Suzlon Energy Ltd. 1 Emerging technologies and strategies for Green Energy in Railways.

Suzlon Energy Ltd.

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Emerging technologies and strategies for Green Energy in Railways

Suzlon Energy Ltd.

• Why Wind Energy?• Science of Wind Energy• Wind Energy : Overview of Opportunities• Green perspective of Indian Railways• Suzlon : Leadership & Capabilities

Agenda

Suzlon Energy Ltd.

Why renewable energy?

Suzlon Energy Ltd.

3 way benefits of wind energy

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Agenda

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Science of Wind Energy

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Science of Wind Energy

Suzlon Energy Ltd.


Agenda

Suzlon Energy Ltd.Drivers of growth for wind energy in India

• Dedicated ministry and established regulatory framework

• Strong policy support with multiple revenue options and incentives

• Established long term preferential tariff mechanism

• Aggressive targets & commitment under govt.’s national action plan (NAPCC)

• 14 GW installed – world’s 5th largest

• 71 % Share in country’s Renewable Energy

• Est. potential of ~ 50 GW, largely untapped

• Access to latest technology, supply chain and expertise

• Currently 2GW annual market, likely to grow to 4GW size

Suzlon Energy Ltd.

Wind map of India

• Nodal agency: CWET • CWET identified

potential of 48000+ MW but industry estimates it to be between 60000 to 100000MW

• Wind potential is concentrated in southern, western and north-western regions

• Grid connected projects operational in 8 states

• Cumulative installed capacity as of March 2011 is over 14 GW

*Ref: Market Data as of March 2011

State Potential Installed *

TN 5530 MW 5900 MW

MAH 4584 MW 2312 MW

GUJ 10645 MW 2175 MW

KAR 11531 MW 1736 MW

RAJ 4858 MW 1525 MW

MP 1019 MW 276 MW

AP 8275 MW 200 MW

Other 2120 MW 33 MW

Total 48561 MW 14156 MW

Suzlon Energy Ltd.

Growth of wind energy in India1995470 MW

20001170 MW

20054388 MW

• In FY 2010-11, India added over 2300 MW of new capacity to emerge as world’s 3rd largest market, behind China and USA

• Cumulatively, India is 5th biggest market in the world with over 14 GW of commissioned wind energy capacity

• Market grew almost three fold in size over the last 6 years • Estimated wind power potential between 48 – 100 GW

Growth of Indian wind energy market

March 2011

14000+ MW

New Policy Initiatives like GBI,

REC, RPO & CERC Tariff Reforms

Rising Power Demand & Need for

Mitigation of Climate Change

Large scale development

by IPP players

Future drivers for market acceleration

in India

* CWET & MNRE estimates 48GW but industry experts believe it could be up to 100 GW

Suzlon Energy Ltd.

Measuring the future opportunity

YearMU Needed (as per CEA

Survey)

RE MU (15% as per NAPCC

Target)

Derived RE Capacity (@33% PLF)

2011-12 969659 145449 50314

2016-17 1392066 208810 72233

2021-22 1914508 287176 99341

• Est. demand in CEA17th Power Survey: 1.91 trillion units.

• To meet NAPCC target of 15%, installed capacity of renewables will need to reach

100,000MW (at 33% PLF)

• Even with a conservative estimate of 50% share of wind in RE mix, aprox. 4000MW

of yearly capacity addition would be needed in

wind alone for next 10 years. A Huge opportunity!

Wind@50% 50000

Suzlon Energy Ltd.

Project InvestorProject Investor

FinancierFinancier

End to End Solution ProviderLand Arrangement, Equipment Supply,

Project EPC, VAS & Life Cycle Asset Management

End to End Solution ProviderLand Arrangement, Equipment Supply,

Project EPC, VAS & Life Cycle Asset Management

Power UtilityPower Utility

Regulatory bodies and

nodal agencies

Regulatory bodies and

nodal agencies

Key Stakeholders

Power Trading Options

Procurement by Local Utilities

State REC mandates local discoms to procure renewable power at a binding feed-in tariff under a long term PPA (up to 25 yrs)

Captive Usage under Wheeling & Banking

After adjusting the losses / charges towards wheeling & transmission, a proportionate set-off is given in the monthly power consumption

Open Access / Merchant Power Generation

Investor can sell power to any open access consumer (with more than 1 MVA load) after paying OA charges.

