Despite huge potential in the country, wind energy has faced rough weather in recent years. During the last two years the wind energy deployment declined from 3,000 megawatt (MW) to 1,500 MW (1.5 GW) annually. Experts are unanimous that the wind sector can contribute sizably to quench the Indian economy’s massive thirst for energy. But they are also of the opinion that the policy to boost wind farming should have a long-term vision and avoid fluctuating like the speed of the wind.
Trust deficitGoing by the current status of progress, the national target of achieving 60,000 MW (or 60 GW) wind power by 2022 and 200 GW by 2030 unveiled under the Renewable Energy Development Plan by the Centre appears a dream destination.
According to Lalit Chaturvedi, Senior Manager, Idam Infrastructure Advisory, this would mean around 15 GW capacity addition annually, not a very tall order, given the capacity of the independent power producers (IPPs). All that it requires is nearly 40,000 sq. km of land (roughly equivalent to the size of Union Territory of Delhi) spread over areas with abundant wind resource. The international investors, though feel lured by the cheaper installation cost in India, are repelled by the unfavourable policies.
Says Glen Reccani, Managing Director, Acciona Energy, a Spain-based MNC engaged in setting up wind farms all across the globe: “The installation costs in India work out to Rs. 6 to 7 crore per MW and is much cheaper than in countries of Latin America where it may cost Rs. 9.5 crore (Euro 1.4 million). But then overseas companies have to think twice before setting up their facilities in India as most utility companies (read State electricity boards) suffer from ill-health. In Tamil Nadu the wind power generators were not paid for 18 months. Several units had to shut down generation for months together.” Glen’s company runs several wind power units in Karnataka.
Trust deficit is just one aspect. Progress is impeded by hassles of land acquisition for wind farms. Clearances have to be obtained from Ministries of Forest, Revenue and Irrigation at the State level. These consume around 3% of the project cost and cause considerable delays. Currently the duration from conceptualisation to commissioning is said to be anywhere from 48 to 60 months and needs to be brought down to 36 to 38 months. Beside single window clearance, wind resource mapping through satellite and preparation of wind atlases are said to be imperative for the purpose.
Cost efficiencyD.V. Giri, Secretary Indian Wind Turbine Manufacturers Association, says the wind energy sector is caught in a paradoxical situation. The manufacturers are stated to be capable of installing facilities for production of 9,500 MW annually. “Yet, despite the debilitating deficit of power in the country, we are installing merely 2,500 MW capacity per annum. All that it means is that the government is not allowing private investors to invest in the sector,” laments Mr. Giri.
Needless to say that higher volume of turbine manufacturing would bring down installation cost as well as tariff. But it would presuppose resolution of issues such as wind power evacuation and efficiency in meeting renewable power purchasing obligations by the State Power Boards.
The wind energy sector has witnessed a lot of dynamism in fixing targets but laxity characterises the implementation. The result is underutilisation of capacity. If in Tamil Nadu, the wind mills have come to a standstill, Karnataka has squatter licensees who have been sitting over proposals for long.
The State has so far allotted 12,700 MW capacity but only 2,700 MW has been commissioned. Waking up from slumber, the KREDL has begun chasing files and cancelled 3,000 MW recently for showing no progress. G.V. Balaram, Managing Director, KREDL, says allotment of another 3,000 MW is on the chopping block. But the State has taken some proactive steps too and removing hurdles by interacting with the licensees on a fortnightly basis.
Coherent policiesWind power generation units are mainly concentrated in Tamil Nadu (7,200 MW), Karnataka (2,700 MW), Maharashtra (4,000 MW), Gujarat (3,400 MW), and Rajasthan (2,700 MW). Andhra Pradesh, Madhya Pradesh and Kerala are minor players with installed capacity of less than 1,000 MW. The IPPs would like a facilitation centre for streamlining forecasting (of wind resources) and scheduling of wind power. They also stress the need for stability and convergence in government policies and laying interstate transmission lines.
At the 4th Wind Discussion Forum held recently in Bengaluru under the aegis of the city-based think-tank Centre for Study of Science, Technology and Policy (C-STEP), representatives of leading IPPs in the country suggested that the Centre should come up with something like a Renewable Energy Management Centre for a coherent policy. V.S. Arunachalam, Chairman, C-STEP, advises a spirit of cooperative federalism as the guideline while laying down policies.
There are suggestions to have hybrid solar-wind power parks as a more viable option for meeting the overall renewable energy target of 175,000 MW by 2022 as wind speeds are low in India. It finds better approval in the sector as solar energy forecasting is more dependable than wind energy.
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