Indian wind energy & its development-policies-barriers: An overview

Indian wind energy & its development-policies-barriers: An overview

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Journal Pre-proof Indian wind energy & its development-policies-barriers: An overview Shubham Sharma, Sunanda Sinha PII:

S2665-9727(19)30003-0

DOI:

https://doi.org/10.1016/j.indic.2019.100003

Reference:

INDIC 100003

To appear in:

Environmental and Sustainability Indicators

Received Date: 30 May 2019 Revised Date:

7 August 2019

Accepted Date: 7 August 2019

Please cite this article as: Sharma, S., Sinha, S., Indian wind energy & its development-policies-barriers: An overview, Environmental and Sustainability Indicators, https://doi.org/10.1016/j.indic.2019.100003. This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of record. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article. Please note that, during the production process, errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain. © 2019 Published by Elsevier Inc.

Indian wind energy & its development-policies-barriers: An overview Shubham Sharma1, Sunanda Sinha2* 1

Centre for Energy & Environmental Engineering, National Institute of Technology, Hamirpur177005, Himachal Pradesh, India 2

Centre for Energy & Environment, Malaviya National Institute of Technology, Jaipur-30017, Rajasthan, India

*Corresponding author Email: [email protected], [email protected] First author Email: [email protected]

1

Indian wind energy & its development-policies-barriers: An overview

2 3 4 5

Abstract

6

Harnessing the energy of the wind to obtain some useful work like grinding grains, pumping

7

water and sailing boats has been there for a very long time. In modern times, wind energy is

8

being used to generate electricity. Wind energy is one of the clean sources of energy and

9

India has a huge potential for wind energy resources (102 GW at 80 m height and 302 GW at

10

100 m height). This vast potential has remained unexplored which can be achieved through

11

well framed policies. This paper presents a detailed study of the fiscal incentives and

12

development schemes offered by Indian government in expanding wind energy business.

13

Wind energy policies of India have been keenly studied and obstacles to the success of these

14

policies and programmes have also been discussed in this paper. The outcomes of this paper

15

reiterate the work that has been conducted by Indian government (Central and State) in wind

16

energy sector indicating lower renewable energy prices, improved financial incentives,

17

opportunities in offshore wind energy and a steady market growth.

18

Key words: Wind energy; Indian market; Policies; Barriers

19 20

1. Introduction

21

India is highly reliable on conventional sources for energy production. More than 60% of

22

energy production in India is carried out with the help of thermal energy powered by fossil

23

fuels. Energy generation through fossil fuels such as coal has environmental issues and its

24

rapid depletion in next few decades will cause hinderance in energy generation. Renewable

25

energy resources (wind, solar, biomass etc.) have transpired as a strong option to replace the

26

currently used energy generation methods in near future.

27

Wind energy has risen as one of the most promising resource which has its own advantage of

28

being an eco-friendly energy source. Urbanisation, industrialisation,need for sustainable

29

development and energy security has helped wind energy to grow worldwide [1-2]. India is

30

the first country to have ministry in the field of renewable energy. In 1992, Department of

1

31

Nonconventional Sources (DNES) became Ministry of Nonconventional Sources (MNES)

32

aimed at research and development in renewable energy sector [3-4]. Wind energy in India

33

saw an enormous growth under the guidelines and policies framed by MNES, as wind energy

34

market grew from 41 MW (1992) to 968 MW (1998) in terms of installed capacity [3].

35

MNES, after 2006 was renamed as Ministry of New and Renewable Energy (MNRE) [4].

36

The objective of MNRE is to ensure energy security, to promote renewable energy resources

37

and to achieve energy accessibility, affordability and equity. Under the efforts of MNRE

38

India has achieved grid connected wind power of 34.4 GW (till 30th July 2018) [5]. Effective

39

policies and programmes have been launched by MNRE, Gov. of India to enhance wind

40

energy production in the country. Monitoring stations have been set up throughout the

41

country to assess the wind resources under the purview of MNRE to promote renewable

42

energy.

43

The contributions of this research are three-fold. Firstly, this study explores the paradigms

44

of wind energy development in India which highlights many important events marked in

45

the history of Indian wind market. Secondly, an attempt has been made through this study

46

to understand the wind market dynamics and policy framework adopted by various

47

governmental organisations and their role in the development of renewable energy projects

48

for meeting up with the clean energy targets. Third part of this paper reveals the various

49

technical, economic, environmental and socio-economic obstructions that are faced by the

50

policies as well as wind project development. This paper comprehensively presents a brief

51

review of the policies, development programmes and current status of wind market in the

52

country.

