Tamil Nadu Wind Industry at the Cross-roads

An advertisement put up by Energy Department, Government of Tamil Nadu on May 21, 2012 has a caption; “Towards Energy Security from Energy Crisis.........” The crisis is on as of now but we can hope it is a passing phase. While the performance of the power sector by and large has been dismal, one of its subsets, the wind sector in Tamil Nadu has been showing spectacular growth. With the addition of 1087 MW of installed capacity during the last fiscal, Tamil Nadu continues to be the leader among the Indian states in harnessing wind power.  Its cumulative installed capacity as on   March 31, 2012 is 7094 MW out of the All India installed capacity of 19241 MW. With such an impressive record, is there a cause for concern? The answer is, yes. It is indeed a piquant situation for the power sector as a whole and wind sector is no exception. There are several wind turbines in “switched off” condition due to power evacuation constraints at a time when there is load shedding across Tamil Nadu.  The plight of wind industry has been exacerbated by the withdrawal of accelerated depreciation (AD) by the Central Government with effect from the current fiscal (2012-13). That apart, there are several hurdles that confront the wind sector in the country as a whole and there are a few concerns that are specific to Tamil Nadu.

Among the hurdles, withdrawal of AD deserves the first mention.  It has dampened investments in the retail segment of wind power projects. If you look at the investments in wind sector during the past two decades, AD was one of the most effective drivers in luring investments into wind farms across the country. The generation based incentive (GBI) introduced 2 years ago favors Independent Power Producers (IPPs) but it is not adequate to entice investors  at the present GBI rate of Rupees 0.50 per kWh. In the 2 year period wherein both AD and GBI had been in vogue there were few takers for GBI who could qualify for AD since the policy allowed either one of these benefits. Now that AD has been done away with a large segment of investors will move away from wind power projects. Tamil Nadu will feel the impact perhaps most since a large percentage of investors in the State’s wind projects come under the retail segment.

 Lack of adequate power evacuation infrastructure for transporting the electric power from potential wind farm sites that are in remote areas is a problem dogging the wind sector throughout India. Transmission of power from generating stations to load centers has always been a major issue in India. We do not have a national grid in place although there have been some efforts in this direction over the past several years. Even at state level we are way behind in the creation of grid infrastructure that is necessary for absorbing, transportation and distribution of electric power.

 Land availability for wind farm projects is affected due to competing demands for the land. The issue is further compounded due to cumbersome procedures in conversion for wind farm (industrial) usage of private agricultural land or Government revenue land. For using the forest land there is a procedure that takes several years. We have no policy in place for off-shore wind farm projects.

 Creamy sites for wind power generation have been more or less exhausted. The exploitation of lower wind regimes is a technical challenge. With improved design of the wind turbine and supporting tower and associated equipment it is possible to address this issue. Side by side, there is a requirement of policies to make projects viable in such areas.

We have not so far launched a nationwide campaign for a comprehensive assessment of wind resource. There are two important parts as far as wind resource assessment (WRA) is concerned; the first part is for identification of potential windy sites and to get a picture about the overall wind potential. The second part is a detailed wind measurement and study of a candidate site for a wind farm that leads to an estimation of energy production. The nationwide wind potential as assessed by Center for Wind Energy Technology (C-WET) is 49130 MW at 2% land availability. C-WET considered sites having wind power density above 200 watts / square meter at a height 50 m above ground level in its assessment. (Reference: Indian Wind Atlas published by C-WET in April 2010). This assessment has been questioned by several experts within India and without for its inaccuracy and conservative nature. When it comes to detailed wind measurement at a proposed site, we are graduating slowly towards a professional approach thanks to the due diligence of investors and lenders. But we have a long way to go in achieving accurate and reliable WRA.

Having listed the major hurdles that confront the wind sector in the country as a whole, it is for us to dwell on a few key concerns of Tamil Nadu.  No doubt, the lack of power evacuation infrastructure is a concern throughout India but it is of a crippling nature for the wind industry in Tamil Nadu. A large number of wind electric generators that were commissioned remains switched off and waits indefinitely for the transmission lines and sub stations to be constructed and commissioned. At the same time the State reels under severe power shortage forcing it to impose load shedding. Many windy areas of the State in Tirunelvei, Theni, Tiupur and Coimbatore districts are worst affected due to the inadequacy of power evacuation infrastructure. An associated problem, that is seasonal, is the inability of the grid to accept the power from wind turbines during the high wind season due to capacity limitation of transmission system or due to imbalance caused by the infirmity in wind power. It leads to forced back down of wind electric generators. It is indeed a problem of plenty and a challenge in grid management.

 Repowering- a process to replace old wind turbines with modern machines- offers a lucrative opportunity to enhance energy production from the same site. According to an estimate in Indian Energy Outlook 2011 (A report prepared by Global Wind Energy Council, World Institute of Sustainable Energy and Indian Wind Turbine Manufacturers Association) Tamil Nadu has more than 800 MW repowering potential. It is a potential that can be tapped anytime and there is no gainsaying about the urgency when faced with a severe shortage of power and the State looks for quick-fire solutions.

