volume: 1 issue: 1 december 2014 - january 2015 ` 25/-

Volume: 1 Issue: 1 December 2014 - January 2015 ` 25/-Bimonthly, Chennai

A Bi-monthly Magazine of Indian Wind Turbine Manufacturers Association

Volume: 1 Issue: 1 December 2014 - January 2015

ContentsPage No.

Steve Sawyer’s Top 10 Predictions for the 2015 Wind Market 3Steve Sawyer, Secretary General, Global Wind Energy Council, Brussels, Belgium

Wind OEM Supply Chain - Challenges 4Yesheen Vibhakar, Head, SCM Operational Excellence, Suzlon Energy Limited, Pune

Supply Chain Scenario of Indian Wind Energy Industry 8Girish Paliwal, Vice President, Wind World India Limited, Daman

Key Priorities and Regulatory Interventions for Future Wind Growth 14Ajit Pandit, Director, Idam Infrastructure Advisory Pvt Ltd

Supply Chain Challenges in Wind Turbine Industry 16A.S. Karanth, Wind Energy Consultant

Hard Road to Travel for Wind Logistics in India 19K.P. Chandrasekar, Assistant Vice President – Logistics, ReGen Powertech Pvt. Ltd.

Criteria for WTG Prototype Certification and Type testing of 23 Prototype from the New Manufacturer’s PerspectiveSrikaanth Sarangapani

Supply Chain Management in 29 Wind Turbine Manufacturing Industry in IndiaRajanish Saxena, Assistant Vice President- Sourcing, Regen Powertech Private Limited

Know Your Wind Energy State - Gujarat - A Snapshot 35Compiled by Mr. Nitin Raikar, Suzlon Energy Limited, Mumbai

Snippets on Wind Power 37Sri Abhijit Kulkarni, General Manager, SKF INdia Ltd. and IWTMA Team

Photo Feature - Launch of Indian Wind Energy Alliance 39

Know Your member - INOX Wind Limited 40

Indian Wind Turbine Manufacturers Association4th Floor, Samson Tower, 403 L, Pantheon Road, Egmore

Chennai - 600 008. Tel : 044 43015773 Fax : 044 4301 6132 Email : [email protected]

[email protected] Website : www.indianwindpower.com

(For Internal Circulation only)

Chairman

Mr. Madhusudan Khemka Managing Director Regen Powertech Pvt. Ltd., Chennai

Vice Chairman

Mr. Chintan Shah President & Head, (SBD) Suzlon Energy Limited, Pune

Honorary Secretary

Mr. Devansh Jain Director, Inox Wind Limited, Noida

Executive Members

Mr. Ramesh Kymal Chairman & Managing Director Gamesa Wind Turbines Pvt. Ltd., Chennai

Mr. Sarvesh Kumar Deputy Managing Director RRB Energy Ltd., New Delhi

Mr. V.K. Krishnan Executive Director Leitner Shriram Mfg. Ltd., Chennai

Mr. Ajay Mehra Director, Wind World India Limited, Mumbai

Secretary General

Mr. D.V. Giri, IWTMA, Chennai

Associate Director and Editor

Dr. Rishi Muni Dwivedi, IWTMA, Chennai

The views expressed in the magazine are those of the authors and do not necessarily reflect those of the association, editor or publisher.

2 Indian Wind Power Dec. 2014 - Jan. 2015

Dear Readers,

The visit of the President of United States of America,

Mr. Barack Obama, is a momentous occasion to the

country as the Chief Guest at the 66th Republic Day

Celebration on 26th January 2015. More importantly,

the major agenda was on furthering cooperation

in Renewable Energy. Readers are aware that the

Government of India has now set a target of 60 GW

Wind Power by 2022.

The Government while sensing the laudable targets of 100 GW of Solar and 60 GW of Wind, Ministry of New and

Renewable Energy (MNRE) is organizing a two days conference and three days exhibition titled “RE-Invest” in New

Delhi from February 15-17, 2015. It is a matter of pride that the Hon’ble Prime Minister of India is inaugurating the

“RE-Invest” on February 15, 2015 at Vigyan Bhawan, New Delhi.

The wind industry is committed to meet the laudable targets “Make it Happen” with our support and pledge to

the Prime Minister’s ‘Make in India’ Campaign. The wind sector has already achieved 70% localization and fully

committed to the National Offset Policy of Government of India.

Rightly so, this issue is dedicated to Supply Chain Management, which is the backbone to this Capital Good

Industry where components are tailor made to different technologies. The technological innovation is an on-going

process and this has resulted in higher Plant Load Factors (PLF) and Capacity Utilization Factors (CUF) in operating

wind farms in low and medium wind regime.

The industry is thankful to the various ministries viz., Ministry of Finance, Ministry of Power, Ministry of New

and Renewable Energy, Ministry of Environment, Forest and Climate Change to address various opportunities and

challenges. We, in IWTMA, believe that once the land reforms are available for easy accessibility to land, ambitious

programme of PGCIL for evacuation and continuity of proactive policies of the Government will make this silent

non-polluting wind power unstoppable to achieve the energy security for the country.

Finally, on behalf of IWTMA, I wish the readers and their families a “Happy Holi” and a “Year of Prosperity”.

We encourage you to enjoy reading this issue and equally look forward to your valuable feedback.

Madhusudan Khemka Chairman

From the Desk of the Chairman - IWTMA

3Indian Wind PowerDec. 2014 - Jan. 2015

Steve Sawyer’s Top 10 Predictions for the 2015 Wind Market

Steve Sawyer Secretary General, Global Wind Energy Council, Brussels, Belgium

1. Increase in Competitiveness: wind power is more

and more often chosen primarily because of its

competitive price advantage in many markets.

2. Market design – the debate heats up over new

electricity market designs which take into account the

near-zero marginal cost of wind and solar on the one

hand, and the proper valuation of flexible generation

on the other. ‘Capacity markets’ are shown to

be a Trojan horse for keeping dirty old coal plants

running, and the proper valuation and quantification

of flexibility becomes the most important design

question.

3. 6-8 MW offshore turbines start rolling out in earnest.

4. The gap between OECD and non-OECD annual

markets continues to increase (non-OECD markets

were ~15% larger in 2013).

5. Co-location of wind and solar PV utility scale plants

gets underway, usually through adding ground

mounted solar to an existing wind farm, and probably

first in NE Brazil.

6. Japanese wind to get some post-Fukushima

momentum.

7. E.ON’s announcement of its divestiture of ‘incumbent’

generation in favor of renewables starts a wave of

similar such moves across the world.

8. The backlash against wind and solar’s destruction

of the traditional utility model continues to grow in

ideologically driven energy debates in Australia, some

parts of the US and Canada, and other places with a

substantial presence of Murdoch-owned press.

9. Increased attention to climate change will improve

the atmospherics for wind/renewables in the run up

to UNFCCC COP 21 in Paris, and although there will

be an agreement, it will be more of a framework,

very short on numbers, with a lack of ambition in

those. Nowhere on earth is there a realistic carbon

price, for 2015 and for some years to come.

10. The Bank of England inquiry into the long-term threat

to the economy posed by potentially huge stranded

assets in the proven reserves of the fossil fuel industry

continues to fuel the shift of investment out of fossils

and into renewables.

GWEC‘s list of top 10 markets to watch in 2015

1. China

2. USA

3. South Africa

4. Egypt

5. Germany

6. India

7. Vietnam

8. Mexico

9. Ghana

10. Brazil


Wind OEM Supply Chain - Challenges

Yesheen Vibhakar Head, SCM Operational Excellence, Suzlon Energy Limited, Pune

(This article does not intend to shed new light on the Supply Chain Management for industry veterans, but intends presenting the onshore wind OEM (Original Equipment Manufacturer) Supply Chain Management in a consolidated manner – considering it as induction material for the newly initiated. Though the focus is largely on India, the references are from all over the world and not confined to Suzlon’s Supply Chain – with whom the author is currently employed.)

Between the ‘order taking’ and ‘sales closure’ lies the Supply Chain or Operations of the Value Chain. In the wind OEM business, for most, it ends with ‘equipment supply’ (either ex works or at site) with or without BoP (Balance of Plant). However, the supply chain work starts well before the product is designed or the orders arrives and can end only at the disposal of the product beyond the product’s lifecycle.

Design PhaseThis phase is where the concept and the boundary conditions on what is likely to follow gets largely determined.

Inputs from earlier product experiences, likely future movement in commodities, currency exchange rates and demand-supply equations for raw materials are considered. Dimensions, transportability, transit turbulences on the logistics side are considered.

Serial Production PhaseThis phase would have three large stages: Pre-production, Production and Dispatch. Through all this, it has to ascertain that the contribution margin and working capital needs are consistent with the OEM company expectations.

a. Pre-production: This stage covers all activities to the point of registering material receipt in stores. Identifies & develops vendors, creates the required supply security through a framework of contracts & agreements and ensures that the equipment supply ‘contribution margin’ & ‘working capital’ requirements meet the OEM company expectations. During this period it has to operationally ascertain the process tie up between the stages: Order forecast – Contracting - Purchase requisition – Purchase Order – Vendor inspection &

Dispatch – Incoming inspection – Registering Material receipt in Stores. Incoming rejects need to be replaced to ensure production does not suffer on account of an unbalanced BoM (Bill of Materials). For many items, there would be Duties as well as Duty drawback opportunities - the process and time need to account for the same.

b. Production: This stage covers all activities between Material Receipts in store to Shop-floor issue. Organising Material and storage to specifications, Kitting of material and issue to Shop-floor. There are many components that have more than single shift operations – and the Store keeper is like the teller in the bank. A key challenge is how to ensure that shop-floor activities do not suffer neither does the control on Material issue get violated.

c. Dispatch: This stage covers all activities between preparing material for dispatch to receipt at agreed location, post finished good inspection, the packaging of the component and accompanying kits, ensure required documentation for transit, handling & storage and installation as well as freight worthiness of the deployed vehicle. Post dispatch, there is a probability of issues of short supplies, damage or theft that come in and replacement parts needs to be arranged for. Another post dispatch key accountability is to either the return of transport fixtures or effect its disposal.

Post CommissioningFulfil the equipment warranty obligations, OMS (Operations & Maintenance Services), spares and consumables, component servicing. It also extends well after the serial life of the product – to ensure supply of parts and components for the lifecycle of the product.

The sites where wind power plants are erected are also called wind farms, generally in multiples of 50 MW capacities. The wind power plant consists of two key parts: The PE (Power Evacuation) and WTG (Wind Turbine Generator) (also referred as WEC (Wind Energy Convertor) in some regions). The better and more accessible wind sites got consumed in the early phase of wind energy movement – which started a couple of decades ago for India. The sites which are less accessible/ remote or have lesser wind


speed are being explored today – which means that far larger blades and higher towers need be transported to generally more difficult to reach areas. To maintain the CoE (Cost of Energy) at attractive levels, newer models with advanced technology need to be developed and deployed regularly to be able to extract energy from lower wind regimes. Further, there are changes that are effected also within the lifespan of the model, this may be affected due to gaining of new knowledge or tectonic changes in the commodity equations - which means changes in the BoM (Bill of Materials) and new challenges.

Within the challenges faced by the various OEMs to keep the CoE attractive, which is obtained by a combination of higher yield with relatively lower cost, the supply chain of Indian OEMs face even deeper challenges. Wind technology has its roots in Europe, where there is a very strong academic and industry collaboration. India though has made significant progress in the last two decades, is still a long way away. Consequentially, there is a heavy concentration of technology product suppliers in Europe. Compounded with cost pressure; either by way of price monopoly or price cartels and adverse currency movements, the pressure on Indian OEMs supply chain increases. Further, IP regimes make indigenous OEMs wary of infringement and are faced with high cost of technology transfer. Also, the issue of changes in technology without adequate volumes can create a situation where the existing development costs are not fully amortized the need to invest in R&D for the next generation component technology.

Key Components of WTG and the ChallengesThe WTG consists of four key components: rotor, nacelle, tower and foundation. The OEM primarily supplies equipment for the WTG, the foundation gets cast on site. Let us look at each of them and the challenges within it:

1. Rotors: Captures the wind

The rotor consists of blades and a hub which holds and pitches the blades. Generally, the blades for the rotor and hub come from different factories. Today, universally the rotor consists of a set of three blades, which means blades from one set may not be used for another as they are balanced and make a set. Today blades are becoming larger and larger. Currently, the largest onshore rotor diameter in India being sold is 114 meters, each blade being about 55 meter long. However, larger ones will follow. Once the 50 meter mark is crossed, each such blade may weigh over 9 tonnes. Whilst inbound logistics for blade manufacturing may not be so much of a challenge, its outbound is one of the biggest challenges. Surface outbound is generally by road, though rail is also used but not in India. To name a few key issues: Vehicle length, ability to negotiate turns, support/cages to withstand transit shocks, loading at factory, vehicle

transit time from loading to off loading, unloading at site/ port. Many OEMs have responded differently to such situations like moving manufacturing lines near to points of consumption or ports. If nearer to site, the economics need to work out and it is not only the costing, but also the ability to get the required skilled workforce. Another key supply chain challenge in the manufacturing of the blade is the disposal of waste generated. Much of it falls under the hazardous category and many items have very limited economical uses. Within the key challenges for inbound, especially in India is significant quantities of material may need to be imported, amounting to longer lead times and balancing between ‘Economies of scale’ and ‘Optimal Working capital’. Further, many of the materials have a shelf life and are sensitive to atmospheric conditions. FIFO (First in, first out) has to be strictly followed for many materials, especially glass and resin.

