Indian Wind Industry Analytical Report - FY 2017-18 Nitin V Raikar – Indian Wind Turbine Manufacturers Association (IWTMA) ([email protected])

Key Pointers

Installed Capacity

 FY 2018E witnessed a substantial drop in installation volumes primarily due to the transition phase from the FiT regime to the auction based regime  Commissioned capacity addition of 1.78 GW in FY 2017-18 as against 5.5 GW in FY 2016-17  This represents a dip of close to 70% for the corresponding period in last fiscal  This capacity addition translates to an investment of ~ 1.8 billion USD  Cumulative Wind power capacity in surpasses 34 GW mark and stood at ~34.06 GW as on 31st March 2018  Cumulative Wind capacity constituted ~50% of India’s total Grid Interactive Renewable Energy capacity  Cumulative Wind capacity constituted ~9.8% of India’s total installed power capacity from all energy sources Environmental Benefits Quantified

 Cumulative Grid Interactive wind power installations would translate to (on per annum basis)  Emission offset of ~73 million tonnes  Coal savings of ~55 million tonnes  Sulphur Dioxide emission offset of ~ 0.60 million tonnes  Tentatively power ~18.5 million number of Households  Equivalent cars taken off the road/year ~12 million  Equivalent Number of Trees planted per annum ~ 6062 million trees

Key Pointers – States

leads in capacity addition by commissioning 779.80 MW followed by AP (348.10 MW), Tamilnadu (324.35MW), (272.80MW), (22.10MW), (16 MW), (12.60MW),  Installations in all the 7 windy states

State wise capacity addition for FY 2017-18 with comparison to FY 2016-17

State FY 2016-17 (MW) FY 2017-18 (MW) Growth/De-growth % Quarterwise Capacity Addition Andhra Pradesh 2179.45 348.10 ~84% Gujarat 1391.65 272.80 ~80% FY 2018E 2000 Karnataka 905.55 779.80 ~14% 1775.78 Madhya Pradesh 356.70 22.10 ~94% 1171.33 Rajasthan 287.70 16.00 ~95% 1000 MW Tamilnadu 256.13 324.35 ~26% 257.63 Maharashtra 93.30 12.60 ~86% 192.70 154.13 Total 5509.58 1775.75 ~68% 0 Q1 Q2 Q3 Q4 Total

Key Pointers – Original Equipment Manufacturers (OEM)

Market share:

INDIAN WIND INDUSTRY SCORE CARD FY 2017-18 Total. Market WTG Manufacturer GUJ. MP. MAH RAJ. KAR. TN. AP. TEL. KER Capacity share - (%) (MW) Suzlon Energy Limited 102.90 18.90 12.60 0.00 212.10 78.20 201.60 0.00 0.00 626.30 35.27% Gamesa Wind Turbines Pvt Ltd 20.80 0.00 0.00 0.00 318.00 115.40 98.00 0.00 0.00 552.20 31.10% Vestas Wind Technology India Private Limited 0.00 0.00 0.00 0.00 117.60 54.00 10.00 0.00 0.00 181.60 10.23% INOX 104.00 0.00 0.00 16.00 50.00 0.00 4.00 0.00 0.00 174.00 9.80% GE India Industrial Limited 20.70 0.00 0.00 0.00 41.70 0.00 34.50 0.00 0.00 96.90 5.46% Wind World India ( Formerly Enercon India) 18.40 3.20 0.00 0.00 22.40 0.00 0.00 0.00 0.00 44.00 2.48% Regen Powertech Pvt Ltd 1.50 0.00 0.00 0.00 0.00 42.00 0.00 0.00 0.00 43.50 2.45% Pioneer Wincon 4.50 0.00 0.00 0.00 0.00 15.00 0.00 0.00 0.00 19.50 1.10% Acciona Windpower Nordex 0.00 0.00 0.00 0.00 18.00 0.00 0.00 0.00 0.00 18.00 1.01% RRB Energy 0.00 0.00 0.00 0.00 0.00 12.60 0.00 0.00 0.00 12.60 0.71% Leitner Shriram Manufacturing Ltd 0.00 0.00 0.00 0.00 0.00 6.00 0.00 0.00 0.00 6.00 0.34% Global Wind Power Limited (GWP) 0.00 0.00 0.00 0.00 0.00 0.90 0.00 0.00 0.00 0.90 0.05% Shriram EPC Ltd. 0.00 0.00 0.00 0.00 0.00 0.25 0.00 0.00 0.00 0.25 0.01%