*Key Benefits / Incentives Options

Generation Based Incentive of Rs. 0.5 per

unit of power in addition to feed-in tariff

Generation Based Incentive of Rs. 0.5 per

unit of power in addition to feed-in tariff

Revenue from trading of carbon

credits thru’ CDM route

Revenue from trading of carbon

credits thru’ CDM route

Renewable Energy Certificate scheme –

dynamic market price discovery model

Renewable Energy Certificate scheme –

dynamic market price discovery model

* Eligibility conditions apply. All benefits may not be available simultaneously.

Market Framework

Preferential Feed-in-tariff under long

term PPA

Preferential Feed-in-tariff under long

term PPA

Suzlon Energy Ltd.

Winds of change

Indian wind sector is poised for a quantum leap with progressive policy & regulatory reforms•Generation Based Incentive: Expanding opportunities to investors with low / no appetite for depreciation, such as IPPs, EOUs, SEZs, IT/ITeS etc.•RPO/RPS & REC: Facilitating compliance of legal mandate to use Renewable Energy•CERC Tariff Guidelines: Promising level playing field and decent returns to investors

Suzlon Energy Ltd.

The GBI scheme

• Objective: to expand the market by facilitating large scale investment from IPPs & thru’ FDI and to encourage higher generation efficiencies by WPPs

• Eligibility : First 4000 MW of registered grid connected WPPs commissioned between 19th Dec 2009 to 31st March 2012 and not availing the Accelerated Depreciation benefit

• MNRE shall pay a special incentive @ Rs. 0.50 per unit (kWh) of wind power fed in to the grid. This shall be in addition to the state specific feed-in tariff

• The incentive per MW is capped at Rs. 62 lakhs, with a yearly disbursement limit of Rs 15.5 lakhs per MW for the first four years.

Suzlon Energy Ltd.

The REC mechanism

• Aimed to facilitate the fulfillment of RPO by the states / obligatedentities where the RE potential is not enough for local RE generation

• Obligated entities (distribution utilities and CPPs) can fulfill RPO either by procuring RE or by purchasing equivalent RECs

• 1 REC = 1 MWh of electrical power i.e. 1000 units (kWh) fed into the grid.

• The RE generator may sell electricity and associated RECs separately • REC can be traded on power exchange at market determined price• To control the trading price of RECs,

the CERC has determined a band of forbearance & floor prices (Rs. 3.30 to Rs. 1.50 per kWh)

Feed-in Tariff

Pooled Cost for Power

OR

Fixed

Variable

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Wind energy hedges the power co0stenhance global competitiveness

Managing energy costs is key to global competitiveness of energy-intensive industries

Energy Costs are “frozen” with wind energy investment

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Schematic – Wind Power Wheeling Solution

(A) Power Metered at the

Point of Generation

Ex: Wind Power Project Set-up in South

Maharashtra

Power is fed in to nearby substation

of state transmission

utility

Power is fed in to the state-

wide transmission

grid

Distribution grid of state power

distribution utility

Power drawn at the HT

meter of the consumer

Ex: Customer’s office in Western Maharashtra

(C) Power Metered at the Point of

Consumption

Power drawn at the

distribution point

substation for supply to

consumers

(B) T&D and Wheeling Losses

(Losses and charges towards transmission, distribution & wheeling

process deductible as per state policy)

Customer gets unit to unit set-off in monthly bills Net billed = C – (A – B) units

Important Condition: The wind power project & the Bank’s beneficiary

office should be located anywhere but within the same state

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Agenda


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Energy Scenario of Indian Railways

• INDIAN RAILWAYS – Most fuel efficient mode of transport exiting in the country

• INDIAN RAILWAYS is the single largest consumer of Energy in the country (nearly 17.15 billion Kwh per annum).

• Energy accounts for 24% of the annual operating expense of INDIAN RAILWAYS.

• 33000 KMs of route to be electrified by 2020 envisaged in vision statement 2020.

• Strategy for Energy security – All bulk consumers of power are getting to Captive Generation of Energy.

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Strategy & Green Initiative of Indian Railways

• Integral Coach Factory – 10.5 MW of Captive Wind power project to offset ICF’s annual requirement of 23 million Kwh per annum.

• SCR & NWR - advance stages of installing Wind power Project. PPP mode of investment proposed by NWR is unfeasible for Equipment manufacturer.

• Vision Statement : 10% of the total energy consumption from renewable source by 2020.

• Annual reduction of 0.14 million tonnes of CO emissions through 26 million CFLs

• Saving up to 15% of energy through a improved in both traction as well as non-traction use.

