Professional Documents
Culture Documents
On
Analysis of Wind & Solar Energy Market
&
Identification of Diverse Opportunities in Wind & Solar PV Value Chain
at
Hyderabad
By
Manoj Kumar Pandey
2nd Year Student of MBA in Power Management
Roll no 45
Batch 9th (20010-2012)
August 2011
Affiliated to
Page 1 of 124
Acknowledgement
There is not a more pleasing exercise of the mind than gratitude. It is accompanied with
such an inward satisfaction that the duty is sufficiently rewarded by the performance.
~Joseph Addison
First of all I want to Praise the True Friend MY ETERNAL FATHER who carried me
over. I want to give thanks for His firm hold, silent company, and immense blessings which
all together enabled me to complete my project.
I am also extremely grateful Mr.Sunil Kumar Associate Director, GRID Energy and Utilities ,
PwC for making me feel an invaluable part of the organization.
I would like to express my sedate and sincere gratitude to my Project Guide Mr.
Omkareshwar Pandey Manager GRID, Energy & Utilities, PwC & Mr. Samrat Ray
Senior Consultant GRID Energy & Utilities ,PwC .Their wide knowledge and logical way
of thinking have been of great value for me. Their understanding, encouragement and
personal guidance have provided a good basis for the present project.
I am deeply grateful to my Faculty-guide Mr. N.V .Kumar for his kind support and valuable
advice which has lead to the completion of my due work without any hindrance.
I wish to express my warm and sincere thanks to Mr. Charudutta P.Palekar Principal
Consultant GRID Energy & Utility PwC & Mr.Sathish Kamalabhan Senior Consultant
GRID Energy & Utility PwC for their constant encouragement and guidance.
I feel deep sense of gratitude towards Mr. J.S.S. Rao, Principal Director, CAMPS (NPTI), Mr. D. M
Lokhande, Director, CAMPS, my internal Project Guide Mrs. Indu Maheshwari, Deputy Director, NPTI
and Mrs. Manju Mam, Deputy Director, NPTI ,Mr.Rohit Verma ,Deputy Director NPTI for guiding
me
I would extend my genuine thanks to PwC employees for their worthy suggestions and
timely help. My heartfelt thanks go to all my PwC Family ,Seniors and my batch mates for
their love, guidance, and encouragement
Page 2 of 124
Table of contents
Contents
Executive Summary ................................................................................................................... 5
Objective of the study ................................................................................................................ 7
ABOUT THE ORGANIZATION.............................................................................................. 8
Government Reforms and Institutional Development (GRID) ................................................ 13
1. Introduction .......................................................................................................................... 15
2. Renewable Energy in India .................................................................................................. 17
2.1 Advantages of Renewable Energy.................................................................................. 18
2.2 National Electricity Act 2003 & National Electricity Policy ......................................... 20
3. Market Trends of Wind and Solar Energy Industry............. Error! Bookmark not defined.
3.1 Wind Energy Market ...................................................................................................... 22
3.2 Solar Energy Industry in India........................................................................................ 23
3.3 Key Drivers in Wind & Solar Power Market ................................................................. 24
4. Wind and Solar Power Development in India ..................................................................... 27
4.1 Wind Power Development.............................................................................................. 27
4.2 Solar Power Development .............................................................................................. 29
5. Government Policies & Incentives ...................................................................................... 33
5.1 Promotional Policies ....................................................................................................... 35
5.2 Renewable Energy Certificate ........................................................................................ 36
6. Wind Industry Value Chain ................................................................................................. 38
6.1 Wind Power Technology ................................................................................................ 39
Working principle of wind turbine: .............................................................................. 40
6.2 Wind Power Generation Process .................................................................................... 41
6.3 Major Components of Wind Turbine ............................................................................. 44
6.4 Functions of Wind Turbine Parts.................................................................................... 46
7. Wind Turbine Classification: .............................................................................................. 54
7.1 Classification on the basis of blades ............................................................................... 54
7.2 NEW TECHNOLOGIES IN WIND POWER GENERATION ..................................... 56
7.2.1 MAGLEV WIND TURBINE................................................................................... 56
8. Wind Turbine Related Cost ................................................................................................. 59
9. Service & Support of Wind Turbine Technology ................................................................ 63
10. Solar Power Technology ................................................................................................... 69
11. Components of Solar Power Technology .......................................................................... 70
11.1 PHOTOVOLTAICS ..................................................................................................... 70
11.2 PV CELLS, MODULES, & ARRAYS ........................................................................ 71
12. Manufacturing of solar Power Technology ....................................................................... 75
12.1 POLY-SILICON MANUFACTURING....................................................................... 75
Page 3 of 124
Page 4 of 124
EXECUTIVE SUMMARY
It is a well known fact that India has not been gifted by huge sources of non renewable
energy sources like oil and gas, though the country posses huge reserves of coal to sustain its
energy requirements for a couple of decades but the technology to harness these reserves is
not sufficient neither efficient. Also the growing global concern about the destructive effects
of using energy produced from non renewable sources have prompted India to utilize clean
and renewable form of fuels to meet its energy requirements. WIND ENERGY & SOLAR
ENERGY are such a renewable form of energy use of which is showing a growing trend all
round the world including IndiaAs a renewable energy source, solar energy & Wind energy
presents an exciting opportunity for India.
The most important barrier that had stopped Solar PV from becoming a mainstream
renewable energy resource is the high cost of producing power from the resource. This high
cost is in turn a direct result of the high capital costs of the solar PV panels and the balance of
system required. The same is seen in Wind Technology also. Both the technology are
continuously improving in terms of their efficiency.
While 2009 was a challenging year for the wind turbine industry, the situation has worsened
in 2010 with the drought of new orders and the drop in installations in the US, a key growth
market. However, the rise of Chinese wind turbine manufacturers and offshore growth in
Europe signal key areas of opportunity going forward. To adapt, wind turbine component
suppliers are trimming their production capacity and retooling their strategies to compete in a
more technically complex, larger scale and globalized supply chain. Suppliers of blades,
gearboxes, towers, bearings, generators, and power converters recognize the markets steady
march toward larger machines and new technologies such as direct drive, which will require
them to extend their manufacturing reach globally,
likely to result in a wide range of attractive business opportunities along the entire solar
energy value chain in India. While solar power production is the final benefit derived from
solar PV, an entire ecosystem is evolving around this end product, and this ecosystem will
result in a range of opportunities for a number of industries, businesses and entrepreneurs.
Page 6 of 124
OBJECTIVE OF STUDY
Study Value Chain of Wind & Solar Power & Identification of Business
Opportunities
Page 7 of 124
PricewaterhouseCoopers (or PwC) is one of the world's largest professional services firms
and the largest of the Big Four auditing firms. It was formed in 1998 from a merger between
Price Waterhouse and Coopers & Lybrand, both formed in London. PricewaterhouseCoopers
earned aggregated worldwide revenues of US$26.2 billion for the fiscal year 2010, and
employed over 163,000 people in 151 countries.
Worldwide, the PwC Energy, Utilities & Mining (EU&M) Group serves 2,500 clients,
making it the largest practice group of its kind in the industry. Nearly 77% of all EU&M
companies in the Fortune Global 500 are PwC clients.
PwC is one of the largest professional service organization in India with over 4500
professional staff and offices in New Delhi, Calcutta, Mumbai, Chennai, Bangalore,
Bhubaneswar, Hyderabad and Pune. PricewaterhouseCoopers India is one of the largest
providers of consulting and advisory service in India. PwC professionals work collaboratively
using
connected
thinking
to
develop
fresh
perspectives
and
practical
advice.
PricewaterhouseCoopers is committed to working with its clients to deliver the solutions that
help them take on the challenges of the ever-changing business environment.
Page 8 of 124
PwC consulting net worth was more than Rs 92.61 Crores and annual turnover of Rs
728.29 Crores for FY07-08 in the consulting business.
PwC was involved in various states Power Sector Reforms during the first phase of its
reforms and performed the financial restructuring and distribution configuration
models.
PwC has worked in almost all the states in the areas mentioned below Haryana,
Rajasthan, Maharashtra, Uttar Pradesh, Uttaranchal, Himachal Pradesh, Orissa,
Andhra Pradesh, Karnataka, Assam, Madhya Pradesh, West Bengal, Bihar.
PwC has a specialist and dedicated team of more than 100 professionals having more
than 700 man years of experience working in the domain of Power Sector.
Apart from hands-on experience in power sector reforms in all the major states in
India, PwC has undertaken similar assignments in several countries like Bangladesh,
Sri Lanka, Bhutan, Nigeria and Solomon Islands in South Asia and Asia.
Page 9 of 124
PricewaterhouseCoopers India Limited serves multiple industries. The depth of its industry
expertise is highly valued by its clients. PwC invests significant resources in building and
sharing such knowledge. It regularly shares its latest research and views on emerging industry
trends and develops industry-specific performance benchmarks based on global best
practices, methodologies and approaches. In addition, PwC network is available to work
together on accounting and technical issues, unique to a particular industry.