Grand Total 272.80 22.10 12.60 16.00 779.80 324.35 348.10 0.00 0.00 1775.75

 Total No of Original Equipment Manufacturers (OEMs)who added capacity: 13  The top 5 OEMs ( who added capacity close to 100 MW each) constituted ~92% of the total installed capacity . Suzlon Energy Limited . Gamesa Renewable Pvt Limited . Vestas Wind Technology India Private Limited . Inox Wind Limited . GE India Industrial Pvt Limited  Top OEMs who have a cumulative installation base exceeding 1000 MW or 1GW in India – . Suzlon Energy Limited - ~11.92 GW . Gamesa Renewable Pvt Limited ~ 5.3 GW . Wind World (India) Limited ~4.9 GW . Vestas Wind ~2.3 GW (excluding Vestas turbines of RRB Energy) . Regen Powertech Pvt Limited ~2.3 GW . Inox Wind Limited ~2.3 GW

Key Pointers – Key Investors with Project State

Legend Gamesa Suzlon Inox GE Regentech Vestas Nordex Acciona Leitner Windworld

Key Investors FY 2017-18 - OEM Matrix Total. Capacity Industry Investor GUJ. MP. MAH. RAJ. KAR. TN. AP. TEL. KER. (MW) Segment 150.00 69.30 Renew Power (includes Ostro) 10.00 50.40 386.90 IPP 7.20 100.00 27.30 Utilit Torrent Power 120.00 164.90 17.60 y Skeiron Renewable Energy Private Limited 107.10 37.80 144.90 IPP Axis Windfarms 109.20 109.20 IPP 23.30 Atria Power 16.00 56.90 IPP 17.60 Continnuum Energy 54.00 54.00 IPP Hero Future Energies 50.00 50.00 IPP NTPC 48.00 48.00 PSU Greenko Group 44.00 44.00 IPP Oil India 18.90 18.90 37.80 PSU ILFS 20.70 15.20 35.90 IPP 25.30 Ecoren 35.30 IPP 10.00 20.00 SITAC RE 22.00 IPP 2.00 Bhoruka Power Corporation Ltd 18.40 18.40 IPP Sun Photo Voltaic Energy India Private Limited (Acciona 18.00 18.00 IPP Nordex) Utilit Tata Power Renewable Energy 16.50 16.50 y Semb Corp 12.00 12.00 IPP Utilit Surya Vidyut Ltd (SVL) 10.00 10.00 y Mytrah Energy India Limited 9.20 9.20 IPP KREDL 8.40 8.40 PSU SJVN Ltd 6.00 6.00 PSU Nevyali Lignite Company (NLC) 6.00 6.00 PSU Ahmedabad Municipal Corporation (AMC) 4.20 4.20 PSU

Researched and compiled by Nitin V Raikar ([email protected])

Key Investors : FY 2018E Installation chart & Segmentation

500 483.25 450 386.90 400 350 300 250 200 164.90 144.90 150 109.20 100 56.90 54.00 50.00 48.00 44.00 37.80 35.90 35.30 50 22.00 18.40 18.00 16.50 12.00 10.00 9.20 8.40 6.00 6.00 4.20 0

Corporate IPPs - Large Corporate

1200.00 Installed Capacity (MW) 996.70 1000.00

800.00

600.00 477.25

400.00 301.80

200.00

0.00 Independent Power Corporate + SME Investors Public Sector Units/ Utilities Producers (IPPs) (Central/State/Private)

Independent Power Producers (IPPs) Corporate + SME Investors

Key Pointers – Product/Technology/Milestones

 A total of 942 WTGs of different make and type were installed and commissioned  Average turbine size decreased to 1.89 MW from 1.93 MW corresponding to the preceding FY 2016-17  Siemens Gamesa develops India's first large commercial hybrid wind-solar project - 28.8-MW solar facility connected to an existing 50-MW wind farm  Suzlon Energy Limited successfully proto commissions its new product – S128 with a Rated Capacity of 2.1 MW & Rotor Dia of 128 meters  Vestas debut commissions its V110 Rated Capacity 2.2 MW in this fiscal in Karnataka, India  Gamesa surpasses 5GW of installations in India