53

The paper is organized as: Section 2 provides the details on current status of wind energy in

54

India; Section 3 describes the development pattern of wind energy in Indian market; Section

55

4 explains the necessity of wind energy policies, while Section 5 enlists the energy policies

56

and programmes framed by various Governmental bodies in order to expand the renewable

57

energy market. The hindrance in the path of the development of wind energy has been

58

discussed in Section 6 and the paper is concluded in Section 7 along with the policy

59

implications for future decisions.

60

2. Current status of wind energy in India

61

India holds 4th position worldwide in wind energy production after China, United States and

62

Germany. Wind energy in India has a potential of 102 GW at 80 metres hub height [6]. The 2

63

effective output of wind power projects depends upon many factors such as wind speed (m/s),

64

wind power density (W/m2), availability of the site etc. National Institute of Wind Energy

65

(NIWE) was set up by MNRE in Chennai, is a self-sufficient Research and Development

66

Centre which conducts wind assessment programmes in the entire country and has

67

successfully drawn Indian wind energy maps at different mast heights. By NIWE, 859 wind

68

monitoring stations in various Indian states (at height levels 20,25,50,80 and 100 metres) has

69

been set up till 30th June 2018 [7]. Out of which only 69 stations are in operating condition.

70

11 monitoring stations has been successfully mounted on telecom towers (height ranging

71

from 40-60 m) in three north-eastern states – Meghalaya, Tripura and Mizoram in the year

72

2018 [7-8].

73 74 75

[Source: Report on India's Wind Power Potential; Hossain, Jami, and D. Sharma].

76

Fig. 1 shows that major portions of the states including Tamil Nadu, Gujarat, Andhra

77

Pradesh, Telangana, Karnataka, Maharashtra and Rajasthan have wind speeds greater than

78

6m/s. At 100 m, Indian wind energy potential is estimated to be 302 GW, out of which

Fig.1 Wind speed map at 100 m level

3

79

Gujarat has the highest potential of 44.23 GW. Wind energy potential of different states of

80

the country corresponding to 100 m level is shown in Table 1 [10]. Table 1. State-wise wind potential at 100 m height.

81 82

[Source: National Institute of Wind Energy]

State

Rank 1*

Rank 2*

Rank 3*

Total

Andaman & Nicobar

4.12

3.43

0.88

8.43

Andhra Pradesh

22525.50

20538.10

1165.00

44228.60

Chhattisgarh

3.24

57.03

16.31

76.59

Goa

0.00

0.08

0.76

0.84

Gujarat

52287.59

32037.83

105.09

84431.33

Karnataka

15202.36

39802.59

852.40

55857.36

Kerala

332.63

1102.56

264.38

1699.56

Lakshadweep

3.50

3.40

0.77

7.67

Madhya Pradesh

2216.39

8258.55

8.93

10483.88

Maharashtra

31154.76

13747.43

492.15

45394.34

Odisha

1666.20

1267.06

160.22

3093.47

Puducherry

69.43

79.00

4.40

152.83

Rajasthan

15414.91

3342.62

12.96

18770.49

Tamil Nadu

11251.48

22153.34

394.82

33799.65

Telangana

887.43

3347.52

9.34

4244.29

West Bengal

0.03

2.04

0.01

2.08

Total in MW

153019.59

145742.59 3489.31

302251.49

Total in GW

153

146

302

3

83 84

Different ranks have been used in Table 1 to specify land conditions. Rank-1 denotes Waste

85

land, Rank-2 is used for land that can be cultivated, while Rank -3 denotes Forest land [10].

86

Nearly 5,502 MW of wind energy addition was made to the installed capacity, while 32.3

87

GW was total installed capacity in the year 2017 [11]. From the year 2002 to 2018, the

88

growth of wind energy in India can be shown with the help of figure 2 [5].

4

89 90 91

Fig.2 Cumulative Installed Capacity of Wind Energy in India (in MW)

92

Total installed capacity of grid connected wind power in India is 34.4 GW and around 55%

93

of the total electricity production through renewable energy in the country is obtained from

94

wind resources. It is estimated that by the year 2022 India will have 60 GW of wind with

95

nearly 22.7 GW capacity addition in last five years (from 2017 to 2022). STATE-WISE INSTALLED CAPACITY OF WIND (2017) 9000 8000 7000 6000 5000 4000 3000 2000 1000 0

2500 2000 1500 1000 500 0

Cumulative installed capacity (MW)

Capacity addition in 2017

Total Installed Capacity (MW)

[Source: MNRE]

Capacity addition (MW) in 2017

96

Fig.3 Installed wind capacity of Indian states (2017)

97 98

[Source: “Wind Power Development in India: An overview”; J.K. Jethani; MNRE].