1)
2)
Automotive
3)
4)
Government
5)
Insurance
6)
7)
Page 10 of 124
Policy
Analysis &
Advisory
Standard &
Labeling
Develop minimum energy performance standards & labels for energy consuming products
Market
Prepare energy efficiency market assessment plans and business models for energy efficiency
Assessment/ ventures
Business Plan
Assist & Manage bid process for implementation of energy efficiency projects on Public Private
Project
Management Partnership (PPP) mode
PwC provides a full range of business advisory services to leading global, national companies
and to public institutions. The PwC network channels knowledge and value through seven
lines of service:
1) Consulting
2) Forensic Services
3) GRID
4) IFRS Reporting
5) Internal Audit and Advisory Services
6) Transaction Services
7) Tax and Regulatory Services
The areas of services include performance, operational and functional improvement across
utilities.
PwC
undertakes
comprehensive
institutional
Page 11 of 124
strengthening and
capacity
1) Growth
2) Geopolitical risk
3) Transaction risk
4) Regulatory change
5) Operational excellence
6) Reporting and compliance risk
7) Social responsibility
8) Financial risk
9) Workplace size and diversity
In India, the strength of PricewaterhouseCoopers lies in the fact that it is the largest
professional services firm in India providing a full range of services from consulting to
auditing. It has a strong team of consultants having a rich experience in diverse field.
The aggressive methodology followed for bidding has given a considerable edge to PwC over
its competitors. This has provided PwC with the opportunity to provide consultancy services
to many regulatory commissions and utilities. Though PricewaterhouseCoopers India Limited
is performing exceptionally well in almost all the areas, it needs to seriously address the issue
of efficient utilization of resources. It needs to position the organizations culture to ensure
positive attitudes towards managing the existing resources in a better fashion.
Page 12 of 124
The Government Reforms and Institutional Development (GRID), one of the Strategic
Business Units (SBU) of PwC, has extensive experience in electricity and other basic
infrastructure, and has been closely working with clients in the electricity service providers,
Government, Regulators etc. PwC India has one of the biggest advisory services targeted at
the government sector. The Government Reforms & Institutional Development (GRID)
practice
is
also
one
of
the
fastest
growing
sectors
in
PwC.
Regional/state governments
Local/municipal governments
Quasi-government bodies
The GRID practice is unique to South Asia and specializes in five sectors:
Policy Development
Performance Improvement
Page 13 of 124
Public-Private-Partnerships
Regulatory Reform
Feasibility Studies
I got an opportunity to work in the GRID at PwC, Hyderabad office. The major work carried
out in the GRID Hyderabad include consultancy and advisory related to
1) Renewable sources of energy
2) Mining
3) Roads and other infrastructure.
4) International Reforms.
Leveraging PwC's global network is a significant competitive advantage for clients as it has
centers of excellence in key regions with more than 3,000 specialists serving energy and
utility
Page 14 of 124
1. INTRODUCTION
Energy is a basic requirement for economic development. Every sector of Indian economy
agriculture, industry, transport, commercial, and domestic needs inputs of energy. The
economic development plans implemented since independence have necessarily required
increasing amounts of energy. As a result, consumption of energy in all forms has been
steadily rising all over the country. This growing consumption of energy has also resulted in
the country becoming increasingly dependent on fossil fuels such as coal and oil and gas.
Rising prices of oil and gas and potential shortages in future lead to concerns about the
security of energy supply needed to sustain our economic growth. Increased use of fossil
fuels also causes environmental problems both locally and globally. Against this background,
the country urgently needs to develop a sustainable path of energy development. Promotion
of energy conservation and increased use of renewable energy sources are the twin planks of
a sustainable energy supply.
Indias substantial and sustained economic growth is placing enormous demand on its energy
resources. The demand and supply imbalance in energy sources is pervasive requiring serious
efforts by GoI to augment energy supplies. India imports about 80% of its oil. There is a
threat of these increasing further, creating serious problems for Indias future energy security.
There is also a significant risk of lesser thermal capacity being installed on account of lack of
indigenous coal in the coming years because of both production and logistic constraints, and
increased dependence on imported coal. Significant accretion of gas reserves and production
in recent years is likely to mitigate power needs only to a limited extent. Difficulties of large
hydro are increasing and nuclear power is also beset with problems. The country thus faces
possible severe energy supply constraints.
Economic growth, increasing prosperity and urbanization, rise in per capita consumption,
and spread of energy access are the factors likely to substantially increase the total demand
for electricity. Thus there is an emerging energy supply-demand imbalance. Already, in the
electricity sector, official peak deficits are of the order of 12.7%, which could increase over
the long term.
.
Page 15 of 124
In view of electricity supply shortages, huge quantities of diesel and furnace oil are being
used by all sectors industrial, commercial, institutional or residential. Lack of rural lighting
is leading to large-scale use of kerosene. This usage needs to be reduced, as it is leading to
enormous costs in form of subsidies and increasing the countrys import dependence.
At the same time, a very large proportion of the citizens continue to live with no access to
electricity and other forms of commercial energy. More than 50% of the population has little
or no commercial energy access for their living and livelihood. Others with access often have
to cope with poor and erratic availability of electricity and other fuels. With constraints faced
in resource availability and in delivery mechanisms, traditional means of energy supply are
falling short. This is likely to be the case in the foreseeable future so that energy access will
continue to remain a problem.
Table 1: All India Region wise Installed Capacity (MW) of Power Utilities
Fortunately, India is blessed with A variety of renewable energy sources, the main ones being
biomass, biogas, the sun, wind, and small hydro power. (Large hydro power is also renewable
in nature, but has been utilized all over the world for many decades, and is generally not
included in the term new and renewable sources of energy.) Municipal and industrial wastes
can also be useful sources of energy, but are basically different forms of biomass.
Page 16 of 124
Electricity demand has continuously outstripped production, and a peak energy shortage of
around 12.7% prevailed in 2009-104. To meet this shortfall as well as the National Electricity
Policy target of Electricity for All by 20125, the cleanest options available to India are
Renewable Energy Technologies (RETs). For the government to seriously consider meeting
its promise of electricity for all by 20126, renewable energy options including wind power
will have to play a crucial role in Indias emerging energy mix. Not only are they
environmentally sound but also their project gestation periods are significantly shorter than
those for thermal or nuclear power plants.
According to the Ministry of New and Renewable Energy (MNRE), today the share of
renewable based capacity is 10.9% (excluding large hydro) of the total installed capacity of
170 GW in the country, up from 2% at the start of the 10th Plan Period (2002 2007). This
includes 13,065.78 MW of wind, 2,939 MW of small hydro power, 1,562 MW of (biogas
based) cogeneration, 997 MW of biomass, 73.46 MW of waste to power and 17.80 MW of
solar PV for grid connected renewable at the end of 20107. The originally stated cumulative
target for the current plan period was to add 92 GW8 of new capacity of which about 14 GW
was to come from renewable sources. Given the right mix of regulatory and institutional
support, renewable sources could meet the proposed capacity addition of 14 GW from
renewable energy before the end of the 11th five year plan-period (2007-2012). This would
Page 17 of 124
bring the total share of renewable energy sources upto 15% of the new installed capacity in
the 11th plan-period.
Over the next decade, India will have to invest in options that not only provide energy
security but also provide cost effective tools for eradicating energy poverty across the board.
India is a signatory to the United Nations Framework Convention on Climate Change
(UNFCCC) and has as part of its obligations released a National Action Plan on Climate
Over the next couple of decades renewable energy will play amajor role in delivering that
shift.
large-scale ones
4. Environment-friendly
5. Well suited for decentralized applications and use in remote areas.
The Ministry of Non-Conventional Energy Sources has been implementing comprehensive
programmes for the development and utilization of various renewable energy sources in the
country. As a result of efforts made during the past quarter century, a number of technologies
and devices have been developed and have become commercially available. These include
biogas plants, improved wood stoves, solar water heaters, solar cookers, solar lanterns, street
lights, pumps, wind electric generators, water-pumping wind mills, biomass gasifiers, and
small hydro-electric generators. Energy technologies fo the future such as hydrogen, fuel
cells, and bio-fuels are being actively developed. India is implementing one of the worlds
largest programmes in renewable energy. The country ranks second in the world in biogas
utilization and fifth in wind power and photovoltaic production. Renewable sources already
contribute to about 5% of the total power generating capacity in the country. The major
renewable energy sources and devices in use in India are listed along with their potential and
present status in terms of the number of installations or total capacity.
Page 18 of 124
RES
11%
Hydro
21%
Thermal
65%
Page 19 of 124
th
Access to Electricity available for all households in the next five years.
Supply of reliable and quality power of specified standards in an efficient manner and
at reasonable rates.