Key Pointers – Product Size & Range

Product Class Segmentation for FY 2017-18

% of total % of total Product Size (Range)* No of WTGs MW WTGs MW “Mainstream” < 1500 - 3000 kW 830 88.11% 1694.30 95.41% “Megawatt” < 751 - 1499 kW 60 6.37% 48.20 2.71% “Small WTGs” < 750 kW 52 5.52% 33.25 1.87% Total 942 1775.75 Average Rated Capacity (MW) 1.89 *Methodology sourced from web sources

Classification by Drive train topology

Drive Train Topologies Share for FY 2017-18

% of total MW % of total Nos. of Drive Train Topology installed WTGs installed Geared Drive Train 95.07% 91.08% Direct Drive Train 4.93% 8.92% Geared Drive train topology continues to dominate

Key Policy and Regulatory Announcements – FY 2018E-YTD

Policy/Regulatory Announcements FY 18E - YTD

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has tendered 250 MW of wind power projects to be developed in the state. The bid-submission deadline is May 10, 2018

Order on generic tariff for Wind Power and related issues (Order No. 6 of 2018 dated 13 Apr 2018)

MNRE calls for ‘Expression of Interest’ for first offshore wind energy project of 1000 MW capacity and plans to install at least 5 GW of offshore wind capacity by 2022

The National Thermal Power Corporation (NTPC) has forays in competitive wind auctions and has issued a mega tender for development of 2 GW of interstate transmission system connected wind power projects across India

MNRE issued the course of action as part of an order that pertains to the compliance of WTG models to the technical standards of the Central Electricity Authority (CEA) for grid connectivity (Low voltage ride through (LVRT) certification)

Winning Bids of 2.85-2.87/kWh Quoted in MSEDCL’s 500 MW Wind Auction

The Karnataka Electricity Regulatory Commission (KERC) has reduced the banking period of renewable energy projects from one year to six months. Banking period for wind : Jan to June and w.e.f 01 Jul 2018.

SECI issues RfS for setting up of 2000 MW ISTS-connected Wind Power Projects (Tranche-IV)

Solar Energy Corporation of India (SECI) has successfully auctioned 2 GW of Inter-State Transmission system (ISTS)- connected wind projects under Tranche III

The Ministry of Power releases order which provides extension on the waiver of intra-state transmission charges and losses for transmission of electricity generated from solar and wind sources upto 31st March 2022.

KERC vide order dated 08 Feb 2018 makes it mandatory for DISCOMs to procure Wind power only through the process of Competitive Bidding. This is in accordance with the guidelines dated 08 Dec 2017 by MoP/GoI

MNRE vide letter 8/7/2017 dated 12 Jan 2018 issues clarification to States/UT that they can consider procuring power from Solar and wind projects of less than the defined threshhold prescribed ( 25 MW for wind and 5 MW for Solar) in the Competitive Bidding Guidelines through Feed In Tariff (FiT) to be determined by concerned SERCs. MSEDCL, Maharashtra releases RfS for procurement of power on long term basis through competitive bidding process followed by reverse e auction from 500 MW Grid connected Wind Power Projects.

New Low Wind Tariff of ₹2.43/kWh Recorded in GUVNL’s 500 MW Auction

The Forum of Regulators (FOR) released a report in December on the issues affecting open access in the country and recommended a way forward for the better implementation of open access in India

MoP releases guidelines for tariff based Competitive Bidding process for procurement of power from Grid connected Wind Power Projects

MNRE accords sanction for the scheme of setting up of 2000 MW ISTS connected wind power projects with issuance of subsequent guidelines

SECI issues RfS for setting up of 2000 MW ISTS-connected Wind Power Projects (Tranche-III)

SECI announces the five winners of the Tranche II (1000MW) ISTS wind power e Reverse auction and the lowest price discovered was INR 2.64/kWh

RERC has released final Forecasting, Scheduling and DSM regulation for wind and solar forecasting and scheduling

Karnataka Electricity Regulatory Commission (KERC) has determined the generic levelised tariff for FY 2017-18 for wind power projects@Rs 3.74/kWh

APERC released its final regulations on the forecasting, scheduling and deviation settlement mechanism of solar and wind projects in Andhra Pradesh. ( effective from Aug 21st, 2017)

Tamil Nadu Electricity Regulatory Commission (TNERC) has determined the distribution and transmission tariff for FY 2017-18.

