)
1,355 1,905 2,710 3,710
RE contribution based on NAPCC targets
(%) 12% 17% 22% 27%
1. Contribution of Renewable Energy is projected to be in the range of 27% by 20322. It is important that Wind Sector should contribute significantly
8
RE generation requirement (billion units) 163 324 596 1,002
Wind generation requirement in billion units
(BUs) (assuming 40% of total RE
requirement)
65 130 238 401
Cumulative wind installed capacity required
in GW (assuming average capacity
utilisation factor [CUF] of 23%)
32 64 118
199
(approx.
200 GW)
Segment wise Targets
(All figures in Giga Watt)12th FYP
(FY 2016-17)
13th FYP
(FY 2021-22)
14th FYP
(FY 2026-27)
15th FYP
(FY 2031-32)
Wind Vision Target 32 64 118 200
Offshore Wind
(10% of Wind Vision)6 12 20
9
Small Wind 0.10
Repowering 1 4 9 20
Onshore Capacity 31 54 97 160
�Address both current and future issues
�Scale up the annual capacity addition from present 3 GW to 12-15 GW
Wind Capacity: Business as Usual Vs. Wind Vision 2032
88
116
144172
200
59.97
7590
105
120
135
-
50
100
150
200
250
Win
d C
ap
aci
ty, G
W Wind Capacity: Business as Usual Vs. Wind Vision 2032
Business as Usual
Wind Vision 2032
• Important to identify changes in Policies, Regulations, Business Models, Structures, to scale
up the annual capacity addition from present 3 GW to 12-15 GW
• In order to scale up capacity addition, new business models need to be explored for:
– Reducing Wind Power Costs - Cost improvements and advancements in Technologies
– Deploying wind in such a way that it is no longer considered as a variable source. Eg. Battery
Storage and better scheduling and forecasting system
– Long Term Sustainable Development- Consistency and long term vision in policies
10
-
Potential Benefits of Wind Capacity Scale-up
•Considering emission factor (0.79 tCO2/MWh), GHG emission reduction overuseful life works out to 6158 Million tons of CO2 equivalent by FY 2031-32
•This translates to about 2.5 times of todays annual GHG emissions
Emission Reduction Potential
Job Creation Potential
11
•Estimation based on average direct long term job creation of 4 persons/MW asper MNRE HRD report
•Total job creation potential is estimated to be 8.7 lakh till FY 2031-32
•This translates to an approx. 48k annual job creation potential
•Landed cost of imported coal -Rs 6000/ton with GCV of 5,500kCal/kg and Heatrate of 2,172 kcal/kWh as per CERC
•Cumulative import bill reduction potential over the useful life of wind projects isestimated at around Rs 18.4 lakh crore
Import Bill Reduction Potential
Recommendations on various issues
12
Wind Project Development
Wind Resource
Assessment
Land Acquisition
Infrastructure-
Power
Evacuation and
Roads
Permissions/
Clearances
Segregation of Siting and WRA from Rest of Project Development Activities
Recommendations
13
Site
Identification
Site
Development
Roads
• Manufacturers, IPPs, PSUs and WRA entities would be at par (Level playing field for all)
• Multiple project development initiatives in parallel � increase project pipeline, sharebusiness risks, reduce timelines
• SNA to be responsible for WRA, DPR quality and land matters
• Power evacuation to be planned at high voltage on MW/GW scale
• Confidence to the Project Developers/Investors
Mega Wind Projects
• Significant investment required to achieve ~12 to 15 GW/annum.
