project wind energy

8/7/2019 project wind energy

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Term-Paper

Of

Project Management.

Submitted To:-

Mr. Puneet Bawa

Submitted By:-


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A term paper as this would not have been written without the significant inputs and efforts

of many people. I would thus like to first thankMr. Puneet Sirfor his guidance

and help during the course of the making of this term paper. Without his support this term

paper would have not been made.

I would also like to thankmy friends for helping with the correct format of the term paper.

It is his contribution that has led to a clear and more readable form of this manuscript.

Though full care has been taken, I welcome any suggestions regarding the work.

THANKING YOU


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TOPIC

PROJECT ON SOLAR WIND ENERGY PLANT

Energy is a basic requirement for economic development. Every sector of Indianeconomy agriculture, industry, transport, commercial, and domestic needs inputs ofenergy. The economic development plans implemented since independence havenecessarily required increasing amounts of energy. As a result, consumption of energyin all forms has been steadily rising all over the country.

This growing consumption of energy has also resulted in the country becomingincreasingly dependent on fossil fuels such as coal and oil and gas. Rising prices of oiland gas and potential shortages in future lead to concerns about the security of energy

supply needed to sustainour economic growth. Increased use of fossil fuels also causes environmental problemsboth locally and globally.

Against this background, the country urgently needs to develop a sustainable path ofenergy development. Promotion of energy conservation and increased use ofrenewable energy sources are the twin planks of a sustainable energy supply.

Fortunately, India is blessed with a variety of renewable energy sources, the main onesbeing biomass, biogas, the sun, wind, and small hydro power. (Large hydro power isalso renewable in nature, but has been utilized all over the world for many decades, and

is generally not included in the term new and renewable sources of energy.) Municipaland industrialWastes can also be useful sources of energy, but are basically different forms ofbiomass.

The Ministry of Non-Conventional Energy Sources has been implementingcomprehensive programmers for the development and utilization of various renewableenergy sources in the country. As a result of efforts made during the past quartercentury, a number of technologies and devices have been developed and have becomecommercially available. These include biogas plants, improved wood stoves, solar waterheaters, solar cookers, solar lanterns, street lights, pumps, wind electric generators,water-pumping wind mills, biomass gasifies, and small hydro-electric generators.Energy technologies for the future such as hydrogen, fuel cells, and bio-fuels are beingactively developed.

India is implementing one of the worlds largest programmers in renewable energy. Thecountry ranks second in the world in biogas utilization and fifth in wind power andphotovoltaic production. Renewable sources already contribute to about 5% of the totalpower generating capacity in the country. The major renewable energy sources and


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devices in use in India are listed in Table 1 along with their potential and present statusin terms of the number of installations or total capacity.

Introduction

Wind energy has been utilized by mankind for sailing, grinding, and other mechanicalapplications for centuries. In the recent past, wind energy has emerged as a viablerenewable energy option withIncreased application in water pumping, battery charging, and large power generation. Itis environmentally benign and does not emit greenhouse gases (GHG).

Wind Power Generation

Generation of electricity has emerged as the most important application of wind energyworld-wide. The concept is simple: flowing wind rotates the blades of a turbine, andcauses electricity to be produced in generator unit. The blades and generator (housedin a unit called nacelle) are mounted at the top of a tower.

Technology

Wind turbines generally have three rotor blades, which rotate with wind flow and arecoupled to a generator either directly or through a gear box. The rotor blades rotate

around a horizontal hub connected to a generator, which is located inside the nacelle.The nacelle also houses other electrical components and the yaw mechanism, whichturns the turbine so that it faces the wind. Sensors are used to monitor wind directionand the tower head is turned to line up with the wind. The power produced by thegenerator is controlled automatically as wind speeds vary. The rotor diameters varyfrom 30 metres (m) toabout 90 m, whereas the towers on which the wind electric generators (WEGs) aremounted, range in height from 25 to 80 m.


