market research india - wind power market in india 2009

7/31/2019 Market Research India - Wind Power Market in India 2009

1/26

February2009
http://www.netscribes.com/


2/26


3/26

MarketOverview

Trends

KeyDevelopments

3WINDPOWER INDIA.PPT


4/26

WindpoweristhefastestgrowingrenewableenergysourceinIndia

andisvaluedatUSD2.5bn

Thewindpowerinstalledcapacityis9645MW(asof

Feb09)

Overview Sizeand

Growth

InstalledCapacity(endingMarch)

Thepotentialcapacityofwindpoweris45195MW

Windpowertechnologyisdominatedbyonshore

installations(land

based)

of

turbines

Windpowerisusedforbothcaptiveconsumption

9,645

7,8456,3204,430

3,0005,000

10,000+34%

an n epen en ower ro ucer mo e :

Almost80%ofthepowergeneratedisusedforcaptive

consumption

SegmentedStatewisePotentialSegmentedStatewiseInstallations

0

20082004 20072005 2006

Gujarat

15%

Karnataka21%

12%

Karnataka

6%

Rajasthan20%

Maharashtra100%=45,195MWAsofSept.2008

100%=9521.80

8%

2%

12% MadhyaPradesh

Maharashtra

4%

12%

7%

1%

WestBengal

18%AndhraPradesh14%Gujarat

44%Others4%


OrissaRajasthan

am a u


5/26

MarketOverview

Trends

KeyDevelopments



6/26

Drivers&Challenges

Challenges

Drivers

Unavailabilityoflandforwindfarms

Governmentinitiatives

Costcompetitiveness

Lackinginfrastructure

Globalshifttocleanenergy



7/26

Positivegovernmentpolicytowardsreducingcostsforinvestorsisthe

majordriverinthemarket

Centralgovernment

initiatives Impact

DirectTaxes

Benefitofacceleratedde reciation 80%inthefirst ear

Additionaldepreciation@20%forprojectsbeingcommissionedafterMarch2005withnew

plant&

machinery

10yearincometaxexemptionforprofitsfromwindgeneration

ExemptionofExciseDutyondevicessuchas

Windoperatedelectricitygenerator,itscomponentsandpartsthereof

Water

pumping

wind

mills,

wind

aero

generators

and

battery

chargers

Sales Tax

Exemption/reductioninCentralSalesTaxandGeneralSalesTaxareavailableonsaleofrenewableenergy

equipmentinvariousstates

GenerationBasedIncentive(GBI)schemeforgridconnectedprojects

Offeredto

independent

power

producers

who

do

not

avail

of

accelerated

depreciation

BenefitofRs.0.50perunit(kwh)foraperiodoftenyears

FinancialIncentive

Financingofupto70%ofeligibleprojectcost



8/26

Stategovernmentshavealsoprovidedlocalizedincentivestoattract

playerstoinvestintheirrespectiveStates

State Wheeling Banking Buyback Third

party

sales

AndhraPradesh 2%ofenergy,inadditionto

veryhightransmission

12months PresentlyINR3.37w.e.f01.04.2004

(frozenfor5years)

Allowed;butsubjectto

APERCRegulations

am a u o energy or mon s . w o owe

Karnataka 5%ofenergy+1.15kwhas

crosssubsidy

for

3rd

party

sale

2%everymonth

for12

months

INR3.40/kwhnoescalationfor10

years

AllowedtoHighTension

industrialconsumers

Kerala To be decided b SERC 9 months INR 3.14 kwh for 20 ears None

(JuneFeb)

Gujarat 4%ofenergy 6months INR3.37/kwh NotAllowed

WestBengal 2%

of

energy 6

months To

be

decided

on

case

to

case

basis

withacapofINR4/kwhNot

Allowed

MadhyaPradesh 2%ofenergy+Transmission

chargesbySERC

NotAllowed Present:INR3.97/kwh

5th 20thyear:INR3.30

Allowed

Maharashtra 2%ofenergy

+5%

T&D

loss

2%for12months INR3.50/kwhwithescalationofINR

0.15

per

unit/year

for

13

years

from

Allowed

DoCofproject

Rajasthan 2%ofEnergy 2%for12months Currentlyat INR3.32/kwh Allowed

UttarPradesh 2%ofenergy 12months INR2.25/kwh(5%Esc.9596) Allowed

NOTES:

8WINDPOWER INDIA.PPTNETSCRIBESBRTEMPLATEV4.PPT

ee ng: arges mpose onent t esus ngpower orcapt veconsumpt onatt e rs tesroute t roug t estategr

Banking:

Storageof

power

generated

by

producers

with

the

State

Electricity

Boards

which

can

be

drawn

for

future

use


9/26

Lowcostofpowergenerationandfastrecoveryofinvestmentsmade

aresomebenefitsinthemarket

Costcompetitiveness Impact

Cost/kWhofgenerationiscomparable toconventionalpowergeneration

Norecurringcost Investorbearonlyinitialcapitalcostsincewindisanaturalresourcethus

zeroinputfuelcost

Paybackinshorterdurationascomparedtootherenergysources

Operationandequipmentmaintenancecostsarelow

Lowgestationperiod

Electricpowergenerationcanbeputonlineinaslowassixmonths

Technicaloperatingavailability98%

Higheroperating

availability

(the

proportion

of

the

time

in

which

the

equipment

is

available

too erate com aredtootherelectricit eneratin technolo

15

cents/kWh

11.1

15

1211

15

cents/kWhLowerEstimate UpperEstimate

0

54.8

3.95.1 5.8

4.066

4

0

5


BiomassCoal Wind

(without

incentives)

NuclearHydro

Gas Gas Coal Wind

(without

incentives)

Hydro

Biomass Nuclear


10/26

Theneedforcleanenergy,constantlydevelopingtechnologyandthe

volatilityinfuelpricesisexpectedtoboostthisindustry

Stronglobbyingbyinstitutionstowardscleanenergygenerationcoupledwithgovernmentactiontoreducelevelsofgreenhousegaseshasgivenaboostto

Globalshift

towards

clean

energy Impact

smar e

Continualimprovementsarebeingmadeintheabilityofwindturbinesto

capturewind

energy

Increaseinpowerandsizeofturbines,improvedpowerelectronics,betteruseof

Costofonshorewindpowerhasdecreasedbyabout80%duetotechnologicalgrowth

Recentvolatilityinthepricesofcrudeoilhasaffectedlevelsofdemand.Thiswill

actas

amajor

driver

in

the

market

as

players

are

more

inclined

towards

using

ower enerated throu h alternative inexhaustible sources of ener withmarginalfluctuationsinprice

150

USDperbarrel

0

50

100

Crudeoilprices


Fe

08

Nov

07

Ju

07

Nov

08

Dec

07

Mar

07

Dec

08

Aug

07

Jan

07

Sep

08

Jan

09

Sep

07

Dec

06

Jan

08

May

07

Ju

08


11/26

Thecompletedependenceonclimaticconditionleadstovariabilityin

powergenerationwhichactsasanobstacletorecovercosts

Variablesource

of

power Impact

ea w n sareo serve ur ng ay ep name y e ou wes onsoon,

therebycreatingachallengeasanintermittentsourceofenergy

Suppliersfacehighfixedcosts

asequipmentandsetup

costis

large

Recoveringcostisan

impedimentasrequisitepower

isgeneratedoveralimited

periodinayear

Furtherinvestmentisrequired

topurchaseasystemtostore

energy inordertocurtail

fluctuationsinpoweroutput

Lowvariablecostas

maintenancechargesare

relativelynegligible



12/26

Unavailabilityofsuitableterrainandthelackofbasicinfrastructure

aresomechallengesintheindustry

Lackof

land

to

set

up

wind

farms Impact

Highlysitespecific

WindfarmscanbesetupatMNESidentifiedpotentialsites(whereithasameanannual

windpowerdensityof200W/m2 or moreat50mabovegroundlevel)

Impact

on

wild

lifeGovernmentlandintheformofreserveforestsisnotavailableforsettingupwindfarms

becauseofthepossibleadverseimpactonwildlife

Lackofinfrastructure

Delayinlandallotmentandclearanceduetoinefficientgovernmentoperations

Poortransportationinfrastructure

Thereexistconstraintintransportationandinstallationoflargeturbinestowindfarms

locatedinruralareas

Inadequategridcapacitytotransmitthepowergeneratedleadingtoinefficienciesin

powergeneration



13/26

MarketOverview

Trends

KeyDevelopments



14/26

KeyTrends

Investorsaremovingfrom

captiveconsumptionmodelto

independentpowerproducing

Largeenergycompaniesare

enteringthemarketcapitalizingOffshorewindenergyis

becomin

moreattractive

than

ont ecost ene tsava a eandthelackofcompetition

onshorewindenergy



15/26

Existingopportunitiesforthesaleofpowercommerciallyisbeing

realized andashiftfromonshoretooffshoretechnologyisobserved

Shifttowards

IPP

Model

PlayersTurbineManufacturers

capitalizingon

profitincentives

Previouslysold

wind

farms

tocorporatehouseswho

generatedpower

Independentlyproducing

powerandsupplyingittothe

government hence

Offshoretechnology

maximisingprofitsShiftdueto

GBIscheme

Growthinoffshoretechnology

Turbinesinstalledinseabedsexperiencestrongerwindsthanonshoreinstallation

Lessobtrusivecomparedtoturbinesonland

Strongprospects

dueto

technological

Examplesare

RameshwaraminTamilNaduandMundraatGulfofKutchhavewindpowerdensityofabout350to500

watt/m2

Other otentiallocationsincludeWesterncoast es eciall theGu aratcoastline



16/26

Energygiantsaremovingtowindpowergenerationduetothelarge

scopeofgrowthavailableintheindustry

Largeenergy

companies

moving

to

wind

power

LackofCompany ProposedInvestment

attractedenergy

giants

ONGC PlanningtoinvestUSD123mninGujarattowardsgenerating10002000mwof

windenergy

Italso

plans

on

investing

USD

61

mn

in

Karnataka

towards

wind

power

generation

proposes ose up . mwo w n powerpro ec n u ara nves ngover

5mn

KarnatakaandMaharashtraarealsobeingconsideredaswindpowergeneration

sitescan

combined

installed

capacity

of

19

mw

is

expected

e ance

Energy

ans o eve opa . w n armpro ec a og ma , a u a r yur,an

DistrictChitradurgainKarnataka

TataPower Thecompanyplanstoexpandtheirwindpowerproductioncapacityfrom

200MW

to

500MW

by

2011



17/26

Market

Overview

Trends

KeyDevelopments


l h l h f


18/26

SuzlonEnergyisthedominantplayeramongthemanufacturers

(1/5)