Gujarat Electricity Regulatory Commission (GERC) has released draft regulations on procurement of Energy from RE sources

Tamil Nadu Generation and Distribution Company held a 500 MW Wind Auction where the winning price was Rs 3.42 per kWh. The projects were awarded to ReGen Powertech (200 MW), Leap Green Energy (250 MW) and NLC India (50 MW). MoP releases a consultation paper on the issues faced in operationalisation of Open Access

RPO Madhya Pradesh Electricity Regulatory Commission (MPERC) has determined the RPO percentages which are to be followed by the obligated entities of Madhya Pradesh .

Rajasthan Electricity Regulatory Commission (RERC) has determined the generic tariff for sale of wind power for the FY 2017-18.

Madhya Pradesh Electricity Regulatory Commission (MPERC) has released the proposed seventh amendment for Cogeneration and generation of electricity from RE sources of energy.

Released : 2017 Draft National Energy Policy (NEP), drafted by the NITI Aayog, takes the baton forward from the 2006 Integrated Energy Policy in setting the trajectory of growth for the energy sector. The recommendations are based on India’s energy ambitions by the year 2040

The 19th electric power survey (EPS) report is released by the Central Electricity Authority (CEA). Electrical energy requirement is expected to grow by 37% in five years, and the country needs 1,566 billion units (BUs) of energy in FY22, the report states.

TANGEDCO issues RfS document to procure wind power from these Projects through a Long Term Power Purchase Agreement up to a capacity of 500 MW considering a fixed tariff of Rs.3.46 as an upper limit.

Telangana State Electricity Regulatory Commission (TSERC) has determined the transmission tariff for the FY 2017-18 and FY 2018-19 in its order dated 1/05/2017.

Karnataka Electricity Regulatory Commission in its order dated 11th April, 2017, has approved the retail supply tariff for 2017-18.

KSERC (Kerala) has recently released its retail tariff order for FY 2017-18. There has been an increase in the tariff proposed. There has been an increase in the tariff proposed for domestic consumers. The average increase has been 5.17%. for domestic consumers. The average increase has been 5.17%.

Maharashtra Electricity Regulatory Commission (MERC) Commission (MERC) has released an order for the generic tariff for renewable energy for FY 2017-18.

CERC announced new floor and forbearance prices for Renewable Energy Certificates. These prices have become applicable from April 2017. Floor price for solar RECs have reduced from Rs 3,500 to Rs 1,000 and for Non-Solar RECs from Rs 1,500 to Rs 1,000. Andhra Pradesh Electricity Regulatory Commission has recently proposed the tariff for wind energy sources which will be applicable for the projects commissioned during FY 2017-18 . Tariff without AD Benefit is Rs 4.76/kWh and with AD Benefit is Rs 4.35/kWh

Andhra Pradesh Electricity Regulatory Commission (APERC) in its order dated 31 Mar 2017 has determined the tariff for Low Voltage (LV), High Voltage (HV) and Extra High Voltage (EHV) : Retail Sale of Electricity during 2017-18.

Madhya Pradesh Electricity Regulatory Commission (MPERC) in its order dated 31st Mar 2017 has determined the tariff for Low Voltage (LV), High Voltage (HV) and Extra High Voltage (EHV) : Retail Sale of Electricity during 2017-18. Andhra Pradesh Electricity Regulatory Commission (APERC) has released RPO percentages for the years 2017-22 vide Regulations No. 1/17 dated 31 Mar 2017

Disclaimer

1. The information contained herein has been compiled and collated from grassroots MI sources but its accuracy and completeness are not warranted, nor are the opinions or analysis which are based upon it 2. However the data is fairly accurate and is based on extensive reconciliation with relevant industry stakeholders 3. The statistical data if presented or published by the relevant government agencies in due course of time, shall prevail in all eventualities 4. “E&OE Regretted”

Researched, collated and compiled by Nitin Raikar – Associate Director (Communications) –Indian Wind Turbine Manufacturers Association (IWTMA) – [email protected]