Page 20 of 124
Section 4
Section 4 states that the Central Government shall, after consultation with the state
governments, prepare and notify a national policy, permitting stand-alone systems (including
those based on renewable sources of energy and other non-conventional sources of energy)
for rural areas.
Section 61
Section 61, 61(h) and 61(i) state that the appropriate commission shall, subject to the
provision of this Act, specify the terms and conditions for the determination of tariff, and in
doing so, shall be guided by the following, namely, the promotion of cogeneration and
generation of electricity from renewable sources of energy; and the National Electricity
Policy and Tariff Policy.
Section 86(1)
Section 86(1) and 86(1)(e) state that the state commissions shall discharge the following
functions, namely, promote cogeneration and generation of electricity from renewable
sources of energy by providing, suitable measures for connectivity with the grid and sale of
electricity to any person, and also specify, for purchase of electricity from such sources, a
percentage of the total consumption of electricity in the area of a distribution license.
Page 21 of 124
The development of wind power in India began in the 1990s, and has progressed steadily in
the last few years. The short gestation periods for installing wind turbines, and the increasing
reliability and performance of wind energy machines have made wind power a favoured
choice for capacity addition in India. Currently, India has the fifth largest installed wind
power capacity in the world. Wind power accounts for 6% of India's total installed power
capacity, and it generates 1.6% of the country's power . It is estimated that 6,000 MW of
additional wind power capacity will be installed in India between 2010 and 2012, taking the
total installed capacity beyond 15,000 MW
Page 22 of 124
global radiation varies from 1600 to 2200 kWh/m , which is comparable with radiation
received in the tropical and sub-tropical regions. The equivalent energy potential is about
6,000 million GWh of energy per year. Figure 1 shows map of India with solar radiation
levels in different parts of the country. It can be observed that although the highest annual
global radiation is received in Rajasthan, northern Gujarat and parts of Ladakh region, the
parts of Andhra Pradesh, Maharashtra, Madhya Pradesh also receive fairly large amount of
radiation as compared to many parts of the world especially Japan, Europe and the US where
development and deployment of solar technologies is maximum.
Page 23 of 124
MARKET POTENTIAL
GOVERNMENT POLICIES
& INCENTIVES
Page 24 of 124
SUPPLY CHAIN
250000
194390
200000
157899
150000
100000
50000
44700
40181
27214
20676
26546
14335
5797
5660
5204
4009
3752
2009
2011 ( Mar)
Figure 6: Global Wind Technology Installed Capacity as on 31st March (in MW)
2010
17300
5100
40 000
MW
2009
9900
3400
2600 12001600
3100
23000
2008
Mw
6100
2007
3300
4200
2006
2900
700
200
2100 5001200
1900
1700
100800
50600
2190
1580
16000
MW
9500
1430
MW
0%
20%
Germany
Czech Rep.
Spain
France
40%
60%
Japan
China
80%
Italy
ROW
100%
U.S
7000
MW
Page 25 of 124
Other
17%
Sinovel
11%
United Power
4%
Dongfang
7%
Suzlon
7%
Gold wind
9%
Vestas
14%
GE Wind
9%
Re Power
3%
Enercon
7%
Gamesa
6%
Siemens
6%
Page 26 of 124
40000
38068
5424
35000
30000
8767.8
25000
3333.2
20000
14435
15000
10242
10000
8757
7093
11807
1524.8
1730
1088.3
1472.8
1938.8
2310.8
1011.4
1487.65
1353
1327.4
1755.8
1666.6
3492.75
3873.42
4304.52
4906.72
5904.4
2006-07
2007-08
2008-09
2009-10
CURRENT
5000
9801
2273.2
2175.5
1863.7
8469.5
0
Untapped Potential
-5000
TamilNadu
Gujarat
Maharashtra
Karnataka
Rajasthan
Andhra Pradesh
Page 27 of 124
Others
Southern Wind
Farm
1%
Letiner ShriRam
1%
Pioneer wincon
2%
Global Wind
Regen
Others
1%
3%
4%
Gamesa
1%
Enercon
22%
Vestas
8%
RRB
8%
Suzlon
49%
Page 28 of 124
The National Solar Mission is a major initiative of the Government of India and State
Governments to promote ecologically sustainable growth while addressing Indias energy
security challenge. It will also constitute a major contribution by India to the global effort to
meet the challenges of climate change.
The National Action Plan on Climate Change also points out: India is a tropical country,
where sunshine is available for longer hours per day and in great intensity. Solar energy,
therefore, has great potential as future energy source. It also has the advantage of permitting
the decentralized distribution of energy, thereby empowering people at the grassroots level.
Page 29 of 124
Based on this vision a National Solar Mission is being launched under the brand name Solar
India.
The objective of the National Solar Mission is to establish India as a global leader in solar
energy, by creating the policy conditions for its diffusion across the country as quickly as
possible.
Target
Cum.Target
Cum.Target
(Phase-1)
(Phase-2)
(Phase-3)
1000+100
4000 MW
20000 MW
(inc.Roof Top)
(MW)
200 MW
1000 MW
2000 MW
7 million sq k.m
15 million sq k.m
20 million sq.km
Off-Grid
Solar
Applications
(inc.Solar lights)
Solar Collectors
th
MNRE 11 Plan and first year of the 12 Plan (up to 2012-13) as Phase 1, the remaining 4
th
th
years of the 12 Plan (2013-17) as Phase 2 and the 13 Plan (2017-22) as Phase 3. At the end
th
th
of each plan, and mid-term during the 12 and 13 Plans, there will be an evaluation of
progress, review of capacity and targets for subsequent phases, based on emerging cost and
technology trends, both domestic and global. The aim would be to protect Government from
subsidy exposure in case expected cost reduction does not materialize or is more rapid than
expected. The immediate aim of the Mission is to focus on setting up an enabling
environment for solar technology penetration in the country both at a centralized and
decentralized level. The first phase (up to 2013) will focus on capturing of the low-hanging
options in solar thermal; on promoting off-grid systems to serve populations without access
to commercial energy and modest capacity addition in grid-based systems. In the second
phase, after taking into account the experience of the initial years, capacity will be
Page 30 of 124
aggressively ramped up to create conditions for up scaled and competitive solar energy
penetration in the country.
To promote programmes for off grid applications, reaching 1000 MW by 2017 and
2000 MW by 2022 .
To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million
by 2022.
Page 31 of 124
Total Installed Capacity as on june 2011 was 116 MW & the contribution of off Grid & on
Grid was 69 & 47 MW respectively.
Off Grid
69
59%
Indo
solar
8%
Others
31%
TBP
8%
Moserbaser
10%
Birla Surya
1%
BHEL
1%
Waaree
Solar
2%
Vikram
solar
3%
emvee solar
8%
Titan Energy
7%
Photon
2%
PLG Solar
3%
HHV Solar
3%
Page 32 of 124
Solar Semiconductor
13%
Page 33 of 124
Some of the fiscal and financial incentives are as follows:1. Concession on import duty on specified wind turbine parts
2. 80% accelerated depreciation over one or two years
3. 10 year income tax holiday for wind power generation projects
4. Excise duty relief on certain components
5. Some states have also announced special tariffs, ranging from Rs. 3-4 per
kWh, with a national average of around Rs 3.50 per kWh
6. Wheeling, banking and third party sales, buy-back facility by states
7. Guarantee market through a specified renewable portfolio standard in
some states, as decided by the state electricity regulator by way of
power purchase agreements
8. Reduced wheeling charges as compared to conventional energy
Page 34 of 124
Land policies
The Ministry of Environment and Forests has issued guidelines for diversion
of forest lands for non-forest purposes, particularly to enable wind generation
Clearance of leasing and forest land for up to a period of 30 years for wind
developers.
State Policies
A number of State Governments have implemented quotas for a renewable energy share
of upto 10% and have introduced preferential tariffs for electricity produced from
renewable sources. In addition, several States have implemented fiscal and financial
incentives for renewable energy generation; including energy buy back (i.e. a guarantee
from an electricity company that they will buy the renewable power produced),
preferential grid connection and transportation charges and electricity tax exemptions.
Some States with Renewable Portfolio Standards (RPS) or other policies to promote
wind generation, have introduced feed-in-tariffs for wind generation which are higher
than that for conventional electricity.
Financial assistance
The Indian Renewable Energy Development agency (IREDA), the premier finance
agency of the Government of India provides soft loans for renewable energy projects,
particularly for demonstration and private sector projects.
Page 35 of 124
The Government of India has set up the Centre for Wind Energy technology
(C-Wet) to map wind energy potentials
The C-WET has set up more than 1,000 wind monitoring and wind mapping
centers across 25 states
In June 2008, the GOI announced a national generation-based incentive scheme for grid
connected wind power projects under 49 MW, providing an incentive of 0.5 Rupees per
kWh (0.7 euro cents) in addition to the existing state incentives. Investors which,
because of their small size or lack of tax liability cannot draw any benefit from
accelerated depreciation under the Income tax can opt for this alternative incentive
instead.