2. Nacelle: Converts wind (kinetic energy) to electrical energy

Nacelle is an Assembly of the parts that converts the mechanical energy into electrical energy. To do so, it has control systems to sense the wind direction and speed so that it can yaw itself to face the wind direction as well as pitch the blades in or out. Many call it the heart and mind of the WTG. Depending on the technology used, the type of components within the nacelle will change. This part of the WTG has the largest BoM (Bill of Materials), most of it metal contributing to a large head mass. Besides the large bill of materials, most of the items demand a specialization, which increases the supplier footprint to diverse locations. The challenges supply chain face are enormous; commonality of parts between models, developing vendors for quality, supply security and cost, coordinated sourcing for balanced BoM procurement, maintaining inventory for turbine life, loading & unloading, vehicle capacity for weight/axle, transit, especially over old infrastructure of bridges, culverts, etc. For the models currently in the Indian market, the weight of the larger nacelle and hub can be around 100 tonnes.

3. Towers: Establishes the hub height

Towers vary in height and type - and at some regions are considered as BoP. Besides the function of holding the Nacelle & hub assembly, the tower has other functions too. The access to the Nacelle, either through ladder or lift is housed in the Tower and so are cables for Power Evacuation. Further the Bottom panel and Transformer may also be housed within the Tower.

Before the advent of Industrial turbines, the towers used to be of Wood or Masonry. Today’s industrial turbines have towers of Steel or RCC (Reinforced Cement Concrete). Within Steel they may be framework (lattice, space frame), tubular or hybrid


of tubular and framework. There are also Hybrid of Concrete and steel. Lattice towers are assembled on site, whereas for concrete towers, the batching plant is generally set up in close proximity to the site. As taller towers are demanded to tap a higher PLF (Plant Load Factor), the advent of different concepts come up. Different material combinations and technologies – from tubular split to membrane covered space frames.

Towers are one of the most fascinating parts of the Supply Chain – the cost, lead time to deliver, freight weight and volume tend to remain fixed for other components – but for Towers, the options are many. Still, all the challenges that are seen in the Nacelle and Blade get combined in the Tower. Also, the challenges of material quality and its ability to remain standing for the life of the turbine remain – in a Nacelle one may change a part – but to change something in the Tower may call for the de-erection of the whole turbine. Material quality and its performance reliability are of utmost importance.

4. Foundations: To whom all environmental and gravitational get transferred.

Foundations are cast on site and hence would not form part of the equipment supply.

Like the adage, ‘when the goings gets tough, the tough get going’, the supply chain challenges in the wind industry have got more complex and larger. Probably, it is because of it, the industry has and is maturing well. Two decades ago when the industry started gaining foothold in India, the entire turbines used to be imported, thereafter components and today it is largely raw materials for the blade and some specific components/parts for the nacelle and tower. Today, so many parts are made in India. The ‘Make in India’ for wind turbines is a reality. With a little bit of support, and continued perseverance of the OEMs, what is likely to be a reality is ‘Make in India’ and install across the world.

www.indianwindpower.com

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Dear Reader,

It is our endeavour to make IWTMA magazine Indian Wind Power, “THE MAGAZINE” for the Indian wind Industry. Your feedback on the general impression of the magazine, quality of articles, topics to be covered in future, etc. will be of immense value to us. We are thankful to your response. Kindly address your mail to "[email protected]".

Thank You,

The Editor - “Indian Wind Power”

Indian Wind Turbine Manufacturers Association 4th Floor, Samson Tower, 403 L, Pantheon Road, Egmore, Chennai - 600 008. Tel : 044 43015773 Fax : 044 4301 6132 Email : [email protected]

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For these and more solutions, visit www.skf.com/wind or contact

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Vinay GaonkarManager, Application [email protected]

The Power of Knowledge Engineering

SKF Life Cycle ManagementReduce total cost of ownership at everystage of your turbine life cycle

® SKF is a registered trademark of the SKF Group | © SKF Group 2014

SKF Life Cycle Management

Life Cycle Management is a proven approach for maximizing productivity while minimizing the total cost of ownership for machinery over every stage, from specifi cation and design to operation and maintenance.

SKF Life Cycle Management can help you to increase profi tability through:

• Minimized maintenance• Improved reliability and safety• Improved energy and resource effi ciency• Reduced total cost of energy• Extended asset service life• Maximized productivity• Optimized designs• Reduced time to market• Reduced total cost of ownership

For these and more solutions, visit www.skf.com/wind or contact

Abhijit KulkarniHead, Renewable Business [email protected]

Vinay GaonkarManager, Application [email protected]

The Power of Knowledge Engineering

SKF Life Cycle ManagementReduce total cost of ownership at everystage of your turbine life cycle

® SKF is a registered trademark of the SKF Group | © SKF Group 2014

SKF Life Cycle Management


Supply Chain Scenario of Indian Wind Energy Industry

Girish Paliwal Vice President, Wind World India Limited, Daman

India has a set of target of achieving overall wind energy installed capacity of 27,300 MW by 2017 and 38500 MW by 2022. The target itself is under review by exceptionally enthusiastic Government favouring higher installation of renewable energy power plants in the country. The Government seems to be more optimistic than the industry itself for the annual installations in the country.

This creates huge opportunity in the wind energy market in India till for many more years to come. So also arrive some unique challenges typical for wind power plants for such ramp up of the preparation, manufacturing, sources, installation and operating the wind power plants. The challenges are even more specific for Indian scenario with respect to the following:

1. Expected life time of 20 years and now there is already trend to discuss about 25 years. That needs a very high level of reliability of each of the part, material, sub assembly, machine and the processes to build a wind power plant in its entirety. The customers are evolving to become mature and most investors looking at their investments on long-term basis and they review their options very seriously and critically. So the supply chain perspective for wind mills has to consider a much longer time horizon on their supply chain structure and its reliability.

2. Wind energy business, very attractive in terms of potential, possibilities, favourable environment, is at the same time an “unforgiving” business. The reputation and corresponding value that wind companies have created over decades can be eroded with just a few failures and breakdowns. This has implications on how wind companies are structuring their supply chain and its quality management system.

3. The information and data on performance and reliability of the machine is not just restricted to the manufacturer and the owner, as is the case in most other products, it is visible to all. A machine not rotating for a week can be noticed by anyone passing by.

4. The interest rates in India for any investments including funding of the wind power plants have remained high during last few years and expected to remain high

as compared to global levels for some more years in future. This puts immense pressure on the cost of the wind power plants on per MW basis.

5. The volumes of components and parts though increasing in totality are still at a very low level on per annum basis as compared to many other industry and products and reference example being automotive and even off road vehicle industry. So while wind companies cannot expect to get advantage of scale of production, the demand on quality and resources from suppliers remain of very high levels. And therefore very little is left for the supply chain managers to engage with suppliers on cost and price front.

6. The Wind Power plant consists of such a large variety of material, parts, components and technologies that getting into an “expert” level of understanding of all elements to derive and drive benefits of such knowledge is more difficult than what would be desirable.

7. For the Indian context, the Wind energy technology is yet to be “assimilated” across the supply chain in India. Also the sources of parts and material are spread widely across the globe with multiple and complex cultural, economic dynamics playing.

The Value ChainThe wind energy value chain consists of broad specific steps - from the supply of raw materials to the transmission of electricity with multiple interlinks and sub steps for each.

The illustration here provides a broad view of the opportunities and challenges along the entire wind energy value chain.

A trend in the wind energy industry is the move towards vertical integration along this value chain at least at machine (Wind Operated Electricity Generator) level. With supply chain bottlenecks a constant threat, many of the large wind companies have responded by either acquiring suppliers of critical components or creating in-house production facilities such as blades, generators, towers and gearboxes. By bringing suppliers in house, they could ensure they would get the products they needed on time, and at an acceptable price.


Wind energy business is composed of developers, manufacturers and operators. Wind turbines manufacturers (WTM) generally embrace a range of activities including: the development, design, production, construction, operation and service of wind turbines.

Main Players of Supply Chain in Wind Energy IndustryThere are three different types of players in the downstream supply chain of the wind energy industry. First tier customers of wind energy are the Independent Power Producers (IPPs) and corporate or individual owners of smaller number of machines.

² OEMs and developers, these are turbine manufacturers and developers

² Owners like financial institutions, utility companies, private companies, banks consortium.

² Financial institutions, bank, private equity venture capital, clean energy fund, capital markets.

The main initiating point in supply chain management is Demand Management and forecast about the number of wind turbines to be installed at various regions and this factor is depend on the various parameters like Government policies viz. Generation Based Incentives (GBI), Depreciation benefits, tariff rate at different states, evacuation capacities of particular state, basic infrastructure facilities etc.

Another factor to be considered here is suitability of wind data like wind speed, pattern of wind, land availability and its effective management, liaison with government authorities like forest department, local bodies like Gram Panchayat, localities etc.

All these factors are affecting the potential demand for wind energy business. Customers are interested in ROI and accordingly decisions are taken and orders are being placed to wind energy convertor manufacturer. In the financial year 2014-15 the New Government has declared depreciation benefits to be continued which was discontinued and this could be the main reasons to attract the business from the retail customers for availing rebate in income tax.

Now a days customers are well aware on what they can and should expect from a wind power plant. Their understanding about the technical details and specifications about the wind operated electricity generators is evolving

both in technical depth and operation width and they are very keen to understand the various process about the manufacturing of wind turbine parts, components etc.

Forecasting and Demand ManagementThe material flows in at least seven different levels of space and time through vendor production, logistics, customs clearances, processing and assembly, movement to site locations, so as to converge at single point in time and space so as to have one wind turbine generator to start generating the rated output power at the available wind speed and this one wind turbine generator then becomes part of the wind power plant with several machines and other constituents then converge to have the project ready to deliver the power to the grid.

Such a complexity make is interesting and challenging at the same time for the Wind Energy business in India especially considering the fact that most companies directly or indirectly, by choice or circumstances, are hogging almost the entire supply chain up to delivery of the project.

Supply chain for any business process integration involves collaborative work between buyers and suppliers, joint product development, common systems, and shared information. Complications for supply chain could be significant for the wind energy. The supply chain is generally spread across multiple geographies and is primarily forecast driven.

On an annual basis, number of wind turbines to be installed and commissioned in a particular period region wise/area wise is being considered based on the order book, advances against confirmed orders, customer orders in processing and in negotiation stages. Cumulative requirement is calculated for a particular financial year well in advance so that the same could be given to manufacturing division to finalize the production plan which could be spread over for entire financial year. So the annual plans with reasonable certainty especially with current policy environment are generally possible without many complications.

The forecasting in wind energy business in India is unique in the sense that now with policy clearly established for longer timeframes; the certainty of the total annual business has improved. However we have very unique challenges at project execution and delivery stage, related working capital implications and have impact on other upside elements of supply chain. These aspects make the


micro level forecasting highly uncertain and thus creating inefficiencies across the supply chain which incidentally has a substantial value in the final product that is delivered at site. Thus the wind energy business makes “information”, its availability across supply chain, and its understanding by the concerned on the implication of changes is almost as critical as physical flow of material. The supply chain processes and structure is just beginning to mature in coping up with this and integrating with multitier of suppliers and related elements.

Creating clear visibility across supply chain from vendors to manufactures and equally important from producers to vendors, where updated information is available rather than sought and obtained is the key.

ProcurementA turbine is made out of multiple components, e.g. from steel towers to high-tech components. Yet, 70% of the total cost of a wind turbine comes from 7 main elements: blades, tower, gearbox, generator, nacelle and power and control systems (pitch and yaw), and transformer.

Broad Category of ComponentsFollowing is the broad category of different components required for manufacturing of WTGs and their challenges:

1. Heavy Fabricated & Machined Components:

Like stator ring, disc rotor, stator jib carrier:

Challenges:

* To maintain good and consistent quality of heavy and fabricated components,

* To establish the sufficient capacities at vendor’s end to give the confidence about the consistency and reliability in terms of delivery.

* To maintain the quality as per the specifications given by OEM’s designer, training and to create the awareness amongst vendor’s personnel.

2. Small and Medium Sized Components:

Like planetary gear boxes, slewing ring bearings, platform duly fabricated & hot dip galvanized, compression rings and taper roller bearings.

The quality requirement of these components is very stringent and it’s a challenging task to develop potential vendors who can consistently provide good quality components. Some of the components like slewing ring bearings, planetary gear boxes required design calculations and wind data to take care of various loads after installation on the WTG. The vendor has to get prior approval from the certified agencies like GL, TUV etc.

