GUJARAT

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GLOBAL OPPURTUNITIES
Presentation by Mr Sarvesh Kumar
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GLOBAL An Overview
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The Global Benefits of Wind Power

• Reduces climate change and other environmental
  pollution.
• Creates employment, regional growth and
  innovation.
• Diversifies energy supply, eliminates imported
  fossil fuels.
• Provides energy security and prevention of
  conflict over
• natural resources.
• Reduces poverty through improved energy access.
• Provides a hedge against the price volatility of
  fossil fuels.
• Fuel source is free, abundant and inexhaustible.
• Global wind resource is bigger than global power
  demand.
• Delivers utility-scale power supply.
• Modular and rapid to install.

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Harnessing Wind Power

• 12 of the World's electricity can be supplied by
  wind 11 billion tonnes of CO2 emissions can be
  saved by 2020.
• By 2020, 1250 GW of wind power can be installed.

- Wind Force 12
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Contribution of wind energy to national
electricity demand (end of 2005)
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Global Development
 
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Wind Power Ends pollution

• Every installation of a Wind Turbine saves 0.2
  Acres of land from mining usage.

• India's total Wind installation of 4335 MW, has
  virtually saved - 867 Acres of land from Mining
  activities.

• Wind power production
• entails very minimal use of water.

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Wind Power Ends pollution
A single 750 KW Wind turbine operated for one
year at a site with Class IV wind speeds (Wind
averaging 6 - 7 M/sec _at_ 50 Meters height) can be
expected to displace a total of 1179 tons of
Carbon dioxide 6.9 tons of Sulpher dioxide 4.3
tons of Nitrogen Oxide

• More Wind Power means
• Less smog
• Less acid rain and
• Less Green House Gas (GHG) emissions

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India An Overview
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WIND POWER DEVELOPMENT
(Installed Capacity in Megawatt)
4500
4335
4000
3595
3500
3000
2483
2500
Installed Capacity in MW
1870
2000
1628
1340
1500
1167
1024
968
902
733
1000
351
500
115
54
41
32
37
0
March 1990
March 1991
March 1992
March 1993
March 1994
March 1995
March 1996
March 1997
March 1998
March 1999
March 2000
March 2001
March 2002
March 2003
March 2004
March 2005
Dec 2005
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Month Year
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Advantage India

• The largest democracy in the world, politically
  stable, on a high growth path.
• Cost effective labour.
• Availability of world-class engineering goods
  and services.
• Well established financial and banking system.
• Time tested legal systems.
• Only country in the world to have a dedicated
  Ministry of Non-conventional Energy Sources
  (MNES).
• No prior approval is required for Foreign Direct
  Investment for establishing of wind turbine
  manufacturing facilities.
• Dividends can be repatriated without
  restrictions.
• Disinvestments can be done with prior
  permission from Reserve Bank of India (RBI) and
  disinvestment proceeds can be repatriated.

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Why To Invest In India

• One of the largest and fastest growing economies
  in the World.
• Strategic locations access to the vast domestic
  and south asian market.
• Skilled man power and professional managers are
  available.
• Long history of market economy infrastructure.
• One of the largest manufacturing sectors in the
  world.
• One of the largest schools of scientists,
  engineers and technicians in the World.
• Well developed RD infrastructure, technical and
  marketing services.
• A sophisticated legal and accounting system.
• Foreign brand names are widely accepted.

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Business Opportunities

• India is a land of opportunity for investors in
  Wind Energy Projects.
• In India we provide consultancy services for
  setting up of manufacturing plants and projects
  on turnkey basis.
• Indian and foreign investors can contribute to
  technology development, manufacturing of Wind
  Electric Generators and also participate as
  developers of large scale wind farm projects.
• Opportunity to trade on carbon emissions.
• Unlimited potential.

