-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
1/21
Policy Evolution & PrivatePolicy Evolution & Private
Sector PerspectiveSector Perspective
Presentation by:Presentation by:
V. SubramanianV. SubramanianCEO & Secretary GeneralCEO & Secretary General
InWEAInWEA
The views expressed in this presentation are those of the presenter and do not necessarily represent those of the Asian Development Bank.
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
2/21
Policy Mechanisms
All over the world there are policysupport mechanisms for wind powerdevelopment
Production Tax Credits Renewable Portfolio Standards
Feed in Tariff Mechanism
Preferential Tariffs
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
3/21
Wind Energy Development
IndiaWind Power Potential in excess ofWind Power Potential in excess of45,000 MW45,000 MW11000 MW set up by March 201011000 MW set up by March 2010Power and energy shortages, RPSPower and energy shortages, RPSregime the main drivers for windregime the main drivers for windprojectsprojectsHigh industrial tariff is anotherHigh industrial tariff is another
Freezes energy cost over a time horizon of20-30 years
Modular can be set up on scales of 1-200
MW Short gestation period - 200 MW in sixmonths
No uncertainties associated with fuel and itsprice
No fuel linkage, no fuel supply infrastructure
reasonreasonA target of 10,500 MW of capacityA target of 10,500 MW of capacityaddition from wind has beenaddition from wind has beenproposed till 2012 for the 11thproposed till 2012 for the 11thfive year plan of the Governmentfive year plan of the Governmentof India.of India.
Clean energy with no adverseenvironmental effects
Additional revenue stream from CDM
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
4/21
Policy framework forRenewables in India
Started as demonstration projects in the1980s
Captive Models started in the early 1990s i i i i h i 1
Electricity Act 2003 provides legal framework ERCs to lay down RPSs ERCs to fix tariffs
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
5/21
ImplementationState Percentage to be
procured fromrenewable
Year
Tamil Nadu 13%, 14% 09 -10, 10-11
Maharashtra 3% - 6% 06-07 to 09-10
Karnataka 10% 08-09 to 10-11
An ra Pra es 5 09-10 to 13-14Rajasthan 4.8 9.5% 07-08 to 11-12
Madhya Pradesh 10% till 11-12
Kerala 3% till 2009
Andhra Pradesh 5% Till 13-14West Bengal 2%- 10% 08-09 to 11-12
Gujarat 2% 08-09
Applicability on Consumption
Enforcement Mechanism
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
6/21
ImplementationState Wind tariff
Rs/kWh USD/kWh
Andhra Pradesh 3.50 .078
Gujarat 3.56 .079
. .
Kerla 3.14 .069
Madhya Pradesh 4.35 .096
Mahahrashtra 3.50 .078
Rajasthan 4.28 .095Tamil Nadu 3.39 .075
Different Benchmarks and methodologies
Assumed 1 USD = 45 Rupee
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
7/21
India
Ker al a
1. 0
Madhya P r adesh
16 . 2
Andhr a Pr adesh
13. 6
Kar nataka
145 . 6
Gujar at
297. 5
T ami l Nadu
602 . 5
Installed capacity Mach 2010
Source :MNRE
Ma har ashtr a139 . 1
Rajasthan
349 . 6
Andhra
Pradesh, 136.0
Rajasthan
1088.0
Kerala, 28.0
Madhya
Pradesh, 29.0
Karnataka
1473.0
Gujarat1864.0
Tamil Nadu
4907.0
Maharashtra
2078.0
Capacity Addition 2009-10
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
8/21
Policy and Legal Issues
Enforcement Mechanism for RPS Perception that Renewables are more
ex ensive
Perceived burden of developingrenewables is on the renewable richstates
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
9/21
Policy and Legal issues
Introduction of Renewable EnergyCertificates CERC notified the REC regulation
Two states have notified REC regulation Maharashtra and Gujarat
Others are under process
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
10/21
Private Sector Role
Investment of over 95% by privatesector
16 Manufacturers of Wind Turbines now
in India Generation Based Incentive to
Encourage IPPs
Private Sector bullish then ever before
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
11/21
Various Options for
Investors Wind power for captive use with only wheeling charges.
Wind power to be sold to utilities with benefit ofaccelerated depreciation at rates approved by ERCs(through PPAs).
Wind power to be sold to utilities with generation basedincentives (without accelerated depreciation) (throughPPAs).
Wind power to be sold to utilities at the averagepurchase rate of power and trading of RECs(Renewable Energy Certificates).
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
12/21
Centre for Wind EnergyTechnology (C-WET)
Research & Development Wind Resource Assessment
Testing Services Certification Services
Training
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
13/21
Indian Renewable Energy
Development Agency (IREDA)Incorporated on March 11, 1987 as a Public Limited Government
Company.
MissionBe a pioneering, participant friendly and competitive institutionfor financin and romotin self sustainin investment in ener
generation from renewable sources, energy efficiency andenvironment technologies for sustainable development self-
Objectives
Operate a revolving fund for promoting and developing New and
Renewable Sources of Energy (NRSE) Assist in rapid commercialisation of NRSE
Assist in upgradation of NRSE technologies
Promote energy efficiency and conservation
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
14/21
Thanks !
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
15/21
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
16/21
The Electricity Act 2003 Section 3 of EA 2003: National
Electricity Policy and Plan including optimalutilization renewable sources of energy
Section 4 of EA 2003: national policy
perm ng s an a one sys em nc u ng those based on RE sources of energy) forrural area.
Section 61 of EA 2003: The appropriatecommission while determination of tariffshall beguided by promotion of co-
generation and generation of electricityfrom RE
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
17/21
The Electricity Act 2003
Section 86(1) The State Commission
shall discharge the followingfunctions, namely:(e) promote cogeneration and generation
of electricity from renewable sources ofenergy by providing suitable measuresfor connectivity with the gridand sale of
electricity to any person, and also specify,for purchase of electricity from suchsources, a percentage of the totalconsumption of electricity in the area ofa distribution licensee;
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
18/21
National Electricity Policy ..there is an urgent need to promote
generation of electricity based on suchsources of energy 5.12.1
Progressively the share of electricity
rom non-conventiona sources wou neeto be increased as prescribed by StateElectricity Regulatory Commissions
5.12.2
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
19/21
National Electricity Policy Such purchase by distribution companies
shall be through competitive biddingprocess. Considering the fact that it willtake some time before non-conventional
ec no og e compe e, n erm o co ,with conventional sources, the Commissionmay determine an appropriate differentialin prices to promote these technologies 5.12.3
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
20/21
National Tariff Policy Section 6.4: step by step
introduction of competition Preferential tariff It will take some time before non-conventional
technolo ies can com ete with conventional
sources in terms of cost of electricity.Therefore, procurement by distributioncompanies shall be done at preferentialtariffsdetermined by the Appropriate
Commission Competition within same technology
Competition within renewables
Competition with other sources
-
8/9/2019 2.2. Policy Evaluation and PS Perspective Wind Energy in India by V. Subramanian
21/21