3. Casting and Forged Parts:

Like rotor hub, blade adapter, axle pin etc.

Most of the wind turbine manufacturers are using casting of good quality like S.G.I. grade GGG40.3 having impact value at -20 degree Celsius and apart from this vendor has to control their foundry process to minimize the rejection during melting and pouring of the castings. The information flow from the vendors to their customers about the WIP stage of these components is extremely important so that WTM will rest assured about the delivery of the casting parts and there would be mutual benefits for both the OEM and their suppliers.

4. Hardware Items:

Like high tensile bolts and nuts, washers, screws, studs etc. In most of the turbines various types of hardware are being used like tower hardware (for assembly of flanges and tower shell), foundation bolts, different types of studs, studs required for joining of rotor blades to blade adapters etc. This hardware is made of high quality carbon steel duly heat treated and galvanized to withstand high tensile loads, torque requirements and corrosion protection.

5. Raw Materials for Rotor Blades:

Raw material requirements are epoxy resin, fiber glass cloth, adhesives, Balsa wood, PVC foam sheets, other accelerators and consumable items.

In Indian market there are some potential good quality vendors available for epoxy resin and other raw material and consumable items but main worry is about the risk mitigation of Balsa wood, the main worry is the plantation of Balsa wood is only available at South America and process of seasoning and cutting of Balsa wood is long process and these plants required specific climatic conditions and temperature for cultivation. There is no potential source in India for PVC foam, OEMs has to find out some alternative material against PVC foam sheet e.g. Sanfoam from Gurit, Hunny Comb sheet, etc.

Due to the size and complexity of turbine blades, each blade must be crafted to the highest quality standards in order to ensure reliability. This fabrication process can be very costly and labour intensive. The Advanced Manufacturing Initiative for blades — a partnership between DOE, Sandia National Laboratories, TPI Composites, etc. has helped establish advanced techniques that reduce the time it takes to produce a single blade by approximately 37% (from 38 to 24 hours). Turbine blades must be able to maintain their strength and aerodynamic structure during virtually non-stop operations over twenty years.


6. Convertors and Controller Parts:

In India there are some potential vendors who can provide good quality and advance versions of convertors which can be tailor made to suit the requirement of various electronic aspects of wind turbine like sensing, yawing, pitching operation, grid management etc. Spare software is required which can be inbuilt in the design itself.

Existing turbines are replacing the earlier system of converters with PLC based system which is quite compact in design and can replace many electronic components and cost competitive.

There are some electronic components like IGBTs, acceleration sensors having limited source across the world due to frequent development taking place in electronic components old versions may be discontinue.

There is emphasis to reduce the US$ content due to import of the electronic components and to develop alternate source preferable from India or countries like South Korea considering the advantage of Free Trade Agreement (FTA).

7. Site Related Components:

Components like towers, transformers, power and control cables, earthling connections, DP mounting structures, refection and commissioning kits are required at the time of erection and commissioning of the WTG.

Steel sections of the towers are directly being delivered to various project sites and locations.

In India, some WTM having their own manufacturing setup for pre stressing concrete towers which are cost competitive and longer life and less maintenance cost as against traditional tubular towers. OEMs for concrete towers are setting up their plants near by their project locations to minimize the logistics cost.

Another challenge in steel section tower is availability of good quality high carbon steel (St52-3N) plates as there are few domestic players in India like SAIL/Essar/JSW/JSPL.

To develop good sources with sufficient production capacities for supply of forging rings and tower flanges along with competitive cost and timely deliveries are another big challenge.

It’s extremely important that dispatch of right quantity of components required at specific project location as per scheduled plan so that installation plan should not be hampered due to non availability of site items.

Inventory Management

Let us say, the inventory management for wind energy business is different. While this can be said for most of the businesses, the combination of project management with engineering manufacturing process with both highly interlinked makes a case for such a statement.

The challenges of the forecasting for wind energy projects as explained above and due to complexity involved during project execution stage in Indian scenario, wind energy Industry is facing very crucial issue of working capital management and it adds to difficulty of the business that this remains highly expensive with reference to global comparisons.

Delayed project execution due to ‘n’ no of issues like clearance from government authorities, land procurement cycle, timely execution of activities like road construction, evacuation capacities at particular state electricity board, local issues and many other factors which are the main causes of delays and which is affecting the cash flow cycle and therefore the material flow.

On a broader lever at project, we can have mismatch of time and major sub-assemblies with repercussions on manufacturing and then back end manufacturing and similarly corresponding impact of supply chain disturbances on manufacturing and then onto the project execution making it double whammy so as to say.

So the concepts like “just in time” are in fact very expensive when perspective is restricted to a limited part of the supply chain. The need for wind energy supply chain is to consider at any point of time and envisage at different points of time in future, what would be the best inventory position considering the whole of the supply chain. The efficiencies can be brought in only when there is comprehensive view and decisions are taken virtually every day based on emerging scenarios.

So the key is as “near JIT” as possible, but with entire supply chain in view.

Concepts for Supply Chain:

Some of the concepts which we believe will work for supply chain for this business are as follows:

1. Substitute inventory with information and people who can understand the dynamically changing information with its implications on what decisions they need to take. This is the soft part, which costs much less than the inventory but extremely difficult to evolve, develop and institutionalize for any company. It would also need excellent information technology platform availability across the supply chain and not just the wind company.


2. Substitute inventory being available to inventory on the move. This is much easier said than done but with first concept established, there is possibility to implement this at every process and node of the supply chain and higher the part of inventory on move out of total, the more effective and efficient is the inventory management.

3. Put resources on quality management and reliability rather than on material inventory. Logic though obvious that the extent to which we can reduce uncertainty, has direct impact on the inventory one needs to carry at most stages in the supply chain, physical implementation can take years. And this is applicable not just for tier one but can go up to tier four or five of the supply chain and it takes huge time and effort to be able to build this up and sustain it. However once this is established and managed, can have direct impact in inventory other than the primary benefit in the reliability of the machines.

Some Future Perspective for Supply Chain

1. Industry has to constantly review tradeoff between vertical integration vs. focus on core business to deliver a reliable project in time; both have implication on cost and delivery.

2. The wind mill designs that we see now are almost all designed outside India, by designers abroad, for conditions in Europe. After all can we expect a designer who has never experienced anything higher than 35 degrees Celsius temperature to consider that wind mills will be operating at a temperature of 50 degree Celsius? Or has seen may be one of two blackouts in his lifetime? Or cannot understand how making cables of aluminum makes it unattractive for theft? Future machines will have to be at least “Co designed” for Indian conditions and that is not restricted just to class of wind.

3. There will be always cost pressure on wind energy business even if it becomes “competitive” with respect to other power generation option. The real competition is not with the power business but with the other investment opportunities and we never know which business will offer the competition and when. In future supply chain structures will have to be highly engaged in evolution of design for machines for India. This would mean engaging or at least complete understanding of various tradeoffs spherically in Indian business environment, with vendors, their sub vendors, procurement experts, quality, manufacturing, operations (maintenance), and very important logistics personnel so that what gets finally as a solution on

drawing board is the most cost effective and reliable for Indian condition with whatever technology updates that are incorporated.

4. The wind energy business and technology are full of future promises and potential. We are a very young business, and therefore there could be and would “disruptive” changes and innovations both on product, technology and the business environment. The supply chain structure normally takes quite a long time to assimilate such changes specially when we are dealing with relatively lower volume by general industry standards and many large, complex, demanding items needing substantial resource allocations across supply chain. However delays to bring about the new technologies and so also ramping up the numbers can make the business “not so attractive” for investments and we all have seen what a period of low business for some months can impact for most companies.

The question is to what extent we can foresee and get the elements of the supply chain “future ready” vendors, their infrastructure, equipments, manufacturing process, orientation with new policies, new regulations, new opportunities opening up etc.

5. Information Technology: Things have moved from IT giving information about business in what was called as “ERP” supporting system to integration of the product design and development, marketing intelligence, customer responses, manufacturing, business processes, component field performance, feedback data constantly converging till almost last moment in dynamically modifying the product and its offering. While it may be too much for the wind energy business as of now, other industries have already moved on to such platforms. Can supply chain for wind energy initiate and drive such change even at a slower pace but with certainty?

6. Cost and Reliability: Finally the core of the supply chain will remain focus on cost, cost and cost with ever increasing expectations and demand on reliability. After all we are in the business of a product giving investment opportunity with expected returns to continue for 25 years. To be able to meet up to such challenges, the wind companies on its own will be able to do only very little. The meaning of phrase “team work” for this business needs to be expanded to much wider and longer horizon. It is only when all elements of supply chain are optimising in totality at a wholesome and not each element separately, can we barely be able to survive and hopefully grow in a very fulfilling and promising future opportunities.

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IntroductionAs on January 2015, the cumulative installed capacity of wind power in India has crossed 22 GW. However, the annual wind power development in the recent past has suffered due to several factors. Lack of stable & long-term policy environment, inadequate RPO enforcement mechanism, slow pace of infrastructure planning and eco-system development for wind power evacuation and grid integration and frequent changes in rules governing market off-take arrangements are some of the factors responsible for the current state of uncertainty surrounding the investment in the wind sector. The National Wind Mission steered by the MNRE seeks to address some of these challenges and aims to accomplish cumulative capacity to cross 100 GW by end of 13th Plan (by 2022).

In this article, three critical issues that would greatly influence the future Wind capacity addition plans have been discussed namely, (a) evacuation planning, (b) implementation framework for scheduling & forecasting and (c) RPO compliance, monitoring & enforcement.

Key Priority-1: Evacuation Planning & Business Model for ImplementationThe Section 86(1)(e) of EA 2003 requires State Electricity Regulatory Commissions (SERCs) to promote harnessing of renewable energy sources by specifying minimum percentage for procurement from renewable energy sources and also by providing suitable measures for connectivity to grid for such sources. While many SERCs have notified Regulations under this provision specifying percentage of RPO targets, most of the SERCs have still not addressed the critical issue of ‘grid connectivity’ and evacuation infrastructure for renewable energy sources.

The resource constrained STUs are averse to invest in transmission assets and evacuation infrastructure dedicated to renewable energy sources due to its inherent nature of lower capacity utilisation factors. The problem is aggravated to such an extent that in some states like Tamil Nadu, the existing wind energy generation capacity is under-utilised due to backing down of wind generation due to evacuation constraints. The developers and investors would be keen to invest in creation of such infrastructure provided there is regulatory clarity and certainty as regards recovery of costs

pertaining to such investments. Appropriate market model may be necessary to address infrastructure requirement of renewable energy sources, however, transmission capacity planning by STU should recognise such evacuation infrastructure requirement in the first place.

Key Priority-2: Addressing Ambiguity in Implementation Framework for Scheduling & ForecastingApart from deficiency in evacuation infrastructure, wind developers are faced with a issue of addressing implementation challenges to operationalize scheduling requirements for their wind generation. The Indian Electricity Grid Code Regulations, 2010 (IEGC 2010) issued by Central Electricity Regulatory Commission (CERC) and the subsequent regulatory Orders stipulated that wind generators with collective capacity of 10 MW and above connected at connection point of 33 kV level and above, and where Pooling Stations are commissioned after May 3, 2010, are now mandated to provide day-ahead schedules for their ex-power plant capacities.

The wind generators shall be responsible for forecasting their generation up to accuracy of 70%. Thus, if the actual generation is beyond +/- 30% of the schedule, the wind generator would have to bear the unscheduled interchange (UI) charges. The host state shall bear the UI charges for the variation between +/- 30%. However, the UI charges borne by the host state shall be shared among all the states in the ratio of their peak demands in the form of Renewable Regulatory Charge operated through a Renewable Regulatory Fund (RRF).

Lack of clarity on the entity responsible for undertaking scheduling and for undertaking commercial settlement of transactions with RRF as regards individual wind generators has been the main reason for delay in implementation of RRF mechanism. Further, considering various operating challenges such as inadequate forecasting capability, ambiguity of roles for various stakeholders, inadequate infrastructure such as ABT meters, communication network etc., during the mock exercise, the provision for mandatory scheduling for wind has been put on hold by CERC untill such date as may be notified by CERC. There is urgent need to have regulatory clarity to emerge on the issue of

Key Priorities and Regulatory Interventions for Future Wind Growth

Ajit Pandit Director, Idam Infrastructure Advisory Pvt Ltd


wind forecasting with suitable risk allocation mechanism and need for creation of separate institutional entity needs be explored. Renewable Energy Management Centres (REMCs) are expected to address these requirements but role, responsibility, institutional and governance structure of REMCs shall greatly depend upon regulatory mandate in this respect.