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The power generated by wind turbines is conditioned properly so as to feed the localgrid. The unit capacities of WEGs presently range from 225 kilowatt (kW) to 2 megawatt(MW), and they can operate in wind speeds ranging between 2.5 m/s (metres persecond) and 25 m/s.

Wind speed data of potential locations is compiled for a period of one to two years, toidentify suitable sites for the installation of WEGs. Thereafter, WEGs are installed on thesites with appropriate distancesbetween them to ensure minimum disturbance to one another. After the identification ofsites, wind turbines generally take two to three months for installation. The equipment istested and certified by agencies to ensure that it conforms to the laid-down standards,specifications, and performance parameters. The machines are maintained by therespective manufacturers after installation.

Wind Power Potential in India

Indias wind power potential has been assessed at 45 000 MW. The current technicalpotential is estimated at about 13 000 MW, assuming 20% grid penetration, whichwould increase with the augmentation of grid capacity in potential states.

The success of Wind Energy in India

The next section will try to examine the policies and measure that were implemented, as

well as other reasons that have allowed India to move so quickly in terms of wind

energy deployment. It will look at the government policies, economic incentives, some

technical and social factors, and lastly the infrastructural factors, that allowed wind

energy to take off with such a boom.

Economic and Financial instruments responsible for the wind energy boom

The most relevant and powerful fiscal incentives did not come about on their own. It was

government policy that gave the private sector a really strong motivation to set up wind

turbines and get into the renewable energy business. These were,

y 100% accelerated depreciation on investment on the capital equipment in the

first year of installation itself.y Five year tax holiday on Income from sale of power generated by wind energy.

y Industry status, entitling to capital subsidy in certain states.

y Banking and Wheeling facility.

y Buy back of power generation by State Electricity Board at a remunerative price.

y Third party sale of power generation in certain states.


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The 100% accelerated depreciation rule had the greatest effect in stimulating industry

interest. What it meant was that if a companys taxable income (outside the wind power

project) for the financial year was, for instance, Rs. 10,000, the company could show

investments on WEG to the tune of Rs. 10,000 and get away by paying no tax at all.

This meant that some of Indias most prosperous businesses and industries, looking fortax breaks queued up in front of the MNES in order to sign installation contracts. The

huge capital cost of wind-farm installation did not attract smaller entrepreneurs. This

was a deliberate move by the Ministry to heavily reward installation and capital cost

acquisition, a barrier which usually prevents industries such as that of wind energy from

taking off, and succeed it did.

Also, recognizing the limitations of conventional banks to shoulder large installation

costs, the MNES created the IREDA (Indian Renewable Energy Development Agency)

in 1987 in order to finance renewable energy technologies. By 1997, IREDA gave out

loans amounting to RS 676 million (US $16.2 M) which enabled the development ofover 267 MW of wind power projects. This first confident move by the government

spurred other groups to come forward to sponsor wind projects, such as the Gujarat

Industrial Development Corporation Limited, the Industrial Development bank of India,

and the Industrial Credit Investment Corporation of India.

Furthermore, the MNES streamlined the recognition and handling of wind-power plant

financing by national and state-banks by drawing up Guidelines for Clearance of Wind-

Power Projects in July 1995. It became mandatory for all State electricity boards and

nodal agencies (which constitute the State bodies implementing wind-power

development) to comply with conditions such as:-

y Declare the schedule of envisaged capacity additions based on the power

evacuation facilities at identifies windy sites every six months, and ensure grid

compatibility.

y Seek Detailed Project Reports (DPRs) from independent consultants for

(capacities above 1 MW) and verify project capital cost and generation against

certified wind turbine power curves and wind data at the site before granting

approval for projects.

Other financially related aspects that are relevant are

y Power cuts (due to load shedding) during the summer months were a handicap

for industries, especially in regions such as Tamil Nadu. Incidentally the wind

generation during the summer months was at a peak and this incentivized both

the TNEB and the local industries.


