Tamil Nadu WiNd ENErgy ProfilE
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1 Tamil Nadu WiNd ENErgy ProfilE Wind energy in Tamil Nadu has witnessed tremendous growth propelling the State to the number one position in India in terms of renewables. However the challenge that remains is the huge investment that is needed on evacuation infrastructure and grid management. KAMALASEKHAR Small wind turbine at Thirunelveli, Tamil Nadu 26
2 Infrastructure development of any country is an important aspect for its sustainable development. Besides water and roads, electricity is one of the core components of infrastructure development. The demand for power has grown rapidly and today we find it difficult to match demand and supply. India faces a formidable challenge in meeting its energy needs and providing adequate and affordable energy to all sections of society in a sustainable manner. In this regard Tamil Nadu has been actively involved in augmenting the power generation capacity of the State. The government of Tamil Nadu has identified wind energy as a potential source of electricity among all renewable energy sources and is extending various fiscal incentives and attractive policies. initiative of mnre The Government of India (GoI) through the Ministry of New and Renewable Energy (MNRE), [previously known as Department of Non-conventional Energy Sources (DNES) till 1992 and later as the Ministry of Non-conventional Energy Sources (MNES)] initiated the wind power programme for the introduction of new technology, for capacity addition of power generation and to invite private sector participation in the wind sector. The wind power programme includes a comprehensive wind resource assessment programme, research and development, implementation of demonstration projects to create awareness, development of infrastructural capability, development of capacity of manufacturing, installation, operation and maintenance of wind turbines and the creation of a conducive policy. In 1986, the DNES also launched demonstration wind farm projects for the states. In fact the Ministry has played a pivotal role by introducing attractive fiscal and promotional incentives at the Central and state levels to encourage private investors and developers to take up commercial projects in the area of wind energy. Tamil Nadu Wind Pass Tamil Nadu is blessed with natural meteorological and topographical settings for wind power generation. In Tamil Nadu there are four passes namely Palghat, Shengottah, Aralvoimozhi and the recently identified Cumbum Pass that are endowed with heavy wind flows during the South- West monsoon. The wind period starts at the end of April and ends at the end of September in a given year. The months of July and August are the peak season for the winds. demonstration Projects In 1986 when the GoI through the DNES announced the programme of setting up of demonstration wind farm projects, the Tamil Nadu government welcomed the proposal and established the country s first demonstration wind farm project of 1.15 MW at Mullakadu in Tuticorin SHENGOTTAH PASS Tirunelveli,Tuticorin ARALVOIMOZHI PASS Kanyakumari, Radhapuram,Muppandal CUMBUM PASS Theni, Cumbum and Andipatti PALGHAT PASS Coimbatore, Dindigul district in the year 1986 itself. Subsequently, 120 wind mills with a total capacity of MW were set up in the period of 1986 to Based on the successful functioning of these demonstration wind farms, private developers began to take a keen interest in this sector and set up a large number of windmills in the State. Commercial deployment The Ministry took a lead to help set up these demonstration wind power projects with the objective to create the necessary infrastructure and to open up the sites for commercial development by demonstrating the success, so that the private sector is encouraged to invest. After Tamil Nadu, the states of Gujarat, Rajasthan, Maharashtra and Karnataka followed suit. The demonstration sites helped private investors in analysing the performance and economics of wind power projects and identifying the areas of concern in the operation of wind based power projects. In 1986 itself, private industries were permitted to harness wind energy to meet the power requirements of their enterprises. This led to the private sector setting up wind mills from 1990 onwards. Table 1 shows the yearly wind capacity addition of commercial deployment. In the year 2004 when the GoI announced the technology upgradation fund (TUF) to textile industries, in order to meet their power demand, they started investing in the wind sector and established wind farms. Due to this, during the year 2004 the capacity reached over 857 MW. Based on the 27
