E-Copy Power Insight -Vol 9 - Issue 3 by Vision Media Group

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RNI No.:MAHENG/2010/39548

Vol. No.9

Issue No. 3

August - September 2018

Mumbai

Cover Focus

Wind Power- India

Lost Momentum Wind energy developers in India are struggling to add capacity amid low tariffs and poor connectivity to the grid.

Industry Insight

Transformer Industry

Market Review

Special Feature

Solar PV EPC Market

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Efficiency Drive in Thermal Power |

Power Insight

August - September 2018

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EDITOR’S NOTE Goverenment is exploring every Avenue to scale the share of renewables in the energy mix

ndia has ambitious plans to almost double its wind energy capacity to 60GW by 2022, from about 34GW at present. In the last 12 to 15 months, the Solar Energy Corporation of India (SECI), and state utilities in Tamil Nadu, Maharashtra and Gujarat issued tenders for a total of 8GW of wind energy. However, wind energy developers in India are struggling to add capacity amid low tariffs and poor connectivity to the grid. The industry added 1.7 GW in the last fiscal year, trailing a target of 4GW set by the government. Further, in August 2018, a 2GW wind power tender had to be cancelled as it failed to muster adequate subscriptions on account of wind developer’s reluctance. Looking at the current scenario, the wind energy sector that was expected to return to growth this year, is looking increasingly unlikely to touch 2GW. Solar power is no different. Due to the uncertainty around the safeguard duty, auction activity in the first half of 2018 was weak for the large-scale project pipeline. Thus - 2019 is also projected to be flat compared to 2018. Industry mainly blames the lack of power evacuation infrastructure for the slow pick-up in new wind projects. Government is now pushing for wind solar hybrid. In June 2018, SECI released a request for proposal tender for setting up 2,500 MW of ISTS-connected wind-solar hybrid power projects (Tranche I). The Indian government’s new wind-solar hybrid policy states that its main objective is to “provide a framework for promotion of large grid-connected wind-solar PV (photovoltaic) hybrid system for optimal and efficient utilisation of transmission infrastructure and land, reducing the variability in renewable power generation and achieving better grid stability. It also aims to encourage new technologies, methods and way-outs involving combined operation of wind and solar PV plants. The policy is likely to provide an additional thrust towards increasing the installed capacity of renewable energy, although there are a few problems on the ground as wind and solar technology deployments are still in their infancy. It is extremely important to have wind data for the selected project site so as to ensure successful wind-solar hybridization.....

Pankaj V Chauhan Editor - Power Insight

Email : pankaj@vision-media.co.in

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Power Insight

August - September 2018

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Editor:

Pankaj V Chauhan

Cover Focus Wind Power - India

Marketing & Sales:

To meet the set target of a 60 GW through wind by 2022 requires an addition of around 6 GW fresh capacities per annum, but the pace has begun to slacken and it seems a distant dream looking at the prevailing scenario. ...

Navin SIngh

marketing@vision-media.co.in

K. Pushpageetha

geetha@vision-media.co.in

Creative Head:

Lost Momentum 20 Need for Hybrid

Prashant S. Kharat

Graphic Designer: G. Sanjay

Production Head: Shantanu Singh

Printed, Published & Owned by

There is need for wind-solar hybrid projects as it can help achieve better load management, transmission capacity allocation and land utilisation..

PANKAJ V CHAUHAN

Printed at

India, being blessed with vast coastline has been contemplating on the idea of building offshore wind farms to expand its wind energy portfolio. Going with preliminary studies that have indicated good wind potential for off-shore wind power both in southern tip of Indian peninsula and west coast - India is all set to tap on the same.

Published from

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Editor: PANKAJ V CHAUHAN RNI. NO. : MAHENG/2010/39548

Special Feature

Efficiency Drive in TPP

All right reserved while all efforts are made to ensure that the information published is correct, Power Insight holds no responsibility for any unlikely errors that might have occurred. The information on products & projects is being provided for the reference of the readers. However, readers are cautioned to make inquires & consult experts before taking any decision on purchase of equipment or investment. Power Insight holds no responsibility for any decision taken by readers on the basis of information provided herein. All disputes are subjected to Mumbai Jurisdiction only.

August - September 2018

Dr. Govind Bhagwatikar - COO & Director Sany Wind Energy India

22 India Ready to Tap Offshore Wind Power

MAGNA GRAPHICS (INDIA) LTD., 101, C & D GOVT. IND. ESTATE, KANDIVLI (WEST), MUMBAI 400 067

25 Interview - SANY Wind

The policy efforts have been taken to ensure that future capacity additions in thermal power sector are based on supercritical technology - in a drive to improve the efficiency of coal-fired units....

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Regulars

03 06 08 12 44 46

Editorâ&#x20AC;&#x2122;s Note Conventional Updates Renewables Updates T&D Sector Updates Communication Features Events Diary

Whatâ&#x20AC;&#x2122;s Inside

Market Review

Solar PV EPC Solar EPC Market - India There is rise in number of players in Indian solar EPC market. Further, since large IPP and integrated utilities are likely to develop internal EPC capabilities for cost optimization on account of falling tariffs in the market â&#x20AC;&#x201C;consolidation drive is expected in the Indian solar EPC market.

Solar EPC Challenges

Product Review - SUNGROW - SG3125HV Inverter

Indian solar sector presents huge opportunity for EPC contractors over the next couple of years. However, the EPC industry is faced with set challenges on account of changing market dynamics and bureaucratic hurdles.

Sungrow released its grid support utility-iterative inverter to help solar plant face no risk to interact with the utility. The inverter will also fetch much more benefits for the solar industry...

Industry Insight

Transformer Indsutry Indian Transformer Industry Indian transformer industry expects a strong demand coming from government programs and investments that support the growth of the T&D grids.....

The Green Choice

Transformer Industry Challenges

Eco-friendly, Efficient and Economical the new concept of Green Transformers - is an answer to growing environmental concerns..

Indian Transformer industry is prone to certain challenges which need to be addressed for industry to grow smoothly and to become more competitive at global level...

Next Issue Editorial Attraction Sector Focus: Solar Power Sector Indsutry Insight Transmission Towers & Structures Market Review Energy Management & Efficiency Special Feature Meters & Metering Solutions Special Feature Capative Power

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August - September 2018

Conventional News

NEWS UPDATES Thermal Power

Resolution soon on 7-8 stressed power assets worth Rs 17,000 crore: Arijit Basu, MD - SBI State Bank of Indiamanaging director Arijit Basu said today that about 7-8 power sector projects worth Rs 17,000 crore are expected to be resolved soon as lenders are nearing consensus on these.

Thermal Power

Tata-backed Resurgent Power acquires 75 per cent in Jaypee’s Prayagraj Power

There are about 34 stressed power projects and the combined value of their outstanding loans is about Rs

Tata Power and ICICI Ventures backed Resurgent Power today said it has acquired 75.01 per cent stake in Jaiprakash Associates’ 1980-Mw Bara plant, becoming the first of the stressed power plants to have been resolved by lenders outside insolvency court.

India’s thermal coal consumption to reach 1,076 MT by 2022-23: CRISIL Ratings agency CRISIL said that driven by a 6.5 per cent growth in coal-based power generation in India, the consumption of non-coking coal is expected to grow at a compound annual growth rate (CAGR) of 5.4 per cent to reach 1,076 million tonne (MT) in 2022-23.

Lender to Prayagraj Power Generation Company Limited (PPGCL), a 3X660MW coal-based power project based in UP, have issued a Letter of Intent to Resurgent Power Ventures Pte Ltd for acquisition of 75.01 per cent stake in PPGCL, an official statement said.