Tamil Nadu could make rapid growth in wind turbine installed capacity thanks to a liberal policy in the 80s, 90s and until 2009 allowing grid connectivity for a wind turbine to the nearest power line (feeder) at voltage levels 11, 22 or 33 KV. The power evacuation was entirely the responsibility of Tamil Nadu Electricity Board (TNEB) for which it charged a fee called Infrastructure Development Charges (IDC). This system has undergone many changes in the recent past giving way to exclusive feeders, transformers and sub stations for wind power. The old system exists in some form under the name “open quota” but with several caveats. While promoting creation of such huge power evacuation infrastructure at the cost of wind power developers, side by side, it is prudent to revive the old practice to take advantage of existing capacity of the grid ( network) comprising a system of distribution feeders, transformers and sub stations.  This will result in optimal utilization of the facilities already created and also earn more revenue to the State besides speeding up capacity addition.

     

There has been inordinate delay of several months in releasing payment to the wind mill owners for the power purchased from them. This situation if continued will act as a deterrent in attracting new investment in wind power projects. 

Suggestions

 There are efforts made by some  agencies to get AD restored and also to get GBI increased. With the increase in GBI, AD can be reduced in a phased manner. In fact GBI should become so attractive that no one opts for AD These are policy issues which will be addressed by the Government.

 Power evacuation infrastructure may be developed on war footing. There are several 400 KV and 220 KV transmission lines and sub stations that are under construction in Tamil Nadu. Some are at the planning stage. All such projects need be closely monitored and accelerated for early completion while initiating more new projects to cater for future.

A number of thermal power projects are under construction. Their completion and commissioning will help in combating the power crisis. It will also facilitate greater acceptance of wind electric power to the grid. 

The revival of “open quota” is a step forward for capacity addition. It will reduce the number of power lines in the country side, speed up small scale wind power projects and also facilitate optimal utilization of land and power evacuation infrastructure.

Another important aspect is demand side management. Restricting use of domestic appliances that consume too much power such as washing machines to the night  between 10 PM and 6 AM is one such step. Once tariff is based on time of day certain staggering of load will take place.     

Pumped storage is an effective means to temporarily store the excess energy from wind farms that can be used to generate hydroelectric power. Tamil Nadu should explore this option aggressively.

Tamil Nadu may undertake a comprehensive campaign to identify new areas having sufficient wind potential, complimenting the effort of C-WET. Today turbine hub heights of 80 to 100 m above ground level are common in Tamil Nadu and there is scope to go higher. Remote sensing is in use to measure wind characteristics at 150 to 200 m that cannot be easily measured by anemometers mounted on towers. Private developers will take care of detailed wind measurement at prospective wind farm sites. Assessment of off shore wind potential is very relevant for Tamil Nadu in view of its coastline and the State may take it up vigorously.  

                                                  

 Needless to say, payment of power purchased as per the power purchase agreement promptly will enhance the image of the State and restore the confidence of investors in wind farm projects.

 Repowering of wind farms is a relevant option for Tamil Nadu. The scope to replace old wind turbines with the state of art machines which are superior in technology is immense. The State should take a lead in facilitating repowering by removing certain PPA constraints and giving better tariff at current rates. A new policy may be framed with a view to encourage repowering and make it attractive economically.

 With the substantial thrust from the Central Government for solar power generation, the Stat  my encourage integration of solar and wind farms. In fact the land surrounding a wind turbine can be used for installing solar panels thus utilizing the inter-turbine land optimally for power generation. This can be done in the case of new projects and to an extent in the case of existing ones as well.

 There is scope to spread the wind farms to new areas in the State thanks to the technological advance in the design of wind machines. But at the same time the State can facilitate it taking an example from Rajasthan or Maharashtra as regards promoting the power generation in areas having lower wind regimes. It is essentially through better tariffs. Maharashtra pays Rupees 5.67 per kWh in the areas that fall in the category of lowest in wind power density ( 200 to 250 Watts / square meter)

 Tamil Nadu is the hub for wind industry in India. This is a definite advantage for its people to become professionals in the wind sector. The State should invest in education, training and research and development and also encourage private investment in these activities.

There is a market for small turbines and hybrids which are often used in standalone or autonomous mode.  Small capacity wind turbines in the range below 100 KW can be installed in the backyard or on a roof top. The State may encourage this segment.

It is for Tamil Nadu to focus on a key infrastructure such as power and it will be prudent to encourage all available sources of power generation.  Wind can play a key role in achieving energy security and making the growth more sustainable. A proactive Government can facilitate an atmosphere that is conducive for rapid growth and expansion of wind industry. By taking timely action on the issues mentioned in this paper let us hope to sustain the momentum in wind power development in Tamil Nadu enabling sustainable growth and development.

………………………………………………………………………………………………………………………………………………………

Reference: Indian Wind Energy Outlook 2011 prepared by Global Wind Energy Council, World

 Institute of Sustainable Energy & Indian Wind Turbine Manufacturers Association