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y The industries that invested heavily in wind energy came from the textiles and

cement industry, which had earned huge profits and were eager to adopt wind

energy to earn the 100% depreciation.

Technical and Social Factors

On the technical side, India has been fortunate in two ways. Firstly, they have

discovered a good number of windy sites (recall that MNES identified 160 potential sites

and 20, 000MW total available). Secondly, though they may not have previously been

too familiar with wind technology, there are a large number of highly trained engineers

and technicians who are graduates of institutions such as the IITs (Indian Institute of

Technology). These provide the technical expertise that has allowed adaptation of

foreign wind turbines for local use and their deployment in different parts of the country.

WindE

nergy adoption has had almost no social or environmentally charged backlash,as far as can be told from the wealth of information on the subject. Unlike the United

States orEurope, neither the problem of noise nor avian death, have been significant

obstacles that needed to be overcome. There has been widespread acceptance of the

technology from the Indian public and environmental groups and this has undoubtedly

been a factor enabling the rapid proliferation of wind turbine use.

Infrastructural Factors

A number of infrastructural situations have also spurred wind energy use. For this

particular instance we shall look at the state of Tamil Nadu and analyze some of the

characteristics that made it the leader among Indian states in installed capacity. Amongthese are:-

y The windy sites were close to towns for accessibility in bringing labor and

providing accommodation for the personnel involved in the projects.

y The sites were well interlinked with highways.

y Grid network by Tamil Nadu Electricity board (TNEB) was well connected and

mainly passing through the sites.

y Most of the wind turbine manufacturers/suppliers were located in Tamil Nadu and

so gave investors confidence in the supply of machines and after-sales service of

the machines.

y Chennai port of Tamil Nadu has excellent facilities for import of heavy machinery

of the turbine components and this facilitated inter-state and international

transportation.


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Government Policy

This was perhaps the strongest initiator in promoting wind power adoption and

investment. The policies adopted allowed all the other factors to flow together in a way

that made wind energy very attractive to businesses and investors. Apart from the

ongoing efforts of the MNES, which first of all instilled confidence in the technical andcommercial viability of wind energy by performing the Demonstration Program,

monitoring the entire country for windy sites, and putting the tax incentives in place, a

few other policy initiatives by the State government of Tamil Nadu are also to be noted.

These are:-

y Active promotional steps were taken by TNEB and the Tamil Nadu Development

Agency (TEDA). For example TNED took the first steps in setting up wind farms

at sites like Muppandal, Kayathar and Kethanur to prove the viability of wind

farms.

y TNEB extended all facilities for private entrepreneurs like consultancy services,processing of the application for issuance of No Objection Certificate (NOC), and

other clearances, extending grid connections to wind farms and executing new

dedicated sub-stations.

y TNEB established an effective system for registering the energy generation by

each turbine and so enabled turbine owners to adjust their energy bill in

accordance, or effect payment to those who sold to TNEB.

National Wind Power Programme

The Wind Power Programme in India was initiated towards the end of the Sixth Plan, in198384. The programme aims at survey and assessment of wind resources, setting updemonstration projects, and provision of incentives to make wind electricity competitive.As a result, wind electricity has emerged as an option for grid-quality power generation.The costs in respect of wind monitoring stations are shared between the Ministry ofNon-Conventional Energy Sources (MNES) and the state nodal agencies in the ratio of80:20 (90:10 for north-eastern states). With 2980 MW of installed wind power capacity,India now ranks fifth in the world after Germany, USA, Spain, and Denmark. Most of thecapacity addition has been achieved through commercial projects by private investors.

Wind Resource Assessment Programme

The Wind Resource Assessment Programme is being implemented by C-WET (Centrefor Wind Energy Technology) in coordination with state nodal agencies. An annualmean wind power density greater than 200 W/m2 (watts per square metre) at 50-metreheight has been recorded at 211 wind monitoring stations, covering 13 states and unionterritories, namely Andaman and Nicobar Islands, Andhra Pradesh, Gujarat, Karnataka,Kerala, Lakshadweep, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu,


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Uttaranchal, and West Bengal. Handbooks titled Wind Energy Resource Survey in Indiahave been published covering the wind data already generated.