Key Priority-3: RPO Compliance Monitoring & EnforcementSo far, over 28 SERCs have notified RPOs Regulations and stipulated RPO targets. However, despite the regulations being in place for a few years now, very few obligated entities have actually fulfilled their RPOs. The various issues surrounding compliance with RPOs are as follows:

a. Inadequate Monitoring and Verification of RPO Compliance of Obligated Entities

The regulations governing RPOs formulated by SERCs assign the task of monitoring and verification of RPO fulfilment by the obligated entities to a designated state agency (one in each state). These state agencies are usually the state nodal agencies (SNAs) responsible for the development of renewable energy sources and are governed by the respective state governments. Typical responsibilities of these SNAs under the RPO regulations include identification of obligated entities, monitoring their electricity consumption, computing the RPO of the obligated entities, and reporting to SERCs the status of compliance with the RPO. In most cases, SNAs find it difficult to carry out their duties specified in the regulations because the institutional capacity is inadequate. Also, no mechanism for monitoring compliance with the RPOs has been formulated at the national level; the job has been left to SERCs. In the absence of any standard monitoring and verification guidelines, different SERCs have adopted vastly varying approaches.

b. Penalty for Non-Compliance

Section 86 (1)(e) of EA 2003 deals with specification of RPOs for obligated entities, and Section 142 with provisions for non-compliance. However, the applicability of Section 142 in the case of non-compliance of RPO has not served to be adequate deterrent, since the current penalty mechanism does not clearly outline the quantum of penalty as well as the methodology for levy of the same. Very few SERCs have issued orders related to compliance with RPOs, and even those that have done so have allowed the RPO to be carried forward to subsequent years. Hence, it is preferred that the Act should be amended to indicate the level of penalty for non-compliance. It is understood that the Electricity (Amendment) Bill 2014 is expected to address this issue with stringent penal provisions. It is felt that such amendment is

extremely crucial for sustainable development of the renewable energy sector in the country.

c. Framework for RPO compliance for Open Access and Captive Consumers

Section 86 (1)(e) of EA 2003 does not refer to any particular type of obligated entity but merely stipulates that a certain minimum percentage of the total consumption in the area of the distribution licensee should be in the form of renewable power without expressly placing the obligation on open-access or captive-power consumers.

Data published by CEA indicates that about 43,300 MW of fossil fuel based captive power capacity exists in the country. If a notional 5% non-solar RPO is applicable on this captive power generation, it translates to demand for about 6,600 MW of RE generation capacity. Alternatively, it creates a demand for over 13 million RECs—more than the unsold RECs at the power exchange as of today. Similarly, there is significant amount of open access transactions, (bilateral and collective) that are taking place in the country.

While RPO compliance monitoring for distribution licensees takes place through the annual Performance review exercise before the regulatory commission, the compliance monitoring for other obligated entities like captive power producers, open access consumers and other obligated entities is far from satisfactory. Only few states have initiated exercise to undertake compliance monitoring and reporting of RPO compliance of CPP and OA transactions.

It is necessary to develop a registry of all obligated entities, develop web enabled tools for ease of access to information and ensure transparency in the process. It would also be useful to put in place an institutional framework for operationalizing the RPO compliance co-ordination cell under aegis of regulatory institution to institutionalise this process.

ConclusionIn order to upscale large scale deployment of wind installations, apart from focusing on supply side measures, the National Wind Mission should also lay emphasis on demand side intervention measures. In this context, regulatory institutions should consider following key priorities (a) encourage state participation in planning & development of wind resource based transmission evacuation infrastructure, (b) develop institutional capacity for management of wind intermittency and bringing clarity in scheduling framework and (c) develop adequate institutional capacity for RPO compliance monitoring and reporting framework and to ensure timely enforcement of RPO targets.

(Note: Views expressed in the article are Author’s personal views and need not necessarily represent views of the organization.)


Supply Chain Challenges in Wind Turbine Industry

A.S. Karanth Wind Energy Consultant, [email protected]

There are several issues one has to take into account in the wind turbine business supply chain. It plays an important role in:

1. Project Execution

2. Turbine Manufacturing

3. Operation and Maintenance

4. New Turbine Development

1. Project Execution ² Supply chain needs to be given importance,

marked by standardization and selecting right suppliers with proven record. Quality is equally important as cost.

² As wind power projects are necessarily to be time bound, high degree of accuracy at the time of project planning is must keeping in mind to facilitate least amount of down time for trouble free operation over a 20 year period.

² What is not well taken care in the initial project execution can be seen in falling apart of equipment, adding down time. These stoppages are additional to what can be due to Turbines.

² There are chances of these deficiencies causing additional repair / replacement costs to the investor.

2. Turbine Manufacturing ² Procurement decisions during Turbine

manufacturing also depend on the Technology provider. Scenarios under different arrangements can be:

* Joint Venture – The Buyer may need to procure from the partner, if the part/component/equipment is made at the partner’s end, for distribution to all the subsidiaries or associates. This throws some challenges to the local buyer in terms of continuously negotiating deliveries, prices and dealing regularly with quality issues.

Additionally, there are logistics costs and duty administration while handling parts import for turbine build and later defective parts export.

* Licensee / Royalty – In this case the Licensor is less bound while opting for different sources of supplies. There may be some initial guidance and approval support, but the buyer can choose alternate parts in India, subject to Turbine certification norms.

* Parts Supply Bound Contract Licensee – Here the licensor may insist that specific quantity of turbines would be built with the parts sent by his licensor, who in turn would have had the advantage of bulk order negotiation.

* New Turbine (own) Development – Based on earlier experiences in the Indian supply chain situation, Indian companies can find the best sources for the recommended component. Yes, these choices need to meet the approval of the Design Consulting group and / or company’s engineering department. The primary drive in opting for this alternative is cost, or sometimes uneasiness with the earlier supplier. Procurement usually happens, with the supplier claiming that he has already been supplying to another wind turbine manufacturer and it is available at a lower cost.

China is becoming a major turbine component supplier. Manufacturers in the urge of reducing the turbine costs, would like to go for alternate sources of parts from China after the first Certification process, where European sources are used as recommended by Design house or Technology Partner. A word of caution is necessary to ensure long-term consistency and commitment and need not always rest on cost considerations only.

For critical high value items like castings and blades, the risk is higher, and it needs to be watched closely. The company can take care of these, with its own close supervision established in China, preferably by appointing Chinese engineers who are specifically selected & trained to look at


quality issues and also to ensure selected processes remain. This culture of managing the supplies with close scrutiny is possible only when you have high volume purchases. The Chinese suppliers may also need the right guidance. Language can be challenge.

One needs to get them to understand the detailed specifications correctly before finalizing and setting the process, which is done exclusively for that Indian company. In most cases, however, the result of such an exercise at lowering sourcing cost can only be seen after a few years of the turbine working, and not immediately.

INDIA SPECIFIC: Supply Chain challenges for the wind turbine business in India are unique. Even though some of the challenges are akin to other manufacturing engineering industries like automotive and heavy engineering, the wind turbine as a product poses some special demands. A few are dealt here:

² Technology – It is true that technology development, which takes place outside India and transfer of technology which takes place by technical collaboration, joint venture or as a wholly owned subsidiary of the parent company. It is important that all vital information is made available to the local partner though the IPR rights will be held by the technology proprietor.

² Load Case – Since the turbine operation safety is linked with the designed safety life cycle, enough care should be taken while choosing alternate sources.

² Re-verification/ India Design Group / External Consultants – When alternatives are sourced for major components the time taken is considerable. It is also important that the local company engineering team follows good engineering procedures and practices, to complete the right processes to succeed, even if required by seeking support from international experts for development process implementation. This is required to succeed in achieving the desired result, from this change of source.

² Assurance of Certified Performance with Changes – In India few companies have expertise on the engineering front to manage on their own and be confident of getting the same turbine performance as was initially certified. If the change does not bring the desired result, the pain that one has to go through facing the customer, together with the likely loss of business and credibility is tremendous.

² Re-Certification Cost & Time – In case of alternate sourcing of critical components, redevelopment costs of both engineering and testing before introduction is substantial.

² Revisions in Standards GL/IEC – It is also necessary to keep a watch for and be prepared to adhere to new standards as and when regulating agencies enforce them, in the current scenario of time to time changes.

² Relisting – NIWE / MNRE / Concessional Duty – Any major change undertaken, either under compulsion because the current source does not continue, or one undertakes a major change with a major component such as tower (hub height), rotor diameter, pitch system or control system, the company is compelled to follow the set procedures to get the revised product approved and re-listed with the government, to get market acceptance.

3. Operation & MaintenanceThe Supply Chain for O & M is again different from that what is for turbine production. Generally, this business is considered independent, and the team usually has its own requirement -- some are planned for periodical procurements, and some are downtime related urgencies. Here the pressure on procurement varies with the available time.

In small companies, O & M requirement orders get clubbed with Production requirements. In large companies they are done separately.

Issues arise when imported parts are needed for maintenance jobs. Custom duty may also vary, since concessional duty applicable for turbine (parts) content materials may not be applicable for O & M parts. But under pressure from customers to put the turbines back into service, there is a likelihood that sometimes equivalent parts are used based on judgment, rather than to be done by following the procedures set for alternate sourced parts for turbine production.

With O & M contracts where parts are billed separately based on the actual replacement part (possibly covered under Insurance claims), one can take a bold and trial-oriented approach to replace the parts, where cost may be secondary to avoid downtime.

4. Product DevelopmentThe role of Supply Chain in the Product Development phase of a new turbine model is very critical. The business entity may already be a turbine manufacturer or it could be a new investor entering the turbine business. In the first case, the manufacturer is already familiar with supply sources for various parts required for this new model that is under design, development and prototype construction. In the second case, the design house generally drives the selection and process, or the new team brings in all the old


experiences or references of supply sources. Here, it is very essential to exercise caution while selecting and undertaking this development phase. Once decided, these get locked in for a series of turbines which go into manufacturing after certification. Hence any change later will entail additional approval process and time.

It is also essential to review the plans of such new entrants, as to whether they can give adequate after-sales support or be able to locally manufacture if it is an international player, of course subject to off-take volume. The drawing of contracts too has to be skilfully done, to cover all aspects of the situations one would face over the long period of being in the business of turbine manufacture.

Supply IssuesAvailability of turbine components easily, across the world, is generally an issue. This could be due to the mismatch between demand and availability. Market variations over the years also cause supply issues in India. Some commodity component suppliers such as for castings and forgings depend only partially on the wind turbine business. Component manufacturers cannot depend only on wind turbine manufacturers because of the low volumes and high variants. Over the last decade many suppliers had geared up with huge investments, banking on the upbeat mood in the market, but suffered for want of orders. Obtaining localized parts of the right quality in higher volumes is always a challenge. Partnership between

turbine manufacturer and equipment supplier is of very great importance as they are tailor made. A positive step has been made by inviting component manufacturers to become part of wind turbine manufacturers and work together in emerging technologies and make supply chain an opportunity rather than a challenge. Most turbine parts are not part of any manufacturer’s standard catalogue items. They are custom made, tailored to the individual turbine design and development. Components like blades are dependent on the individual turbine design chosen for the turbine. Turbine Rating Variants in the market also pose problems. There is also variation in the parts required for turbines of different manufacturers.

The Indian turbine manufacturers’ supply chain can ease with advancement in:

a) Engineering skills related to Wind Turbine Design,

b) Engineering Design verification tools,

c) In-house Vendor Development skills,

d) Good partnership with vendors

e) Process Determination and Documentation

f) A top-down emphasis on Quality Process Management throughout the manufacturing process, with continuous empowerment of the supplier team.

In conclusion, the Wind Turbine Supply Chain is somewhat different from other industries, and challenging at all times. But it is very critical to the success of the Wind Turbine business.

Prime Minister Shri Narendra Modi makes Strong Pitch for Clean Energy at G20 Summit

Prime Minister Shri Narendra Modi has pitched for a global effort at G20 summit in Brisbane, Australia to make clean energy available to all through concerted actions, which can be a major economic opportunity for all countries across the globe. Seeking collective R&D effort and collaboration in the direction of having clean energy path. Modi urged the leaders of big economies to set up a “global virtual centre” for clean energy research and development, with adequate public funding, which will fund collaborative projects in diverse sources of clean energy, smart grids and energy efficiency.

Direct Discounting of GBI Claims by IREDAIREDA has come up with a new scheme of discounting GBI claims. As per the scheme 80% of the pending GBI claim will be given as loan at an interest rate of 0.90% Per month (10.80% PA).

IREDA, US Exim Bank Ink $1 Billion Pact for Clean Energy Projects

Indian Renewable Energy Development Agency (IREDA), a body under the Ministry of New and Renewable Energy, has signed a preliminary agreement with US Exim Bank for a $1 billion loan from the American entity to undertake development activities in the clean energy sector. A Memorandum of Understanding (MoU) has been signed between IREDA and US Exim Bank with respect to cooperation in clean energy investment.S

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Wind turbine transportation though have been happening In India for the past few decades, the transportation of wind energy equipment becomes super ODC Cargo a decade ago, after India started to embracing multi-megawatt turbines.

