Lok Sabha Question No. 2727 (UNSTARRED), answered on 2016-12-01
Subject: Manufacturing of Equipments for Generation of Wind Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: SHER SINGH GHUBAYA, BHARATI DHIRUBHAI SHIYAL, KUNWAR PUSHPENDRA SINGH CHANDEL, CHINTAMANI MALVIYA

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## UNSTARRED  QUESTION NO. 2727

TO BE ANSWERED ON 01.12.2016

## MANUFACTURING OF EQUIPMENTS FOR GENERATION OF WIND ENERGY

## 2727.  SHRI SHER SINGH GHUBAYA:

DR. BHARATIBEN D. SHYAL:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

PROF. CHINTAMANI MALVIYA:

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether the Union Government proposes to formulate a special scheme to manufacture the equipments used to generate wind energy in the country, if so, the details thereof;
- (b) whether  the  Union  Government  has  made  any  special  efforts  for  generation  of  wind energy in economically backward States including Bundelkhand, if so, the details thereof, Statewise;
- (c) whether the Union Government has invited bids for the setting up of wind mills in the country, if so, the details thereof;
- (d) the present status of wind power projects in the country, State-wise; and
- (e) the steps taken/being taken by the Union Government to promote the wind energy in the country?

## ANSWER

THE MINISTER OF STATE FOR POWER, COAL, NEW AND RENEWABLE ENERGY & MINES (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

(a): No Madam.

- (b): Wind power projects can only be installed at sites having adequate wind power potential. As per recent assessment of wind power potential by National Institute of Wind Energy (NIWE), a total of 302 GW capacity wind power potential is available at 100 meter above ground level in the  country.  The  potential  is  mainly  concentrated  in  eight  States  including  Andhra  Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu and Telangana. The assessment  indicates  that  Bundelkhand  do  not  have  adequate  wind  power  potential  for  grid connected wind power projects.
- (c): Yes Madam, Ministry of New & Renewable Energy (MNRE) has sanctioned a Scheme for  Setting  up  of  1000  MW  Inter  State  Transmission  System  (ISTS)  connected  Wind  Power Projects on 14 June 2016. The salient features of the Scheme are given below:
- (i) Scheme to be implemented by Solar Energy Corporation of India (SECI).
- (ii) Wind projects will be selected through open and transparent competitive bidding process followed by e-reverse auction.
- (iii) Eligible project capacity will be minimum 50 MW and maximum 250 MW per bidder.
- (iv) The  Trading  Company  selected  by  SECI  will  sign  Power  Purchase  Agreement  (PPA) with selected bidder and back-to-back Power Sale Agreement (PSA) with Buying Entities at a pooled  price  of  the  total  bids  selected.  The  duration  of  PPA  and  PSA  will  be  25  years  from Commercial Operation Date (COD) of the project.

(v) The transmission of power up to the point of interconnection where the metering is done for energy accounting shall be the responsibility of the bidder. Use of State transmission system to bring wind power at ISTS point also allowed.

(vi) Part commissioning allowed subject to commissioning of atleast 50 MW or 50% of the allocated Project Capacity, whichever is higher.

(vii) The Project to be completed within 18 months from issue of Letter of Award. Maximum period of 27 months allowed for completion of project with penalties.

(viii) Minimum declared Capacity Utilization Factor to be 20%. Provision of compensation in case of shortfall in minimum generation.

(ix) Wind projects to submit monthly performance data through Online.

(d): As on 31.10.2016, the total wind power installed capacity in the country was 28279 MW.

State-wise wind power installed capacity is given below:

| State          |   Cumulative Wind Power Installed Capacity in MWason 31.10.2016 |
|----------------|-----------------------------------------------------------------|
| Andhra Pradesh |                                                         2001.7  |
| Gujarat        |                                                         4269.87 |
| Karnataka      |                                                         3099.4  |
| Kerala         |                                                           43.5  |
| Madhya Pradesh |                                                         2288.59 |
| Maharashtra    |                                                         4664.03 |
| Rajasthan      |                                                         4123.42 |
| Tamil Nadu     |                                                         7685.83 |
| Telangana      |                                                           98.7  |
| Others         |                                                            4.3  |
| Total          |                                                        28279.3  |

(e): The Government is promoting wind power projects through private sector investment by providing  fiscal  and  promotional  incentives  such  as  Accelerated  Depreciation  (AD)  benefit, concessional  custom  duty  on  certain  components  of  wind  electric  generators,  excise  duty exemption to manufacturers 10 years tax holiday on income generated from wind power projects is also available. A Generation Based Incentive (GBI) is available for the projects not availing A D benefit, under which Rs.0.50/unit generated is provided with a ceiling of Rs. 1.00 crore per MW. Loans  for  installing  wind  power  projects  are  available  from  Indian  Renewable  Energy Development  Agency  (IREDA)  and  other  Financial  Institutions.  Technical  support  including wind resource assessment and identification of potential sites is provided by the NIWE, Chennai. States with wind potential also provide preferential tariffs. A Scheme for Setting up of 1000 MW Inter State Transmission System connected Wind Power Projects has been sanctioned on 14 June 2016. Repowering Policy issued in August 2016 provides enabling framework for replacement of old and small capacity wind turbines with high capacity wind turbines.

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