Renewable Energy Certificate
A Renewable Energy Certificate (REC) is a tradable certificate of proof that one MWh
of electricity has been generated by a RE plant in the state. Under this framework, RE
generators can trade RECs through a power exchange platform that will allow market
based price discovery, within a price range determined by the CERC. The respective
price limits are called forbearance price and floor price and their values are calculated
separately for solar and all non-solar energy sources (wind, biomass, small hydro).
While the CERC has stipulated33 floor and forbearance price for non-solar RECs and
for solar RECs, respectively, the real price of an REC would be determined at the power
exchanges. RECs will be traded in the power exchange within the boundary set by the
forbearance price and floor price, determined by the CERC from time to time. For wind
power generation, this range is Rs 1,500 to Rs 3,900 per REC.
Page 36 of 124
Other Policies
Page 37 of 124
Page 38 of 124
Page 39 of 124
led to 80% indigenisation level. Import content is high in higher capacity machines, since
vendor development of higher capacity machines will take some time. The industry has taken
up indigenised production of blades and other critical components. Efforts are also being
made to indigenise gearboxes and controllers. Wind turbines and wind turbine components
are exported to the US, Australia, and Asian countries. The wind industry in the country is
expected to become a net foreign exchange earner by 2012.
Working principle of wind turbine:
The blades of modern wind turbines are similar to airplane wings. The wind passes over both
surfaces of the air foil shaped blade. It passes more rapidly over the longer (upper) side of the
air foil creating a lower pressure area above the air foil. The pressure difference is created
between top and bottom which results in a force, called aerodynamic lift. In addition to lift
force, a drag force perpendicular to lift force impedes the rotor rotation. The prime
objective of wind turbine design is to increase lift to drag ratio.
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are mounted on the tower, for better reach to un-obstructed wind. The power captured by the
turbine blades is transferred to the generator through the drive train. Since in most of the
WEGs, the rotor (rotating parts including the blades, hub, etc) moves at a fixed (and slow)
rpm (revolution per minute), a gearbox is included in the drive train, which increases the
speed at the generator end of the shaft. There are however a few design options where the
rotor speed is either variable or the generator is direct drive. The latter makes use of gearbox
redundant. A mechanical brake disc is mounted on the shaft to work as back-up for aerodynamic braking system attached to the blades a yaw mechanism (multi-motor drive using 2
to 6 number of small motors) turns the nacelle and the rotor assembly to face the wind as it
changes its direction. This change is sensed by a wind vane which is mounted on the top of
the nacelle along with an anemometer also mounted on the top to monitor wind speed. The
WEGs are designed for un-attended operation with minimum maintenance and provided with
comprehensive control system housed in the control panel placed at/close to the base of the
tower. The systems workings are based on continuous monitoring of various parameters and
working conditions and also include protection against internal machines faults. The
commercial models of WEGs usually deliver rated power at around 12 to 14 m/s (called the
rated wind speed) since it does not pay to design for very strong wind, which is a rare event.
The power control features incorporated in the machines manoeuvre to extract optimum
output from the wind within its entire speed range up to 25 m/s, beyond which all operations
are stopped to avoid structural overload under severe weather. This is the cut-out wind speed
and measured as the 10-minute average for IEC Wind Class-I and II WEGs. For IEC Wind
Class-III WEGs, the cut-out value is in the range of 17-20 m/s.
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Generator
Two basic types of generators are used for the WEGs. These are: synchronous and
asynchronous. The latter is more commonly known as induction generator, and mostly used
because of robustness of construction (using squirrel cage rotating part) and cost economy.
In both these options, there is a cylindrical shaped stator (so called because it doesnt
rotates) inside which a rotor is placed. The stator is essentially the same for both types of
machines. The windings embedded in the stator are connected to three-phase supply. As
alternating current (a.c.) passes through the winding, magnetic fields are induced with
changes in magnitude. By symmetrical arrangement of the windings around the stator, this
changing magnetic field gives the effect of a rotating field as if produced de to the physical
presence of 2, 4 or even more number of magnetic poles depending upon the generator speed.
Thus, change in number of poles provides a means to vary the rpm of the machine. For
example, the machine with 4-pole connected to three-phase supply at 50 Hz. Frequency
rotates at 1500 rpm and that of 6-pole at 1000 rpm. Frequency change (instead of keeping it
fixed at 50 Hz) is another method of changing machine rpm.
In synchronous machine, the magnetic field on the rotor could be created in two ways: (a) By
using magnet(s), in which case it is a permanent magnet machine; or, more commonly
(b) By feeding the windings would on the rotor with direct current (d.c) to produce an
electromagnet in what is called the wound-rotor machine.
In synchronous machine, the rotor magnetic field tries to align itself to the rotating magnetic
field created by the stator making it (the rotor) to rotate at the same speed of the rotating
field, so called the synchronous machine. The wound rotor type synchronous machine has
the advantage of controlling the generator voltage or the power factor by adjusting the rotor
magnetic field by externally changing the current fed through the slip rings. If the machine is
operating as a generator, and more torque is applied to the shat (say, by coupling with wind
turbine), the rotor will advance slightly relative to the rotating magnetic field (with leading
power factor), but in steady-state operation the speed is firmly held by the supply frequency.
The important point of induction machine is that it acts as a motor (i.e. converts electrical
power to mechanical power) when the rotor speed is slightly less than the rotating field. It
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works as a generator, if the rotor speed is slightly above the synchronous speed. The power
transmitted is directly proportional to this speed difference, hence it is also called
asynchronous machine. This difference in speed is the slip, which at full power output is
around 1%. Squirrel-cage induction generators are more commonly used in WEGs. These
however draw reactive power from the supply grid, which is not desirable especially in weak
network. The reactive power consumption is compensated by providing capacitor banks.
Drive Mechanism
Different options for fixed speed and variable speed operations are briefly mentioned below:
(a) Fixed Speed Drive
It uses squirrel-cage induction generator, in either single-speed or dual-speed version,
connected to the supply grid via a gearbox. This arrangement is commonly referred to as a
fixed speed drive though the speed is not exactly constant but changes marginally due to
change in generator slip with power generation.
The advantage of fixed speed drive lies in its relatively simple construction, but has to be
quite robust to withstand the fluctuating wind load since variation of wind speed directly
transferred into the drive train leading to structural stress. Depending on the strength of the
grid, the resultant power fluctuation may cause undesired flicker.
(b) Semi-variable Speed Drive
So called since the speed range is marginally variable in 1.1 to 1 ratio. Here, thevariable slip
concept is advantageously used by introducing a resistance in series with the rotor resistance
of the induction generator by using fast-acting power electronics. This concept has been
successfully commercialized by Vestas under their opt slip trade name. A number of WEGs
ranging from 600 kW to 2.75 MW have been equipped with this system. This is a cost
effective option though the operation is limited to a narrow variable speed.
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Power Control
Power from wind is influenced by three factors. These are:
1) Air density (which varies with altitude and temperature). The change in kinetic energy of
wind is proportional to air density. Power output of WEG is usually referred to at 1225 g/m3,
which is the air density under the standard temperature and at the altitude of the mean sea
level (m.s.l).
2) Rotor Area i.e. the area intercepted by rotating blades. Power received from wind
depends upon this swept area. Since the rotor area increases with the square of the rotor
diameter (declared in the manufacturers catalogue), a WEG with twice as large rotor
diameter will theoretically receive four times energy.
3) Wind speed the power in wind varies with the cube of the wind speed. If the wind speed
is twice as high it contains eight times more power. The output characteristic of a WEG is
established through type test carried out with reference to the wind speed and is declared by
the manufacturer as the power curve for use in estimating generation under site specific wind
conditions. WEG is designed to extract optimum power covering its entire speed range but at
the same time not to exceed the rated output and other limiting parameters. The operating
efficiency of the rotor depends on the tip speed ratio, which is the ratio of the rotor blade
speed and this could reach optimum value at one wind speed, (or at two speeds for two-speed
WEG). For variable speed, on the other hand, the change in tip speed ratio depends on both
wind speed and rotor speed. For maximum rotor efficiency, the rotor speed is controlled to
maintain the tip speed ratio normally at 6 to 8. Because of this flexibility, a variable speed
drive option could generate more energy for the same wind speed regime.
Several control techniques have been developed which are based on two distinct approaches.
