In India, “bigger is not always better” for wind energy generator manufacturers who should focus on productivity and low cost per kWh, according to Mr Ramesh Kymal, Managing Director, Gamesa.
With an addition of 2,300 MW of wind energy generation in 2010-11 taking the total capacity to about 13,000 MW, India last year came third globally in new capacity additions and continues among the top five in installed capacity.
This highlights the importance of India as a market and the increasing significance of emerging economies to the wind energy sector. Manufacturers have to gear themselves to the needs of the new market environment in India, Africa and the Asia-Pacific. Also, the growth of independent power producers in wind energy has given an added push to achieving greater efficiency and cost control.
According to Mr Kymal, investment per kWh ranges around Rs 26-27 with wind energy generators priced around Rs 5.5 crore a MW at the lowest end. The target is about Rs 23-24 a kWh.
Technology will have to address the challenge of balancing costs with higher output for which manufacturers need to adapt machines to local conditions such as low wind speeds and high temperatures.
Mr Kymal said that under Indian conditions the “defining capacity is larger rotor diameter” with wind speeds ranging around 6.5 – 7.5 metres a second (about 25 km an hour) and high temperatures resulting in low air density. A 2-MW machine in Europe may come with 84-87 m blades but in India such a machine will have 95-97 m blades.
Cost factor
Manufacture of large components such as towers and blades need to be indigenised to bring down transportation and logistics costs which now account for about 4-6 per cent of the cost and import duties add 12-15 per cent. Smaller components, particularly forgings and castings can be imported from China, Vietnam or Korea, he says.
On the reasons for wind energy investment cost stagnating around Rs 6 crore a MW despite global manufacturers setting up operations in India, Mr Kymal said that it was due to the additional costs being incurred as a part of turnkey projects which includes cost of land and evacuation infrastructure.
Focus on technology
The electricity utilities no longer provide the support infrastructure but expect the wind energy generating companies invest in sub-stations and transmission lines. For instance, the Tamil Nadu Electricity Board earlier charged about Rs 25 lakh a MW for the facility but now investors have to set these up themselves at a cost of about Rs 60-70 lakh.
Mr Klaus Rave, Chairman, Global Wind Energy Council, said India needs to combine its expertise in information technology with engineering to develop smart grids to address grid infrastructure constraints. The growth markets had shifted from the West to Asia and the South-East and technology has to diversify and adapt to local conditions and economies.
Mr T. Shivaraman, Director, Leitner Shriram Manufacturing Ltd, said “efficient delivery of kWh” is the prime need. As IPPs enter the market, wind energy generator manufacturers are dealing with customers looking at wind as a standalone business. Projects will be larger and this will call for strong grid infrastructure in wind zone.
Mr Tulsi Tanti, Chairman and Managing Director, Suzlon, who launched two new turbines developed specifically for low wind regimes, at a recent conference and exhibition on wind energy, said the emerging markets such as India, China, Brazil and South Africa will increasingly contribute to the growth of wind energy. Suzlon has developed the 2-MW turbines with large diameters of 95 m and 97 m for low wind regimes, grid compliance in these markets and keeping in mind the cost concerns in the market.