Master plans

Master plans are available for 97 potential sites for wind power in Andhra Pradesh, Gujarat,Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, and WestBengal. The master plans provide information on the availability of wind, land, grid availability,and accessibility to the site, which enables project promoters and state nodal agencies toundertake proper planning and implementation of the projects. The master plans have beenprovided to the state nodal agencies and are made available to project promoters, developers,and consultants through C-WET at a nominal cost.

Cost of Wind Power Projects

The cost of wind power generation varies between Rs 4 and 5 crores per MW, depending uponstate characteristics. The machines can be maintained at a cost of Rs 0.25 to 0.60/kWh. The

projects are estimated to have a pay-back period of five to eight years.

Promotional Incentives

Wind power projects have been set up through private investment. The promotional incentivesavailable are listed below.

y 80% accelerated depreciation in the first year.y Concessional import duty of 5% on five specified wind turbine components and their

parts.y Favorable tariffs and policies in several states.

Manufacturing Base for Wind Turbine

Wind turbines are produced in the country by about a dozen manufacturers, mainly through jointventures or under licensed production agreements. A few foreign companies have also set uptheir subsidiaries in India. A few Indian companies are manufacturing WEGs without any foreigncollaboration. A list of manufacturers of wind turbine models possessing valid approvals, alongwith their foreign collaborators, is given in Table 2 (A and B). Indian-made wind turbines arealso being exported to some countries.

The Problems faced by Wind Energy in India

To a large extent, wind energy in India can be said to be as much of a failure as a success.

There are many more problems that are being encountered with the implementation of the

technology than there have been successes. We shall now take a scrutinizing look at some of

the reasons for the failures.


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Economic causes

One of the first things that are pointed to for being responsible for the slump in wind energy use

is the introduction of the Minimum Alternate Tax (MAT). This was a new tax of 12.9% in the

1996/1997 budget for companies going for zero-tax planning and also reduction in the

marginal corporate tariff tax to 35% from 46%. Companies that had used wind turbineinstallation as a tax-shelter were affected because MAT forced companies that had been going

for this zero-tax planning to pay at least 12.9% corporation tax on their book profits. And so

MAT made it slightly less financially beneficial to invest in wind. Another reason for failure has

been dire lack of financing institutions to back the huge capital cost investment that wind farms

require. The wind power plant sector is still predominantly debt-based for 60-75% of the project

cost. IREDA and the handful of other banks were not enough to meet the installation needs and

so in many states, wind energy did not even take off.

However probably the most damaging factor for the wind industry was the very thing that really

started the boom, namely the 100% accelerated depreciation. This rule had a number of

negative impacts. Among these are:-

y Enabled large-company finance officers to make hasty decisions around the time of tax-

filings to install wind plants. These hasty decisions often led to bad siting of machines

and consequent low performance.

y The rule relies on the ability of promoters of the technology to absorb the tax benefits -

this restricted the number of potential entrepreneurs to companies with huge profits,

such as the textile and cement industries, which were actually big investors in the

technology. Smaller entrepreneurs were not incentivized.

y Led to an increase in capital cost of locally made wind turbines, as they were gold-

plated. For example the rise in cost/MW in 96/97 over 92/93 was 27.5% with the rupee

depreciating by 15.45 against the dollar. However the price ofDanish machines forexample has been falling and so import of machines is encouraged even though these

may not be the optimal designs for Indian terrain.

y The worst impact this rule has had is that it placed no reward on the actual performance

of wind turbines. Since this was not a part of the package that was rewarded by tax

breaks, simply installation of wind turbines, whether they were well sited, efficient or not,

was the only thing that counted. This led to very poor performance of the machines

themselves.