These are:
(a) Stall Control
(b) Pitch control
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In stall control, the rotor blades are fixed at an angle. The blade profile is shaped such that at
high wind speed turbulence is created to cause a collapse in aerodynamic efficiency to limit
the power output. This behaviour is intrinsic to the blade design without separate control
system to maintain output from the turbine blades constantly close to the rated value beyond
the rated wind speed. In stall-regulated configuration there are chances of overshooting the
power output since the system depends on atmospheric condition. Generators used for WEGs
are mostly designed for class F insulation but operation is restricted to class b to allow higher
margin on temperature rise. For optimum efficiency, the setting of the blades may be adjusted
twice in a year but this is a labour incentive exercise, which is generally avoided. The stall
system may have a provision to open-up the tip of the blade to act as a fail-safe braking as
supplementary to the mechanical brake. However, because of the metal components, the tip
brake also carries more risks to lighting strike.
The basic advantage of stall control is that it requires a few moving parts and easy dominated
the market in sub-MW range. Setting isolated examples, 1.3 MW Nordex and 1.5 MW NEGMicon models have been developed on this control concept.
In pitch control the blades are gradually turned out of the wind so that the angle of attack
changes and the aerodynamic efficiency is reduced depending upon the wind speed. The pitch
mechanism is usually activated by hydraulic-power or electric motor drive. It however reacts
with a certain time log and builds-up considerable peak load when guest wind hits the blade.
Optislip control, patented by Vestas, is provided with an electronic circuitry where the
generator slip may be temporarily increased to fast speed up the rotor (up to 10% of its
nominal rpm) for operating at higher efficiency and advantageously store energy developed
under gusty condition to release the same on normalcy.
A relatively recent innovation is active stall (or semi-pitch) concept where, instead of only
the tip portion, the full blade can be turned along its longitudinal axis. On reaching the rated
output, the blade changes its alignment to result in which is called deeper stall effect
whereby excess energy in the wind is wasted to keep the output constant for all wind speeds
between the rated and cut-out wind speed. An advantage of this arrangement is better start up
characteristics. In some system, the blades are programmed to pitch at a fixed steps
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depending upon the wind. (Combi-stall system developed by Bonus is also a type of active
stall control).
A current trend is for active pitch which is in fact the pitch control provided separately for
individual blade, and is getting increased acceptance for WEGs in MW range, specially used
for off-shore application. In general fixed speed WEGs use stall for technical reasons, while
variable speed turbines are usually provided with pitch control
Anemometer
Anemometers are used to measure the speed and the direction of the wind.
Blades
Most turbines have either two or three blades. Wind blowing over the blades causes the
blades to "lift" and rotate. The rotor blades capture the wind and transfer its power to the
rotor hub. On a modern 1000 kW wind turbine each rotor blade measures about 27 metres (80
ft.) in length and is designed much like a wing of an aero plane.
Brake
A disc brake, which can be applied mechanically, electrically, or hydraulically to stop the
rotor in emergencies
Gear box
Gears connect the low-speed shaft to the high-speed shaft and increase the rotational speeds
from about 30 to 60 rotations per minute (rpm) to about 1200 to 1500 rpm, the rotational
speed required by most generators to produce electricity.
Generator
Usually an off-the-shelf induction generator that produces 60-cycle AC electricity.
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Nacelle
The rotor attaches to the nacelle, which sits at top of the tower and includes the gear box,
low- and high-speed shafts, generator, controller, and brake.
components inside the nacelle. Some nacelles are large enough for a technician to stand
inside while working.
Tower
Towers are made from tubular steel or steel lattice. Because wind speed increases with
height, taller towers enable turbines to capture more energy and generate more electricity.
Reinforced concrete towers and pole towers are also used
Power in the wind turbines
= 1/2 X air density X swept rotor area X (wind speed) 3
( *
A * V3)
Density = P/(R x T)
Area = r2
P - Pressure (Pa)
R - Specific gas constant (287 J/kgK)
T - Air temperature (K)
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Designed for large unit rating (2 MW 3 MW) & for Grid connection.
Cost is higher than Mono blade and lower than Three Bladed turbine.
Three-bladed rotors
Operational reliability.
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Floating on Air
Once the wind is captured, it then must be efficiently converted into power. Conventional
wind mills continue to rely on obsolete mechanical components such as roller bearings,
transmissions and generators which absorb much of the potential power because of friction.
These high maintenance systems are expensive and highly sensitive to extreme temperature
fluctuation.
MAGLEV systems are also used in sophisticated ship elevators, amusement park rides such
as the people mover in Disney World, aircraft carrier catapults and a variety of other
conveyance applications. The MAGLEV platform is highly versatile.
Chinese Ingenuity
Magnetic bearings have already been introduced into conventional wind mills in China. THE
SHANGHAI DAILY reports a Technological Breakthrough in friction management with the
next generation of wind mills. Replacing roller bearings with magnetic bearings, the Chinese
claim to have increased the efficiency of their wind mills by 20%.
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over 10 years the electricity produced by the MW-1100 turbine is 3.5 cents per kWh. In terms
of financial payback, if your current electrical bill is $300 per month or more, the MW-1100
wind turbine will pay for itself in 3 years or less.
Technology Trend
WTG Make
Rating
Drive
Speed
Generator
(kw)
Enercon
800
Gearless
Variable
Sync.
GW Wind
1500
Geared
Variable
DFIG
Suzlon
1250
Geared
Dual
Async.
1500
Geared
Variable
Async.
2100
Geared
Variable
Async.
1650
Geared
Variable
Async.
1800
Geared
Variable
Async.
RRB
1800
Geared
Variable
Async.
Regen Powertech
1500
Gearless
Variable
Sync.
Kenersys
2000
Geared
Variable
Sync.
Siemens
2300
Geared
Variable
Async.
Gamesa
800
Geared
Variable
DFIG
2000
Geared
Variable
DFIG
Vestas
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Rotor
Subcomponents
Sub-Component
Component Cost
Cost (%)
(%)
Blade
16.6
28
Hub
7.2
Pitch
mechanism
&
Bearing
Nacelle
Gearbox
13.4
3.6
46
block
Brake
0.6
Generator
6.7
Power electronics
6.9
1.8
Others
10
Tower
20.6
21
Foundation
100
100
Total
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Wind
Tower
Blade
Gearbox
Generator
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Shaft
Bearing
Pitch
System
Brake
Others
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Geotechnical services
Logistics support
Construction Services
Wind farm developers are responsible for developing the wind project from concept to
commissioning, and they undertake all the planning, design and project development work in
this regard. Some developers perform services beyond the commissioning stage as well, such
as operations and maintenance support. As part of their role, wind power project developers
also take up the role of establishing access to capital for investment. In addition, they also
assist in the construction of roads and related infrastructure that can accommodate the
transport of heavy industrial equipment and components. Owners of wind farms (many times
distinct from wind farm developers) could be private companies that have an interest in
power generation, or power production utility companies. Depending on the nature of
contract, the wind project developer sometimes has a managing interest in the project when it
is complete, but in most cases the real ownership lies with the wind farm owner. Wind power
feasibility studies and project development for commercial-scale wind farms is a
multifaceted, lengthy process, often requiring collaborative efforts among several companies.
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Site selection,
Construction contracting,
Project financing
Geotechnical services
Deals with the geological analysis and examines the suitability of a certain location for the
proposed wind farm infrastructure. These services mainly include the analysis of the stability
of the subsoil and foundation advice. While geotechnical services are a part of project
development, owing to the specific importance that these services carry i the context of wind
farms, this has been mentioned as a separate section.
Geotechnical and geo hazards aspects of site selection, master planning and
environmental impact assessment and management.
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Geo hazard assessment and mitigation unstable slopes, surface and groundwater,
seismic hazards.
Site reinstatement and restoration, including erosion control and planting regimes.
Subsea cabling
Currently, offshore wind is in its infancy in India and is more relevant to countries in
north Europe and to a certain extent, for the United States. It is however expected that
the offshore wind industry could start gaining momentum during the next few years,
so entrepreneurs will do well to watch that space
Logistics
Transporting wind turbines presents unique challenges and opportunities. Transporting these
machines involves handling components that have an unusual weight, length and shape; thus
companies that serve the industry must have equipment to transport very large and heavy
cargo. The nacelles, blades, and turbine towers must be transported from the manufacturing
facility to the wind farm location. The wind turbine industry needs to rely on collaborative
transportation management processes, whereby manufacturers, logistics companies,
transportation companies, and shipping ports share information and integrate their functions
to achieve an effective delivery process .Modes of transportation for the wind industry
include trucking, shipping and rail freight. There are considerable opportunities for
transportation providers in all sectors . A single wind turbine can require up to eight hauls,
and for a large project of 150 MW, transportation requirements could be as much as 689
truckloads, 140 railcars, and eight ships As the wind power industry continues to grow,
demand increases for companies that are capable of transporting heavy and large loads. This
could lead to the emergence of a specialized sector in the transportation industry.
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Companies involved in large scale wind project construction generally offer turnkey
arrangements, according to criteria specified in
Legal service
Legal Services providers play a role in development, financing, and acquisition of wind
Power projects.
