Business India ×
  Magazine:
Business Notes

Published on: June 1, 2021, 10:27 a.m.
Wind energy's prospects are blowin’ in the wind
  • Wind energy: the future or past its peak?

By Sekhar Seshan. Consulting Editor, Business India

A tender issued by the Solar Energy Corporation India (SECI) last fortnight has set the cat among the pigeons in the country’s wind energy players. The tranche XI tender, for the setting up of a 1,200MW interstate transmission system (ISTS), says the power SECI procures from the ISTS-connected wind power projects will be sold to the distribution companies (DISCOMs) of Madhya Pradesh. 

And there lies the nub: the state in which the power is generated gets hardly any return, while the one receiving it – in this case, the Madhya Pradesh Power Management Company Limited (MPPMCL) – will laugh all the way to the bank. 

The entire power sector, according to a note by Powerica Ltd, is reeling under extreme pressure since March 2020 when the devastating Covid-19 pandemic hit the world. “Not only the execution of under-construction wind power projects has stalled, the reduced demand of electricity from commercial and industrial consumers quenched the appetite of the DISCOMs to invite future bids,” says company director Pradeep Gupta. 

While Powerica owns and operates IPP (independent power producer) wind assets totalling 253MW, with another 50 MW under construction, not a single substantial wind energy auction was concluded during the lacklustre year, he points out. “The developers’ response and the outcome of SECI’s tranche X wind auction came as a relief, getting oversubscribed and receiving bids for 3.15 GW of projects from 11 developers. This is a positive sign for the industry.”

LM Wind Power, which is a world-leading designer and manufacturer of rotor blades for wind turbines, has stepped up exports from its two Indian facilities at Dabaspet in Karnataka and Halol in Gujarat to nearly 70 per cent of production. LM manufactured over 3,500 blades in 2020. The Denmark-headquartered company also became the first carbon-neutral business in 2018. 

Other players have tripped on the way, failing for different reasons. While Siemens Gamesa has wound up operations, Indian wind energy pioneerTulsi Tanti's Suzlon went in for debt restructuring and is bouncing back.

Dr PKC Bose, vice chairman and managing director of Enercon Windenergy, on the other hand, tremendous potential in India. “We see opportunities where others see threats,” he says. “Enercon is the only company that has boldly announced plans for growth.”

“While the must-run status helps the RE (renewable energy) projects not to face any curtailment on account of weak demand during the pandemic, chronic issues like payment delay from DISCOMs and grid constraints are adding continuously to the investors’ woes,” Powerica’s Gupta says. “The recent change in weather pattern due to climate change is evolving to be a major challenge for the operational projects. The frequent occurrence of extreme weather conditions like cyclonic storms, as well as heavy precipitation and flood, not only damage the equipment but also dampen the resource availability (wind speed and solar radiation) drastically, causing a huge loss of generation and hence revenue.”

  • While the must-run status helps the RE (renewable energy) projects not to face any curtailment on account of weak demand during the pandemic, chronic issues like payment delay from DISCOMs and grid constraints are adding continuously to the investors’ woes

Other experts, too, point out that lockdowns, other restrictions and rains have caused electricity demand to dip, especially with the Taukate and Yaas cyclones hit the the west and east coasts, respectively. The country doesn’t seem to be poised to recover from this dip in the near future.

Danfoss, which helps lower the cost of energy with customised power electronics, specialises in power modules, thermal management, manufacturing and testing of power conversion equipment that helps to efficiently harness wind power, according to its India president Ravichandran Purushothaman. Through a wide range of products and technologies, the company helps in deriving the most from the wind turbine generator and reducing the cost of power conversion. 

With wind turbines often operating 24/7 and exposed to extreme weather conditions, leading to ‘enormous’ wear and tear, it is vital to prevent expensive breakdowns. Danfoss ensures the optimisation of wind turbines and power converters with its ‘Power Stack’, a high-quality power conversion assembly, which is the main building block in any power conversion system. Each customer needs its own individually-designed product, he adds.

Overall, the sector hopes that the sluggishness in electricity demand caused by the pandemic will reboot it to start it afresh where all the future capacity addition could be planned with zero contribution from fossil fuel. Though a complete switchover from thermal dependency is a distance future, multiple RE resources can co-exist and complement one another.

Wind energy major Suzlon has not wound up operation as mentioned in the earlier version. In fact the company has bounced back.

(Updated on 15-06-2021)

Corporate Report

How IRM Energy fuels growth, naturally

IRM Energy moves ahead with a clear vision towards transitioning to an energy-oriented company

Cover Feature

Air India 3.0: New wings

Irrespective of whether the final number is 470 or 840, Air India’s massive plane order is the best indication of its confident moves to reclaim its preeminent position in Indian skies

Special Report

How prepared are we to face El Nino

India gears up to tackle the heat wave and El Nino concerns which could spoil the rural party

Corporate Report

CapitaLand expands horizons

Singapore’s CapitaLand is looking to significantly enlarge its portfolio in India

E-MAGAZINE
Air India 3.0-new wings
One step forward two steps backward
Budget 2023
FROM THIS ISSUE

Corporate Report

Technology

Government

Government

Business Notes

Business Notes

Agriculture

The introduction of black pepper as an inter-crop in the sopari and coconut orchards, has enabled farmers to cultivate crops simultaneously

Skill Development

In 2020-21, the programme reached over 112,482 girls in urban and rural locations across six states in India, including 10,000 across Delhi

Collaboration

The event brought together stakeholders and changemakers to participate in a series of conversations on global trends and recent developments

Healthcare

The programme will focus on educating children on oral health and building awareness around the dangers of tobacco use

Airports

Airports set green deadline

Published on March 24, 2023, 12:01 p.m.

Currently Mumbai, Cochin and 25 other airports are using 100 per cent Green Energy

Government and Policy

TN plans to make RE share 50 per cent by 2030

Published on March 24, 2023, 11:44 a.m.

Tamil Nadu is banking high on renewable and green energy

Renewable Energy

Global green investment to triple by 2030: EC

Published on March 24, 2023, 11:22 a.m.

The bloc has also set a goal for carbon capture of 50 million tonnes by 2030

E-vehicles

Ola to raise $300m for expansion

Published on March 24, 2023, 11:03 a.m.

The fundraising would be managed by investment bank Goldman Sachs