A decade back, it was quite common to witness the wide eyed curious onlookers on highways, at towns and villages, who stopped their work and watch the transportation of wind energy super ODC components like rotor blades, nacelle assemblies, generator assemblies, tubular tower sections etc. with so much of excitement and animated talk. Now, however big the size of component, most of the people look at this as nuisance on the highway and villages which is slowing down their journey and some people who live in the remote villages consider this as God send opportunity for them to make money by stopping and preventing the transportation of wind components through their village roads and unused agricultural lands.

People approach, opinion and expectation on multi-Megawatt turbines had gone a sea change in decade period but the harassment at the hands of check post, RTO, sales tax, police, toll gate, highway robberies and stealing of diesel, tyres, money, miscreants damaging the vehicles etc. are increased in greater phenomenon, which prevents the reputed transporters to enter in to the transportation of wind turbine super ODC components within India.

Today in India the transportation policy and guidelines are framed by the Central Government but the interpretation of Central Government guidelines and implementation are rests with the respective State Governments. This arrangement enables the State Governments to generate direct revenue but contributes delay in free vehicles movements across India. This especially affects the wind Industry super ODC Components very badly.

Today in India to operate commercial vehicle the owner/ company has to apply mother tax (handled by State Government) for quarterly, half-yearly or annually and to operate within India need to apply for National Permit (valid for 5 years and handled by Central Government) and

Hard Road to Travel for Wind Logistics in India

K.P. Chandrasekar Assistant Vice President – Logistics, ReGen Powertech Pvt. Ltd.

to carry cargo from one state to another state one need to apply for multi-state permits (valid for 1 year and handled by the Central Government), Fitness certificate can be obtained from State Governments and insurance need to get every year from the insurance companies.

On receipt of above document, when commercial vehicles move on the road, they are subjected to overload and over-dimension rules framed by the State Governments. At present the Governments are allowing the mechanical vehicles to carry maximum GVW of 49 Metric Ton including trailer-tractor weight. Though, the Government intention is good in ensuring the distribution of weights in multiple axles and the prevention of road damage by halting and confiscating over load vehicles, Government is yet to come on grip the development happening in wind industry. Wind energy generator assemblies, nacelle assemblies and bottom tower sections weighs more than Governments permitted limit of 49 Metric Ton maximum load on multi-axles.

Transportation of such super ODC wind components are subjected to delay at check posts, confiscation of vehicles, levy of penalty, palming the grease etc.

The Government of India is promoting renewable energy aggressively and sets an ambitious target of 5000 MW for wind energy and with this, the estimated road transportation cost would be about Rs. 2000 Crores. The transportation of super ODC cargo would also spurs the employment opportunity for skilled and unskilled manpower in transportation sector.

At present in India the road infrastructure is definitely much better than what was available in 20 years back. Transportation of generalised cargo is lot easier now but super ODC cargo or project cargo transportation still faces the vertical and horizontal challenges. Our road infrastructure should be made future ready and dedicated freight lane must be created on national highways. The dedicated freight lane should be capable for transportation of project cargos and super ODC cargos without any height or width restrictions.


The Governments does not have complete data with regard to number and type of vehicles plying on National and State Highways. These data would enable the Governments to analyse the frequent spots where accidents and incidents are regularly taking place and to create modifications on road infrastructure to accommodate the requirements of regular vehicles plying on the road. These data enable the project cargo mover to do proper route planning before starting to move the project cargo on planned route.

The Central Government has taken a policy decision recently that to create road network across India, matching the European standard. In connection with this they have mooted that all the project cargos which can be transported in modular hydraulic trailers can obtain road permission online. Though, this is an excellent move by the present Central Government in bailing out the heavy haul cargo transporters to transport the project cargo on Indian roads much easier than the few months back.

Transport of wind equipment through modular hydraulic Trailers will not provide immediate relief to the wind components movement. Primarily in India, all the project cargo is being moved in mechanical trailers and lot of fleet suiting to wind industry are available in adequate numbers. Whereas, the modular hydraulic trailers are available in

limited number and good quality modular hydraulic axles need to be imported to beef-up the fleet supply. This requires huge investment.

In wind industry, the users of these fleets expect the Government to permit to create goose neck trailer with 5 hydraulic axles. This would require very less investment and minimum modifications on existing fleets and also this would enable the modified vehicle to carry maximum of 100 Metric Ton load on Indian roads. Thus, we can prevent the road damages and equal distribution of cargo weight on all axles and freight cost will also not shoot up and delay at check posts can be drastically reduced.

India has got huge population and plenty of manpower available. Unfortunately, the shortage of skilled drivers is prevalent for quite a long period. Government and private sector must come together to create an academy to train driver crew to drive all kinds of heavy haul fleet.

The Government should also consider providing concession or removal of toll gate fee to the vehicles carrying wind energy equipment across India. This would reduce minimum 10 % of existing freight cost of wind equipment transportation across India.


Criteria for WTG Prototype Certification and Type testing of Prototype from the New Manufacturer’s Perspective

Srikaanth Sarangapani [email protected]

Company Profile, ISO System

documentation,Parent company & Foreign company

collaboration agree-ment

(if applicable)

Manufacturing

Facility Evaluation

Information

Technical

Documentation

as mentioned in

Design Evaluation

document

requirement

Conduct of RLMM meeting byIndian Certification Body

Inclusion in RLMM list

RLMM Processing Fee

Agreements with Indian Certification Body for Certification & Type Testing

Manufacturing facility Visit & Evaluation

Accept

Accept

Submission of Documents

Process flow of inclusion of new company in Revised List of Models and Manufacturers of wind turbine and requirements for entering agreement with Indian Certification Body

No

No

Certification of wind turbine or components is an important milestone and becoming mandatory in most of the places around the world. Furthermore certification to the local country specific requirement is needed to commercialize the new turbine in the market.

Hence, it is important to know the different certification schemes and guidelines/standards of wind turbine and components for the benefit of wind turbine manufacturers, bankers, customers, insurance agencies.

Various type certification schemes available:

1. Danish Type Certification Scheme

2. Dutch Type Certification Scheme

3. IEC Type Certification Scheme

4. Germanisher Lloyds Type Certification Scheme

It is important and necessary to refer various documents to understand the requirements of certification and seek expertise of experienced professionals who can do value addition to the companies (start to end solutions) going in for setting up prototypes in India, as the requirements are not simple and need to be aligned with the external (foreign) certification bodies.

There is a need to re-look at the various documents being used presently and come out with a single document or an Indian standard for the prototype certification for simplicity and easy implementation.

Approach

This article puts focus on the requirements of Indian Certification ‘Type Approval Pro-visional Scheme-2000 (TAPS-2000)’ for WTG system in India and describes


the process of getting covered under the approved list of WTG manufacturers by fulfilling the requirements as per the existing standards/schemes in vogue.

Type approval - provisional scheme - TAPS-2000 (amended)TAPS-2000 (amended), the Indian certification scheme for wind turbines, has been prepared by the unit in line with International Standards, while taking into account the Indian environmental and operating conditions. The scheme was approved and issued by Ministry.

Type Approval – Provisional Scheme (TAPS) –2000 is a scheme for provisional certification and corresponding requirements of provisional type testing and measure-ments. TAPS will be in use till the formation and issue of final Type Approval Scheme (TAS) and formal accreditation.

According to TAPS-2000 (amended), the Provisional Type Certification (PTC) of wind turbines can be carried out according to the following three categories:

² Category-I: PTC for wind turbine already possessing type certificate or approval.

² Category-II: PTC for wind turbine already possessing type certificate or approval, with minor modifications/ design changes, including provisional type testing/measurements at the test site of Indian Certification Body / customer site.

² Category-III: PTC for new or significantly modified wind turbine including provisional type testing/measurements at the test site of Indian Certification Body / customer site.

Scope of TAPS

The following is the scope of TAPS:

² TAPS covers the whole WT up to and including WT terminals and from the terminals to the grid.

² TAPS covers the whole process covering design, manufacturing and installation.

² Type certification for the design of the wind turbine is based on verification of documentation supplied by the WT supplier, if necessary, supplemented by independent calculations, tests and surveillance inspections.

² Quality of the manufacturing and installation of WTs shall be ensured by review of the manufacturer’s QMS. The QMS shall preferably be certified for compliance with ISO 9001-2008.

² TAPS ensures compliance with the current safety requirements.

Design EvaluationCertification body evaluates WT type is designed and documented in conformity with the design assumption, standard and technical requirements.

Following documentation are required for this purpose:

² Wind Turbine description

² Detailed technical specifications including the make, model and source of major components

² Environmental condition & wind turbine design class

² Control and Protection system

² Load and Load cases including details of Design Load Cases (DLCs)

² Foundation design

² Measurement Load Cases (MLCs)

² Manufacturing, Installation and maintenance plan

² Safety and function test

Partial Design Evaluation / Review of type CertificateThe type certification/approval systems of Denmark, The Netherlands, Germanischer Lloyds and the IEC are recognized by TAPS and the certificates issued according to these four systems, are recognized by PTC.

Manufacturing System EvaluationThe evaluation includes manufacturing quality system, manufacturing evaluation of the vendors supplying key components like blade, gearbox, tower and the manufacturing evaluation of the wind turbine assembly facility.

Review of Foundation Design RequirementsThe purpose of evaluation of the foundation design requirements is to verify the loads considered in foundation design compared with the tower bottom loads calculated in the design documentation.

Foundation Design Evaluation (Optional)The purpose of the optional foundation design evaluation is to enable the inclusion of one or more foundation designs in the Provisional Type Certificate, as selected by the applicant.

Provision Type Test ² Provision type test consist of

* Safety and function test

* Power performance measurements

* Yaw efficiency measurement

* Report on static test of the blade edge-wise and flap wise


Time Drivers of the Certification ProcessTime driving elements during the certification process are:

* Design evaluation

* Type testing part

Type Characteristic Measurements

The power quality measurements mainly deal with the reactive power measurements. The reactive power of the WT must be recorded according to IEC 61400-21 along with power performance.

The measurement method is according to the procedure laid down in Section 7.4 of IEC 61400-21.

Design Evaluation Conformity Statement

² Design assessment with some out-standing items.

² Design assessment without outstanding items.

Validity of Type Certificate

² B type certificate: valid for 1 year during which period the outstanding items need to be closed before applying for A type certificate.

² A type certificate: valid for 5 years

Constraints in Getting Type Certification ² Completion of power curve and load measurements

as per IEC standard due to lack of sufficient data points related to wind speed (high wind speed) in given time frame.

² Get A type certificate within period of 1 year from the receipt of B type certificate after completion of outstanding matters.

² Timely coordination with certification body, measurement agencies and reply to their technical queries.

Importance / Significance of Type CertificationThe new supplier of main components which are procured as per functional specification given by turbine manufacturer need to be added in the turbine

type certificate by listing the new suppliers name in the design evaluation conformity statement. This involves submission of design documents related to the main components. If the main components procured as per the turbine manufacturer own manufacturing drawing then no recertification is required in case of new supplier.

Newly released IEC 61400-22 Ed. 1: Wind turbines – Part 22: Conformity testing and certificationThis standard replaces existing IEC WT 01:2001 Edition system for Conformity Testing and Certification of Wind Turbines.

The following modules are modified in new IEC 61400-22 Ed. 1: Wind Turbines – Part 22 Conformity testing and certification.

Type Certification

1. Foundation manufacturing evaluation

2. Type characteristic measurement (LVRT added)

3. Project Certification

Additional guidelines and requirement of documents have been issued by NIWE (CWET) and MNRE for consideration in the prototype certification & type testing process in addition to above requirements:

1. Guidelines for installation of prototype wind turbine models by MNRE vide lettrer no. 66/155/2012-WE dated 22.05.2012

2. Guidelines for Prototype Wind-Turbine Models - Addendum by MNRE vide letter no. 66/155/2012 –WE dated 20.09.2012

PTC Cat. I PTC Cat . II PTC Cat. III

• • •

•

•

••

•

••

•• •

••

The Provisional Type Certification consists of following modules with respect to categories as mentioned in chart.

Partial Design Evaluation/Review of Type Certificate

Manufacturing System Evaluation

Review of Foundation Design Requirements

Foundation Design Evaluation (optional)

Partial Design Evaluation / Review of Type Certificate

Provisional type Test


Review of Foundation Design Requirements

Type Characteristics Measurement (optional)

Foundation Design Evaluation (optional)

Design Evaluation Certificate


Provisional type Testing

Review of Foundation Design Evaluation (optional)

Type Characteristics Measurement (optional)


3. Requirements for installation of prototype wind turbine model in India by CWET dated 04.06.2012

4. Guidelines on Technical Requirements to be fulfilled by a Wind Turbine Manufacturer prior to signing the agreement for Provisional Type Certification with CWET Technical Note no. CWET:S&C/TN/02/2009 dated 31.12.2009

5. Evaluation of Test Site for Type Testing as per the Recommendations of Relevant Standards as per CWET Technical Note no. CWET/TEST/TN/1/2009 dated 21.12.2009

6. Guidelines for Scheduling Activities for Type Testing as per CWET Technical Note no. CWET/TEST/TN/2/2009 dated 21.12.2009

Effect of Certification Process on Turbine Quality

It is obvious that turbine size has grown and technology has become much more sophisticated over the years but also quality has improved a lot. The more comprehensive certification process is a basis for a more standardized design process. This helps the design engineers to follow a more structured design approach and to focus on safety to achieve better results. It ensures proper design documentation control and documentation related to the various components from the suppliers which results in better quality product with high reliability and performance.