No. Manufacturer Rating

1

Detailsas

on

31st

Mar

2008

kW Nos.2

MW

1 ABAN Kenetech 410 231 94.71

2 AMTL WindWorld

.

250 328 82

500 3 1.5

3 BHEL55 16 0.88

.

4 BHELNordex200 79 15.8

250 184 46

5 CWEL250 94 23.5

.

6 DanishWindpower 150 12 1.8

7 DasLagerwey80 9 0.72

250 284 71

.

9 IndiaWindPower 250 8 2

10 GEWindEnergy 1500 14 21

200 1 0.2

NOTE 1:Ca acit ofwindturbines


.

600 12 7.2 manufactured2:Totalnumberinstalled


19/26

(2/5)


1

Detailsas

on

31st

Mar

2008

kW Nos.2

MW

230 452 103.96

12 Enercon.

600 719 431.4

800 1390 1112

13 Himalaya140 4 0.56

.

14 Kirloskar WEG 400 8 3.2

15 Micon(Pearl) 90 99 8.91

16 Mitsubishi 315 6 1.89

17 NedwindWindia 500 20 10

550 35 19.25

18 Pegasus 250 9 2.25

.

20 SangeethCarter 300 25 7.5

21 NEPCIndia

225 962 216.45

250 16 4



.



20/26

(3/5)


1

Detailsas

on

31st

Mar

2008

kW Nos.2

MW

55 14 0.77

22 NEPCMicon

.

200 50 10

225 589 132.53

250 528 132

.

600 2 1.2

23 PioneerWincon

110 10 1.1

250 461 115.25

.

24 REPL Bonus

55 22 1.21

100 1 0.1

320 60 19.2

26 SouthernWindfarm 225 349 78.525

27 Tacke

250 4 1

600 21 12.6



.

28 SIVA 250 1 0.25 manufactured2:Totalnumberinstalled


21/26

(4/5)


1

Detailsas

on

31st

Mar

2008

kW Nos.2

MW

270 2 0.54

29 Suzlon

.

600 366 219.6

1000 81 81

1250 1836 2295

.

2000 1 2

2100 1 2.1

30 TextoolNordtank300 65 19.5

.

31 TTG/ShriramEPC250 351 87.75

1350 1 1.35

55 31 1.71

32 Vestas RRB

.

100 5 0.5

200 56 11.2

225 772 173.7



.



22/26

(5/5)


1

Detailsas

on

31st

Mar

2008

kW Nos.2

MW

750 772 579

.

1650 291 480.15

34 WindMaster 200 1 0.2

35 Windmatic 55 30 1.65

.

TOTAL 14886 8697.93



manufactured2:Totalnumberinstalled


23/26

MajorwindpowergenerationinstallationsinIndia(1/2)

PowerPlant Owner Location TotalCapacity(Mwe)City State

VankusawadeWindPark SuzlonEnergyLtd. SataraDist. Maharashtra 259

CapeComorim AbanLloydChilesOffshoreLtd. CapeComorim TamilNadu 33

KayatharSubhash SubhashLtd. Kayathar TamilNadu 30

Ramakkalmedu SubhashLtd. Ramakkalmedu Kerala 25

Mu andal Wind Mu andal Wind Farm Mu andal Tamil Nadu 22

Gujdimangalam GujdimangalamWindFarm Gujdimangalam TamilNadu 21

PuthlurRCI Wescare(India)Ltd. Puthlur AndhraPradesh 20

LamdaDanida Danida

India

Ltd. Lamda Gujarat 15

ChennaiMohan MohanBreweries&DistilleriesLtd. Chennai TamilNadu 15

JamgudraniMP MPWindfarmsLtd. Dewas MadhyaPradesh 14

JogmattiBSES BSESLtd. Chitradurga Karnataka 14

PerungudiNewam Newam

Power

Company

Ltd. Perungudi Tamil

Nadu 12

KethanurWindFarm KethanurWindFarm Kethanur TamilNadu 11

HyderabadAPSRTC AndhraPradeshStateRapidTransit

Corp.

Hyderabad AndhraPradesh 10

Mu andalMadras MadrasCementsLtd. Mu andal TamilNadu 10


PoolavadiChettinad Chettinad

Cement

Corp.

Ltd. Poolavadi Tamil

Nadu 10


24/26

Market

Overview

Trends

KeyDevelopments



25/26


26/26

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