“The growth will ride on increased production from Coal India Ltd and commissioning of large captive coal blocks such as Pakri Barwadih, Parsa East and Kente Basan -- each having 15 million tonnes per annum capacity -primarily allotted to PSUs,” the research agency said.

The estimated deal value is about Rs 6,000 crore, while the debt stands at around Rs 12,000 crore.

Power projects heading to NCLT may get to retain fuel supply pacts

Power projects referred to the National Company Law Tribunal (NCLT) lose their fuel supply agreements (FSAs) with Coal India Ltd, power purchase agreements (PPAs) with state governments, and longterm transmission contracts with Power Grid Corp of India.

network access rights.

It is being considered that stressed thermal assets that are referred to the insolvency court may retain their coal and power supply and long-term transmission

Experts feel that if the government asks the public sector utilities to retain the contracts and they oblige, the projects will attract more investors and higher bids.

August - September 2018

“We have looked at 13-14 accounts which would entail changes in management, investment etc. Out of these, 7-8 accounts we are looking at very closely, to get some consensus among the banks,” Basu said on the sidelines of an event here.

Thermal Power

1.74 lakh crore.

The high-level empowered committee, constituted by the Prime Minister’s Office, considered these special dispensations to the troubled projects to help their lenders recover a fair value.

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Thermal Power

NTPC turns down lenders’ proposal to buy the stressed power assets State-run utility NTPC has turned down a proposal from bankers, led by State Bank of India, to buy the stressed power assets estimated to be close to Rs 1.9 lakh crore, signalling it would be interested in studying the plan under the bankruptcy process which could help it pay lower rates rather than bilateral deals with lenders. NTPC has said it is eyeing stressed assets for acquisitions on its own and even through joint ventures with other public sector companies, but has not bid for any projects yet. It is on the lookout for power units which have powerpurchase agreements and fuel linkage, which come up for bids through bankruptcy route to

NEWS UPDATES Thermal Power

Thermal Power

NTPC board approves Rs 9.7k crore investment plans for Talcher plant

Hindustan Power looking to acquire stressed thermal power plants

NTPC’s board has approved an investment of Rs 9,785 crore for the 1,320 MW StageIII expansion of its Talcher thermal power plant in Odisha, a source said. The Talcher plant, one of the oldest and top performing power stations in the country, is situated in Angul district of Odisha. The 1,320 MW expansion is a brownfield project. The plant has four units of 60 MW and two units of 110 MW. The existing

capacity is operational. According to media sources, the board has approved the 2x660 MW - Stage III expansion of Talcher Thermal Power Station of NTPC at an investment of Rs 9,785 crore. NTPC’s long term corporate plan envisages becoming a 130 GW company by 2032.

Thermal Power

Shivraj Singh Chouhan announces 660-MW power plant in Sarni M Shivraj Singh Chouhan announced in Sarni town that state government will soon set up a new 660 mw power plant in Satpura.

Nuclear Power

India meets all qualifications to be member of NSG: US India has not been able to secure membership of the Nuclear Suppliers Group because of China’s veto, a senior Trump Administration official said asserting that the US will continue to advocate for New Delhi’s membership in the elite grouping as it meets all the criteria. India has been seeking entry into the 48-member elite nuclear club, which controls nuclear trade, but China has repeatedly stonewalled its bid. While India, which is backed by the US and a number of western countries has garnered the support of a majority of the group’s members, China has stuck to its stand that new members should sign the Nuclear Non-Proliferation Treaty (NPT), making India’s entry difficult as the group is guided by the consensus principle. India is not a signatory to the NPT.

Addressing people during his Jan Ashirwad Yatra, Chouhan said that government has made all preparations in the regard. He also announced that two coal mines will also be started in the region to meet the requirement for the power plant.

Hindustan Powerprojects is looking to acquire stressed thermal power plants, besides bidding for renewable energy projects in India. The private power producer, which had earlier put in a bid for Avantha Power’s 600 Mw Jhabua power plant, has no plans to expand its capacity through new projects but is open to buys. With 6,000 Mw of power generation capacity, the firm has presence across thermal, hydro and solar power sectors. On the renewable side, the company would bid for new projects since, according to Puri, thermal assets in distress were better than picking up stressed green power projects. At the same time, the company would be looking at opportunities overseas, especially in the Far East for solar power projects.

COAL

CIL aims aspirational production of 652 million tonne for FY19 Coal India Ltd (CIL) is optimistic about an aspirational production target of 652 million tonne for the fiscal year 2018-19, the mining major’s Chairman A K Jha said. The state-run company is also planning to rationalise costs by closing down 53 underground mines this fiscal, Jha said the sidelines of the company’s 44th AGM. Supply to the power sector is estimated at 525 million tonne for the fiscal, as against 454 million tonne in 2017-18, Marketing Director S N Prasad said.

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August - September 2018

NEWS UPDATES Solar Power

Renewable News

Solar Power

South Western Railway goes solar

Wind power tariffs climbed up in NTPC’s 1,200 Mw auction

The South Western Railway (SWR) has installed solar panels in 19 buildings, including railway stations, workshops and offices, with a total capacity of 3,605kilowatt-peak (kWp).

Tariffs climbed substantially in the latest reverse auction of 1,200 MW of wind power projects, held by NTPC. The lowest bid came from Sprng Energy, the renewable energy platform of London-headquartered private equity fund Actic LLP, which won 200 MW by offering to supply power at INR 2.77 per unit. Local developer Mytrah Energy won 300 MW at INR 2.79 and Singapore-based Continuum won 50 MW at INR 2.80. Both Renew Power and Hero Future Energies sought 300 MW at INR 2.81 and INR 2.82, respectively. French state-run EDF won 50 MW at INR 2.83 per unit.

According to statistics, the SWR Hubballi workshop tops in solar power capacity with 1,045kWp, followed by the Mysuru workshop (500) and the DRM office Hubballi

Solar Power

Rays Power, Delhi-based solar EPC company has announced it venture into the retail segment. The government’s initiative to subsidize rooftop solar, especially in the residential and domestic sector, has enabled the firm to step into the retail segment through its group company Rays Future Energy. The company plans to launch around 10 operational stores in the first year of its operations and expand to over 70 stores by 2020 covering major cities in India. The solar development firm will commence its first outlet in Gurgaon by the end of November 2018. The company already has a presence in the B2B solar power segment and commissioned projects over 650 Megawatt.

Initially, NTPC was aiming to auction 2,500 MW of projects, but got bids only for 2,000 MW. After this, it reduced the tender to 1,200 MW.

Renewable Power

Indian RE sector to see strong growth, favourable policy support: HSBC Report

The solar sector will continue to receive favourable policy momentum, especially given India’s leadership role in the International Solar Alliance, it added.

August - September 2018

The annual energy requirement of KSR railway station is 3.13 million units and about 13.9% of it is now being met by solar panels.

Rays Power Infra enters solar retail segment

The last auction in April, carried out by Solar Energy Corporation of India (SECI), had seen prices of INR 2.51-2.52. Industry experts attributed the increase to higher finance cost and limited availability of transmission facilities.

According to the global financial services major HSBC recent report, RE sector in India is expected to see strong growth and favourable policy support going forward as traditional fossil fuel power projects are facing growing transition risks.

(320). With 290 kWp, Bengaluru City (Krantiveera Sangolli Rayanna) railway station has the maximum capacity among railway stations.

According to the report, fiscal year 201617 was a turning point for renewables as newly installed capacity (11GW) surpassed that of newly installed coal (7GW) for the first time. “An additional 12GW of renewables (mostly wind and solar) was installed between April 2017 to May 2018, more than double that of coal power plants (5GW),” the HSBC report noted.