Time Drivers of the Certification Process

Time driving elements during the certification process are:

² Design evaluation.

² Type testing part.

Out of experience it is recommended to involve the certification body from the very beginning (design conceptual stage) into these activities. Although the standards like IEC 61400, GL or DNV have been improved significantly over the last two decades and design elements, safety factors and way of interpretation of results have been defined pretty detailed, there is always a lot of room of discussion how assessment of loads, safety margins have to be handled. Although the certification bodies follow the same rules, different experts are focused on different items of the standards. An early discussion of definition of “Design Load Cases”, safety margins for design of mechanical and structural components, impact of material factors and also content of documentation for

design assessment but also manuals with the certification body helps to avoid delay and additional calculation loops during the assessment process. The same is valid for the measurement campaign and discussion of results for validation of loads and simulation model, as also grid models and requirements for “Fault-Ride-Through” measurements.

By following this strategy it is much easier for the wind turbine manufacturer to keep the time-line of a certification process under control. Nevertheless the impact of the type testing is in addition mainly depending on site-specific conditions and number of test sites available. Only on sites with good wind conditions and stable climate the measurement campaign will deliver reasonable data sets in a limited time period. Most locations world-wide are impacted by seasonable effects, that’s why measurement campaign can easily take 12 to 24 months. This has to be taken into account when introducing a new product into the market.

Road Map for Type Testing of Wind Turbine Models

² Request letter to Indian certification body from the company for taking up type testing.

² Submission of Input documents.

² Letter of acceptance of the foreign certification body to engage Indian certification body for type testing.

² Discussions between Indian certification body & company & confirmation of taking up type testing by Indian certification body and signing of type testing agreement on following grounds: a. With regard to the scope of type testing as per requirements of IEC 61400-22 & scope of accreditation of testing and confirm acceptance in writing from company to Indian certification Body. b. Evacuation permission (grid connectivity) required at prototype site.

² For other subsequent activities, please refer Time frame in table “Site feasibility Activities (sl.no. 1 to 6)”, ”Test Plan finalization activities (sl.no. 1 to 8)” & ”Test Turbine activities (sl.no. 1 to 6)” given on page nos. 1 and 2 of Indian certification body’s latest technical note “Guidelines for scheduling activities for type testing“ document.

The test site may be either customer’s site or Indian certification body’s test station.

Our groundwork enables our

clean energy contribution

to touch the sky

Our groundwork is what earns us the wings:

§ Robust operations -

from concept to commissioning and lifetime care thereafter

§ Comprehensive in-house manufacturing facilities –

including complete turbines and towers

§ Turbine technology -

reliable and proven gearless technology

§ Holistic solutions –

to all wind energy related financial / regulatory / CDM aspects

§ Proven track record -

18 years of operation; capacities exceeding 4200MW

www.windworldindia.com

Wind World (India) Ltd.Wind World Towers, Plot No. A-9, Veera Industrial Estate, Veera Desai Rd., Andheri (W), Mumbai 400 053, India.Tel: +91 22 6692 4848 | Email: [email protected]


Turbine Model WTG …. Prototype Testing Cost

Sl. No. Description Details *Amount in LAKHS

1 NOC Application fee PER Application / WTG 0.11

2 NOC Consultancy fee PER Application / WTG 0.28

3 Infrastructure Development Charges (IDC) 30 lakh per MW 60.00

4 O&M charges 1.6 lakh per MW per Year with 5% escalation every year.

1.60

5 CEIG Approvals Approximately. 0.50

6 TNEB Cost Approximately. 30.00

7 Land Cost along with development 3 .5 Acres 30.00

8 Line Cost 2 KM maximum 30.00

9 Met-mast (2 Nos Inc SCADA logger) 30.00

10 Land for mast (one Loc) 1.5 Acres 15.00

11 Others 2.52

Project Execution Cost

12 600 T cranes Hire from TN Sites Approximately. 25.00

TOTAL 225.00

13 Including Mobilization 600 T cranes from other sites like MH, GJ

Approximately. 50.00

TOTAL 250.00

* Indicates approximate cost given for reference purposes only

The theme of the next issue of "Indian Wind Power" is “Repowering”.

We invite relevant articles to the theme. We solicit your cooperation.

Editor


The Need for Supply Chain ManagementConsider yourself as a soldier fighting with enemy on a war front and imagine:

² When your gun does not fire due to poor quality of gun or cartridge, while you were face to face with the enemy

² When you are hit & bleeding, no one knows what to do with you despite their best intentions

² You are on a long war and no one knows what do you need and when - could be anything -food, arms & ammunition, medical attention

² You are asked to move ahead with a pistol in hand to kill your enemy and to your horror you find that your enemy is not one man but a platoon equipped with all sort of arms & ammunition

"Necessity is the mother of invention". While facing many situations as above, the military think tank created a term ‘Logistics Management’ during World War-II, which has later been re-defined as Supply Chain Management.

As we wear shoes of a soldier, we realise that unless all activities from start to end are not bound as a unit by a single chain, it may be very difficult to survive. This teaches us the importance of Supply Chain and its management is basically called Supply Chain Management.

If we look at it seriously we may conclude that it is nothing but common sense with little science and discipline applied.

Now let’s try to run through this little bit of science which we could apply to make better use of our common sense!

The Concept ² Like a relay race

² Everyone is buyer for someone & customer for someone

² Every stage carries out value addition – or else why should the stage exist?

² Starts with obtaining order from final customer

² Ranges from end customer to first supplier and the environment

² Key to success

* Speed to fulfill what customer wants

* Customer satisfaction (delight comes next)

² Focus – Customer

² Derived benefits

* Shareholders delight

It is an ideal theoretical concept which each organization needs to customize with no standard thumb rules.

Objectives & Benefits ² Unification of all functions

² Expectations, deliverables, accountabilities, responsibilities, inputs & outputs from each and every link of chain are well defined.

² Smooth flow of information

² Accurate Management Information Service (MIS) to

* Take decisions

* Reduce costs & hence increase profits and in some cases even stay competitive

* Optimize resources

* Reduce time, which is also money

Supply Chain is equivalent to nervous system of human body. Till it operates smoothly it is taken for granted. Its importance is known once it collapses but by that time the damages would have been done. Hence understanding Supply Chain gives an edge to decision making.

The Wind Turbine Manufacturing Industry in IndiaThe Wind business model in India is turnkey based as against broken specific supplies in west. Most of the organisations are total solution providers. Hence the wind turbine manufacturers have to cover all the activities starting from wind mapping to operations and maintenance work. The activities in wind industry business include:

Supply Chain Management in Wind Turbine Manufacturing Industry in India

Rajanish Saxena Assistant Vice President- Sourcing, Regen Powertech Private Limited


a. Wind Mapping and Monitoring

* Selection of potential sites and analysis

* Micro Siting and Computation of Probable Energy Outputs

b. Project Development

* Contour and plain table survey and Acquisition of Land

* Project feasibility – legal/commercial/financial

* All related governmental and legal clearances

c. Engineering, Procurement, Construction and Commissioning

* Manufacture and Supply of WECs

* Construction of evacuation systems

* Infrastructure development

* Erection, Commissioning and Interfacing

* SCADA systems - remote monitoring

d. Lifetime Operations and Maintenance

* 24X7 Operation and Maintenance of the WECs

* Annual electrical inspection, metering and calibration

* Online performance reporting

e. Additional Services

The following additional services are also provided such as

* Power Marketing, Billing and Collections

* Comprehensive all inclusive fixed cost contracts

* Regulatory Compliances

* Relationship Management

* Financing and Tax Advisory Services

i. Assistance in arranging finance for the projects

ii. Advice on tax planning

Erection of Wind TurbineErection of Wind Turbine is an important activity. For ease of understanding and handing, it can be classified into seven major levels as written below in sequence:

² Civil Work & Foundation

² Tower

² Generator

² Electrical Controllers

² Mechanical Assembly

² Blade

² Installation – Site materials

Production Model of Wind TurbinesAssuming that the wind turbine technology and design is available, the first question arises is make or buy. The inputs are as below:

a. Foundation: One can have its own team or outsource the work to a contractor. This is not a core area of a wind turbine manufacturer so outsourcing is becoming a trend now.

b. Tower:

² The choices for the type of tower are:

* Lattice – can go up to 160 m, takes longer time for erection, tough to maintain.

* Steel Tubular – usually in range of 85-90 m height but people have gone up to 100m, fastest erection time (8-9 hours Vs days for other type)

* Concrete – limited technology, goes up to 110 m, is cost effective over 100m height

* Hybrid – goes up to 140~150 m height, can have hybrid of Lattice + Tubular Steel OR Concrete + Tubular Steel

² Comparing the Type of Towers at 100 meter Height

* Cost (ascending): Lattice-Concrete-Hybrid-Tubular Steel

* Erection Time (indicative): Lattice (1 week) – Concrete (3 days) – Hybrid (3-4 days) – Tubular Steel (8-9 hours)

* One has the option to buy readymade tower or supply raw material and get it fabricated on job work basis.

* Since the raw material content is very high, most of the tower manufacturers in India prefer that steel plates are supplied to them and they do conversion on job work basis to reduce their capital deployment.

c. Generator:

² Choices between Make or Buy are available. However this is a very strategic decision in long run.

² It is seen that usually companies which use large size synchronous generators have preferred to make them in-house

d. Nacelle and Hub:

² As a standard practice components are bought and assembly is made in-house by most of the companies.


² From the perspective of supply chain management a company buying electrical boxes from outside deals with about 400~500 components as against a company which makes everything in-house which handles close to 2000 components.

e. Electrical Control Panels and Frequency Converters:

² Choices are available between making in-house to buying readymade.

² Usually it is preferred to have own design because buying an entire panel as a black box with design and technology proves to be a costly affair in long run when maintenance, repairs and modifications are required to be made.

² If one buys readymade boxes, the numbers are handful. In case one decides to make in-house, this activity itself becomes a huge supply chain activity asking for over 1300 components

f. Blades – the designs of blades are now available Off the Shelf and it is no more an item of monopoly. The choices are

² Make in-house – needs to deploy capital. Helps in maintaining costs and quality including repairs. Decision making is strategic in long term.

² Buy readymade - options are available and decision making is mostly commercial.

Categories of Purchases/ContractsThere are following categories of purchases and contracts in wind turbine installations:

1. Off the shelf readymade item

2. Item from existing range of supplies from a supplier with little modifications

3. Design given by buyer and item manufactured by supplier – tailor made item

4. Application given by buyer and design, manufacturing and supplies made by supplier

5. Raw material purchases

6. Commodity purchases – copper, steel, cement

7. Project specific purchases include subcontracting

² Power Evacuation

* Sub Station (layout is usually given by wind turbine company)

* EHV, HV lines

* Unit Transformer yards

² Foundation

² Erection and Commissioning

Importance of Supply Chain Management in Wind Turbine Industry

The Wind Turbine Industry is in transition from infrastructure type of processes to automotive kind of processes. At a time people used to talk about cycle times of production in terms of months and weeks in wind turbine industry and now industry talks in hours. Quantities are small but costs are exorbitant. Multiple activities take place simultaneously while setting up a wind farm and they all need to merge at a same time to yield desired results. Most common problem faced is like crane waiting for material to reach site. The quantum of monetary loss in crane waiting for one day is a six digit figure. There are many such loose ends which needs to be tightened.

Challenges Being Faced in Supply Chain

It took WTG manufacturers years to realize that having a good technology or mere having an excellent production facility to manufacture wind turbine and components is no guarantee that the organization will flourish. So for a change, we will have a look at challenges from delivery end.

² Land, Right of Way, Evacuation – These activities definitely getting tougher and complex with time. Now smart organizations are realizing their importance and treating them as one would treat an item of the Bill of Material.

² Payments and Cash Flows – The average working capital cycle time in the industry is well over 180 days at the moment. The receivables get due in 180 days as against payables which get due between 30 to 60 days. This means 3 times more funds are required and this must continue till complete one year of sales get into rotation. With restricted funding and high cost of borrowing life is getting tougher. Definitely the payments are getting delayed.

² High Costs of Finance – Just imagine if I have to borrow at 10% and give credit to my customer, what will I do? Nothing comes free in this world so I will add it in my sales price. Taxes and duties automatically multiply and get added due to this cost addition. Then we have tough lending rules and how many are able to get desired funding at 10%? Cash credit rates are hovering between 12% in best cases to beyond 16% in worst cases. All these are adding to the costs of material and projects.