3 success of Tamil Nadu, states like Gujarat, Rajasthan and Andhra Pradesh adopted the Tamil Nadu model. incentive extended In order to promote wind energy in large scale commercial operations, the Tamil Nadu government extended various incentives. These included: 80 per cent accelerated depreciation in the first year, Concessional custom duty on certain components of wind electric generators, Excise duty exemption, Ten years tax holiday on income generated from wind power projects, and Loans from Indian Renewable Energy Development Agency (IREDA) and other financial institutions. Policies adopted based on ministry s guidelines As per the MNES guidelines issued during 1995, the following policies were undertaken: The minimum purchase rate of Rs per unit with 5 per cent escalation every year for a period of 5 years. Wheeling of wind energy at a minimum of 5 per cent wheeling charges. Small wind turbine at Thirunelveli, Tamil Nadu in the year 2004 when the goi announced the technology upgradation fund (Tuf) to textile industries in order to meet their power demand, they started investing in wind sector and established wind farms. Banking of wind energy for one year from 1 April of a said year to 31 March of the succeeding year with 5 per cent banking charges. Boundary distance to be maintained for wind energy generator (WEG) D+5 metres (where D is the diameter of the rotor). Micrositing distance adopted 5D x 7D. The evacuation work carried out by the Tamil Nadu Electricity Board (TNEB) on collection of the deposit contribution work (DCW) amount from the WEG. Policies under the TNErC Based on the MNRE guidelines, Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO) fixed the tariff rate and other terms and conditions for wind energy and followed the same upto 15 May 2006, after which Tamil Nadu Electricity Regulatory Commission (TNERC) issued the first tariff order for wind energy and subsequently issued a further order. TANGEDCO then adopted the same. Power Evacuation Normally, wind electric generators are interfaced at 11 kv, 22 kv and 33 kv levels, depending upon the voltage level of the network available in that area. Initially all the dedicated wind farm sub-stations of 110 kv and 230 kv level and the required extra high tension (EHT) lines were established by the TNEB. The gestation period of the windmills is 2 to 3 months, but Table-1. Initial yearly capacity addition in Tamil Nadu Year Capacity added MW Total Sources: NCES Dept./TANGEDCO 28
4 the power evacuation works require at least 6 months to 1 year for completion. Due to sudden spurt in windmill growth during 2002, there has been a mismatch between installation of windmills and power evacuation. In order to cope with the pace of development of the wind energy sector, from the year 2003, private WEG manufacturers/ promoters were permitted to create the required infrastructure facilities of 110 kv, 230 kv Sub stations and EHT lines on reimbursement basis. Additionally, the TNEB formed a Task Force in August 2006 consisting of members of the Indian Wind Turbine Manufacturer Association (IWTMA) and the Indian Wind Power Association (IWPA). The task force meetings were conducted once every three months. This helped in planning the development of infrastructure to evacuate wind energy. Now the developers are establishing their own 110 KV and 230 KV substations for their clients and also maintaining the sub-stations on their own. augmenting Evacuation infrastructure The total installed generation capacity of Tamil Nadu including renewable energy is MW as on 31 March 2012 (Table 2). The total power demand of Tamil Nadu is 14,000 MW, whereas TANGEDCO generation and share is around 10,000 MW and therefore there is a shortage of 4000 MW. The shortage of 4000 MW is partly met by wind generation. The installed capacity of wind energy of Tamil Nadu as on 31 July 2012 is MW (Table 3) and an addition of 3000 MW is underway. Further, applications for a capacity of 10,800 MW are pending and are in the process of load flow study. Table-2. Tamil Nadu power position as on Sector wise Generation in MW TNEB s own generating stations Thermal Hydel Gas 2,970 2, Private sector power plants 1,180 Share from central sector generating stations 2,956 External assistance 305 Others (captive power plants) 214 Total 10,364 Renewable energy Wind mills 6,970 Co-generation 637 Biomass 169 Solar 15 Total 7,791 Grand total 18,155 Sources: Planning Dept./TANGEDCO Table-3. Wind mill capacity as on (Board & Private) Year Installed Capacity in MW During Year Cum Total Upto (up to July 12) Sources: NCES Dept./TANGEDCO achievements The state of Tamil Nadu has made many strides in the field of wind energy. Some of these are listed below: The installed capacity of wind energy of Tamil Nadu is which is 40 per cent of India s