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Renewable Power

Magenta Power appoints Arun Rao as DirectorMarketing Renewable energy company Magenta Power has announced the appointment of Arun Rao as Director (Marketing) on the company’s board. Rao has over 24 years of experience and has worked with multinationals firms such as BASF Ltd and First Source Solutions Ltd in the past. In his new role, he will lead Magenta’s marketing program, developing and executing a diversified strategy for the Indian market, the firm said. “Arun will play a very instrumental role in taking magenta to the next level, and we are looking forward to working closely with him over the coming years,” said Maxson Lewis, Director, Magenta Power.

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August - September 2018

NEWS UPDATES Solar Power

Solar Power

Maharashtra plans to install floating solar panels in dams

Merino Group inaugurates Haryana’s first open access solar plant

The Marathwada Statutory Development Corporation (MSDC), a body formed by the state government, has come up with a plan to erect floating solar panels in the backwater of the two dams falling under its jurisdiction. Jayakwadi dam, located in Aurangabad district of Central Maharashtra, and Ujani dam in Solapur district of Western Maharashtra, will be the sites of the solar power generation project.

A study in this regard is in an advanced stage at the Ujani dam, while the Jayakwadi dam was later added to the project.

Solar Power

Rooftop solar power tariff drop to record lows

Rajashtan eyes solar projects of 2000 MW from recent auctions

Developers bid record low prices to sell power from solar projects to be built on rooftops of government and private buildings in auctions conducted by the Madhya Pradesh.

Rajasthan is a prime candidate to get more than half of the 5180 megawatt solar projects auctioned in the past two months by Solar Energy Corporation of India (SECI), NTPC and Maharashtra government under the open access system.

The lowest bid came in at INR 1.58 (2 US cents) per kilowatt-hour, the lowest ever in the country, the state government said in a statement on Tuesday. The

Merino Panel Products Ltd. (MPPL) has announced the launch of a 5.5 MW captive open access solar power plant in Hisar. Commissioned by Sunsure Energy, the plant was inaugurated by group chairman C. L. Lohia. This is the first captive solar power plant in Haryana to deliver power under the open access mechanism. MPPL will draw more than 9 million units (kWh) of electricity from this plant every year for consumption in its manufacturing unit in Bahadurgarh, Haryana.

With its own 1500 MW projects coming up, the state now sets sights on a cumulative capacity of 7500 MW in the next two years which can put the state ahead of Karnataka which now has the maximum capacity in the country. Currently, Rajasthan generates 2300 MW power from solar sources and the capacity is set to increase to 3800 MW as two projects having 750 MW each will be commissioned by April 2019.

The plant has first of its kind in terms of the power delivery model, it is also the first to use single-axis tracking at this scale (5.5 MW) in the State of Haryana. This design enables the plant to deliver up to 15% more energy than the more common fixed-tilt plants.

Renewable Power

Renewable energy prices set to fall further: Deloitte remaining bids ranged from INR 1.69 to 2.35.

The tariffs are valid for one year and will escalate by 3% annually for 25 years.

Renewable energy sources, notably solar and wind, are reaching price and performance parity on and off the grid globally and, as technologies continue to advance their deployment, prices will likely continue to fall, according to a study by accounting and consultancy firm Deloitte.

The tender in Madhya Pradesh is being implemented as part of India’s larger rooftop solar program with support from the World Bank and International Solar Alliance.

Three key enablers -- price and performance parity, grid integration, and technology -- allow solar and wind power to compete with conventional sources on price, while matching their

The projects will service municipal and police buildings, colleges, industrial training and polytechnic institutions, as well as some private entities.

August - September 2018

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performance, according to the report “Global Renewable Energy Trends” released recently. The report states wind and solar power are now viewed as a solution to grid balancing rather than an obstacle. Also, automation and advanced manufacturing are improving the production and operation of renewables by reducing the costs and time of implementing renewable energy systems.

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with special exhibitions

GET THE BEST OF THE WEST – SAVE THE DATE FOR: Intersolar India in Mumbai, April 4–5, 2019

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August - September 2018

NEWS UPDATES Power Distribution

Power Ministry brings Electricity Amendment Bill back on the table

T&D News

Power Transmission

PowerGrid looking at INR 50,000-cr opportunity in green transmission corridors PowerGrid Corporation of India Limited (PGCIL) expects a market opportunity of INR 50,000 crore for setting up Green Energy Evacuation Corridors in India by 2022. Chairman and Managing Director, PGCIL, IS Jha stated on the sidelines of the second RE-invest conference, that the centre has set a target to add 100 GW of solar power generation capacity in the grid. This will require an additional transmission capacity of at least 60,000 MW by 2022. He further added that the demand has started picking up from the renewable energy sector after a slowdown in the demand for transmission projects for the past few years as the addition of conventional power generation capacity has tapered during the period.

The Power Ministry has sought comments on a revised draft of the Electricity Amendment Bill which seeks to separate carriage and content businesses to enable consumers to switch their power suppliers as they do for telecom services. The feedback on the revised Electricity Amendment Bill 2018 has been sought within 45 days. The

Tax officials are working on a proposal to link electricity connection of some manufacturers with GST identification numbers (GSTIN) to keep a tab on power consumption. Although the measure was to be implemented after the original returnfiling system stabilised, but due to cumbersome design and technical glitches, the triplicate return format was suspended last year. Taxpayers have since been filing the summary return GSTR-3B and the GSTR-1, which contain outward sales details.

MSEDCL has started converting agricultural feeders to solar. Initially, 500 MW load will go solar. Energy minister Chandrashekhar Bawankule has decided to convert entire farm pump load to solar by 2025. According to media sources, in the first phase solar plants will be set up for agricultural feeders having load of 200 MW. In the next phase, 300 MW will go solar. We have issued letters of agreement (LoAs) to two agencies for 150 MW and 50 MW. The solar projects in the first phase will be completed in 2018, while the second phase will be over by 2019. Once these projects are completed, farmers will get power during the day instead of night hours.

August - September 2018

Power Insight

The panel gave its report in September, 2015. The revised bill is now circulated on the basis of recommendations of the panel and consultations.

Power connections of some manufacturers may be linked with GSTIN

Maharashtra power utility starts converting agricultural feeders to solar

According to the draft circulated online, the Electricity Amendment Bill 2014 was introduced in the Lok Sabha on December 19, 2014 and subsequently referred to Parliamentary Standing Committee on Energy.

Power T&D

Power Distribution

draft has been circulated among all related government agencies, departments, regulators, PSUs and industry bodies.

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Power Transmission

Private players want committee on power transmission reconstituted Concerned over the bias being shown towards Power Grid Corporation of India Ltd (PGCIL) for building transmission network, the private players are knocking at the doors of the Prime Ministerâ&#x20AC;&#x2122;s Office. The private sector players have sought reconstitution of the National Committee on Transmission to accord a level-playing field for them. The NCT has been tasked to constitute the Bid Evaluation Committee (BEC) for a Tariff-Based Competitive Bidding Projects besides other mandates. In a representation to the Centre, industry bodies allege that presence of the Chief Operating Officer of PGCIL on the NCT gives an unfair advantage to the Central transmission utility in these projects.

INDIAN PARTNER OF

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August - September 2018

NEWS UPDATES Power Transmission

India seeks Bangladesh’s cooperation for East-West Electricity Transmission Network India is seeking a corridor facility from Bangladesh in order to facilitate electricity transmission via 765 kV transmission line to India’s western parts from its eastern parts. This transmission infrastructure is slated to transmit approximately 4,000 MW of hydro power of which, Bangladesh will have an option to buy up to 1,000 MW.

still not matured and is yet to complete feasibility study, but India is seeking a nod from the Bangladesh government to connect Arunachal-Bihar super highway grid through proposed Jamalpur-Dinajpur grid line of Bangladesh. India’s north-east has a potential of 33,100 MW of hydro power, but is untapped because of the low demand of electricity while absence of a power grid hinders supply of excess electricity to its western parts. Electricity transmission from north-eastern India to western parts of India requires a corridor through Bangladesh due to geo-political boundaries.