² Funds are Dictating Quantum of Purchases – Surprisingly it is not the confirmed orders but ones capacity to organise funds which is dictating how much does one buy against its schedules.


² Inability of Supply Chain to Deal in Least Possible Lot Sizes – in the situation when one has to match over 500 types of items to make and sell one wind turbine, and funds are rare commodity, it is very critical that the supply chain starts dealing in smallest possible supply lot sizes so that same funds can be utilized to buy more type of items and rotated fast as against blocking major kitty in top few items.

² Lack of Flexibility among European and American Suppliers – Ask to change sea shipment into air shipment or 20 sets into 5 sets and our European and American suppliers find it hard to adjust. The key lies in making agreements with them for smallest possible lots so they can design their packing and documentation accordingly.

² The Supply Chain Capacities – For ease of understanding, a monthly capacity of 100 calculates to 1200 sets per year. However, if first six month’s purchases are mere 200 sets, next 6 months demand 1000/6 i.e. 166 per month. The capacities are not available and firefighting starts. Efforts are made to first buy at premium and then next develop additional capacities. Additional capacity means capital investment. After an investment is made, demand comes down after six months and people who invested in additional capacities do not get desired business. The cycle gets repeated after few years.

The OEMs have to deal with all the above situations and manage their business successfully.

What Different Can Be DoneWe are in the commercial world and everyone is here to get returns on investment. With so many challenges up our sleeves it needs a different approach to tackle the challenges. Some of these approaches may be defined as below:

a. Develop Long Term Honest Relations: Usually, it is seen that when market goes up, whole chain starts jumping to increase prices, but when market falls reciprocation is not done automatically.

b. Standardization of Components/Input Material Across Various Wind Turbine Models – Let us understand this with an example. Almost every wind turbine manufacturer uses tubular steel tower. The process to manufacture these towers is more or less the same. The basic input is hot rolled flat steel plate. Raw material and inspection methods are also almost same. Each tower requires about 20 to 30 plates of various dimensions and no two companies have even 10% common plates. Imagine if some of the companies come together and re-design their towers so as to keep 70%-80% of the plates as common, these plates would become a tradable commodity. It will be easily

available, people would stock it comfortably and prices will also drop. There are forums from point of view of sales and policies. People are coming together to influence external factors after probably realizing the power of unity. Why can’t our own houses be fixed first? Why don’t we have supply chain forum at least for wind turbine fraternity?

c. Make Consortium of Buyers – making consortium of buyers will provide economies of scale wherever individual volumes are less. A regional hub will also open opportunities for interested suppliers to relocate nearby to supply points because the consortium of buyers may provide them with enough volumes to make investments.

d. Use Common Service under a Pool – Company ‘A’ sends its TQM Engineer to Korea and Company ‘B’ also send its TQM Engineer to same company in Korea. Both do same work for their companies. Why can’t it be shared? A penny saved is penny earned.

e. Benchmarking – Why can’t we all create a benchmarking system. Entire industry needs it. It will help some of us to make initial improvements and I am sure very soon we may have a global benchmarking system available for wind industry. The basic stages for benchmarking are more or less same and we are no different. Let’s have a look at them:

* Incapable – Inefficient

* Effective – Satisfies basics

* Efficient – Meets requirements as designed

* Best in Class – Outperforms all competitors and has clear competitive edge

* World Class – Recognized as the best. Benchmarked by others even in other sectors

f. Flexibility: Typical benefits of an effective supply chain are as below:

² Reduction in total logistics costs as a percentage of revenue (material acquisition, order management, inventory costs and finance/IT support)

² Reduction in order-fulfillment lead time

² Reduction in inventory

² Improvement in meeting commitment dates.

Indian Wind Turbine Supply Chain is bogged down by ambitious forecasting and poor cash flows. If our Supply Chain gets flexible and obtains the ability to operate in smaller volume lots and within shorter lead times, the risks involved with long term ambitious forecasting can be mitigated. Rest of the benefits will fall in place automatically.


g. Management of Receivable and Payables: Most of time is spent in following up for receivables and payables. Unfortunately this is one grey area which is never taught in any of the management books. One of the reasons could be gap in payable and receivable cycles. Why can’t we accept it and re-design our payable/receivable cycles which industry can adhere to. In any case nothing comes free and if any one member of supply chain suffers a loss, that’s not a sustainable situation in long run. It is a matter of time before that association collapses. To understand easily, if the project realization is taking 180 days, let the payment

cycles match the same and costs could be worked out. This will mitigate the risk of delayed payments causing delayed raw material procurement resulting in delayed supplies against committed schedules.

ConclusionIt is evident that supply chain in wind industry has its own pros and cons but it is no different than any other industry at macro level. Same rules apply here too. The only need is to have accurate forecasts and adherence to commitments made.

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Proactive Government Policy can Double Wind Energy Market Instantly: Gamesa

Spanish energy major company Gamesa has pointed out that a proactive government policy on wind energy could instantly double the market for wind energy generation, from 2500 MW to 5000 MW, in the country. The market leader in wind turbine manufacturing in the country is also planning to invest over 100 million Euros in India in the next five years. Gamesa Group’s Executive Chairman Ignacio Martin said to reporters while inaugurating a new production line for their 2 MW turbine in Mamandur near Chennai that it was a good sign that the new government has landed a much needed political stability for sustained growth in the country. But a proactive government policy is needed if the sector is to expand to its full potential.

Ministry of Power for Changes in Renewable Energy Obligations

The Ministry of Power will soon approach the Cabinet with a proposal to introduce stringent rules for buyers and sellers of renewable energy, besides making amendments to the provisions in the overall tariff policy. On similar lines, the government is contemplating the RGO (Renewable Generation Obligation), which will make it compulsory for thermal power producers to also generate electricity through renewables. The changes in the tariff policy are also being looked at in order to provide for long-term Power Purchase Agreements (PPAs), trying to provide intermediary companies to make such PPAs more bankable considering the poor health of several discoms. The government may even bring in an entity which provides bankability, confidence to financers that their money is secure through the intermediary who purchases the power that is generated and puts it into the grid. The move will bring down the interest cost and lead to certainty in the system.

Railways to Set up 26 MW Wind Farm

Railways, the biggest consumers of energy, is moving towards harnessing green power with a 26 MW windmill proposed to be built in Rajasthan. The project, the biggest renewable energy initiative by the national transporter, is to be set up in Jaisalmer at a cost of Rs 150 crore and is targeted to be completed in about nine months.

First Bus Running on Bio-methane from Human Poop Launched in UK

The first bus in the United Kingdom made its maiden voyage, powered by bio-methane from human poop and food waste. The 40-seater Bio-Bus made a trip from Bristol Airport to the famous historic city of Bath. It runs off of bio-methane gas generated at Bristol’s sewage treatment plant, operated by GENeco. The company was the first in the UK to churn local sewage into a steady stream of reliable fuel. GENeco says the bus can run 186 miles (300 km) on a full tank of gas while producing 30% fewer emissions than conventional diesel buses.


Know Your Wind Energy State - Gujarat - A Snapshot

Compiled by Mr. Nitin Raikar, Suzlon Energy Limited, Mumbai([email protected])

Topography & ClimateState brief :

Gujarat is located on the west coast of India surrounded by the Arabian Sea in the West, Rajasthan in the North and North-East, Madhya Pradesh in the East and Maharashtra in the South and South East. It is situated between 20°1' and 24°7' north latitudes and 68°4' and 74°4'east longitudes. The state has the longest coastline of about 1600 km. The state has three distinct geographical regions – a corridor, which is the industrial mainland; a peninsula, known as Saurashtra, and Kutch, which is partly desert and partly marshland. Gujarat has varied climatic conditions. The north-western part is mostly dry due to the desert areas while the southern region is moist due to heavy rainfall during the monsoon season. The southern districts receive maximum rainfall, making it suitable for vegetation. The northern region is dry because of the adjoining desert. The Arabian Sea and the Gulf of Cambay make the weather pleasant. Areas like Kutch, Jamnagar, Panchmahals and Mehsana fall in the rain shadow region and thus receive little rainfall. The overall climate of the state is extreme due to the variation in topography.

Overall Power Scenario(as of 31 Mar 2014 & figures in MW)

Total installed capacity (all energy sources) 27647.26

Thermal (Coal+Gas+Diesel) 21885.74

Nuclear 559.32

Hydro 772.00

RE Capacity (Grid connected) 4430.20

Wind Resource(Data as of 31 Mar 2014)

Installable Potential as per CWET

10609 MW at 50m Hub Height

35071 MW at 80m Hub Height

Total Nos of established Wind Monitoring stations and data recorded by CWET

81

Number of operational CWET wind monitoring stations recording data

13

Stations with Annual Average WPD > 200 W/sqm extrapolated at 50 m height

41 (exclusive of masts who are yet to complete one year of operation)

Key Windy Regions Kutch & Saurashtra Region (notably the coastal belts)

Key Windy Districts (having installation track record)

Jamnagar, Kutch, Porbandar, Rajkot, Bhavnagar


Wind Installation Statistics(Data as of 31 Mar 2014)

Cumulative installed capacity (MW) 3453.90

Govt Demonstration Projects (MW) 17.84

Private & PSU Sector Projects (MW) 3436.06

State Ranking in Wind Installation # 2nd (after Tamilnadu)

% of Wind Installations w.r.t all energy

12.49%

% of Wind Installations w.r.t RE sources

77.96%

Green Statistics(Data as of 31 Mar 2014)

Million tones of CO2 emissions offset by Wind Energy in the state (p.a)

7.1 million tonnes

Million tones of Coal savings by Wind Energy in the state (p.a)

5.4 million tonnes

Wind Policy - Salient FeaturesPolicy References

GoG Wind Power Policy 2013: GR No. EDA-102001-3054-B dtd. 25 July 2013

GERC Final Tariff Order dated 07 Jan 2013

Feed in Tariff (Sale to EB)

Rs 4.15 per unit flat for 25 years (WEGs commissioned on (or) after 08 Aug 2013 till 31 Mar 2016)

Third Party Sale of Power

Allowed (but not entitled for banking)

HT Industrial/Commercial Tariff (for captive)

Rs 4.25 - Rs 4.55 (Base tariff); ED + Fuel Surcharge would vary (Fuel Surcharge Base rate Approved by GERC: 0.60/kWh, Fuel Surcharge as on date : ` 1.10 /unit)

PPA Tenure 25 yearsWheeling charges

For 66kV and above drawl : Transmission loss approved by GERC time to time

For drawl Below 66 kV : 7% for one WTG and 10% for more than one WTG

GEB will charge 5 Paisa per unit for wheeling at more than 2 locations

Open Access Charges

Rs 2721/MW/per day for FY 14-15

Cross subsidy Charges

Wheeling of wind energy for third party sale and captive use shall be exempted from cross subsidy charge

Electricity Duty (for captive)

Exempted for 25 years (15% - Industrial & 25% - Commercial) however ED applicable for TP Sale

Banking (for captive)

One month and surplus units will be sold to Board @ 85% of the PPA rate

Reactive Power Charges

10 paise / kvarh (if reactive power drawal is upto 10% of net energy generated)

25 paise /kvarh (if reactive power drawal is more than 10% of net energy generated)

Renewable Purchase Obligation

6.25% RPO (Wind) / 1.25% (Solar) / 0.5% (Others) specified for FY 14-15

Prevailing APPC Rate

Rs 2.64/kWh

CDM Sharing First year generator will get full 100% and thereafter 10% incremental sharing yearly till sixth year when both Generator & DISCOM will share on a 50:50 basis.

Scheduling of Wind power

All wind projects to submit day ahead schedule to SLDC and share real time data with SLDC

Regulatory Agencies & State UtilitiesGovt Regulatory & Nodal Agencies

Gujarat Electricity Regulatory Commission (GERC)Gujarat Energy Development Agency (GEDA)

State Utilities Gujarat Urja Vikas Nigam Ltd. (Holding Company)Gujarat State Electricity Corp. Ltd.(Generation)Gujarat Energy Transmission Corp. Ltd. (Transmission)Uttar Gujarat Vij Company Ltd. (Distribution)Dakshin Gujarat Vij Company Ltd. (Distribution)Madhya Gujarat Vij Company Ltd. (Distribution)Paschim Gujarat Vij Company Ltd. (Distribution)

Private Utilities Torrent Power

Miscellaneous Factoids

Project Commencement Year

Asia's first Wind Power Project was commissioned at Mandvi (Kutch) in the year 1986. The Project comprised of 2 X 110 kW m/cs of MICON M100 Make & 14 X 55 kW m/cs of MICON M55/11 make. The total Project capacity of this Demonstration Project amounted to 990 kW (0.90 MW).


Snippets on Wind Power

Draft Renewable Energy BillThe Ministry of New and Renewable Energy is planning to roll out the first draft of the Renewable Energy Bill within a month’s time. This comes in light of the ambitious three-month timeline the ministry has given itself to finalise the legislation. The need for a separate act governing renewable energy was felt in light of the investment crunch the sector is facing owing to ambiguity in the governing policies. A technical committee is working on it and they are likely to get back to us with the first draft of the legislation in 20-25 days. After that it will be put out for inviting suggestions and objections from all stakeholders including the state governments.