99

From keenly observing Table.1 and Figure.3 it can be seen that Andhra Pradesh in the year

100

2017, added more than 2000 MW capacity to its wind power generation. Gujarat, although,

101

ranks at the top in terms of estimated potential, but, Tamil Nadu has successfully surpassed

102

Gujarat in terms of Installed capacity. The progress on the impressive and sudden 5

103

development of wind energy in Tamil Nadu is due to the policies formulated by State Gov. of

104

Tamil Nadu under the initiatives of MNRE.

105

3. Development of wind energy in Indian market

106

In 1952, Maneklal Sankalchand Thacker, a renowned engineer, in association with Council of

107

Scientific and Industrial Research (CSIR) started a project to study and determine wind

108

energy possibilities in India. Under this initiation, a Sub-Committee to analyse the wind

109

resources of the country was formed [12]. Oil crisis of 1970’s causing fuel price rise and

110

demand-supply imbalance had a large impact on renewable energy development worldwide.

111

Commission for Additional Sources of Energy (CASE) was established by Gov. of India in

112

the year 1981 with an aim of making and implementing policies for increasing R&D

113

activities in renewable energy sector for technical progress. In 1983-84, in order to carry out

114

resource assessment, wind energy projects were demonstrated in various parts of the country

115

the country [13]. Wind energy development enhanced on a large scale in the year 1986 in

116

India. In 1985, 600 wind monitoring stations were set up in 25 Indian states for the

117

quantitative assessment of wind resources. Indian government gave green signal to generate

118

grid quality wind power during 7th five-year plan (1985-1990) in order to benefit local

119

businessmen seeking to establish grid connected wind turbines. The initial investment on

120

wind energy projects was quite huge comprising 60-70% of the overall cost. Thus, Indian

121

Renewable Energy Development Agency (IREDA) was set up by DNES to provide financial

122

aid (in the form of loans) to the renewable energy projects. This gave a sudden boost to the

123

development of wind energy market in the country, as privatisation in wind sector was

124

increased. 8th National plan (1992-97) became the golden period for wind energy growth in

125

India [3]. National Institute of Wind Energy (NIWE) was institutionalized by MNES in 1998.

126

Wind farms of 282 MW capacity were established in Tamil Nadu alone during 1995-96.

127

India achieved 4th rank in wind installations worldwide with installed capacity of 992 MW

128

(September,1998). During 1994 - 1996 nation saw a steady growth in wind energy sector.

129

Interest of private investors in wind energy sector of India dropped and there was a decline in

130

wind energy growth during the end of the 20th century due to the new tax policies of

131

Government [13,15]. MNRE, after its establishment in 2006 [4], pushed the renewable

132

energy development in country in a highly impressive manner and as a result, several wind

133

energy projects were launched in windy states of the country and wind market grew in an

134

exponential manner [Fig.2]. India by 2022, targets to achieve 175 GW of renewable energy

135

(out of which 60 GW is the share of wind energy). It is estimated that renewable sources will 6

136

provide 54% of the overall electrical energy production in India, by 2022 [15]. National

137

Institute of Wind Energy (NIWE) and Indian Renewable Energy Development Agency

138

(IREDA) are two supporting pillars of wind energy development in India.

139

3.1 List of top wind turbine manufacturers in India –

140

Wind turbines having capacity from 250 kW to 2.5 MW are being manufactured in India.

141

Top companies of Indian market are listed below in figure 4 –

7

142 143

Fig.4: Top companies of Indian wind market [16-25] 8

144 145 146

3.2 Top windy states with their wind development government agencies and wind energy projects –

147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188

a) Andhra Pradesh Nodal Agency - New & Renewable Energy Development Corporation of Andhra Pradesh Ltd. (NREDCAP) is a company owned by state government. 1738.62 MW capacity of wind projects had been commissioned till 2016 [26]. Projects - Anathapuramu district has highest ongoing wind projects. Suzlon Energy Ltd. in a joint venture with Axis Energy group have been sanctioned 4000 MW capacity of wind project in different districts of the state [26]. b) Gujarat Nodal Agency - Gujarat Power Corporation Ltd is the government body which takes care of wind energy projects in the state [27]. Projects - As Gujarat is situated along the Arabian sea coast of India, the state has a huge potential for off-shore wind development. In 2018, 1000 MW of off-shore wind energy projects are proposed to be commercialised by the Gov. of India [28]. c) Maharashtra Nodal Agency - Maharashtra Energy Development Agency (MEDA) was set up by state government with the help of MNRE. Projects - 11.09 MW capacity demonstration projects were installed by MEDA in Maharashtra. For energy projects, 50 different wind power developers are associated with MEDA [29]. d) Rajasthan Nodal Agency - Rajasthan Renewable Energy Corporation Limited (RRECL) is the state nodal agency [30]. Projects - Suzlon, Enercon (world Wind India) and Inox have been appointed by the government to develop a major number of projects in the state [31]. e) Tamil Nadu Nodal Agency - Tamil Nadu Generation and Distribution Corporation (TANGEDCO) is the state nodal agency. Projects - A subsidiary of Tamil Nadu Electricity Board has commercialised 17.550 MW capacity projects in the state, while private sector has successfully achieved 6530.340 MW installation [32]. f) Karnataka Nodal Agency - Karnataka Renewable Energy Development Ltd., owned by state government. Projects - 4654.835 MW wind projects have been commercialised till 30th April 2018 [33]. g) Madhya Pradesh Nodal Agency - Madhya Pradesh Urja Vikas Nigam Ltd. (MPUVN). Projects - MPUVN has set up many monitoring stations in the state, out of which four stations are fully operational. Devas and Dhar districts of Madhya Pradesh have highest number of wind farms in the state [34].