According to the report, the project is

Power Transmission

CERC Issues Regulations for Seamless Implementation of ISTS Across the Country

Power Distribution

Government is injecting competition in the power distribution sector: Power Secretary Power Secretary Mr Ajay Kumar Bhalla said that the government is injecting competition in the power distribution sector through content and carriage reforms to make the supply of power consumer-friendly. Speaking at a workshop on Ensuring Sustainability of India’s Electricity Sector Through Tariff Reforms, Industry Involvement and Innovative Business Models’ organized by FICCI jointly with Shakti Sustainable Energy Foundation and PwC, Bhalla stressed on the need for the regulators to be market-oriented and stakeholder-friendly. The prevailing tariff structure across the states are complex, non-uniform and do not adequately reflect the costs that are incurred in power supply. Tariff reforms can act as a powerful tool to tackle issues pertaining to financial distress in the distribution sector, high levels of cross subsidies, peak power deficits, and lack of competition in the sector.

August - September 2018

The Central Electricity Regulatory Commission (CERC) has published regulations for ISTS (Inter-State Transmission System) implementation in the official gazette. These regulations have been in force since July 23, 2018.

Power Transmission

Center’s nod to 200-km Wangtoo power transmission line The Centre has given nod for the laying of a transmission line near Wangtoo to evacuate power from the tribal districts of Kinnaur and Lahaul Spiti. Several mega projects have been in the pipeline but not executed for want of a transmission line. A high-level team from the Central Electricity Regulatory Authority and Powergrid visited the area to assess the feasibility of the almost 200-km transmission line which would cost over Rs 3,000 crore. Earlier, there was a proposal to have a provision for power evacuation through the Rohtang tunnel but since the move did not materialise, Himachal had been keen that a transmission line was laid to be able to evacuate power from Kinnaur and Lahaul Spiti.

The regulations have been issued in order to lay down the broad principles, procedures and processes to be followed for planning and development of an efficient, coordinated, reliable, and economical system of inter-State transmission system (ISTS) for the smooth flow of electricity from generating stations to the load centers.

Power Transmission

HVDC Back-to-Back Link Commissioned Between India and Bangladesh Siemens has fully commissioned the second block of the high-voltage directcurrent (HVDC) back-to-back link in Bheramara, Bangladesh, to connect the electricity supply networks of India and Bangladesh with a transmission capacity of up to 500 MW. Block 1 has been in operation since 2013 and offers a transmission capacity of up to 500 MW. With Block 1 and 2 operating in parallel, the Bheramara HVDC back-to-back link has a capacity of up to 1000 MW – the highest reliable power capacity in Bangladesh. On July 27, 2018, the trial run was successfully completed; however, Block 2 has been put into commercial operation since July 2, 2018, to support the customer’s operating needs.

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August - September 2018

Special FEATURE

Efficiency drive for Thermal Power Plants The policy efforts have been taken to ensure that future capacity additions are based on supercritical technology in a drive to improve the efficiency of coal-fired units....

nderstanding the key role of supercritical and ultra-supercritical technologies for coal-based power plants in addressing grid security and environmental concerns, the government is giving an increasing emphasis on the development of the same. As on date, many conventional units with supercritical technology are already operational in the country and a number of ultra-supercritical units are also under construction.

MW have been commissioned in the country. It has been observed that power units based on supercritical technology help in increasing the efficiency of such units by 2-3 per cent as they are designed with higher steam parameters of 247 kg per cm2, 565/593 Â°C. This increases the efficiency of such units by 2-3 per cent. This

The policy efforts have been taken to ensure that future capacity additions are based on supercritical technology in a drive to improve the efficiency of coal-fired units. Power Insight gives an insight into the uptake of these technologies in the Indian coal-based power generation segment while taking a look at the recent developments in the space

Super & Ultrasuper Technology During the period of 5 years between 201213 and 2016-17, supercritical power plants accounted for around 42 per cent of the total capacity addition in the coal-based power segment. Especially, 36 units based on supercritical technology have been commissioned by the private sector of the total 51 supercritical units commissioned during the period. As of January 2018, 60 supercritical units of 660 MW and 800 MW with a total capacity of 41,310

August - September 2018

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Special FEATURE results in corresponding savings of coal consumption as well as reduction in greenhouse gas emissions. On the other hand, ultra-supercritical plants operate at higher temperature and pressure (approximately 600 °C and 32 MPa), resulting in higher efficiency. These plants require less coal per kWh of electricity generated and generate lower CO2 emissions. The efficiency of these plants is as high as 44 per cent. However, the extreme operating parameters impose stringent restrictions on materials. Meanwhile, advanced ultra-supercritical projects are currently at R&D stage worldwide. In India, an R&D project has been taken up to indigenously develop advanced ultra-supercritical (A-USC) technology with steam temperature of around 700 °C, under the national mission for the development of clean coal technologies. NTPC, the Indira Gandhi Centre for Atomic Research and Bharat Heavy Electricals Limited have signed an MoU for the development of A-USC technology. Under the MoU, an 800 MW A-USC indigenous demonstration plant (with main steam pressure of around 300

kg per cm2 and temperature of 700 °C) will be set up during a seven-year period from the date of financial sanction by the government. Of this, two and a half years will be provided for design and development work, and four and a half years for power project construction

Other Technology Integrated gasification combined cycle (IGCC) integrates a coal gasifier, a gas clean-up system and a gas turbine in combined cycle mode for coal gasification with either oxygen or air. The resulting synthesised gas (or syngas) primarily consisting of hydrogen and carbon monoxide is cooled, cleaned and fired in a gas turbine. Furthermore, IGCC technology provides opportunities for new product areas along with liquid fuel generation, hydrogen production, pre-combustion CO2 capture and integration of fuel cells, which may provide future options of zero emission coal technologies with higher efficiency. On the other hand, Fluidised bed combustion (FBC) is a method of burning coal in a bed of heated particles

suspended in gas flows. At sufficient flow rates, the bed acts as a fluid for the rapid mixing of particles. Coal is added to the bed and the continuous mixing leads to complete combustion and a lower temperature than that of pressurised fuel combustion. The reduction in SO2 and NO2 emissions in the combustion chamber without the need for additional control equipment is one of the major advantages of furnace combustion. In addition, they offer flexibility in terms of the quality of fuel. Even fuels like flotation slimes, washer rejects and agro waste can be burnt efficiently.

Policy Measures According to the latest available CEA statistics, while the national average thermal efficiency of coal/lignite-based power plants increased from 32.53 per cent in 2009-10 to about 34 per cent in 2013-14, it is expected to further improve during 2017-22 with the commissioning of large size supercritical units. To encourage the adoption of supercritical technologies, the government has also formulated a policy on the automatic of letter of assurance/coal linkage (granted to old plants) to new plants in the case of replacement of old units with new higher efficiency supercritical units. As per plans during the period 2017-22, coal-based capacity addition in the country will be largely based on supercritical technology. As of April 2018, a capacity of 44,480 MW of supercritical units is under construction in India. While 19,740 Mw is under central sector, another 15,500 MW is under state sector and around 9,240 MW is being constructed by private sector. Further, as per estimate of Central Electricity Authority (CEA) about 20.69 million tonnes of CO2 emissions have been avoided due to commissioning of supercritical technology-based units. These figures have reached assuming that a business-as-usual scenario would have been commissioning of subcritical technology-based units - in the analysis done. n

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August - September 2018

Cover FOCUS

Cover Focus

Wind Power

Lost Momentum

he installed wind energy capacity share in Indiaâ&#x20AC;&#x2122;s renewable energy mix may be impressive. As of July, Indian Wind Turbine Manufacturers Association pegged operating wind capacity at 34,393 MW, or about 57% of the 60,000 MW target set by the government for the five-year period. To meet the set target of a 60 GW through wind by 2022 requires an addition of around 6 GW fresh capacities per annum, but the pace has begun to slacken and it seems a distant dream looking at the prevailing scenario. Financial year 2016-17 was a record year for the Indian wind power segment. With about 5.5 GW of wind capacity addition, the country emerged as the fourth largest wind energy market in the world. However, the financial year 2017-18 witnessed a major slowdown in the segment with only 1.7 GW of fresh

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capacity addition during the last fiscal year ending March 2018.

