Cement Energy and Environment

may be the only solution. India Wind Energy Outlook, a report published by Pune's World Institute of Sustainable Energy (WISE) in April 2011, states that capacity utilisation of small turbines used in Tamil Nadu is estimated to be less than 15 per cent. According to an IREDA report, wind turbines in the 1990s seldom exceeded 500 kW output (see graph). Manufacturers of these turbines have disappeared from the market, which has affected operations. Modern turbines can be twice more efficient. Solution lies in re-powering A successful re-powering exercise was carried out by Gamesa wind turbine manufacturing company in Coimbatore, Tamil Nadu where 350 kW and 500 kW turbines were replaced with 850 kW turbines, which is expected to increase capacity utilisation to 25 per cent from the current 13- 17 per cent. Another study by WISE in July 2010 notes that if wind turbines installed before 2002 are replaced with new ones, Tamil Nadu's wind energy generation would jump 50 per cent over the 4,899 MW output last year. The study notes lack of economic incentives as the primary barrier to re-powering . "End of AD will lead to not just better generation, but bring in new technology and better forecasting skills," says Rakesh Shah of CERC. Wind forecasting is another aspect energy producers rarely heed because they were never penalised for supplying erratic power. The technology ensures beforehand knowledge of the amount of energy a power plant will produce. CERC's amended India Electricity Grid Code, wherein wind producers had to forecast with 70 per cent accuracy the energy they will feed into the grid, was to be implemented from January 2011 but had to be postponed by a year because of the industry's opposition . Absence of forecasting technology leads to grid instability and shut-down. In India, power producers pay an Unscheduled Interchange charge if the generation promised to the grid is different from actual generation; renewable energy producers pay If company A makes a profit of Rs 20 crore, it would have to pay a corporate tax of Rs 6.7 crores (33 per cent). But if the company invests Rs 5 crore from its profit in installing a 1 MW wind power plant, Rs 4 crore would be treated as expense under 80 percent accelerated depreciation scheme. The corporate tax on the remaining profit of Rs 16 crore would be Rs 5.3 crore. Investment in wind energy would save A Rs 1.4 crore. Direct tax code The government's recognition of the impending problem has come in the form of direct tax code (DTC} that suggests withdrawal of sector– wise sops, and will be enforced from April 2012. The plan is to enforce DTC, which would mean withdrawing AD scheme, by the end of the 11th Fi.,e-Year Plan. But the proposal can become a reality only if industry endorses it. "DTC's implementation has already been postponed from April 2011 to April 2012 and the tax holiday for the special economic zones (SEZs) will continue till April 2014 because of pressure by developers and . units in SEZs. DTC is likely to be opposed by various interest groups, including those in wind energy," says an MNRE official. Even MNRE's suggestion to withdraw the AD scheme in April 2012 may not materialise. "There is opposition to end this route. But it can hamper capacity building in the wind sector," the official adds. Courtesy: Down to Earth 15 May 2011 Pp18-19. Solar NATIONAL SOLAR MISSION MAY GET DERAILED AS BANKS HESITATE TO GIVE LOANS FOR ITS HIGH-RISK PROJECTS High cost, low return Solar energy generation is 10 times costlier than the conventional coal-based power generation. According to the Central Electricity Regulation Commission, the cost of setting up each megawatt of solar plant is Rs 17 crore, nearly thrice that of a coal-based plant. Revenue generation is just one fifth. A 5-MW coal-based plant, for instance, may sell about 80,000 units of power in a day. But a 5-MW solar plant will produce only about 15,000 units per day. The per-unit cost of solar energy generation, thus, works out to be Rs 17.91. Solar energy is 10 times costlier than conventional coal– based powe~ and revenue is just .one– fifth During the bidding process , investors offered 35 per cent discount on Rs 17.91 as tariff. Government faulted by not fixing 28