Suzlon Energy Ltd.

Agenda


Suzlon Energy Ltd.

Low to Med. capacity WTGs (0.6 MW – 2.1 MW)

India, USA, China, Australia, Europe, Latin America

Wind turbine manufacturer & turnkey solution provider

Med. to High capacity WTGs (1.5 MW – 6 MW)

China, Europe (mainly Germany), Canada, USA

Wind turbine manufacturer (Subsidiary of Suzlon)

Product Portfolio

Geographical Presence

4,200 1,700Current Capacity (MW)

5.9% (8th largest globally) 3.9% (9th largest globally)Market share (2010)

N/A 95.00%Equity stake held by SEL

Suzlon group

Suzlon Energy Ltd.

Complete solution capabilities

Vertical Integration Across Supply Chain

Solution Capabilities Across Value ChainSupply Chain + Project Development + Asset Management

Project Planning Site Infrastructure Development Life Cycle Asset Management

Wind Resource Mapping EPC & Project Commissioning Operations & Maintenance with

Equipment Supplies Power Evacuation 95% Machine Availability Guarantee

600 kW – 1.25 MW 1.25 – 1.5 MW 1.5 - 2.5 MW 2.5 – 3.0 MW

Suzlon REpower

3.0 – 6.0 MW

Widest Range of Onshore & Offshore Wind Turbine Options

Suzlon Energy Ltd.

S9X Evolution from the proven S88 platform

CurrentS88 SFS

Robust Gearbox

DFIG Technology

Advanced Pitch System

Taller Tower Heights

New Nacelle Design +

Additional Yaw Drive

S97 DFIG(2.1 MW) =

Improved Robustness and Performance

95m rotor diameter

Wind class IIaOptional hub heights

S95 DFIG(2.1 MW) = +

+

Starting point:

Existing, reliable workhorse S88

Starting point:

Existing, reliable workhorse S88

• Standardize as many components as possible by strengthening critical points

• Improve performance by moving to variable speed

• Standardize as many components as possible by strengthening critical points

• Improve performance by moving to variable speed

• Improve performance by using larger rotors

• Improve performance by using new airfoils

• Improve performance by using larger rotors

• Improve performance by using new airfoils

Result: Stronger

performance and improved reliability

Result: Stronger

performance and improved reliability

97m rotor diameter

Wind Class IIIaOptional hub heights

CurrentProduct Enhancement

s

New S9X

Platform

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S9X Suite of Wind Turbines

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Cumulative group installed base of more than 16,000 MW accounts for ~9% of global installations backed by robust sales infrastructure

Germany

Italy

France

UK

Belgium

Canada

China

Turkey

India

Brazil

Nicaragua

Japan

Suzlon

REpower

Both

1: As on March 2011; Includes all installed and SCADA connected systems; 2. REpower installation from 2001 onwards

N. America

Canada 4

USA 2,991

Total 2,995

Portugal & Spain

Europe installations

Germany 1,968

France 1,160

UK 548

Others 1,345

Total 5,021

Asia

China 985

Japan 118

India 6,218

Sri Lanka 10

Total 7,333

Australia

Total 743

S. America

Brazil 384

Nicaragua 63

Total 447

(Figures in MW)

Sri Lanka

Global footprint : 6 continents, 32 countries

Suzlon Energy Ltd.

Locations Products

Bhuj, Gandhidham, Vadodra,

Daman, Dhule, Chakan,

Padubidri, Coimbatore,

Pondicherry

Nacelles, Forging & Foundry

components, Rotor blades,

Gearbox*, Control Systems,

Generators, Towers

Tianjin, Baotau Nacelles, Rotor blades, Gearbox*,

Control Systems, Generators

Pipestone, Minnesota Rotor blades

Germany, Portugal WTG, Rotor blades

Gearbox* - through Hansen

Global manufacturing and R&D

Suzlon Energy Ltd.