9

189

4. Necessity of wind energy policies

190

Economic stability of a country depends on its energy resources. If Indian economy maintains

191

a growth rate of 9% every year then, in coming 20-25 years, the financial problems of India

192

would be fully eliminated [35]. Although research and development in the sector of

193

renewable energy began in 1980’s in India but due to lack of public awareness and limited

194

technology, it could not gain popularity during that period [36]. As the Greenhouse Gas

195

(GHG) emission was increasing exponentially and Indian Government’s concern about

196

climate change, energy scarcity and energy security made it possible to develop renewable

197

energy policies in the country. After the wind resource assessments carried out in the late 20th

198

century, several wind energy projects were demonstrated in many windy regions of the

199

country. Thus, wind energy started to grow in India. This growth was not much remarkable

200

because conventional resources were highly reliable and awareness about the climate change

201

was low among the common people. State governments were also least bothered about the

202

wind energy promotion programmes. So, in order to promote wind energy and spread

203

awareness about the advantages of using wind power for electricity generation, Central

204

Government of India with the help of MNES (Ministry of Non-Conventional Energy

205

Sources) formulated policies. These policies were launched with the aim of achieving better

206

control and progress in wind energy development. To ensure proper participation of State

207

government, several state nodal agencies have been opened in different states of the country

208

and thus, policies differing from state to state on the basis of available potential sites,

209

resource assessment, grid connectivity etc. have been drafted by the respective agencies

210

under the guidelines of MNRE [3].

211 212

5. Indian wind energy policies and programmes

213

The period from 1994 to 1996 is called the period of ‘wind-rush’ in Indian history, as Indian

214

wind market saw an impressive growth because there was an increase in private investments.

215

This became possible due to the fiscal incentives introduced by Central Government which

216

provided zero-tax planning opportunities to the private investors. In 1995, ‘Guidelines for

217

Clearance of projects for the wind energy development' were formed by MNES and

218

modification in the guidelines occurred in 1996 so that all the state level agencies were

219

loaded with following additional charges which included proper examination of the

220

individual projects before approving them, notifying capacity additions in every six months, 10

221

keeping a check on already installed and commissioned projects [37]. The growth in wind

222

energy sector slowed down after 1997, as the investors which seek Indian wind market as a

223

tax saving investment went through a major shock as government proposed to impose a

224

minimum alternate tax of 12.9% on them. Profit from marginal tax credit was also reduced to

225

35% in 1997, which earlier was 43-46% [3].

226 227

5.1 Electricity Act (2003) –

228

Indian Parliament enacted this act to integrate all the laws related to electricity generation,

229

transmission, distribution, sales and utility to promote electricity. It comprised of National

230

Electricity Policy and Plan, under which Central government had to timely publish and revise

231

electricity and tariff policies with full participation and consultation of State government. A

232

policy on stand-alone system in rural areas, was introduced under this act [38]. Feed-in tariff

233

for renewables in the country was also an initiative under this act. Renewable Purchase

234

Obligation (RPO) was issued with the help of Electricity Act to obtain a minimum described

235

share of total electricity generation from renewables. State Electricity Regulatory

236

Commissions (SERCs) have essentially defined their RPO levels, having a range of 3 to 12%

237

for the year 2016/17 [11].

238 239

5.2 Integrated Energy Policy (2006) –

240

In 2006, Planning Commission of India formed energy policy which integrated all the sources

241

of energy with the aim of achieving sustainable development. The emission problems from

242

fossil fuels were highlighted and renewable energy promotion through strong policies was

243

proposed. Some noteworthy steps were [39-40] -

244

To build strong network of grid connected power through renewables, subsidies were

245

provided that ensured maximum output (power generation and profit) from the

246

proposed projects.

247

Capital subsidies, which were non-productive investments, were proposed to be

248

eradicated by the end of the 10th National plan.