Insurance Services
Companies specializing in underwriting, loss adjusting and risk engineering wind Power
projects provide insurance services. These include:
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Underwriting/ Marketing
Risk Assessments
Claims Consulting
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11.1 PHOTOVOLTAICS
Photovoltaics (PV) or solar cells as they are often referred to,
are semiconductor devices that convert sunlight into direct
current (DC) electricity. Groups of PV cells are electrically
configured into modules and arrays, which can be used to
charge batteries, operate motors, and to power any number of
electrical loads. With the appropriate power conversion equipment, PV systems can produce
alternating current (AC) compatible with any conventional appliances, and operate in parallel
with and interconnected to the utility grid.
HOW PV CELLS WORK
A typical silicon PV cell is composed of a thin
wafer
consisting
of
an
ultra-thin
layer
of
Commercial PV cell with a surface area of 160 cm^2 (~25 in^2) will produce about 2 watts
peak power. If the sunlight intensity were 40 percent of peak, this cell would produce about
0.8 watts.
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sealed
in
an
environmentally
The performance of PV modules and arrays are generally rated according to their maximum
DC power output (watts) under Standard Test Conditions (STC). Standard Test Conditions
are defined by a module (cell) operating temperature of 25oC (77 F), and incident solar
irradiance level of 1000 W/m2 and under Air Mass 1.5 spectral distribution. Since these
conditions are not always typical of how PV modules and Arrays operate in the field; actual
performance is usually 85 to 90 percent of the STC rating.Todays photovoltaic modules are
extremely safe and reliable products, with minimal failure rates and projected service
lifetimes of 20 to 30 years. Most major manufacturers offer warranties of twenty or more
years for maintaining a high percentage of initial rated power output.
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Most solar cells are made of a single crystal or multi-crystalline silicon material. Silicon
ingots are made by the process of crystal growth, or by casting in specially designed furnaces.
The ingots are then sliced into thin wafers. Single crystal wafers are usually of 125 125
mm or larger sizes with pseudo-square shape; multi-crystalline wafers are typically
square-shaped with a dimension of 100 100 mm or larger. Using high temperature diffusion
furnaces, impurities like boron or phosphorous are introduced into the silicon wafers to form
a pn junction. The silicon wafers are thus converted into solar cells. When exposed to
sunlight, a current is generated in each cell. Contacts are attached to the top and bottom of
each solar cell to enable inter-connections and drawing of the current.
Mono-crystalline silicon:
Mono-crystalline Silicon has a single and continuous crystal lattice structure with
practically zero defects or impurities.One of the many reasons Mono-crystalline
Silicon is superior to other types of silicon cells are their high efficiencies - which are
typically around 15%.Because the manufacturing process required producing Monocrystalline Silicon is more involved and detailed than other types, this results in
slightly higher costs for Mono-crystalline Silicon than other silicon technologies.
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Multi-crystalline silicon:
Polycrystalline silicon (or semi-crystalline silicon, poly-silicon, poly-Si, or simply
"poly") is a material consisting of multiple small silicon crystals. Polycrystalline
silicon is composed of many smaller silicon grains of varied crystallographic
orientation. This material can be synthesized easily by allowing liquid silicon to cool
using a seed crystal of the desired crystal structure. Additionally, other methods for
crystallizing amorphous silicon to form poly-silicon exist such as high temperature
chemical vapor deposition (CVD).
Single crystals are grown using the
Czochralski process,
float-zone and
Bridgman techniques.
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MG-Si: The first step in poly-silicon production is the extraction of quartz from a silica
mine. The quartz is then mixed with a carbon source (a mixture of coal with coke,
woodchips or charcoal) and heated in a furnace to reduce silicon (Carbothermic
Reduction). This produces liquid silicon, carbon dioxide and silica fumes (used in other
industrial applications). Liquid silicon is further refined, allowed to solidify and then
crushed. The resulting silicon material is referred to as metallurgical silicon (MG-Si)
and is 9699%pure.
CVD Deposition: The resulting gas is then deposited onto heated silicon rods under
high temperature (1100 C) and under higher pressure in a Siemens Reactor in a process
called Chemical Vapour Deposition (CVD).
STC-TCS Conversion: A second reactor converts the exhaust gas (STC; silicon
tetrachloride) created in the CVD process to TCS and subsequently re-uses it for polysilicon production. This conversion and re-use of gases in the production process
significantly reduces the production cost of silicon. The final product is a rod of polysilicon that is broken up into smaller pieces (chunk poly-silicon).
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Float Zone
Directional Solidification/Casting
Bridgman techniques
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Production Cost
Electricity
26%
Depriciatio
-ns
45%
Material
17%
Labor
Cost
2%
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Others
18%
Hemlock
20%
OCL
12%
JSSI
1%
Mitusubhisi
3% Tokuyama
MEMC
6%
9%
Wecker
18%
Rec
13%
Wafer production
Poly-silicon is the starting material for the production of silicon wafers. Siltronic
sources the majority of its poly-silicon requirements from its parent company, Wacker.
Other suppliers include Tokoyama (Japan) and Hemlock, a joint venture between Dow
Corning, Shin-Etsu and Mitsubishi.
The most commonly used method for crystal growth is the Czochralski method (CZ).
The poly-silicon is heated to a liquid state and a small seed crystal for silicon is
positioned at the surface of the molten silicon. . During this process, a thin film of pure
and crystalline silicon adheres to the seed crystal. This process is repeated until the
desired size of the crystal ingot is achieved. An alternative method to the CZ technique
is the float zone method.
Two methods are used to cut the ingot into wafers. A rotating diamond with an inner
peripheral blade is often used for wafer diameters up to 150mm. For larger wafer
diameters, a special multi-wire saw method has been developed.
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The wafer is ground with a diamond tool to attain the required diameter and circular
outer shape. In order to increase the parallelism and reduce surface roughness
incorporated by the sawing process, both surfaces are lapped by spinning the wafer
between two rotating lapping plates and alumina abrasives.
by
chemical etching. The wafers are rotated in acid solution. The subsequent chemical
mechanical polishing step (CMP) improves parallelism and results in a mirror-like
surface. During this process, the wafer surface is pressed against a rotating plate
covered with a polishing cloth.
The wafers are cleaned by using ultra-pure water and chemicals. Depending on the
required surface quality, the wafers might be annealed in an H2 or an Ar ambient and an
epitaxial clean silicon layer might be deposited or an oxygen layer incorporated. The total
cycle time amounts to between five and seven days. The clean room requirements get
more stringent with every production step. In the packaging area, the typical conditions are
a clean room of class 10, corresponding to a maximum of 10 sizeable particles per square
feet.
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Manufacturing Process
Doping
Doping
The traditional way of doping (adding impurities to) silicon wafers with boron and
phosphorous is to introduce a small amount of boron during the Czochralski process in step
#3 above. The wafers are then sealed back to back and placed in a furnace to be heated to
slightly below the melting point of silicon (2,570 degrees Fahrenheit or 1,410 degrees
Celsius) in the presence of phosphorous gas. The phosphorous atoms "burrow" into the
silicon, which is more porous because it is close to becoming a liquid. The temperature and
time given to the process is carefully controlled to ensure a uniform junction of proper depth.
A more recent way of doping silicon with phosphorous is to use a small particle accelerator to
shoot phosphorous ions into the ingot. By controlling the speed of the ions, it is possible to
control their penetrating depth. This new process, however, has generally not been accepted
by commercial manufacturing.
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Electrical contacts connect each solar cell to another and to the receiver of produced
current. The contacts must be very thin (at least in the front) so as not to block
sunlight to the cell. Metals such as palladium/silver, nickel, or copper are vacuumevaporated
This illustration shows the makeup of a typical solar cell. The cells are encapsulated
in ethylene vinyl acetate and placed in a metal frame that has a mylar backsheet and
glass cover. through a photoresist, silkscreened, or merely deposited on the exposed
portion of cells that have been partially covered with wax. All three methods involve
a system in which the part of the cell on which a contact is not desired is protected,
while the rest of the cell is exposed to the metal.
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After the contacts are in place, thin strips ("fingers") are placed between cells. The
most commonly used strips are tin-coated copper.
The anti-reflective coating
Because pure silicon is shiny, it can reflect up to 35 percent of the sunlight. To reduce
the amount of sunlight lost, an anti-reflective coating is put on the silicon wafer. The
most commonly used coatings are titanium dioxide and silicon oxide, though others
are used. The material used for coating is either heated until its molecules boil off and
travel to the silicon and condense, or the material undergoes sputtering. In this
process, a high voltage knocks molecules off the material and deposits them onto the
silicon at the opposite electrode. Yet another method is to allow the silicon itself to
react with oxygen- or nitrogen-containing gases to form silicon dioxide or silicon
nitride. Commercial solar cell manufacturers use silicon nitride.
Encapsulating the cell
The finished solar cells are then encapsulated; that is, sealed into silicon rubber or
ethylene vinyl acetate. The encapsulated solar cells are then placed into an aluminum
frame that has a mylar or tedlar backsheet and a glass or plastic cover.