ReGen Focuses on R&D and Market Centric InnovationsReGen is working towards empowering its wind business by focusing on development of higher rating wind turbines and understanding different options to complement wind centric business. ReGen is looking Wind and solar as complementing technologies. ReGen wanted to complement wind focused business with a suitable technology to provide a real alternative to conventional sources of energy.

IREDA to Raise Rs 1,500 Crore via Tax-Free Bonds Next FiscalIndian Renewable Energy Development Agency (IREDA), the government’s dedicated green energy financing institution, is planning to raise Rs 1,500 crores next fiscal through issuance of tax-free bonds in order to support the Centre’s ambitious clean energy targets running into hundreds of gigawatts. Over the next three years, the agency expects to lend Rs 14,000-16,000 crore, as much as what it has disbursed over the past 28 years of its existence, owing to the targets and the growing interest of investors in the clean energy business.

Source: The Economic Times

Global Consultancy Firms Step-up Focus on Consulting for Indian Renewable Energy CompaniesWith the strong push from the Prime Minister Shri Narendra Modi and an increase in activity in sunrise

sectors like wind and solar power in India, large consultancy firms like Accenture or Boston Consulting Group is setting sight on consulting for the renewable energy space. Global consulting firms who have had little or no presence in renewable energy consulting in India are ramping up their work after seeing growth in revenues coming in from the sector.

Source: Times of India

Govt. for up to ` 1 crore Penalty on Entities Violating Electricity Act

Seeking to make penal provisions more stringent in the power sector, the government has proposed imposing up to ` 1 crore fine on entities violating norms under the Electricity Act. The proposed penalty limit would be a steep jump as it is just ` 1 lakh under the existing provision. According to the government, a penalty that could run up to ` 1 crore would be slapped on entities found not to be complying with any orders or directions given under the Electricity Act. The provision is part of various amendments proposed by the government to the Electricity Act, 2003.

Source: Live Mint

Electricity Bill Focuses on Renewable Energy

The Electricity Amendment Bill 2014, introduced in the Lok Sabha lays strong emphasis on promoting renewable energy generation in the country while also aiming at increasing accountability and transparency in the functioning of regulatory bodies. For the first time, the Bill, introduced by Power Minister Shri Piyush Goyal, proposes to make it mandatory for any company establishing lignite and coal-based thermal power plants, to generate renewable energy. While the amount of renewable energy to be generated by such plants will be decided later, the Bill proposes it to be not less than 10 percent of the total installed capacity of a thermal plant.

Source: Business Line

Wind Power Industry Ending 2014 on a High Note

Assured of government’s backing, the Indian wind power industry is ending the year on a high note, but also with a problem it would not be unhappy


with meeting the stiff targets set by the government. India has taken nearly a quarter century to create wind power capacity of 22,200 MW. But now, Power Minister Piyush Goyal wants the industry to ramp up installations, so that the capacity additions in 2018-19 are 10,000 MW. The most the industry added in any year was 3,168 MW in 2011-12.

Source: Business Line

Amendment in Electricity Act, 2003 Presented in Parliament

The amendment to Electricity Act, 2003 was presented in the parliament on 19th December 2014. It is expected that this amendment will bring about big reforms in the electricity sector. The Government had earlier expressed its intention of bringing amendment in the Electricity Act, 2003 along with the introduction of the Renewable Energy Act.

Maharashtra to Launch Integrated Policy for Renewable Sector

To reduce the state’s carbon footprint and give a boost to the renewable energy sector, Maharashtra government has decided to come up with an ‘Integrated Policy for Renewable Sector’ in the New Year. The state government has roped in experts from various sectors to give their inputs to the team in-charge of making the draft of the policy.

Source: Business Standard

National Wind Mission among New NAPCC Missions

To broaden India’s response to climate change, the government will soon add at least four new ‘Missions’ to the National Action Plan on Climate Change (NAPCC), including one to promote wind energy, and another to build preparedness to deal with impacts on human health. The Wind Mission is likely to be given an initial target of producing about 50,000-60,000 MW of power by the year 2022, the year when the 13th Five Year Plan will come to an end. Already, there is about 22,000 MW of installed capacity of wind energy in the country. Like the Solar Mission, the Wind Mission will be serviced by the Ministry of New and Renewable Energy.

Source: Indian Express

India Plans $5 Billion Green Energy Funds

For energy security, as part of its blueprint the National Democratic Alliance (NDA) government plans to float five funds of $5 billion each, targeted at promoting green energy sources. India’s Ministry of New and Renewable Energy (MNRE) plans to get the help of state-owned and private sector financial institutions such as Power Finance Corporation Ltd (PFC), Rural Electrification Corporation Ltd (REC), Indian Renewable Energy Development Agency (IREDA), IFCI Ltd, SBI Capital Markets Ltd and ICICI Bank Ltd to create a corpus of $25 billion.

Source: The Economic Times

Suzlon to Set Up 3000 MW Renewable Energy Projects in Gujarat

Pune-based Suzlon Group has announced its plans to invest ` 24,000 crore over the next 5 years on energy projects to generate 3,000 MW in Gujarat. This will also mark the foray of Suzlon in solar energy. Tulsi Tanti, chairman, Suzlon Group, said that the company will be setting up 2,000 MW of on-land wind capacity, 500 MW of offshore wind capacity and 500 MW of solar capacity. The offshore capacity will come up 5-10km off the Kutch coast.

Source: Times of India

Government will need to Invest Rs 15.70 lakh cr for 24x7 Power Supply by 2018-19: Report

The government will need to invest Rs 15.70 lakh crore to provide 24x7 power supply to all consumers, according to a panel report. A sub group appointed by the Forum of Regulators (FOR) has said that around 1,280 billion units (BUs) will be needed to service the 24x7 requirements. The panel was headed by Karnataka Electricity Regulatory Commission Chairperson Shri Sreenivasa Murthy. The cost of servicing this capital works out to Rs 1.59 per unit. Subtracting the transmission losses, which should go down to 17.5% by 2018-19, the tariff should come down by 50 paise, bringing down the capital cost to Rs 1.09 per unit.

Snippets Compiled by:

Shri Abhijit Kulkarni General Manager, SKF India Ltd. Pune

and IWTMA Team


Photo Feature Launch of Indian Wind Energy Alliance

Shri Piyush Goyal, the Hon’ble Minister of State with Independent Charge for Power, Coal and New & Renewable Energy, Government of India launched the Indian Wind Energy Alliance (IWEA) on 3rd December 2014 at New Delhi.

IWEA is a consortium of the Indian Wind Turbine Manufacturers Association (IWTMA) and the Wind Independent Power Producers Association (WIPPA), the two leading trade bodies representing respectively the manufacturing and investing or customer side of the wind business. The objective behind the formation of this alliance is to promote and protect the interests of all stakeholders of the wind energy industry including wind energy producers, investors, manufacturers, component makers and other stakeholders. It will provide a pan India forum, create an atmosphere of cooperation and address various issues faced by the wind energy stakeholders working closely with the government to achieve the target of 10 GW of new wind installations every year.

Present at the occasion, Shri Piyush Goyal said, “There is need to enhance wind power development in the country, and the government will provide all the necessary support to the industry to achieve the target of 10,000 MW of wind power installations every year. The formation of IWEA will not only benefit the Wind Energy Industry as a whole but also partner with the Government in fulfilling Hon’ble Prime Minister Shri Narendra Modi’s vision to bring power to every home by 2019”.

Speaking at the occasion, Mr. Sumant Sinha, the first Chairman of IWEA and Chairman and CEO of ReNew Power, said, “The potential of the wind sector in India is far greater than what is currently being projected and the formation of IWEA will provide an impetus to the wind energy industry by establishing

and assisting scientific laboratories, workshops, institutes and organization in the Wind Energy Industry. There is a lot of scope for the wind energy sector to grow in India and Government’s support is critical to achieving the national objectives especially given the government’s renewed interest on wind and other renewables.”

“Wind energy is poised to contribute substantially to India’s energy security as its generation has almost tripled during the last 6 years. IWEA is determined to work with communities, the government, and member organisations to ensure that the national ambitions are realized. The formation of this apex body for the Wind Energy Industry will further attract more private sector investments and contribute to the economy by job creation in rural areas,” said Mr. Madhusudan Khemka, Vice Chairman, IWEA and Managing Director of ReGen Powertech Private Limited.

Wind Turbine Manufacturers Association (IWTMA) is an association formed to promote and harness wind energy for an all inclusive sustained growth-now and in the future. The association is over 15 years old with 18 members consisting of OEMs and component manufacturers representing more than 90% of Indian wind energy installations.

Wind Independent Power Producers Association (WIPPA) is a national body representing all the major IPPs operating in wind industry in India. The primary goal of the Association is to bring together all the important players, including government officials and multi-lateral agencies on a common platform to discuss generic issues and resolve problems that may hinder the progress and development of projects in the Indian Wind energy sector. Presently it is a 30 member strong association and they have been the key investors in the wind industry across the country. The collective investment of all the members in this sector has so far been around Rs 25,000 crores and members are expected to invest another Rs 70,000 crores during the 12th Plan Period. Members have an operating capacity of over 4,500 MW as on date spread across different states.

Hon. Minister of State with Independent Charge for Power, Coal and New & Renewable Energy Sri Piyush Goyal (in centre) being received by Sri Sumant Sinha, Chairman, IWEA and Sri Madhusudan Khemka, Vice Chairman of IWEA and Chairman of IWTMA

Sri Sumant Sinha, Chairman, IWEA welcoming the Hon. Minister

Hon. Minister launching IWEA


Printed by R.R. Bharath and published by Dr. Rishi Muni Dwivedi on behalf of Indian Wind Turbine Manufacturers Association and printed at Ace Data Prinexcel Private Limited, 3/304 F, (SF No. 676/4B), Kulathur Road, Off NH 47 Bye Pass Road, Neelambur, Coimbatore 641062 and published at Indian Wind Turbine Manufacturers Association, Fourth Floor, Samson Towers, No. 403 L, Pantheon Road, Egmore, Chennai 600 008.

Editor: Dr. Rishi Muni Dwivedi

Know Your Member Inox Wind Limited

Mr. Devansh Jain Director, Inox Wind Ltd

Inox Wind is a fully integrated player in the wind energy market with state of the art manufacturing plants near Ahmedabad (Gujarat) for Blades & Tubular Towers and at Una (Himachal Pradesh) for Hubs & Nacelles. Inox Wind manufactures the key components to ensure high quality, most advanced technology, reliability and cost competitiveness. Inox WTGs are designed for low wind speed sites of India.

Mr. Devansh Jain is Director of Inox Wind Limited since April 25, 2009. He has work experience in various management positions across the Inox Group, which he has been spear heading the company since its inception in FY 2010. The company successfully started its turbine, blade and tower manufacturing units in 2010 and is already amongst the leading and fastest growing wind turbine manufacturers in the country. Under his supervision, INOX Wind Limited has obtained an ISO 9001:2008, ISO 14001:2004, OHSAS 18001 and ISO 3834 certification for its management systems pertaining to manufacturing, installation, commissioning and O&M of wind turbines. INOX Wind WTG’s are C-WET (part of MNRE) approved and Type Certified by TUV Sud. Mr. Jain has completed a double major degree in Economics and Business Administration from Carnegie Mellon University, Pittsburgh, USA.

A Blade being transported to the Windfarm Site

The Making of a Tower

An Excellent View of a Windfarm Blades Ready to be Dispatched Blades Ready to get the Finishing Touch

Engineers at Work Engineers Working on Hubs Rohika Tower Plant

Workshop where Nacelles get prepared

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87

At ReGen Powertech, we believe that simpicity is everything. Our technology partner Vensys Energy AG, Germany, a world leader in Wind Energy Converter design and development enables us to offer turbines that are highly advanced yet to simple.

The V87 is a fine example of ReGen Powertech’s expertise and commitment to offering turbines that are highly efficient, reliable and low maintenance.

NO WONDER WE HAVE CONFIDENCE OFWORLD CLASS IPP CLIENTS

Samson Tower, 403L, Pantheon Road, Egmore, Chennai – 600 008. Tel: +91 44 3023 0200, Fax: +91 44 30230298/99.Email: [email protected] www.regenpowertech.comChennai: +91 98401 61228, Delhi: +91 98112 27535, Mumbai: +91 98190 63836Factories : Andra Pradesh: Survey No.182 to 188, APIIC Industrial Park, Mambattu Village, Tada Mandal, Nellore District 524121, A.P.Udaipur: NH-76 Udaipur – Chittorgarh Road, Village – Bhatewar, Tehsil – Vallabh Nagar, Dist.Udaipur (Rajasthan), Pincode: 313601, Opp. Sir Padampath Singhnia University.

An ISO 9001, ISO 114001 & OSHAS 18001 Certified Company

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