249

For promotion of wind power, a policy on utilising a private land for setting up wind

250

farms was also recommended.

11

251

Tradable Tax Rebate Certificates (TTRCs) and capital subsidy on stand-alone

252

systems could be linked to earn benefits, as stand-alone systems in rural areas could

253

not be benefitted by Feed-in tariff policy.

254

Some institutional improvements were proposed such as giving individual status to

255

Commission for Additional Sources of Energy (CASE) by de-linking it from MNES

256

and conversion of IREDA to a National apex Institution for renewables which will

257

help tackling financial issues in renewable energy sector in an effective way.

258 259

5.3 Generation Based Incentive (GBI) –

260

In December 2009, MNRE launched a scheme in which Generation based incentive @ Rs.

261

0.5 per unit wind electricity generation. The wind energy projects providing electricity to the

262

grid for minimum 4 years and maximum 10 years with a capital of Rs. 1 Crore per MW were

263

to take advantage of this scheme. This plan was supposed to continue till the end of the 11th

264

National plan but it was discontinued in 2011[35]. But in September 2013, GBI was extended

265

to the 12th five-year plan as well [41]. Accelerated depreciation at 80% [42] although was not

266

eliminated, but it was also provided along with GBI.

267 268

5.4 Renewable Energy Certificates (REC) –

269

Renewable Energy Certification in India was introduced in the year 2010 by Central

270

Electricity Regulatory Commission (CERC) under the Electricity Act,2003. A new renewable

271

market was formed in India through REC trading, and enhancement of investments in

272

renewable energy also hiked. This also occurred due to increment in Forbearance and Floor

273

prices of RECs [35,43]. In the year 2012, an average growth of 96% (each month) occurred

274

in the distribution RECs to wind energy projects [43].

275 276

5.6 National Clean Energy Fund –

277

In Finance budget 2010-11, considering the problems related with coal, a National Clean

278

Energy Fund (NCEF) was proposed in order to finance and support a clean energy drive in

279

the nation. A great initiative ‘Green Energy corridor’ is growing under the financing scheme

280

of NCEF [44]. Green Energy Corridor project aims at improving the inter-state and intra-state 12

281

electricity transmissions by connecting the power generated by wind energy. In eight windy

282

states of the country a whopping amount of INR 10000 Crore has been sanctioned for

283

improving transmission network. For transmission infrastructure strengthening projects

284

Indian Government, through NCEF, is providing 40% of the total cost associated with the

285

project as grant and a German bank is also helping by giving other 40% in the form of soft

286

loan [11].

287 288

5.7 National Wind-Solar Hybrid policy –

289

This policy was drafted by MNRE in June 2016. It was found that wind and solar resources

290

complement each other and thus, their hybridisation would be helpful in achieving better grid

291

stability. Already established wind and solar farms had enough space for hybrid plants, so, a

292

policy on hybrid plants was essential. The fiscal incentives which were provided for

293

independent solar and wind projects were also available for hybrid projects [45]. The primary

294

objective of the policy is to provide a framework for the development of grid connected

295

hybrid projects. The aim of this policy is to develop 10 GW capacity of wind-solar hybrid

296

projects by 2022. Two states (Gujarat and Andhra Pradesh) have also launched the hybrid

297

policy. A hybrid system comprising of small wind turbines and aero generators or small wind

298

turbine and solar panels financial aid of INR 1,00,000 per kW will be given to those planning

299

to install small hybrid systems.

300

5.8 Wind bidding scheme –

301

A scheme was sanctioned by MNRE in June 2016, according to which wind projects of 1

302

GW capacity connected with Central Transmission utility (CTU) were proposed to be set up

303

by Gov. of India [42]. The main highlights were –

304

Digitalisation through e-bidding options.

305

Transmission of wind generated electricity to least windy states.

306

Declaration of SECI (Solar Energy Corporation of India) as the nodal agency.

307

Helping the windy states in achieving their RPO targets from non-solar resources.

308 309

5.9 Policy for repowering of wind energy projects –

13

310

This policy was introduced in 2016. The aim of the policy is to ensure the optimum usage of

311

wind resources by providing better framework for repowering. An additional partial refund

312

with an interest rate of 0.25% was decided to be provided by IREDA for repowering projects

313

[46]. State level nodal agencies played an important role in implementation of repowering

314

projects.

315

5.10 Offshore wind energy development –

316

National Offshore Wind Energy Policy was approved by MNRE in the year 2015. Under this

317

initiative, resource assessment was carried out in coastal areas of Gujarat and Tamil Nadu.

