Kenergy Infrapresentation(Aravind Format) (1)

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Building Sustainability Privileged and Confidential – © 2010 Kenergy Wind Farms. All Rights Reserved Recipients of this document agree that they will not without the express written permission of Kenergy Wind Farms, copy, reproduce or distribute this document in whole or in part to individuals or entities outside the recipient company, or use the contents hereof for any purpose other than to evaluate the proposal describe herein. Introduction to Wind Energy Infrastructure Business

Transcript of Kenergy Infrapresentation(Aravind Format) (1)

Building Sustainability

Privileged and Confidential – © 2010 Kenergy Wind Farms. All Rights Reserved

Recipients of this document agree that they will not without the express written permission of Kenergy Wind Farms, copy, reproduce or distribute

this document in whole or in part to individuals or entities outside the recipient company, or use the contents hereof for any purpose other than to evaluate the proposal describe herein.

Introduction to Wind Energy Infrastructure Business

Introduction

Pre-Development Development Management

• Pre-Development Feasibility Study

• Civil Construction (Roads, Drainages)

• Supervisory Control and Data Acquisition

Kenergy Infra provides Infrastructure Development and Management Solutions to Wind

Parks. As a end-to-end solution provide we build and operate Wind Parks for our clients.

Feasibility Study

• Wind-Monitoring Solutions

• Wind Turbine Generator (WTG) Structural Design

• Site Design Optimization

(Roads, Drainages)

• WTG Foundations

• Electrical Works (Underground, Cable Networks, Switchgear and Transformers)

Data Acquisition (SCADA) system

• Computerized Wind Farm Management

• Wind Data Collection & Performance Monitoring for each WTG

Wind Farm Infrastructure

75%WTG

8%Civil Works

Electrical Grid &

Efficient management of Wind Parks is the key for any wind-based power generation plant to achieve targets

The infrastructure constitutes a significant part of the overall project cost: A typical breakdown of Wind Park Project

WTGWind TurbineGenerators

12%

5%

Electrical Grid &Connectivity

(SCADA) &MiscellaneousSupervisory Control and Data Acquisition

Wind Park Management is beyond WTG maintenance and allied factors like Civil Works and Grid Connectivity and SCADA play an important role in profitability

Pre-Development Solutions

• Feasibility Studies : Site analysis to determine wind project feasibility based on site inspections, wind resource

information, regulatory requirements, energy market conditions and renewable tax benefits, and discussions with

stakeholders such as local authorities, landowners, and electrical network operators.

• Wind Measurements and Analysis : performing direct wind measurements to augment available meteorological data.

This process could take a year or two depending on the quality of existing wind data.

• Backfeed, Power Purchase, and Interconnection Agreements : Agreements on grid interconnection and power

transport must address utility concerns regarding transmission capacity, reliability, and effects on grid operations.

Power purchase agreements can be simple energy-only contracts or more sophisticated arrangements that include

capacity, energy, ancillary services, dispatchability, and other grid support services

• Regulatory Compliance: Development of site as per the requirements of concerned departments of government

(Ministry of Environment, Department of Revenue, Ministry of Power and National Grid / State DisCom)

• Property or Land Agreements: Property or Land Agreements needed to operate large wind farms differ significantly

from that for distributed wind projects with many small clusters on farmland or other individually owned property.

Property arrangements typically must meet financial, environmental, zoning, and leasing objectives of the different

stakeholders.

Civil Works

• Site design and feasibility of construction

• Roads and drainage layout to support wind turbine locations

• Wind turbine foundations;

• Met mast foundations (and occasionally also the met masts); andthe met masts); and

• Buildings housing electrical switchgear, SCADA central equipment, and possibly spares and maintenance facilities.

• Project Road Optimization: Review of turbine locations and develop practical road layout WTG Foundation

Electrical Grid & Connectivity

• Equipment at the point of connection (POC), whether owned by the wind farm or by the electricity network operator;

• Underground cable networks and/or overhead lines, forming radial ‘feeder’ circuits to strings of wind turbines;

• Electrical switchgear for protection and disconnection of the feeder circuits;of the feeder circuits;

• Transformers and switchgear associated with individual turbines (although this is now commonly located within the turbine and is supplied by the turbine supplier);

• Reactive compensation equipment, if necessary; and

• Earth (grounding) electrodes and systems.