Changing Dynamics Since the adoption of the reverse bidding, wind industry has been facing several issues that have changed the prevailing market dynamics. While, on one hand the competitive bidding mechanism has resulted in taking the wind tariffs at an all-time low, making it a preferred choice for discoms. However, on the other hand it has created a short-term pressure on the value chain, questioning on the projects viability. Today, the developers are discouraged as seen by their reluctance from participating in the new tenders â&#x20AC;&#x201C; mainly on account of declining tariffs coupled with unavailability of adequate transmission infrastructure. Margins have shrunk for original equipment manufacturers (OEMs) in India. With

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the withdrawal of generation-based incentive and reduction in rates of accelerated depreciation coupled with decline in tariffs - there is very little scope for OEMs to make money. On the other hand the inadequate power evacuation infrastructure is adding to the anguishes of the industry. In July 2018, a 2,000 MW wind power tender issued by SECI had to be cancelled as it failed to muster adequate subscriptions due to transmissionrelated issues. The SECI Tranche V tender was then re-issued with a lower capacity of 1,200 MW. This time, it has been oversubscribed but the financial bids are yet to take place. Also, in July 2018, Gujarat Urja Vikas Nigam Limited (GUVNL) cancelled its 500 MW wind tender, launched under Phase II of its wind programme. The scope of work for the GUVNL tender included the development of wind projects along with the requisite

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Cover FOCUS transmission infrastructure up to the delivery point. The shortage of transmission could also have played a role in the cancellation of this tender. A total of about 9 GW of wind energy tenders have been issued, since February 2017. Another 8-10 GW is proposed to be awarded in 2018-19 and 10 GW in 2019-20. Though it seems in line MNRE project awards announcement in November 2017 to achieve the cumulative wind capacity target of 60 GW by 2022, however the reluctance from developer on account of prevailing challenges is slowing on the growth of the segment.

Targeted / Actual Wind Capacity Additions in India (FY19 - is upto - July 2018) 6,000

5,000

4,000

3,000

2,000

1,000

Evacuation Hurdles Currently, the biggest challenge faced by the wind industry is evacuation of power from sites chosen by the developers to install wind farms, particularly in the case of large wind farms requiring connectivity to the interstate transmission system. Gujarat and Tamil Nadu are two states with high wind sites and can accommodate a huge capacity. It was seen that in the last four SECI auctions a huge bid capacity of about 2.6 GW came up in Bhuj, Gujarat. However, the evacuation infrastructure was inadequate to support to such high capacities. Though, this issue is under consideration and is set to be resolved soon - as Power Grid Corporation of India Limited’s (PowerGrid) has already issued tenders to develop 10 GW of transmission capacity – 5 GW each in Gujarat and Tamil Nadu. However, the new problem is that both these projects will be able to support only around 5 GW of capacity, which is expected to be commissioned in a phased manner between October 2018 and April 2020. The other side of the picture is more concerning; while PowerGrid would take 2 to 3 year to expand the existing transmission infrastructure for carrying additional wind power. The project developers, on the other hand, have a deadline of 18 months. SECI is working on the future methodology, bearing this issue in mind and a plan for 67 GW of transmission capacity augmentation

0 FY13

FY14

FY15

Targeted capacity addition (MW)

has been developed, which is under approval.

Key Challenges One of the issues that need to resolve completely is honouring of power purchase agreements (PPAs) as discoms have attempted to renegotiate PPA in the past. If there is any violation on same it will have an adverse impact on industry and will dampen the interest of the investors and financial institutions. In addition, the industry is facing the challenges of declining margins as the earning on equity internal rate of return (IRR) has come down to just about 9 per cent against IRRs of 18-20 per cent achieved with feed-in tariffs (FiTs). Industry experts have cautioned developer that aggressive bidding in order to tap greater capacities may result into a heavy debt cycle leading to a situation of non-performing assets (NPAs in the wind sector. It has been fortunate that the winners under all auctions so far have been large entities, mostly backed by international financiers and global strategic players in the power space. Currently, the small companies’ difficulty in raising cash is keeping them away from

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FY16

FY17

FY18

FY19

Actual capacity addition (MW)

government-led power project auctions, restricting their growth and crippling their ability to refinance loans. Thus, one of the impacts of these auctions, therefore, is a greater level of consolidation in the segment. In addition, project execution is becoming tougher day by day as the size of wind turbines is increasing. This is putting pressure on transportation and erection infrastructure. Also, issue related to right-of-way are becoming complex causing hindrance in large project development. All this calls for certain regulatory modifications and policy changes that could help put into place the accelerate growth in the wind power segment.

Way forward: The wind energy sector was expected to return to growth this year, but is increasingly looking unlikely. Policy and regulatory changes have upset the project calculations. In addition, the new bidding regime and enhanced execution timelines have prolonged the transition. Energy infrastructure constraints are also making developers wary. If the government fails to give a timely push to the sector, we are sure to some undesirable dents on the health of the sector. n

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Cover Focus

Wind Power

Need for Hybrid Amid evacuation constraints, the allocated transmission capacity can support a higher-capacity hybrid project. It is also seen that wind and solar generation throughout the day and seasons suggest great complementarity — wind generation peaks when solar generation is low and vice versa — across the region. Taking these factors into consideration, hybrid projects can help achieve better load management, transmission capacity allocation and land utilisation.....

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hen we talk of India’s renewable energy drive - the two segments that have made a notable progress in recent years are wind and ground mounted solar power. The country’s installed capacity stood at around 35 GW for wind and 22 GW for ground-mounted solar at the end of July 2018. However, there are certain drawback of these two renewable energy sources that could be dealt with to a large extent through a wind –solar hybrid project. In addition, hybrid plants also allow the power producers to tap into multiple energy sources simultaneously, and generate more power from a given site.

Complimenting Advantages Industry experts believe that India is an ideal market for hybrid projects, given that nearly all of India’s major wind states, such as Tamil Nadu, Gujarat, Rajasthan, Karnataka and Maharashtra, also have good solar potential. Since hybrid projects offers complimenting advantages, it will allow power producers to make better use of the land and the electricity transmission infrastructure which make up around 25% of the cost of a renewable energy plant. n Optimum use of Transmission infrastructure: When sited individually, wind and solar projects are allocated a transmission capacity equivalent to their rated capacity. As both wind and solar do not generate at their rated capacity for a majority of the time, it results in an underuse of the transmission capacity. As the current transmission infrastructure in the country is inadequate to handle the increase in clean energy capacity, and hybrid projects will help use existing grids efficiently. n Complimenting Generation Fluctuation: One of the major downsides of wind and solar sources is that power is produced through them are at certain time intervals. Solar generation peaks when the sun shines during the day, while wind generation is dependent on strong enough winds, typically during the evening. Here this fluctuations in wind and solar generation throughout the day and seasons suggest great complementarity — wind generation peaks when solar generation is low and vice versa — across the region. Taking these factors into consideration, hybridisation can help achieve better load management, transmission capacity allocation and land utilisation.