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Depriciation
37%
Electricity
3%
Material
52%
Labor Cost
3%
LDK
Solar
10%
REC ASA
8%
Solar World
5%
Others
48%
ReneSola
4%
Glory Silicon
6%
GCL
9%
Trina
3%
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Yingli Silicon
4%
TLX Corp
3%
*Material Cost
Excludes
Wafer
Depreciation
37%
Other
5%
Material
52%
Domestic Key Players Indo Solar, Moserbaer, Titan ,Photon ,Solar Semiconductor etc
Global Key Players Q Cells ,Suntech ,YGE ,JASO ,Motech,Gintech, TSL
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Technology
Lab
Current
Projected
Test
C-Si
25.5
16-18
22
Thin-Film
13
5-7
10-12
20
8-14
14-17
16.5
6-11
13
(a-Si)
Thin-Film
(CIS)
Thin-Film
(CdTe)
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Feed Stock
(Cell Cost)
Feed Stock
43%
Material
Cost
51%
Capital costVaries from 45 lakhs to 75 lakhs per MW for Cell to Module Manufacturing
System Assembly
The final part of the overall manufacturing process is the solar system assembly and
Installation. First, an array structure is chosen for the mechanical integration of the
Solar module. This array structure will depend on the final location of the system, which
could involve retrofitting onto a roof, integrating into building materials for roofs or vertical
walls, or pole-mounting, ground-mounting, or attaching to an industrial structure.
Second, the electrical components are integrated with other parts of the solar energy system.
This will include the connection of elements such as inverters, batteries, wiring, disconnects,
and regulators (charge controllers).
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Apart from power production and manufacturing cells and modules, other business
opportunities using solar PV include the installation and maintenance of stand-alone/off grid
systems for different sectors, and manufacturing solar PV based appliances. A whole range of
solar PV products is emerging in the off-grid sector. Some of the prominent ones are solar
lanterns, solar street lamps and solar powered water pumps. Other less known ones are solar
pool covers and pool heaters, solar fencings, solar candles, solar LED signals and road studs
etc. While for many of these products the current market sizes are small, the growth rates are
expected to be high as larger sections of unelectrified India start yearning for the fruits of
electricity and the costs of solar panels decrease at a fast clip. Companies such as Tata BP
Solar, Selco, d.Light Designs are already developing innovative products for specific
markets. In addition, companies provide custom made solar solution for various sectors like,
bank, telecom, rural development, education and roads & highways. Some of these segments,
where installation services can be done in relatively small scale are:
Telecommunication Sector
BTS (Base Transceiver Station) sites require constant and uninterrupted power for the safe
operation of the network. Solar panels can be installed to generate the required power.
Page 89 of 124
Financing Support
EPC
Training Support
Others
Financing Support
EPC Services
Training
Software Support
Page 90 of 124
Financing Support
Due to high capital requirements for solar power generation, few large projects are financed
by the sponsor's balance sheet. Instead, tailor-made financing is achieved through project
finance.Support from the relevant finance experts will be required at this stage.
segment of the value chain with very few companies that operate at national level, let alone
globally.
Large Installations - Big projects undergo various stages of development even before
construction can begin. Generally, this is a high-margin segment with some companies that
are operating globally.
This stage begins after the construction phase. Operation & maintenance includes activities
such as facility monitoring, cleaning solar glass, breakdown management, repair work and
warranty management.
Page 92 of 124
System Control: Software that helps measure and monitor the solar generating
system, the output of which can be used to optimize the facility. Photovoltaic system
monitoring is a combination of hardware (dataloggers) and software tools. Yield
analysis is usually also part/task of such monitoring system. Standard options are
local or remote monitoring (via web for example). In India, companies such as HCL
Technologies and Wipro Eco-energy have already developed embedded software for
solar power plant monitoring.
Page 93 of 124
Page 94 of 124
Basics Of Model
This model is intended to provide projections of the impact on cost from changes in economic
indicators such as the Gross Domestic Product (GDP) and Producer Price Index (PPI). The model
described has been built from work originally done by University of Sutherland under a United
Kingdom Department of Trade and Industry Study and work performed for the U.S. Department
of Energy (DOE) under its Wind Partnerships for Advanced Component Technology (Wind
PACT) projects. These models are intended to provide reliable cost projections for windgenerated electricity based on different scales (sizes) of turbines. They are not intended to predict
turbine pricing, which is a function of volatile market factors beyond the scope of this work.
The models in this study allow projections of both land-based and offshore technologies, though
offshore technologies are still in their infancy and forecasts are extremely rough. These models
also allow modeling of the cost impacts of certain advanced technologies that were studied under
the WindPACT and Low Wind Speed Technology (LWST) projects. Cost estimates are projected
based on turbine rating, rotor diameter, hub height, and other key turbine descriptors. Cost scaling
functions have been developed for major components and subsystems. With current industry
information , the models have been cross checked or improved based on this industry information
About Model
The Cost scaling model is a spreadsheet-based tool that uses simple scaling relationships to
project the cost of wind turbine components and subsystems for different sizes and configurations
of components. The model does not handle all potential wind turbine configurations, but rather
focuses on those configurations that are most common in the commercial industry at the time of
writing. This configuration focuses on the three-bladed, upwind, pitch-controlled, variable-speed
wind turbine and its variants. It is believed that this configuration will dominate wind energy for
some extended period, and the model can best be maintained using data for these designs as they
become available. The model is not intended to be a stagnant, final product, but rather a
constantly evolving tool that can be refined as new data become available. Formulas in the
Page 95 of 124
model, in its early versions, are quite simple. In most cases, cost and mass models are a direct
function of rotor diameter, machine rating, tower height, or some combination of these factors. In
cases where better definition is available, more sophisticated approaches are used or are under
development. These will be discussed in each component section below. The results of each
model are assumed to be in 2002 dollars. This has been done for purposes of consistency. Where
cost data was available from different years, it was converted to 2002 dollars before the cost and
scaling factors were developed. Cost data is based on a mature design and a 50 MW wind farm
installation, with mature component production
To project the cost of wind turbine components and subsystems for different sizes and
configurations of components.
Result
Continuous Margin around 19-27 lakhs / MW ,which shows that Suzlon has taken benefit of
its vertical integration .
Page 96 of 124
Margin (in
Lakh/MW)
10
5
0
2005-06
2006-07
2007-08
2008-09
2009-10
Opportunities
Page 97 of 124
in ( 2000-3000 MW Segment)
Manufacturing Opportunities
Manufacturers
Tower
Altec Fabricators
Aster
Barakath Engg. Industries Pvt.
Ltd
Bhilai Engineering Corporation
Ltd.
D N Wind System
Hitech Components & Pressings
Jayshri Enterprises
Lakshmi Engineering Works
Larsen & Toubro Ltd
R.M.H.Fabrications Pvt Ltd
Shah Infrastructure
Shrenik Industries
Shri Ganesh Wind Power
Engineering
Simplex Engg. & Foundry Works
Ltd
Srujana Fabricators & Engineers
Pvt. Ltd
Trichy Engineering Works
Autokast Ltd.
Lakshmi Machine Tools Ltd.
Southern Alloy Foundaries Ltd
Bharat Forge
Nu-Tech Industrial Spares &
Services (P) Ltd
Binny Ltd
Empee Engineering Pvt. Ltd.
Gosend Enterprises
Mechano Engg. Co.
Nu-Tech Industrial Spares &
Services (P) Ltd
Pyramid Fabricators &
Engineers
Sidharth Heavy Equipments Ltd
Page 98 of 124
Hub
Shaft
Nacelle
Frame
Manufacturers
Sonal Composites
Page 99 of 124
Yaw Motor
Drive
Mechanical Brake
Manufacturers
Pitch
Mechanism &
Bearing
Yaw Motor
Drive
Mechanical Brake
Repowering Opportunities
Repowering
Repowering is the process of replacing older, smaller wind turbines with modern and more
powerful machines, which would reap considerably more power from the same site. In India,
about 46% of the WTGs were rated below 500 kW in 2010, adding up to 2,331.3 MW (about
18% of cumulative installed capacity).
Many of the states facing power shortages are also host to sites with good wind power
potential which is not being used efficiently and is currently saddled with old and inefficient
wind turbines. Repowering with more powerful turbines would bring considerable benefits to
these states.
Large areas are occupied by more than 8,500 small rating turbines (<500 kW capacity),
manufactured by suppliers that have long since disappeared from the Indian market (as of
March 2009). This leads to lapses in operations & maintenance (O&M), which in turn
increases a machines down time and reduces revenue. In addition, maintenance costs tendto
be higher for aging WTGs.
Breakdown of critical components badly affects machine availability and O&M cost for
smaller capacity machines .The effective capacity utilization factor of small (<500
kW)machines in Tamil Nadu is estimated at less than 15%
.