Support for Balance of Plant (BOP) and Turbine Supply Agreement (TSA) solicitation, negotiation and selection recommendations

SCADA Supervisory Control and Data Acquisition

• Central computer;

• Signal cables to each turbine and met mast;

• Wind speed and other meteorological transducers on met masts; and

• Electrical transducers at or close to the POC.

• Wind Data Collection & Performance Monitoring for each WTGMonitoring for each WTG

SCADA ensures that each WTG in the park is working efficiently. The availability of maintenance depot within the site ensure quick turnaround for any issues faced by WTG

• Maintenance Depot to for WTG overhauling for blade cleaning

• Supervisors and technician crews for preventative maintenance

• State-of-the-art Tower Cleaning

Maintenance

Development Solutions

• Basic and Detailed Engineering and Design: The conceptual design presented in feasibility study is evolved into a basic

design followed by detailed design. These stages incorporate technical details from the selected supplier of major

equipment. Often, cost-benefit studies are performed to optimize a design or solution.

• Contract negotiations: Contraction negotiations are required for the procurement of major equipment and construction

services.

• Project Management : The project management team will includes experienced project managers and project controls

(budget and schedule control). Additional support staff capability includes safety, procurement, logistics and quality. The

project management team advances the successes brought about during the project development phase. project management team advances the successes brought about during the project development phase.

• Site Management / Construction Management: Construction manager(s), field engineers, safety officer, logistics, quality

control and project controls officer to manage site during construction. The site team is an extension of the project

management team.

• Community and Agency Coordination: Construction Manager to coordinate many functions involving the local community

of government agencies, including local building inspectors and environmental/ safety agencies.

• Commissioning – Commissioning specialists will transition the project from a construction program into an operating facility.

Detailed Standard Operating Procedure provided to the Site Management team with training to manage the site.

COMPENSATION & KEY BENEFITS

Ø Reduced Start-up risk

Ø Pre-identified site with prebuilt soft - hard infrastructure

Ø Feasibility Studies Conducted

Ø Reduced Time Frame to initiate Projects

Ø Wind Measurements and Analysis :Comprehensive wind resource assessment / study with complete analytical reports

Ø Regulatory Compliance : All basic regulatory approvals for wind power projects available and access to services to get all infrastructure clearance permits in-house(within the farm)

Ø Electricity transmission and evacuation facility provided.Ø Electricity transmission and evacuation facility provided.

Ø Backfeed , Power Purchase, and Interconnection Agreements facilitated

Ø Roads and drainage layout to support wind turbine locations

Ø Property or Land Agreements

Ø Access to world class consultants for advisory (EPC , Financial , Legal, CDM etc)

Ø Dual option : Lease / Outright

Ø Single Window Clearance for Property Tenancy / Acquisition

Ø Reduction in Capital cost ( considering 25% cost of project associated with infra cost )

Ø Access to Our Power Trading Desk and Emission Trading Desk

Ø Scalable (increase installed capacity as and when required )

Leadership Profiles

Vinay Rao Chairman & Managing Director

Mr. Vinay Rao is the Chairman and Managing Director of Kenergy Wind Farms. Mr. Rao brings with him over 15 years of rich entrepreneurial experience in international business and technology. In the past he has successfully launched international marketing, sales and distribution and information technology businesses with a strong focus on the Asian and European Markets.

He also serves as the Chairman and Chief Executive Officer of M/s KalimaCapital Financial Services Pvt. Ltd, a boutique environment consulting and financial services firm serving clients in the international carbon markets. Mr.

Rashi KapoorChief Operating Officer & Director Commercials

Ms. Kapoor is the Chief Operating Officer & Director Commercials at Kenergy Wind Farms. An entrepreneur with a decade long experience in various industry sectors of Information Technology, Consumer goods and energy and environment infrastructure. She has successfully started and led companies of her own in the above sectors. Ms. Kapoor’s leadership, technology insight and operational expertise have strengthened Kenergy’sculture of innovation, expanded the company into new markets, and extended its service portfolio and global reach.

She has been a co-founder of the Company and responsible for the Rao plays the lead role in defining the company strategy and in implementing the Kenergy Wind Farms’ growth plans. He is known for his zeal to build sustainable businesses that act as a catalyst in collaborative growth of all stakeholders. Earlier in his career, Mr. Rao started New Alliances Marketing Company that created a niche for itself in the consumer durables industry.