Early Experiments Though a few companies have experimented with hybrid projects in the past, the hybrid sector is seen gaining momentum now. Regen Powertech combined a 1.5 MW commercial wind turbine with 200 kW of solar PV way back 2014. In January 2018, SECI had invited expressions of interest from engineering, procurement and construction contractors to develop a 160 MW wind-solar hybrid project

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in Ramagiri district of Andhra Pradesh. More recently, in April 2018, Hero Future Energies, one of the largest renewable-power producers in India, partnered with Siemens Gamesa Renewable Energy (SGRE) to add 28.8MW of solar PV capacity to an operational 50MW wind farm without augmenting the grid connection capacity to demonstrate optimisation of transmission capacities.

Recent Developments: Recognising the potential, the Ministry of New and Renewable Energy, had released a draft wind-solar hybrid policy in 2016, which was passed in May 2018. On May 25, 2018, the Ministry of New and Renewable Energy (MNRE) issued the guidelines for setting up 2.5 GW of wind-solar hybrid power projects under

the National Wind-Solar Hybrid Policy. The guidelines provide a framework for promoting grid-connected windsolar photovoltaic (PV) hybrid systems were SECI has been designated as the nodal agency for the implementation of this scheme. Following this, in June 2018, SECI released a request for proposal tender for setting up 2.5 GW of ISTS-connected wind-solar hybrid power projects (Tranche I), with a ceiling tariff of INR 2.93/kWh. SECI asked bidders to submit both techno-commercial and financial bids together. This is the first large-scale wind-solar hybrid tender issued by SECI.

Outlook Wind-Solar hybrid projects will lead to cost reduction for developers owing to the efficient utilisation of land and transmission infrastructure. This may also result in further decline of tariffs, which will drive renewable energy uptake. However, it is not just putting two power plants together and making it one, there is need to

The Wind-Solar hybrid projects will lead to cost reduction for developers owing to the efficient utilisation of land and transmission infrastructure could also result in further decline of tariffs, which will drive renewable energy uptake. ....

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figure out technical feasibility, integration between the two, there will be a systems requirement to manage the load coming from both the sources. Thus it will take some time for hybrid projects to pick up as Indian companies still need to manage the technical issues involved in integrating the two different energy sources. In addition, issues related to inadequate transmission infrastructure have resulted in limited capacity addition though India has been on its tendering trajectory. Looking at the past experiences and knowing that these problems remain unresolved, tender for wind-solar hybrid is up for the verdict of the industry response. Moreover, in case of hybrid projects requiring battery systems to store wind and solar power, and synchronise the two will add to costs until the storage market develops in India. Amid the recent lull in wind tenders due to grid-access issues, wind-solar hybrids could help revive an industry that has to grow nearly twofold in the next three years. Moreover, in light of the future energy needs - hybrid project will play an important role in the adoption of smart grids and electric vehicles. Thus, the launch of the Wind-Solar Hybrid Policy and a step forward in this direction is opportune and appropriate. n

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Cover Focus

Wind Power

India Ready to tap Offshore Wind A

t global level, it has been observed that, offshore wind energy while being better than onshore wind in terms of efficiency is also becoming competitive and comparable in terms of tariffs. Globally there has been installation of about 17 to 18 GW of off-shore wind power led by countries such as UK, Germany, Denmark, Netherlands & China.

India being blessed with a 7,600km of coastline has been contemplating on the idea of building offshore wind farms to expand its wind energy portfolio. Preliminary studies have indicated good wind potential for offshore wind power both in southern tip of Indian peninsula and west coast.

August - September 2018

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India being blessed with a 7,600km of coastline has been contemplating on the idea of building offshore wind farms to expand its wind energy portfolio - for a quite some time. In September 2015, the Union cabinet had cleared the National Offshore Wind Energy Policy, which involves wind energy mapping of the country to identify high-potential locations to be offered to firms for development through a bidding process. Preliminary studies have indicated good wind potential for off-shore wind power both in southern tip of Indian peninsula and west coast. As per official estimates, the Gujarat coastline

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Cover FOCUS Tamil Nadu. Earlier, FOWIND released a feasibility study for offshore wind farm development in both Gujarat and Tamil Nadu that gave a concept design for demonstration projects ranging from 150MW to 504MW in the most promising wind-abundant area of the seas. In addition to this, the reports analysed 4, 6 and 10MW turbines, in terms of project cost and energy cost to help identify key project risks.

The First Step In a move that would help boost its clean energy commitments, India has called for expression of interest (EoI) for the first offshore wind energy project in the country. The National Institute of Wind Energy (NIWE), an autonomous body under the ministry of new and renewable energy (MNRE), has called for ‘Expression of Interest’ (EoI) for the first offshore wind energy project of India to be located 23-40 km seaward from the Pipavav port, in the Gulf of Khambat, where the average wind speed is 8.2 metre/second. has the potential to generate around 106,000 MW of offshore wind energy and Tamil Nadu about 60,000 MW.

Development So Far The government had already notified its National Offshore Wind Energy Policy in October 2015 to realise the offshore wind power potential in the country. Since then, preliminary studies have been conducted in two regions off the coasts of Gujarat and Tamil Nadu.

According to the government, preliminary studies have indicated good wind potential for offshore wind power both in southern tip of the Indian peninsula and the west coast. More surveys to study oceanographic and seabed conditions within the identified zones are now in the pipeline. In November 2017, Facilitating Offshore Wind in India (FOWIND), an industry consortium led by the Global Wind Energy Council (GWEC), commissioned the country’s first offshore LiDAR offshore Gujarat to measure the offshore wind resource in a chosen area.

A total of 34 companies responded and participated in the Expression of Interest (EoI) floated by the government on the plan to set up the country’s first mega offshore wind farm....

Another LiDAR has been installed by Suzlon Energy Ltd offshore

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A total of 34 companies responded and participated in the Expression of Interest (EoI) floated by the government on the plan to set up the country’s first mega offshore wind farm. It included some established domestic players such as Sterlite Power Grid, Inox Wind, Suzlon Energy and Mytrah Energy. The bids also attracted foreign participants such as Orsted, Alfanar, Deep Water Structures, EON Climate & Renewable, Terraform Global, Macquarie Group, Shell and Senvion. MNRE held discussions over two days in the month of July 2018 - with interested parties following the EoI. In the next stage, the ministry will design the main tender document based on the preliminary discussions with companies. Both Indian and foreign firms can express interest in the project. Foreign firms need to have experience in installing offshore wind projects

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Cover FOCUS of more than 500 MW to be eligible to bid, while Indian firms with similar onshore experience can tie up with eligible foreign wind power developers.

High Capital Cost: The capital cost of offshore wind farms projects is higher compared to onshore wind power projects. The average capital expenditure is double mainly because of many bottlenecks. The cost in India might be higher because of the absence of Turbine Installation Vessels (TIVs), construction support vessels, lack of sub-structure manufacturers, lack of trained manpower, etc.

India knows nothing for sure in offshore wind power generation sector, be it regulations, tariffs or the standards needed. It is still a concept that needs to be tested in India... The document says that the government will sign a 25-year power purchase agreement with the successful bidder. The development assumes significance given the 1,000 MW size of the project, with the government’s plan to set up offshore wind power capacity target of 5 Gw by 2022 and, building from there on, to touch 30 Gw by 2030.

Key Challenges While the medium and long term target for off-shore wind power capacity additions of - 5 GW by 2022 and 30 GW by 2030 - may look moderate in comparison to India’s on-shore wind target of 60 GW and solar target of 100 GW by 2022. Industry experts are of view that this would still be challenging considering the difficulties in installing large wind power turbines in open seas. India is at a state where nothing is known for sure in offshore wind power generation sector, be it about regulations, tariffs or the standards that are needed as it is a concept that still needs to be tested in India. There are certain challenges related to transmission, pricing of power, Equipment’s and logistics which need to be overcome before taking leap in this segment - so as to set a smooth sail through the journey.