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The Indian Power Sector - A Quick Glance

• Per capita electricity consumption 606units
• Installed power generation capacity (utilities)
  1,23,668 MW (DEC.2005)
• Overall generating capacity (includes thermal,
  120,000 MW
• hydro, nuclear wind)
• Distribution of total installed capacity 90
  owned by Public Sector
• (60 State
  Government 30 Central Government)
• Rest 10 is owned by the
  Private Sector
• Projected installed capacity (2012) 210,000 MW
  
• Power generation (2002-03) 530 billion units
• Energy deficits (Mar 2002) 7.5
• Peak deficit 12.6

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The Indian Power Sector - Projected Generation

• The Ministry of Power has proposed to add
  approximately 100,000 MW by 2012.
• New additions planned
• 10th Plan (2002-07) 62160 MW
• 11th Plan (2007-12) 79156 MW
• Break-up of these additions (10th plan)
  (11th plan)
• Central Sector 31080 MW 39443MW
• State Sector 21370 MW 28258 MW
• Private Sector 9710 MW 11185 MW
• Total 62160 MW 79156 MW

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Renewable Energy - Indian Scenario

• Estimated potential 1,00,000 MW.
• Achieved approx. 7000 MW ( Approx. 7).
• About 85 of total investment from the private
  sector.
• Growth rate 25 per annum.
• Wind, Solar, Small Hydro and Bio-mass are the
  major sources of
• renewable energy.

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Tremendous business potential in India
Technology Units Estimated
Potential Achievements World
Position Wind Power MW
45,000 4435 MW
Fourth Small Hydro power MW
15,000 1729 MW
Tenth (lt 25MW) Bio-Mass (POWER) MW
19,500 348 MW
Fourth Urban Industrial Waste MW
2,700 42 MW - Solar
Photo VoltaicMW/Sq Km 20
121 MW Fifth
Annual turnover of RE industry in India is
Approx. One Billion Euro.
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Indian Wind Power Sector At A Glance

• Gross Wind Power Potential 45,195 MW
• Total Installed Capacity 4,435 MW (DEC. 2005)
  
• Demonstration Projects 70 MW
• Commercial 4,365 MW
• Additional Target by Indian 9,000 MW by 2012
• Government (Around 750 MW per Annum)
• More than 95 investment is by private sector

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Growth of Wind Sector in India (MW)
Year Capacity Addition Growth 2000-01
1340 173 15 2001-02 1628
288 21 2002-03 1870 242
15 2003-04 2484 615 33 2004-05
3595 1111 44 UP TO
DEC05 4435 840
42 (1500MW by March 2006)
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Forecast - India

• 10 of the proposed capacity addition of 100,000
  MW in the next 10 years would be from renewables
  and 75 of this 10 is expected to be from Wind.
• 10,000 MW of additional Wind Power capacity is
  expected to be added to the Indian grid-networks
  by the year 2012.

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Swot Analysis - Industry

• 1. STRENGTH-
• (i) Ability to offer state of the art
  technology by six large players.
• (ii) Annual Market size is around 1500
  MW.
• (iii) Growth in the last three years is
  phenomenal.
• 2. WEAKNESS-
• (i) Less R D on technology
  adaptation and innovation.
• OPPORTUNITY-
• (i) Fast track growth due to need and
  necessity of power.
• (ii) Encouragement to FDIs to invest
  in the sector.
• (iii) Conducive policy in 7 States.
• THREAT-
• (i) Risk factor associated with non
  uniform State policy.

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Wind Power and Corporates

• Rising Power tariff of conventional power
  projects.
• Low Gestation Period.
• Hassle Free Operations and Maintenance.
• Declining cost due to improving technologies.
• Cost per Kwh is the lowest on full life cycle
  basis.
• IRRs in the range of 10 - 25 for Investments
  in Wind Power
• generation.
• Green power which qualifies generally for Carbon
  Credits.
• Accelerated Depreciation of 80.

Corporates have a major role to play in tapping
the Wind Power potential available in the
country.
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India Shining

• Indian Economy on a resurgent mode.
• GDP growth of 8.6 in 2004-05.
• Banks now funding projects at interest rates of
  9.
• Industry on an upbeat mood - New investments in
  automobile, steel and
• power.
• Infrastructure development projects on high gear.

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THANK YOU
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