Mr. Rao holds a Masters degree in Business Administration with specialization in finance.

administration and company’s day-to-day global operations, strategic partner alliances, investor relations, finance and corporate development. Her strong Management skills have helped the organization to overcome challenges and bring motivation into each venture leading to creation of strong and sustainable business models. Ms. Kapoor's leadership drives integrity and commitment to all serving clients, investors and partners instilling a culture of agility, innovation and client satisfaction that uniquely differentiates the company from its competition. She also is the director of M/s Kalima Capital Financial Services Pvt. Ltd., partner director of E3x.asia and CEO of Vera Exports International.

She holds a Bachelors Degree in Science and has done her Post Graduate Diploma in Business Administration with dual specialization in finance and International Business.

Leadership Profiles

Anju MehrotraExecutive Director - Investor Relations

Ms. Mehrotra is Executive Director of Investor Relations at Kenergy Wind Farms. Ms. Mehrotra brings with her 17 years of Professional Business Experience in the field of Customer relations and business communication. In addition, she focuses on business development, expansion and alignment of key corporate alliances to complement Kenergy’s portfolio of solution offerings. She oversees all aspects of the company’s investor relations program, working closely with Kenergy’s executive team to manage Kenergy’s relationship with the investment community.

S. Madan Mohan RaoDirector - Projects

Mr. Rao is the Director of Projects at Kenergy Wind Farms. A veteran Chartered Engineer with almost 40 years of experience in the field of construction and design of a broad range of infrastructure projects. He has worked in the Middle East (gulf territory) and India and has therefore a wide understanding of the design standards, forms of contract and construction methods in these countries. Mr. Rao has strong interpersonal and communication skills and can lead teams of engineers and technicians and work well as a project manager of multidisciplinary teams. He liaises well with clients and utilities providers, statutory authorities and other stakeholders. His approach is to solve problems, come-up with innovative schemes and to deliver cost effective solution for clients. He has capabilities and experience to develop a team or group and is also familiar and experienced in business development within India and

Ms. Mehrotra has worked more than 17 years in the software and consumer durable industry with experience spanning a variety of disciplines, including engineering, consulting services, sales, management and investor relations. She has strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other communities. She is actively responsible for the firm’s fund raising efforts .Ms. Mehrotra is also Aggregation Head of the Emission Trading Division of M/s Kalima Capital Financial Services Pvt. Ltd.

She holds a Degree in Electronics Engineering and a diploma in public relations.

a team or group and is also familiar and experienced in business development within India and capable of producing Pre-qualification Documents, Feasibility Studies, Technical and Financial Proposals for Infrastructure Projects for different government agencies including liaise with clients and giving presentation, etc. Having worked for World Bank very early in his career , he is also aware of the World Bank and the Asian Development Bank formats for submitting Technical and financial Proposals.

Previously he has worked for the Central Government of India and the Abu Dhabi Government for infrastructure projects. He has a brief experience working in USA for engineering projects as well. Mr. Rao is the CEO of Racons (Company into consulting and implementation of various structure and civil related projects).

He is a qualified govt. approved structured engineer, and holds a Bachelor Degree in Civil Engineering, is a chartered engineer as well. He is associated with International Federation of Consulting Engineers (FIDIC, Paris)

Leadership Profiles

Sritanu ChatterjeeExecutive Director – Structured Finance

Mr. Chatterjee is Executive Director of Structured Finance and Risk Management at Kenergy Wind Farms. He is responsible for financial structuring of new projects and acquisition of Brownfield projects. He oversees the enterprise-wide risk management of the organization. He began his career as an engineer in Polaris Software Labs. He has been instrumental in building software solution for global financial institution in the area of private

Ankesh Jain Independent Executive Director - Legal Compliance

Mr. Jain is an Independent Executive Director for Legal Compliance at Kenergy Wind Farms. He is responsible for ensuring statutory compliance of all matters and leads the corporate governance efforts to make Kenergy Wind Farms a trusted and transparent organization. Apart from conducting periodic risk assessment and response plans he also helps the

Navin MagantiIndependent Executive Director – Business Transformation

Mr. Maganti is an Independent Executive Director for Business Transformation at Kenergy Wind Farms. He is responsible for creation and delivery of transformational business processes that help in increasing shareholder value. His responsibilities also include setting up and monitoring of internal control & MIS mechanisms that increase efficiency and effectiveness of Kenergy’sbusiness processes. Mr. Maganti brings over eight years of practical Business Process Management (BPM) and Management Consulting experience. global financial institution in the area of private

and retail banking space.