318

For promotion and development of offshore projects in Exclusive Economic Zones (EEZ),

319

NIWE was declared as the Nodal Agency [47]. NIWE is also a knowledge partner with

320

Fowind (Facilitating offshore wind in India), an initiative of Global Wind Energy Council

321

(GWEC) for starting and boosting offshore wind energy in India. Resource assessment before

322

implementing the projects was conducted in coastal areas of Tamil Nadu and Gujarat. A pre-

323

feasibility test was conducted with considering the wind farm capacities of 150 MW and 504

324

MW for design in Tamil Nadu [48]. Selection of zones included various technical factors

325

comprising a foundation screening study, a wind farm electrical concept study, installation

326

considerations (ports, vessels and logistics and installation methodologies) and operation and

327

maintenance considerations. A Major finding of this study was southern and southwestern

328

coastal zone of Tamil Nadu has better resources for offshore wind development than

329

Gujarat’s coastal area. Despite this, India’s first 1 GW offshore wind project has been

330

proposed in Gujarat on 7th August 2018 [28] which can be attributed to various reasons

331

including enthusiastic policy implementation and participation of the state government.

332

5.11 State-wise wind energy tariff policy –

333

State nodal agencies under the guidelines of MNRE have fixed tariff for purchase of wind

334

power [49]. Table 2. Windy states with their wind energy tariffs

335 336

[Source: National Institute of Wind Energy]

State

Tariff

Andhra Pradesh

Rs. 3.50 (fixed for 10 years)

Gujarat

Rs. 3.56 (fixed for 20 years)

Haryana

Rs. 4.08 (escalation 1.5% base year 2007-08

Karnataka

Rs. 3.7 (fixed for 10 years) 14

Kerala

Rs. 3.14 (fixed for 20 years)

Madhya Pradesh

Rs. 4.03 - 3.36 (reducing at a constant rate of 0.17% every year)

Maharashtra

Rs. 3.50 (escalation of 0.15% for 13 years after commissioning of project)

Punjab

Rs. 3.66 (5% escalation for 5 years upto 2012)

Rajasthan

Rs. 4.50 for some districts and Rs. 4.28 for others

Tamil Nadu

Rs. 3.39 (levelised cost)

West Bengal

Rs. 4.00 (variable form project to project)

337 338

6. Hinderance in the path of the development of wind energy

339

302 GW wind energy potential is enough to meet a major portion of the daily energy needs of

340

Indian market. But exploration of wind resources remains a really hard task since

341

environmental, technical, economic and social factors put a limit to the development task.

342

Thus, wind energy growth has its own limitations, and barriers in its way can be explained as:

343

6.1 Technical barriers –

344

Technological barriers occur in developing countries because of the lack of

345

infrastructures and institutions to carry out R&D.

346

The wind turbine technology in India is based on the European technology. The

347

Indian market lacks local standards in turbine manufacturing and thus, a mismatch in

348

the self-manufactured items and imported components is likely to occur [50].

349

Modern wind turbines are quite efficient, but when a wind farm is concerned, the

350

performance of individual turbine is adversely affected by the other turbines. Thus,

351

overall wind harnessing efficiency of a wind farm is less than what could have been

352

achieved if all the turbines were individually and independently functioning [51].

353

Grid stability and connectivity of wind projects has been promoted through several

354

policies and schemes nationwide, as mentioned in Section-5 of this paper. But

355

sometimes, it is not possible for grid to absorb wind generated electricity when the

356

penetration levels are very high. Due to this reason, wind farms of Tamil Nadu used

357

to remain shut when the generation was at its peak and thus, loss of useful energy

358

occurred [52].

359

12 Billion Units of power was obtained by wind clusters/farms of Tamil Nadu in the

360

financial year 2017/18, while only 7 Bn. Unit power was generated in 2016/17 [11]. 15

361

This was achieved by implementing proper forecasting and scheduling techniques.

362

Thus, monitoring stations need to have a daily basis metering arrangement. So that

363

problems occurring due to the variable nature of wind power systems could be

364

tackled.

365 366

6.2 Financial barriers –

367

Initial investment on the wind energy projects is quite high and a risk factor is always

368

involved questioning the confirmed profitability of the project [53].

369

Debt and equity problems arise due to non-uniform interest rate and inflation rate.

370

Distribution companies create obstacles by sometimes not being capable of buying the

371

excessive energy generated by plants and sometimes by delaying the already due

372

payments [52].

373

Refinancing a project is seen as a risk due to low benefits in the beginning period of

374

the projects.

375

Competition among different energy sources causes obstruction in each others’

376

business.

377 378

6.3 Environmental barriers –

379

Although wind energy is considered as clean source of energy, it has some negative impacts

380

on the environment as well. Environmental problems associated with wind farms include

381

[51,55]-

382

Risk to wildlife – Life of birds, passing through the wind farms, is always at stake.