Technical Problems

y Poor design of turbines (either local or foreign) led to rotor blade failures

y Disregard for the earthing regulations and lightning protection led to damage by lightning

strike and unduly large breakdown of control systems resulting in expensive repairs and

long off-line periods.

y Foreign cooperation sometimes led to a mismatch between locally manufactured

components and imported parts, weakening the reliability of the entire system.


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Infrastructural Challenges

y Grid problems: Wind turbines draw in a lot of power when starting up and so this

sometimes caused the grids they were connected to experience voltage fluctuations

reducing power quality and having an undesirable effect on customers appliances.

These fluctuations weaken a grid and have a negative feedback on the wind turbinesthemselves. In 1996 grid abnormalities induced a 20% loss in potential revenue due to

direct generation loss (inability of wind plants to operate when the wind is blowing). Half

of all these losses are due to weak grids in the region.

y There is a lack of servicing and maintenance expertise to handle wind farm upkeep.

y Utilities are suffering the burden of having wind farms connected to their grids. With the

notable exceptions of the usual suspects Tamil Nadu, Andhra Pradesh and Gujarat, the

other states view wind farms more as a nuisance than a benefit, due to the low reliability

and non-dispatch ability. Government policy has placed them in the position where they

have to pay higher prices for wind-generated electricity. This has caused them

significant financial hardship and has not heightened their enthusiasm and support of the

technology.

Government Policy

Government policy also has a few barriers to overcome.

y There are extensive bureaucratic procedures that discourage entrance into the sector.

The Central government requires 22 clearances for wind power plant installation.

y There are no qualifying benchmarks for power plant entrepreneurs to meet. The only

requirement that the MNES has stipulated is a wind speed of at least 5 m/s. This is not a

factory speed for a wind turbine to be economical.

y There is a lack of standardization among wind turbine design and features. A largenumber of foreign and local manufacturers have made for difficulty in maintenance of

wind turbines.

y With the exceptions of a few States, again, there has been a lack of active support for

wind power development by the State nodal agencies and the State electricity boards.

y The biggest policy problem has been the lack of institutional infrastructure to support the

booming wind industry. It is possible that the sector grew much faster than expected

hence the institutional gap. This gap refers to the absence of authorities that are in

charge of monitoring wind farms, certifying turbines, setting standards for designs and

locations, research and development, funding institutions and so on.

Guidelines for Wind Power Projects

Comprehensive guidelines for wind power projects have been issued by the MNES from time totime. These guidelines relate to preparation of detailed project reports (DPRs), micro-siting,selection of windturbine equipment, operation and maintenance, performance evaluation, etc. Users of theseguidelines include the state electricity boards (SEBs), state nodal agencies, manufacturers,


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developers, and investors. The certification requirement for wind turbines was reintroduced witha time-bound provision for self-certification. C-WET issues a list of manufacturers of certifiedwind turbine machines on a quarterly basis.

Success Stories

A few examples of successful wind farms are briefly described below.

MuppandalPerungudi (Tamil Nadu)

With an aggregate wind power capacity of 450 MW, the MuppandalPerungudi regionnear Kanyakumari in Tamil Nadu has the distinction of having one of the largest clustersof wind turbines. About Rs 2500 crores has been invested in wind power in this region.

Kavdya Donger, Supa (Maharashtra)

A wind farm project has been developed at Kavdya Donger at Supa, off the Pune

Ahmednagar highway, about 100 km from Pune. This wind farm has 57 machines of 1-MW capacity each. Annual capacity utilization of up to 22% has been reported from thissite. The farm is connected through V-sat to project developers as well as promoters foronline performance monitoring.

Satara district (Maharashtra)

A conducive policy for private investment in wind power projects has resulted insignificant wind power development in Maharashtra, particularly in the Satara district.Wind power capacity of about 340 MW has been established at Vankusawade,Thosegarh, and Chalkewadi in Satara district, with an investment of about Rs 1500crores.