Customer’s patronage

Customer MW* Project Type Project StatesDLF Group 217.50 PPA Guj., Raj, TNHindustan ZInc 50.70 PPA Raj, KtkMSPL Group 137.50 PPA Mah., KtkTechno Electric 110.45 PPA TN, KtkRSMML 91.3 PPA RajTata Group 88.65 PPA MahRuchi Group 87.90 PPA Guj, MP, Mah, Raj, TNGujarat NRE Coke 87.50 PPA GujGACL 83.75 EWA GujAditya Birla Group 75.00 PPA MahBajaj Auto Group 68.00 EWA MahGreen Infra (IDFC) 64.00 PPA Mah., TNGSPC 61.50 EWA GujG. N. Agrawal 52.20 PPA KN, Mah, TN, RajONGC 51.00 EWA GujRamco Group 48.10 EWA Guj., Ktk, TNReliance Group 45.00 PPA MahITC Group 41.20 EWA Mah, TNK S Oils Group 32.80 PPA Guj, MP, Raj., TNIndian Oil 21.50 EWA GujIndian Railways 10.50 EWA TN

45%55%

FY10-11 Orders Distribution by MW

* Cumulative MW commissioned as of 31st March 2011

New Business

RepeatBusiness

• Over 1500 customers in India from across the industry sectors & geographies

• Customer mix comprising of small / medium businesses, large corporate, PSUs and IPPs

• High customer patronage as reflected in repeat business share

Suzlon Energy Ltd.

Presence in India

#1 position and leading market share of in India for 13 years consecutively

Installed base of more than 6500 MW

Four mega size wind farms including Asia’s largest wind farm at Kutch (Gujarat)

40 wind farms across 8 states

World class manufacturing facilities catering to leading world markets

Sankaneri wind farm in Tamil Nadu Over 650 MW & expanding…

Dhule wind farm in Maharashtra700+ MW & expanding… Farms at Soda-Mada,

Sadiya and Pohra in Rajasthan with a total capacity of 400+ MW & expanding…

Wind farms in Karnataka; total capacity more than 490 MW & expanding…

Footprint in IndiaFootprint in India

Suzlon Energy Ltd.

Sourcing the suitable land –bank for project

Scientific wind study at location using a met-mast

Ensuring required sub-station capacity for enabling power evacuation to nearby transmission grid

Infrastructure & access road development

Movement of material at siteTurbine erection and commissioning

Wind park development process

Suzlon Energy Ltd.

Project execution & asset management

Installation & CommissioningSite Infrastructure & Civil Foundation Electrical Sub-station &

Local Transmission Lines

On Site Testing & Maintenance

Wind Farm Automation with SCADA24X7 Centralized Control & Monitoring

Dedicated CRM & KAM SupportWeb enabled reports for customers

Suzlon Energy Ltd.

Comprehensive O&M solution

Site CMS Center

Web enabled access to reports for customers

Site VSAT

Suzlon HO VSAT

• Fully automated wind farm management with SCADA system

• 24 X 7 service by trained engineers at site

• No hidden cost ! All inclusive long term O&M contract (major components, spares, consumables & services)

• 95% machine availability guarantee

• Web Enabled Access to generation reports

Suzlon Energy Ltd.

Suzlon Energy Ltd.

Trust & Relationship

Leadership in key markets Vast Experience with more than 13 GW installations High customer patronage

Trust & Relationship

Leadership in key markets Vast Experience with more than 13 GW installations High customer patronage

Maximizing Returns

Optimizing cost per kWh, Economies of Scale with

Large Wind Parks

Maximizing Returns

Optimizing cost per kWh, Economies of Scale with

Large Wind Parks

Investing with Confidence

Value for money, Timely deliveries & Secure life

cycle support

Investing with Confidence

Value for money, Timely deliveries & Secure life

cycle support

Easy & Hassle-free Business Model

Turbine Supply, Supervision,

Commissioning & Asset management with Single

Point Coordination

Easy & Hassle-free Business Model

Turbine Supply, Supervision,

Commissioning & Asset management with Single

Point Coordination

Choice and Flexibility

Wider options of project locations and turbine sizes

to build a scalable portfolio

Choice and Flexibility

Wider options of project locations and turbine sizes

to build a scalable portfolio

Peace of Mind

Credibility through proven track record & satisfaction

of large customer base

Peace of Mind

Credibility through proven track record & satisfaction

of large customer base

Value creation for customers

Suzlon Energy Ltd.

Corporate Social Responsibility

Suzlon Energy Ltd.

Thank you!

For business enquiries, contact

Suzlon Energy Ltd9th Floor, Eros Corporate Tower,Nehru Place, New Delhi .Landline: 011 46506000

[email protected]

Suzlon Energy Ltd. 1 Emerging technologies and strategies for Green Energy in Railways.

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Transcript of Suzlon Energy Ltd. 1 Emerging technologies and strategies for Green Energy in Railways.