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Transmission & Grid: There are several unique considerations which require a subtly different approach to planning and design of offshore grids.

Pricing: As of now there is no word yet from the government side on how the power from offshore farms will be priced. Offshore windmills are more expensive than onshore ones thus power generated is bound to be expensive. In addition, the government document expects the developer to also take charge of evacuation cost and transmission to the grid which could result in per unit tariff being as high as INR 10-12 in the initial bids. However, industry experts feel that for the proposed Gujarat project, the government is likely to step in with incentives and policies to support the sector for the initial few years, similar to onshore sector incentives in its early days.

Way Forward

These are primarily centred on their relatively higher cost than onshore transmission systems, the space constraints of operating in an offshore environment as well as the specific characteristics of systems including significant quantities of offshore cable.

To date, the growth in offshore wind power has been concentrated in Europe. Now the Asian economies have a cumulative ambition to build up to 100 GW of offshore wind capacity by 2030 and India is taking strides to contribute a capacity of 30 GW to this by 2030.

In addition, since offshore wind was not included in current grid planning scenarios, there is a need to formulate state and national targets for offshore wind.

Developers should carefully explore opportunities by doing small projects; given it is a difficult task to install wind turbines offshore.

Equipment’s & Logistic: Then there are issues with manufacturing or procuring equipment. As against the average of 2.5 MW machines used onshore wind farms there are larger turbines ranging from 6 – 10 MW capacity and longer windmill blades that are typically used in an offshore wind farms.

Offshore wind development has the potential to reach the same cost efficiencies of its onshore counterpart, with prices pushed downward in particular by the upward movement in offshore turbine generation capacity. However, the performance related uncertainties will only disappear once more wind installation data is accumulated in hand with time.

As of now, most of the firms in India do not yet make such high-capacity machines, thus the components need to be procured through imports.

The recently announced offshore wind targets are a signal of the government’s continued commitment to renewable energy.

Further, since road are smaller in India it will lead to logistics challenges – where transporting larger blades on Indian roads seems next to impossible.

Offshore wind power is being seen as a new element to the already existing basket of renewable energy for the country. But MNRE has acknowledged that the road ahead is challenging.n

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Industry Interaction

Sany

Wind Energy India Dr. Govind Bhagwatikar

COO & Director - Sany Wind Energy India

“whichSanyshallWindsoonEnergycommence India Private Limited is a start-up OEM in India, the manufacturing of larger rotor diameter turbines with 131 m & 140 m and with capacities of 2.5 MW with hub heights of more than 120 m....

How would you rate the performance of the wind power segment in India in terms of the opportunities and challenges? What is your outlook for the sector’s growth in India? Post wind auction/ reverse tariff bidding scenario since start 2017, there have been national & State level wind auctions to the tune of 10 GW which is an impressive start towards the Indian Government’s mission of achieving 60 GW Wind Power installations by 2022. The sector is paced for an exponential growth with more & more global players like the OEMs, investors entering into India to take away the pie of cake. India wind power industry is considered to be a stable & matured markets in today’s global scenario. States like Tamil Nadu, Gujarat and Maharashtra have already come out with their first auctions. Other states are yet to initiate the same. The ministry of new and renewable energy has committed to auctioning 10,000 MW of projects in 2018 and another 10,000 MW in 2019. Tariffs are also stabilizing now.

Briefly tell us about the company and its experience in the Indian wind power segment, so far? What is the company’s current scale of operations and what are its key offerings in India? Going forward, what will be its focus areas in the segment? SANY is a global manufacturer of industry-leading construction and mining equipment, port and oil drilling machinery, and wind energy systems. SANY has built 25 manufacturing bases, and offices in 100 countries. Sany Heavy Energy Co. Ltd is a leading wind turbine manufacturer with a wind turbine fleet of 1.5 to 4 MW platform. Globally Sany Heavy Energy, our parent company has setup more than 3 GW plus installations in China and some in the US & Africa markets as well. We are now poised to grow exponentially in growing markets like India, Kazakhstan, Brazil etc. Sany Wind Energy India Private Limited is a start-up OEM in India, which shall soon commence the manufacturing of larger rotor diameter turbines with 131 m & 140 m and with capacities of 2.5 MW with hub heights of more than 120 m.

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Cover FOCUS Sany will supply turbines to customers in India on either turnkey model basis or limited to supply scope (only turbines) as per the customers’ requirements. Also tell us about the company’s manufacturing setup in India? Share with us, some of the unique product features and the company’s USP - that will help in establishing a strong foothold in the Indian wind power market? Sany already has an existing manufacturing set-up at Chakan Industrial Area, near Pune since 2008 for the Construction Machinery. Sany wind turbines shall be assembled at the same plant as it is centrally & logistically located for sites in West, NW & South India. We have installed the necessary infrastructure along with adequate cranes, testing set-up and assembly line for the wind turbine nacelle and hub. The blade & towers shall be sourced from China or shall be manufactured locally at our vendors place. The wind turbine models which Sany is contemplating for the Indian markets are with 2.5 MW as mentioned earlier. The rotor diameters with 131 m/140 m & hub heights of 120 m shall make these turbines as one of the largest available variants available in the India market. With a lower cut-in & rated speeds, the power curve is improvised to garner the maximum generation at the lower wind speed sites in India (Class III/IV). The AERODYN technology, which Sany has recently acquired for these new turbines will be a technological breakthrough for our new improvised wind turbine platforms. With already installed prototypes in China, we are looking forward to get these turbine models listed in the MNRE RLMM shortly. Could you throw some light on the emerging trends in wind turbine technologies? What has been Sany’s contribution in this area? Sany has always been keeping itself updated with the newer technologies. We have a large R&D centre in China with 600+ engineers and technocrats. With “high reliability, high generating capacity, low LCOE & intelligent wind farm” as its development criterion, we have developed wind turbines and systems for the medium & low wind speed sites with technology tie-up with AERODYN Germany. We have lined up the 3 MW+ wind turbine designs with greater hub-heights and rotors. The fall in wind power tariffs has resulted in shrinking margins for developer and OEM’s, how do you look at the scenario? Do you think it could affect the company’s growth plans in India? Sany is well poised to enter the Indian wind market with presence in the Indian market for more than 2 decades or

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so. There is a stiff competition & market pressure to reduce the prices of the Equipment & EPC works and it’s going to be a challenge for Sany for their maiden wind projects in India. We shall be partnering with IPPs & investors in China and India. We are in touch with some financial institutions and banks in India and China for these projects for funding the project as the Capex / Opex costs, the borrowing cost & associated terms play a pivotal role in getting the desired financial returns for the investors. What is your view on offshore wind segment progress in India? What kind of growth and opportunities do you see evolving in this space? What are your plans and preparedness to tap on the same? Ministry of New and Renewable Energy has already announced the policy for off-shore wind power and National Institute Wind Energy has identified potential site in Gujarat & Tamil Nadu coasts. The impressive peninsular shoreline of India especially at the western, south, southeast sides would be largely beneficial for off-shore project in near future. With global players already operating in the Indian on-shore markets, it would be just a strong government policy with better feed-in tariffs & easy of doing business considering the clearances & permissions to be sought from various government agencies for the off-shore projects. Sany has installed few off-shore turbines in China, but our more focus in India for next one year would be commence our operations for onshore wind turbine manufacturing and projects. However we are keen to collaborate with investors and IPPs for joint development of offshore wind projects backed by our new wind turbine technologies. What are company’s future plans in India? Chairman of Sany Group Mr. Liang Wengen had committed to invest in 2000 MW wind projects and wind turbine manufacturing under “Make in India” to the Prime Minister of India during his visit in 2015. We have taken several steps to move forward in that direction as elaborated above. Sany group believes that Indian wind energy market is an important long term market. We already have a 2 GW+ greenfield projects identified in the 8 windy states of India with proven wind resource studies done at 100-130 m hub height for the last couple of years. Also few brownfield shovel ready projects are on the anvil, which are being contemplated for our maiden wind power projects in India. We are also exploring the opportunities of manufacturing of wind turbine blades in India and sourcing various wind turbine components from India based suppliers. This will help us to control supply chain and capex. We are confident to play a significant role in Indian Wind Energy sector going forward.