Prior to joining Kenergy Wind Farms, he has worked with the Netherlands Development Finance Company (FMO). At FMO he has worked in structuring investment deals and have done credit review for private sector banks in the South East Asian region.

Mr. Chatterjee is a BE in Mechanical Engineering National Institute of Technology, Bhopal and has completed Master in Financial Management from RSM Erasmus Universiteit, the Netherlands.

response plans he also helps the organization in implementing standards through compliance program.

He has interned with Reserve Bank of India’s Legal and Compliance Department and has successfully completed a project on FEMA. In the past he was associated with Obhan and Associates (Delhi), Sushil Kumar Sinha(Gaya), Manish N. Jain & Associates (Ranchi), Foxmandal & Little (New Delhi).

Mr. Jain holds a bachelor’s degree in Arts and has a degree in Law, LLB (Hons.) from The National University of Advanced Legal Studies.

Management Consulting experience.

He has worked along leading technology organizations as SAP, Oracle and BMC in a multitude of industry verticals such as Financials, Consumer Packaged Goods and Telecommunications. Earlier in his career, Mr. Maganti was the Senior Consulting Manager at IDS Scheer, leading business development and delivery of BPM, EA and SOA solutions across North America and Canada. He is also on the board of Confiance Group, a management consulting firm.

Mr. Maganti holds a Master of Science in Business Administration and an Information Technology degree from Temple University, as well as a Bachelor of Science in Electrical Engineering from Pune University in India.

Opportunity for Growth

• The capital cost of producing wind turbines has fallen

steadily over the past 20 years

• Turbine design has been largely concentrated on the

three-bladed upwind model with variable speed and

pitch blade regulation, manufacturing techniques have

been optimised

• Mass production and automation have resulted in

economies of scale

• Since late 2008, global turbine prices have dropped by

18% for turbines to be delivered in the first half of 2010*

Estimated Investment & Employment Opportunities in Wind Energy Business

* New Energy Finance, Press release: Newly launched Wind Turbine Price Index

shows an 18% decrease in contract prices for delivery in H1 2010 (29 July 2009)

Growth of Wind Market in India

• Wind energy is continuing to grow steadily in India.

• Wind power capacity of 4,889 MW was added in the

last three years, taking the total installed capacity to

10.2 MW on 31 March 2009, up from 7.8 G GW at the

end of 2007.

• Tamil Nadu, which maintains its position as the state

with the most wind power, with 4.1 G GW installed at

the end of 2008, representing 44% of India’s total wind

Ten year growth of Indian Wind MarketCumulative Capacity in mw(1999-2008)

the end of 2008, representing 44% of India’s total wind

capacity

• New projects coming at Maharashtra, Gujarat,

Rajasthan and Karnataka, West Bengal, Madhya

Pradesh and Andhra Pradesh

• The Indian government envisages the addition of 2 G

GW/annum in the next five years.

Policy Measures to Boost Wind Energy

• Concession on import duty on specified wind turbine

parts

• 80% accelerated depreciation over one or two years

• 10 year income tax holiday for wind power generation

projects

• Excise duty relief on certain components

• Some states have also announced special tariffs,

ranging from Rs 3-4 per kWh, with a national average

Land Policies

• The Ministry of Environment and Forests has issued

guidelines for diversion of forest lands for non-forest

purposes, particularly to enable wind generation

• Clearance of leasing and forest land for up to a period

of 30 years for wind developers

ranging from Rs 3-4 per kWh, with a national average

of around Rs 3.50 per kWh

• Wheeling, banking and third party sales, buy-back

facility by states

• Guarantee market through a specified renewable

portfolio standard in some states, as decided by the

state electricity regulator by way of power purchase

agreements

• Reduced wheeling charges as compared to

conventional energy

Electricity Act 2003

• In spite of its stated target for renewable energy to

contribute 4-5% of India’s electricity mix by 2012

• The Electricity Act also required the SERCs to set

Renewable Portfolio Standards for electricity production

in their state.

Wind Density Map of India

Wind Power Density Map based on Data from 11 States & 2 UTS AT 50M AGL

Source: C-WET

Annexure

Thank You

© 2010 Kenergy Wind Farms, All Rights Reserved.

Kenergy Wind Farms. and the Kenergy Logo are trademarks of Kenergy Wind Farms. The content of this document are confidential. This work may not be used,

sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without prior written consent. All product

names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.

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