Wind Energy for Water Pumping and Off-grid PowerGeneration

Water-pumping windmills, aerogenerators (small wind electric generators), and windsolar hybrid systems have been found to be useful for meeting water-pumping andsmall-power requirements in a decentralized mode in rural and remote windy areas ofthe country. The MNES is implementing a programme on Small Wind Energy andHybrid Systems to promote utilization of water-pumping wind mills, aerogenerators, andwindsolar hybrid systems for water pumping and power generation.

Water-pumping windmill

A water-pumping windmill pumps water from wells, ponds, and bore wells for drinking,minor irrigation, salt farming, fish farming, etc. Available windmills are of two types,namely direct drive and gear type. The most commonly used windmill has a horizontalaxis rotor of 35.5 m diameter, with 1224 blades mounted on the top of a 1020 m


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high mild steel tower. The rotor is coupled with a reciprocating pump of 50150 mmdiameter through a connecting rod.

Such windmills start lifting water when wind speed approaches 810 kilometres (km)per hour. Normally, a windmill is capable of pumping water in the range of 1000 to 8000

litres per hour, depending on the wind speed, the depth of water table, and the type ofwindmill. Windmills are capable of pumping water from depths of 60 m. Water-pumpingwindmills have an advantage in that no fuel is required for their operation, and thus theycan be installed in remote windy areas where other conventional means of waterpumping are not feasible.

However, water-pumping windmills have limitations too. They can be operatedsatisfactorily only in medium wind regimes (1218 km per hour). Further, special care isneeded at the time of site selection as the sites should be free from obstacles such asbuildings and trees in the surrounding areas. The cost of the system being high, Manyindividual users do not find them affordable.

Cost

The cost of a water-pumping windmill varies from Rs 45 000 to Rs 150 000, dependingon the type. In addition, Rs 10 000 Rs 20 000 is required for the foundation, storagetank, and the installation of the windmill. As the system involves moving parts, itrequires frequent maintenance. The repair and maintenance cost of a windmill is aboutRs 2000 per year.

The MNES provides a subsidy of up to 50% of the ex-works cost of water-pumpingwindmills, subject to ceilings of Rs 20 000, Rs 30 000, and Rs 45 000 in the case ofdirect drive, gear type, and AV-55 Auroville models, respectively. For non-electrifiedislands, subsidy of up to 90% of the ex-works cost is provided for the above types ofwindmills, subject to ceilings of Rs 30 000, Rs 45 000, and Rs 80 000, respectively.

Aero generator

An aero generator is a small wind electric generator having a capacity of up to 30 kW.Aero generators are installed either in stand-alone mode or along with solar photovoltaic(SPV) systems to form a wind solar hybrid system for decentralized power generation.An aerogenerator is suitable for power generation in unelectrified areas havingadequate wind speeds. It consists of a rotor of 110 m diameter having 23 blades,permanent magnet generator, control devices, yaw mechanism, tower, storage battery,etc. The aerogenerator rotor starts moving at a wind speed of 912 km per hour.However, it produces optimum power at the rated wind speed of 4045 km per hour.The limitation of not being able to provide power as and when it is required is overcomeby storing it in a battery bank.


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Aerogenerators cost about Rs 2.002.50 lakhs per kW. In addition, the cost ofinstallation including civil works is estimated at Rs 5000 per kW. The repair andmaintenance cost is about Rs 2000 per kW per annum.

Windsolar hybrid systems

When an aerogenerator and an SPV system are interfaced, the power generation fromthese is mutually supplemented, and the resultant hybrid system offers a reliable andcost-effective electric supply in a decentralized mode. The windsolar hybrid systemmainly consists of one or two aerogenerators along with SPV panels of suitablecapacity, connected with charge controller, inverter, battery bank, etc. to supply ACpower. The major advantage of the system is that it meets the basic powerrequirements of non-electrified remote areas, where grid power has not yet reached.The power generated from both wind and solar components is stored in a battery bankfor use whenever required.