wind capacity. The State had an all time high wind capacity addition of 1083 MW in Tamil Nadu also had an all time high wind generation of 4050 MW on 6 August The 13th Finance Commission has recommended a grant in aid of Rs. 455 crore to Tamil Nadu for capacity addition of 600 MW for the period 2010 to However the capacity of 997 MW of wind was added during 2010 itself and the 13th Finance Commission was requested to release the grant. On 30 June 2008, the Prime Minister s Council on Climate Change approved the National Action Plan on Climate Change (NAPCC). The NAPCC stipulates that a dynamic minimum renewable purchase target of 5 per cent (of total grid purchase) may be prescribed in and this should increase by 1 per cent each year for a period of 10 years to reach 15 per cent in The TNERC had fixed a Renewable Purchase Obligation (RPO) of 13 per cent for the year and 14 per cent for the year The MNRE in the 12th Five Year plan ( ) 29
5 has envisaged a growth capacity addition of 30,000 MW of renewable energy power with as much as 15,000 MW from wind energy alone. In Tamil Nadu the wind energy investment is from small and medium sized industries that individually install less than five machines in a year. The main driving force for the small and medium sized industries until 2009 was the provision of accelerated depreciation of 80 per cent. This provision enabled both large profit making companies, small investor and captive users to participate in the sector. However with independent power producers (IPPs) and foreign direct investors (FDIs) entering Tamil Nadu with a capacity for bulk generation has led to the reduction of accelerated depreciation to 15 per cent. The response to this change can be assessed at the end of this financial year on 31 March Secondly, the transmission infrastructure is the responsibility of state transmission utilities (STU), but many STUs are not financially healthy to invest in the required transmission upgrades. In order to evacuate the present capacity of 7084 MW and ensure the regular capacity addition, bodies like the TANGEDCO/ TANTRANSCO need around Rs. 4,160 crores. Thirdly, even though the all time highest peak of wind reached 4050 MW on 6 August 2012, the generation pattern has been erratic resulting in difficulty in managing the grid. Even though the CERC vide its Indian Electricity Grid Code 2010 mandated the scheduling and forecasting of wind energy, it is at the pilot project study stage only. However if Wind farm in Muppandal, Tamil Nadu The mnre in the 12th five year plan ( ) has envisaged a growth capacity addition of 30,000 mw of renewable energy power with as much as 15,000 mw from wind energy alone. the generators forecast the generation of wind energy and give clear schedules, the grid can be managed effectively. government initiative The government of Tamil Nadu is giving the necessary impetus to the initiative taken by the State. In a document termed Tamil Nadu Vision 2023, released on 22 March 2012, the government envisages a total investment of Rs. 4,50,000 crores in the energy sector. This will include: Rs. 1,70,000 crores towards development of power generation, Rs. 2,00,000 crores to development of transmission and distribution network, Rs. 25,000 crores towards development of wind energy sector and, Rs. 55,000 crores for development of solar energy sector. Additionally there are plans to set up a centre for excellence in the area of clean energy technology including solar, Establishment of separate 400 kv wind power corridor, Comprising establishment of 3nos. 400 kv substations 393 kms of 400KV DC line. Estimated capital cost of Rs crore, and, Establishment of a separate central load dispatch centre to monitor the wind power generation. Conclusion The State government has been extending various incentives such as preferential feed-in tariff, wheeling of wind energy to any HT/LT services, third party sale, banking of wind energy; payment for any unutilised banked energy at the end of the banking period, REC schemes, absorption of all the energy generated upto the grid capacity. Even though various studies have shown that huge wind potential is available in the State, the viability of the capacity addition has to be studied in comparison with other thermal and hydel generation capacity addition in the light of the consumers/ public interest. But it goes without saying that Tamil Nadu has discovered the potential of wind and will do everything possible to ensure that it harnesses this promising form of renewable energy. b The author is Asst. Executive Engineer, Non-conventional Energy Sources, Tamil Nadu Generation and Distribution Corporation Ltd. Chennai. aeences@tnebnet.org 30
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