Old wind turbines were often installed at maximum hub-heights of 30 to 40 meters and
occupy land on good resource sites. However, these sites could benefit from modern turbines
extracting energy from the much higher wind power density at high hub heights.
Good windy locations are occupied buy large number (>8500) of old small capacity(<500
kW) wind turbines.
Low PLF (4 - 15 % ).
44.47%
23.30%
32.23%
<500 kW
500-1000 kW
>1000 kW
Before 2002
S.No.
State
No.
Of
WTG(<
After 2002
Total capacity
500
No.
WTG(<
kW)
Of
Total capacity
500
kW)
Tamilnadu
3069
809.765
2488
740.03
Maharashtra
788
247.805
163
47.155
Gujarat
800
175.09
119
30.57
Andhra Pradesh
337
86.74
1.35
Karnataka
121
28.85
123
36.16
Madhya Pradesh
103
22.59
1.25
Rajasthan
14
4.1
149
46.375
Orissa
21
1.19
Kerala
11
2.35
10
West Bengal
1.75
11
Goa
0.11
5273
1380.34
3053
902.89
Total
A special drive for repowering of old wind farms undertaken by the central government
would encourage the industry to take this up on a larger scale. This could be done by way of
creating suitable mechanisms and offering support along with financial incentives, to make
new repowering projects viable. Currently, neither the states nor the central government
provides dedicated policy support or incentives to encourage Indian wind power developers
or investors to repower their old projects. However, there are some challenges to be
addressed before a comprehensive repowering attempt in India. Some of the key challenges
are listed below-:
Turbine ownership: Repowering will reduce the number of turbines and there may
not be one-to-one replacement. Thus, the issue of ownership needs to be handled
carefully.
Land ownership: Multiple owners of wind farm land may create complications for
repowering projects.
Power Purchase Agreement: PPAs were signed with the state utility for 10, 13 or 20
years and the respective electricity board may not be interested in discontinuing or
revising the PPA before its stipulated time.
Electricity evacuation facilities: The current grid facilities are designed to support
present generation capacities and may require augmentation and upgrading.
Additional costs: The additional decommissioning costs for old turbines (such as
transport charges) need to be assessed.
Disposal of old turbines: There are various options such as scrapping, buyback by
the government or manufacturer, or export. Local capacity may need to be developed.
Incentives: One of the primary barriers to repowering is the general lack of economic
incentive to replace the older WTGs. In order to compensate for the additional cost of
repowering, appropriate incentives are necessary.
Policy package: A new policy package should be developed which would cover
additional project cost and add-on tariff by the State Electricity Regulatory
Commissions (SERCs) and include a repowering incentive (on the lines of therecently
introduced generation-based incentive scheme by MNRE)
Geotechnical Services
Opportunities
Construction Opportunity
Logistics Opportunity
Trading Opportunity
Other Opportunity
Comapanies/Contractors
WTG
ERECTION
O&M
Construction
Services
Bardai Pvt.Ltd
Dear Constructions (Engineers & Contractors)
D. H. Pawar
Kamla Electricals & Engineering Co.
Krishna Pillai & Co.
Lars Enviro Pvt. Ltd
Narmada Infrastructure (P) Ltd.
N.D. Shetty
Nashtel Optronics
Petron Civil Engg. Ltd.
PGP Engineers & Consultants
Ponkumari Wind Farm
S.Ponnaiyan Associates
Ramawat Construction Company
SANA Engineering Company
Sharvari Construction
Sri Satya Sai Constructions
T.R.Trehan Constructions Pvt. Ltd.
Windfab
Yeses Infrastructure Pvt. Ltd
Mesuka Engineering Company P. Ltd.
M.P.Windfarms Limited
Powerzen Technologies
Strength
Poly-Silicon
Weakness
Opportuni
ties
Threats
Low Labor
Cost
Government
policies &
incentives
Wafer
Cell
Low Labor
Cost
Governme
nt policies
&
incentives
Low Labor
Cost
Government
policies &
incentives
Experience
in Cell
Manufacturi
ng
Lack of R &
D
Dependabilit
y on Foreign
Technology
Others
(Glass/ Chemical,
Electrical
Components)
Low Labor
Cost
Low Capital
cost
Government
Policies &
incentives
Experience in
Module
Manufacturing
Lack of R & D
Dependability
on Foreign
Technology
High interest
rate
Unavailabilit
y of man
power skills
High capital
cost
Less
experience
Huge Global
Demand(721
MT& by
2015)
Huge
Domestic
Requirement
Huge
domestic
market
demand
(490 MT&
3130 MT
by 2013&
2022
resp)
Competition
from Chinese
players
Fluctuation
in Poly
Silicon
Market
(Prices)
Competiti
on from
Global
players
Fluctuatio
n in Poly
Silicon
Market
(Prices)
Competition from
Global players
Dependab
ility on
Foreign
Technolog
y
High
interest
rate
Less
Experienc
e
Module
Low Labor
Cost
Governmen
t policies &
incentives
Experience
in
Manufactur
ing
Dependabil
ity on
Foreign
Technology
Lack of
awareness
Huge
Global &
Domestic
Demand
Competition from
Global players
Polysilicon
Wafer /Ingot
Solar Cell
Solar PV Module
97.2
54.75
54.5
55.6
4.3
3.25
3.5
3.45
4.8
3.5
3.75
3.7
Cell ($/w)
1.63
1.24
1.35
1.33
1.25
Module $/w
2.27
1.85
1.78
1.73
1.75
43
350000
300000
250000
200000
Demand
150000
Supply
100000
50000
0
2009
2010
2011
2010
Year
Global Market of Solar PV(MW)
Global Requirement of Poly Silicon (MT)
40000
220
2015
(REF)
2015
(MOD)
131240
721.82
195950
1077.725
2013
6400
35.2
2017
16400
90.2
Year
Domestic Market of Solar PV(MW)
Domestic Requirement of Poly Silicon (MT)
Current
(2011)
116
0.638
2022
40900
224.95
28/04/10 30/04/10
30/06/10 Current
4.3
3.25
3.5
3.45
4.8
3.5
3.75
3.7
Demand
20,000
10,000
2008
2009
2010
2011E
Global Market of
Wafers
Requirement of Poly Silicon Gms per
wp
76.53
Year
2010
2015
(REF)
2015
(MOD)
40000
131240
195950
3061.2
10043.797
14996.0535
50,000
45,000
40,000
35,000
30,000
25,000
Supply
20,000
Demand
15,000
10,000
5,000
1
1.63
28/04/10
30/04/10
1.24
1.35
30/06/10 Current
1.33
Year
Global Market of Solar Cell (MW)
Global Requirement of Wafer (MT)
2010
40000
0
2015
(REF)
131240
0
2015
(MOD)
195950
0
Current
(2011)
116
2013
6400
2017
16400
2022
40900
1.25
40000
35000
30000
25000
20000
Supply
15000
Demand
10000
5000
0
2009
2010
2011E
2
1.5
1
CdS/CdTe
0.5
a-Si/Mew-Si
a-Si
CdS/CdTe
MARKET SHARE %
Technology
2010
2015E
2020E
Crystalline Silicon
79
66.31
61.11
Thin Film
21
33.69
38.89
2010
40000
31600
2015 (REF)
131240
87025.244
2015 (MOD)
195950
119745.045
8400
44214.756
76204.955
2013
2017
2022
6400
1100
5100
16400
4000
11400
40900
22000
18900
15.
Financing Opportunity
EPC Services
Trading Opportunity
Company
Capital Cost
TATA BP
20
200111233.6
10005561.68
XL TECHNO
24
210407933.7
8766997.24
CENTROTHERM
60
450000000
7500000.00
Solar Glasses
For crystalline cells, solar glass is used for protection and performance enhancement. In the
case of thin films, glass is used as a substrate. Worldwide, in 2010, 179 million tons of glass
was produced. Of this, 70 million tons were flat glass, which is used in solar modules and
reflectors. The flat glass market is worth 29 billion annually but, only four companies
namely NSG Group, AGC, Saint-Gobain and Guardian Industries produce around 60% of the
world's high quality float glass.
Few companies in India currently make glasses for solar cells, and Saint Gobain is one of
them; the Indian arm of the French glass giant is making serious efforts at extending its glass
products to cater to the demand of solar panels sector. Recently, Gujarat Borosil launched
solar gradeglasses in Dec 2010.
fully start producing inverters for grid connected power plants; hence, as of Feb 2011, the
inverters for MW scale solar PV power plants are mostly being imported.
Facilitating &
Consulting 1 st Tier &
2nd Tier
Manufacturers
Manufacturing
Service &
Support
Others
Trading
Developing
business models
for retail & Whole
sale Marker
Consultation for
Power Trading
Developing
business models for
Other business like
training ,Software
services,Financial &
Legal Services ets
CONCLUSION