The cost of the system varies from Rs 2.50 lakhs to Rs 3.50 lakhs per kW depending onthe ratio of wind and solar components. The approximate cost of installation, includingcivil works, is about Rs 10 000 per kW. Repair and maintenance cost is about Rs 3000per kW per annum.

Subsidy of up to 50% of ex-works cost of the system is provided, subject to a maximumof Rs 1.25 lakhs per kW to individuals, industries, and R&D and academic institutions.The MNES provides a subsidy for community use and direct use by central/stategovernment departments and defence and para-military forces of up to 75% of the ex-works cost of the system subject to a maximum of Rs 2 lakhs per kW. For non-

electrified islands, subsidy of up to 90% of ex-works cost subject to a maximum of Rs2.4 lakhs per kW is available.

System Availability and Repair/Servicing Facility

Water-pumping windmills, aero generators, and windsolar hybrid systems are installed throughstate nodal agencies using central subsidy. A manufacturing base has been developed, and anon-exclusive list of manufacturers. The state nodal agencies are responsible for providingrepair/service facilities through the respective manufacturers.

Potential and Achievement

Water-pumping windmills require only medium wind regimes. Considering theavailability of required wind speeds and the level of the prevailing water table, potentialexists for installing water-pumping windmills in almost all states, except in hilly androcky regions. Aero generators and windsolar hybrid systems require high windspeeds and good solar radiation. Potential exists for their installation in AndhraPradesh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa,Rajasthan, Tamil Nadu, Uttaranchal, Uttar Pradesh, West Bengal, and the windy


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regions of Jammu and Kashmir and all northeastern states. So far, about 1000 water-pumping windmills and 380- kW aggregate capacity of aero generators/windsolarhybrid systems have been installed in the country.

Some Recommendations for India

A number of reports have analyzed the situation, most notably those by B. Rajsekhar and A.

Jagadeesh, and the following recommendations were arrived at

y Create electricity-production based incentives such that performance and reliability also

receive more attention from the actual wind farm operators.

y Take financial burden off the State utilities by subsiding the higher cost of wind energy.

The source of this money could come from bilateral institutions such as the World Bank.

There have also been calls for the establishment of a wind fund, which could serve this

purpose.y Another financial move must be the bringing down of the equipment cost. The gold-

plating practice must be stopped (by a certifying government body) and local production

must provide affordable machines to entrepreneurs.

y The establishment of regional service stations, in proximity to a cluster of wind farms, in

order to provide maintenance and upkeep of the equipment. This is another area that

entrepreneurs may be able to tap into once more incentives are given to actual

performance of the turbines and investors want to ensure the smooth running and

reliability of their machines. In having these stations close to a number of wind farms

there will be significant savings on personnel cost.

y

A central governing body must be established responsible for certification,standardization of design and features, monitoring of wind farms and technological R&D.

The GOI has already recognized this need in the establishment of C-WET (Wind Energy

Center) at Chennai.

The promotion of renewable energy sources in the country requires widespreadpublicity and greater awareness of the potential of these energy sources and theproducts available. The Ministry of Non- Conventional Energy Sources is expandingseveral of its programmes so that these sources can contribute to sustainabledevelopment of the nation. The Ministry will work towards reducing the costs ofrenewable energy products and making them easily available to the people. The motto

of the Ministry is Akshay urja se desh vikas and the ultimate goal is Gaon gaon bijli,ghar ghar prakash.


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CONCLUSION

Energy is an important input for economic development. Since exhaustible energy sources inthe country are limited, there is an urgent need to focus attention on development of renewableenergy sources and use of energy efficient technologies. The exploitation and development of

various forms of energy and making energy available at affordable rates is one of our major

thrust areas.

Today India is one of the few leading countries in the development and utilization of renewableenergy. The country is blessed with various sources of non-conventional energy and I hope the

efforts of Ministry of Non-Conventional Energy Sources will promote viable technologies that

can reach the benefits of such sources to the poorest people in the far-flung regions of the

country.

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