383

Electrocution of birds through transmission lines and collision with the turbines are

384

two major reasons of bird mortality associated with the commissioning of a wind

385

farm. Other problems faced by wild species include habitat loss, change in practices

386

of migration, nesting, breeding etc.

387 388

Visual problems – Visual disturbances are caused by the wind farms located nearby

389

the roadways. Shadow flickering caused by the rotating blades and flashing caused by

390

the reflection of sunrays from the shining blade surface, both are responsible for

391

irritation in eyes. 16

392 393

Noise pollution – More the number of turbines in a wind farm, more will be the noise

394

level. This unwanted sound (noise) causes nuisance, sleeping problems, hearing

395

problems etc. in human beings.

396 397

Other problems – Climatic changes occur over the sites where wind farms are

398

situated. Rotation of blade causes mixing of hot air with vapour and thus, certain

399

undesired meteorological changes occur [55]. Harmful wastes are produced and their

400

improper disposal has detrimental effects on environment.

401

6.4 Socio-economic barriers –

402

Socio-economic barriers are the major obstacles in the path of wind energy development.

403

Sometimes, a wind project may face public opposition, if a cultural or historically important

404

land is being occupied by a wind farm. As transportation of heavy parts of wind systems is

405

quite a task and requires accessibility to roadways, sometimes developing a wind farm has

406

associated expenditure of transportation facility as well. Public accessing the sites and thus

407

endangering their health. Stakeholders have different shares in their respective wind projects

408

and thus, problems arise due to the uneven profit distribution and bad mutual understanding

409

[55]. Policy uncertainty or change in policies have adverse effects on wind energy

410

development programmes [52].

411

7. Policy implications and conclusion –

412

The success of government’s initiation to promote wind energy projects can be seen by the

413

trend of exponential growth in the yearly capacity additions of the country. New policies

414

introduced in recent years have emerged as a strong agent in the phenomenal growth of wind

415

energy market in India. Renewable purchase obligation (RPO) mandate the consumers to

416

utilise renewable energy resources. The introduction of Generation based incentive (GBI) and

417

Renewable energy certification schemes turned out to be necessary steps which have resulted

418

in the decline of wind energy prices drastically and thus, giving a tough competition to the

419

conventional sources. Indigenous manufacturing can be encouraged by providing incentives

420

and subsidies on locally manufactured products which will ultimately lower down the cost of

421

wind turbine components.

422

E- bidding of the wind projects require 3 months and a period of one and a half year is

423

utilised in completing the project. As the bidding process has been recently introduced, its 17

424

outcomes are still not known. But bidding scheme is seen as a path breaking step, as it has

425

eased the business and thus, increment in investments is expected. However, compared with

426

the existing wind potential, the growth and achievements seem to be insignificant. For

427

successful implementation of policies, the technical, environmental, economic and socio-

428

economic barriers along with policy issues and uncertainties need to be eliminated. Offshore

429

wind energy has remained untouched in India till 2015 and not much has been gained in this

430

sector. Offshore wind projects are one of the most effective way to utilise wind energy. Thus,

431

strong policies and resource assessment to commercialise offshore projects should be taken

432

under consideration. Indian government targets to achieve 60 GW installed wind capacity by

433

2022. As from the previous trends, the capacity addition per year is not more than 4 GW and

434

to achieve 60 GW, almost 6 GW annual capacity addition is required. This can only be

435

possible with better integration of management, technology and infrastructure in energy

436

sector. To promote research and innovation, establishment of financially stable

437

institutionalised research centres in each windy state could be advantageous. The monitoring

438

and regular inspections of prevailing projects should be carried out more often. Repowering

439

of projects, an initiation which can help in achieving the desired target needs independent

440

policy framework. New steps taken by the government, although have long-term effects, but

441

need to be clearly observed and policy implementation should also be ensured by the

442

government to accomplish the task of achieving 60 GW by 2022. A strong grid connected

443

network, attractive incentives on projects, effective policy implementations, modifications in

444

energy prices and policies with ongoing market trends and devoted research centres can set

445

Indian wind market ahead of the other leading countries.

446

8. References

447

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448

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Kaygusuz, Kamil. "Energy for sustainable development: A case of developing

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[11] Jethani, J.K., “Wind Power Development in India: An overview”, Akshay Urja,

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India." International Journal of Renewable Energy Research (IJRER) 5.1 (2015): 1-

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Pradesh, India Institutional dynamics and barriers—A case study." Energy Policy

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[15] Gulagi, Ashish, et al. "Electricity system based on 100% renewable energy for India and SAARC." PloS one 12.7 (2017): e0180611.

