Wind Power Potential in India : State Wise Parametric Evaluation of Opportunity

Wind Energy Sector in India

The wind energy sector in India has experienced a remarkable growth over the year. The last 10 years (2003-2013) served as the most crucial period for the sector’s development; nearly 18 GW of fresh capacity was secured by the sector. A wide range of supportive mechanism coupled with sizable investments has led to the growth and development of the sector in India. Apart from this, the high level of commitment from the Central and state governments proved to be of immense help in the commercial-scale development of the sector.

The progress of the wind energy sector in India was completely confined to the Central authorities and private players till 2003. The role of states in developing the sector came into being after the Electricity Act, 2003 was implemented. EA, 2003 mandated the SEBs to generate certain percentage of electricity from RES. Hence, like other RES, wind energy too became grid-interactive after 2003. Further, formulation of National Tariff policy in 2006 emphasized on setting up preferential tariffs for wind energy along with other RES. In addition, it stipulated several conditions, which aimed at harnessing much of the wind energy potential and its procurement by the states.

REC, a market based mechanism, which allowed the inter-state sale of both solar and non-solar renewable was introduced in 2009. REC mechanism proved a major boon for RES development. Among all the RES, wind energy was harnessed the most, given the confidence of developers and cheaper cost of electricity generation.

Unlike solar, wind installation in India is done at fewer locations, but the capacity installed is higher than that of solar. Historically, Tamil Nadu, Gujarat, Maharashtra and Karnataka were the only states where wind installation was done on a wide scale; but in the last couple of years, Rajasthan too has shown concerted efforts in increasing the volume of wind capacity. Presently, only eight states support large-scale wind installation.

Tracking the States with Wind Potential

Wind energy in India contributes maximum installed capacity in the total RE mix (i.e., nearly 70%), but very few states support this large volume. Some of the states that support wind energy development in India are as follows:

  • Tamil Nadu
  • Gujarat
  • Maharashtra
  • Rajasthan
  • Karnataka
  • Madhya Pradesh
  • Andhra Pradesh
  • Kerala

State Wise Breakup of Installed Capacity

Exhibit 01 shows the state-wise break-up of wind installation for FY12 and FY13. Among all the 29 states in India, only eight have been so far successful in harnessing much of the available wind potential of 100 GW. Among the major states supporting high wind installation, Tamil Nadu has been a leader in harnessing its wind potential till date. The state succeeds in delivering large volume of grid-interactive wind capacity. As can be observed from Figure 6.1, the total installed wind capacity of Tamil Nadu for FY12 and FY13 was 6987.6 MW and 7162.1 MW, respectively, which was the maximum [among all the states]. Early and dedicated initiatives taken by Tamil Nadu Energy Development Authority in providing supportive policy framework along with huge wind potential can be an important reason for such high growth trends in terms of wind installation. Rajasthan is another state that has exhibited an increase in wind installation capacity in recent times. As per MNRE, the state has witnessed a capacity addition of nearly 614 MW in FY13, which scaled its total installed wind capacity to 2864.6 MW in the same year. The capacity addition made by Rajasthan in FY13 was the highest amongst the wind-rich states in India. This increase in the volume of wind was highly supported by the initiatives taken by the Rajasthan government along with some other important factors.

Key Parameters  Responsible for Harnessing Wind Potential in the States

The major factors that highly influence the wind installation in Indian states are given below as

  • Dedicated wind energy authority
  • High wind potential
  • More wind stations
  • Financial health of Discoms
  • Regulatory and policy support
  • Ease of land clearance
  • Ease of securing Right of Way
  • Better power transmission infrastructure
Parametric Evaluation of the Filtered States

Parametric evaluation is done to filter out best states in India in terms of wind installations. This exercise is based on parameters that would determine the capacity installation targets of the states, wind energy-promoting environment of the states and other wind energy-based development in the states. Following parameters are taken into account to evaluate the filtered states:

  • Wind Speed and intensity assessment
  • Upcoming capacity
  • Tariff realization
  • State policy and regulatory support

Key Factors Impacting

Key Parameters and Performance of the Filtered States

 

*The views expressed in this article are solely those of enincon perspectives and do not necessarily represent those of Enincon LLP.

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