• Private capital may not be able to bear such a huge risk
• Government involvement will be critical for risk mitigation if not as a
direct investor
• “Solar Park” concept need to be introduced in Wind Sector
Recommendations
• Govt. should take up GW scale wind park development till clearance
stage for multiple developers with well defined selection criteria
• Involvement of private investors for WRA as a separate activity
• Government could offer either entire Mega Wind Project or parts
through bidding route to developers
14
Regulatory Support Instruments
FIT / Preferential Tariff/ GBI
Renewable Concessions
• Consistent increase in RPO
• Strong compliance Regime
• Support should be continued till 2022 to restart wind economy
Recommendations
15
Regulatory Incentives
Renewable Purchase
Obligation
RE Certificate Mechanism
Concessions to RE Open
Access Transactions
• Energy based charges instead of capacity based charges
• CERC tariff for initial inter-state transactions
• APPC+REC mechanism for competitive procurement
Financing Wind Vision 2032
• Investment required to achieve the target is INR 17.08 lakh crore by FY
2031-32, translates to INR 1.07 lakh crore per annum from FY 2016-17
• Developing a longer term bond market - New products to be introduced,
appetite of long-term investors need to be increased
• Development of refinancing market, under which an apex refinancing
body to be established for better governance of market
Recommendations
16
body to be established for better governance of market
• RBI to modify its asset classification norms to bring more consistency
and similarity in NPA definition for bank and NBFC
• RBI to promote foreign currency long term deposits in banks from NRIs
and foreigners
• Introduction of New Financing Structures, primarily Yieldcos & REITs
Grid Integration of Wind in India
Planning:
• Lack of integrated generation & transmission planning considering RE
• Ageing and inadequate
Construction:
• No uniform grid interconnection process
• Funds for transmission infra. Development
Operation:
• Issues pertaining to forecasting and scheduling
• Fault ride through capabilities of WTGs
Challenges
Recommendations
17
• Ageing and inadequate transmission corridors • Right of Way (RoW)
issues and local challenges
capabilities of WTGs
• Reactive power issues
•Adopt Integrated Transmission-
Generation-Load Planning
•Amendments to Planning Codes
of the State Grid Codes
•Active participation of all
stakeholders including wind
generators in grid coordination
committee
Solutions
•Development of standard
interconnection process for RE
•Exploring PPP model or
Independent Private Transmission
Company (IPTC) model for RE Tx
Schemes
•Prioritize infrastructure projects
for RE
•Establishing visibility and
communication links between
wind farm pooling stations and
SLDCs.
•Establishment of REMCs
•Development of balancing
frameworks at state and regional
level.
Forecasting and Scheduling
• Need for visibility:
─ Additional IT infrastructure to be established for visibility of pooling stations
• Robust communication facility:
─ Need for establishing communication facility for tracking real-time generation ofpooling station at SLDC
─ Who would install? Who would bear the cost for establishing the communicationnetwork
Recommendations
network
• Need for uniform settlement mechanism:
─ Different practices for generator payment exist in different States.
─ Institutional Set up and deviation Settlement mechanism.
18
100% metering at Pooling station
level
Establishing telemetry b/w
SLDCs & pooling SS
Appointment of QCAs at pooling
station level
Amendment of State Grid Codes
Implementation Roadmap
Wind-Solar Hybrids
• Introduction of RE Hybrid Policy at National level
• Funding support/Fiscal benefits for Wind-Solar Hybrid Projects
• Amendments in Metering, Energy Accounting and other procedures
• Preference in State/Central Transmission Utility and Evacuation
planning
Recommendations
19
• Separate measurement of wind and solar generation and separate
treatment in respective RPOs
• Modification in RPO and Renewable Energy Certificate (REC)
Regulations for RE Hybrid Projects
Small Wind Turbine (SWT)
• In-depth assessment of the market for small wind power/solar-wind
hybrid systems (both off-grid & grid connected)
• R&D Support to identify and commercialize technologies suitable for
Indian environment
• With dropping storage prices, SWTs are expected to become financially
viable
Recommendations
viable
• Regulatory support for connecting small wind turbines to grid through
net/gross metering is required
• FIT/ GBI for gross generation from SWT, irrespective of location of
small wind turbine
20
Repowering of old WTGs
• Government should initiate the continuous repowering program.
• For permitting re-powering, existing project should have maximum
balance life of 10 years and wind turbine capacity of each WTG < 1 MW
• All captive, third party sale and sale to State Discom projects to be
considered for re-powering,
Recommendations
• MoP Rules for Captive Generating Station should be relaxed in case of
repowering as more than 60% of old WTGs are in captive mode
• Micro-siting criterion may be relaxed in case of repowering project
• Appropriate re-powering ratio to ensure more energy yield
• Generation linked re-powering incentive for period uptp 10 years
21
Actions to Scale up the Market to 200 GW by 2022
22
Actions to Scale Up the Market to 200 GW by 2032
Regulatory, Policy
& Tax Incentives
Financing Wind
REC as Statutory Instrument
FiT/GBI & RE Law
Low Cost Increase Limit YieldCos and
Primary Responsibility
Govt. of
India
Govt. of
Short Term Medium Term Long Term
Themes
23
Financing Wind
Sector
Wind Power Project
Development
Procurement of
Wind Power
Grid Integration of
Wind Energy
Green Corridor toInclude
Higher Targets
Creating of RE Transmission
Planning Authority
Development of Ancillary Markets
Strict RPO Compliance
Promoting –Inter-State Sale of Wind
Power
Developing Competitive
Bidding Framework
Nationwide Wind Resource
Assessment Study
Project Identification
Model
Low Cost Funding
Increase Limit of ECB
YieldCos and REITs
Govt. of
India
CTU/CEA
CERC/
SERC/
MNRE
SNA/
MNREMega Wind/ Hybrid Parks
Thank You
24