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[17] Vestas India (accessed on 23-Aug-2018) 19

491 492 493 494 495 496 497 498 499 500 501 502

[18] RegenPowertech India (accessed on 23 -Aug-2018) [19] (2018)

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worldwide/asia/india> (accessed on 23 -Aug-2018) [20] Windworld

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(accessed on 23-Aug-2018) [23] Orient Green Power Company Limited (accessed on 23 -Aug-2018)

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[24] INOX WIND (accessed on 23 -Aug-2018)

504

[25] SIEMENS Gamesa Renewable Energy

505

(accessed on 23 -Aug-2018)

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[26] New & Renewable Energy Development Corporation of Andhra Pradesh Ltd.,

507

Government of India (accessed on

508

24-Aug-2018)

509

[27] Gujarat

Power

Corporation

Limited,

Government

of

India

510

(accessed on 24-Aug-

511

2018)

512

[28] Notice No. 225/3/2018 – Wind-Part (1), “Development of India’s first 1.0 GW

513

Offshore wind project off the coast of Gujarat-Reg.”, Ministry of New and

514

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515


516

Offshore-wind-project-at-Gujarat.pdf> (accessed on 24-Aug-2018)

Energy,

Government

of

Inida

517

[29] Maharashtra Energy Development Agency (MEDA), Government of Maharashtra

518

(accessed

519

on 24-Aug-2018)

520

[30] Rajasthan Renewable Energy Corporation Limited, Department of Energy,

521

Government

522

department/rrecl/en/home.html> (accessed on 24-Aug-2018)

523 524

of

Rajasthan


[31] Mathur, Sunit, “Wind Energy Development in Rajasthan”. Renewable Energy Feature, Akshay Urja vol. 6 issue 2 (2012): 38-40. 20

525 526 527

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of

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Limited,

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development and policy in India." Energy Technology & Policy 2.1 (2015): 122-

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renewable energy in India: lessons from wind and solar power sectors." Climate

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Energy, Government of India (visited

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Energy Alternatives India (visited on

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23

Table 1. State-wise wind potential at 100 m height [10]. State

Rank 1*

Rank 2*

Rank 3*

Total

Andaman & Nicobar

4.12

3.43

0.88

8.43

Andhra Pradesh

22525.50

20538.10

1165.00

44228.60

Chhattisgarh

3.24

57.03

16.31

76.59

Goa

0.00

0.08

0.76

0.84

Gujarat

52287.59

32037.83

105.09

84431.33

Karnataka

15202.36

39802.59

852.40

55857.36

Kerala

332.63

1102.56

264.38

1699.56

Lakshadweep

3.50

3.40

0.77

7.67

Madhya Pradesh

2216.39

8258.55

8.93

10483.88

Maharashtra

31154.76

13747.43

492.15

45394.34

Odisha

1666.20

1267.06

160.22

3093.47

Puducherry

69.43

79.00

4.40

152.83

Rajasthan

15414.91

3342.62

12.96

18770.49

Tamil Nadu

11251.48

22153.34

394.82

33799.65

Telangana

887.43

3347.52

9.34

4244.29

West Bengal

0.03

2.04

0.01

2.08

Total in MW

153019.59

145742.59 3489.31

302251.49

Total in GW

153

146

302

3

Table 2. Windy states with their wind energy tariffs [49] State

Tariff

Andhra Pradesh

Rs. 3.50 (fixed for 10 years)

Gujarat

Rs. 3.56 (fixed for 20 years)

Haryana

Rs. 4.08 (escalation 1.5% base year 2007-08

Karnataka

Rs. 3.7 (fixed for 10 years)

Kerala

Rs. 3.14 (fixed for 20 years)

Madhya Pradesh

Rs. 4.03 - 3.36 (reducing at a constant rate of 0.17% every year)

Maharashtra

Rs. 3.50 (escalation of 0.15% for 13 years after commissioning of project)

Punjab

Rs. 3.66 (5% escalation for 5 years upto 2012)

Rajasthan

Rs. 4.50 for some districts and Rs. 4.28 for others

Tamilnadu

Rs. 3.39 (levelised cost

West Bengal

Rs. 4.00 (variable form project to project

Conflict of Interest and Authorship Conformation Form Please check the following as appropriate:

o

All authors have participated in (a) conception and design, or analysis and interpretation of the data; (b) drafting the article or revising it critically for important intellectual content; and (c) approval of the final version.

o

This manuscript has not been submitted to, nor is under review at, another journal or other publishing venue.

o

The authors have no affiliation with any organization with a direct or indirect financial interest in the subject matter discussed in the manuscript

o

The following authors have affiliations with organizations with direct or indirect financial interest in the subject matter discussed in the manuscript:

Author’s name Dr Sunanda Sinha Mr. Shubham Sharma

Affiliation MNIT Jaipur NIT Hamirpur