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
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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