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Market REVIEW

Market Review

Solar PV EPC

Solar EPC Market India The Indian solar EPC market is feeling the heat of competition as there is rise in number of players in the market. Further, since large IPP and integrated utilities are likely to develop internal EPC capabilities for cost optimization on account of falling tariffs in the market â&#x20AC;&#x201C;consolidation drive is expected in the Indian solar EPC market.

n account of aggressive competitive bidding and declining equipment prices, the solar sector in India have been led to a rapid decline in solar power tariffs in recent times. The country is observing an improved capacity additions year on year in solar space, as the country strides ahead to achieve its 100 GW of solar capacity targets by year 2022. Registering a compound annual growth rate of 20 per cent from 2013-14 to 2017-18, the total installed solar capacity stood at around 23 GW as of June 2018. No doubt the engineering, procurement and construction (EPC) industry is also evolving rapidly to keep pace with the segment.

Market Scenario:

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MARKET REVIEW Share of Top 10 Solar EPC Player during FY 2017-18 (source : Bridge to India)

13%

18%

3% 3% 2% 2% 2%

2% 2%

1% 1% 51%

Solar EPC contractors, who are also known as solar engineers, procurer, and construction contractors, help a company to start its solar project. The detailed engineered design of the project is carried out by the EPC contractors while obtaining all the necessary materials and equipment and delivering an asset or functioning facility to the clients. The primary benefit of hiring a solar EPC contractor is that you will get the complete range of solar solution from one place. From a policy perspective, decisions made with respect to international trade, investments and economics are generally prone to volatility and uncertainty â&#x20AC;&#x201C; as the solar panel prices (in USD) have been dropping annu-

Sterling & Wilson

Mahindra Susten

Tata Power

Juwi

L&T

B-Electric

BHEL

Gamesa

Rays power Experts

Rays Power Infra

Self EPC

Others

ally during 2010-16, the exchange rate (USD to INR) has been increasing consistently. Even though module prices reduced due to better business dynamics, the EPC players could not maximise their profits in the presence of a surging exchange rate. According to Bridge to India, EPC cost for utility scale projects fell marginally to INR 38/ W due to reduction in module prices (USD 0.33/ W, down 6% over Q4 2017). In such situations, the solar industry runs the risk with respect to obtaining finance, thus making the EPC business unreliable in the Indian solar industry. The prevailing scenario gives an impression that only big EPC players with MW-scale businesses can sustain themselves in the long

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run. Which is quite evident looking at the Indian Solar EPC market, which is dominated by large firms which occupied the top ten spots and accounts for around 40 per cent of the market share.

Market Share: Indian solar EPC space is dominated by few large players. In addition, there are developers who opt for self EPC and smaller players. The notable EPC player during the last financial year were - Sterling & Wilson, Mahindra Susten, Tata Power, JUWI, L&T, BElectric, Gamesa, BHEL, Rays Power Experts, Rays Power Infra, Vikram Solar, Jackson, Oriano, Ujaas, Vivaan, Waaree, Harsha Abacus, Enrich, Premier Solar, Lanco, etc. Amongst

Power Insight

August - September 2018

Market REVIEW responsible in extending the scope of EPC contracts which are turning more into turnkey solution providers. It has been observed now days that apart from basic EPC services, the contractor is also taking responsibility of obtaining approvals and providing operations and maintenance (O&M) services, as well. The transformation of EPC contractors to turnkey solution providers has happened in the past two to three years, when the number of projects in the Indian solar EPC market increased significantly and tariffs started declining rapidly. Further, the execution of the complete project, instead of only the EPC component, is expected to improve margins.

Way forward EPC players, Sterling and Wilson has the largest market share of 13.35 per cent, accounting for 1,224.33 MW of installations in 2017-18. It is followed by Mahindra Susten with a market share of 3.23 per cent and Tata Power with 2.78 per cent. However, as India is witnessing a sharp decline in solar tariffs, more and more developers have opted to carry out their own EPC so as to take care of cost optimisation. This share self EPC installations was about 50.59 per cent in 2017-18, translating into 4,639.61 MW of solar capacity against the total of 9,171 MW installed during the period, according to solar consultancy firm BRIDGE TO INDIA, recent report. Whereas, the smaller players together installed around 1029 MW of solar capacity during FY2017-18 accounting for around 11 per cent of the total market share.

Changing Trends As per the Central Electricity Regulatory Commission, the cost of solar EPC for a utility-scale solar power project is around 79 per cent of the total project cost. However, with falling solar tariffs - the EPC costs have also been declining as a result

August - September 2018

of the cost-cutting measures being adopted by developers to improve their margins. Further, the decline in EPC prices can also be attributed to the rise in number of players in the market, all offering these services at competitive prices. As competition is rising only EPC players who are capable of taking big projects reaps the benefit of economies of scale. Thus, the competitive market environment with margins shrinking - it has become difficult for small EPC players to sustain the pressure. This has led the smaller EPC firms that do not have the financial capability for project development - to focus on rooftop solar projects and captive projects to sustain themselves. It is also been observed in the market that larger developers are building their own internal EPC capabilities to improve project viability thus resulting in shrinking of customer base of stand-alone EPC firms. This changing scenario has necessitated for stand-alone EPC firms to diversify their operations in order to stay viable. Thus, the developers cost optimisation drive is more and more

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As the solar segment is witnessing fall in tariffs, large IPP and integrated utilities are likely to develop internal EPC capabilities to improve project economics, thus increasing the share of companies with in-house EPC capabilities. This changing market trend could lead to consolidation in the Indian solar EPC market. Thus, standalone EPC companies are expected to either consolidate with bigger players or integrate into complete project developers and power producers. Further, the emergence of automation technologies has led to leaner operations, leading to high capital costs initially, but greater savings over the project lifetime. With the increasing penetration of information technology into the solar power segment, companies will have to include automation as a key element. With the use of smart meters, and automated billing and construction techniques, plant The EPC companies are increasingly employing these to improve their service quality and to become more efficient, improve operational margins and reduce project lifetime costs. However, the key to increasing returns will depend not only on improving service quality but also on increasing the number of contracts in order to help achieve economies of scale. n

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Power Insight

August - September 2018

Market REVIEW

Solar EPC Challenges Indian solar sector presents huge opportunity for EPC contractors over the next couple of years. However, the Indian Solar EPC industry is faced with set challenges - few on account of changing market dynamics – while the others are due to bureaucratic hurdles.

August - September 2018

Power Insight

overnment support and encouragement has helped Indian solar industry to reach close to 25 per cent of the set targets of 100 GW set for 2022 - as of June 2018. As per India’s solar tender trajectory, issued by the Ministry of New and Renewable Energy (MNRE) in November 2017 – the country plans to tender around 36 GW of solar capacity for next two year period ending March 2020. This translates into a huge opportunity for EPC contractors over the next couple of years. However, the EPC industry is faced with set challenges. While some challenges faced by the segment is on account of changing market dynamics – the other are due to bureaucratic hurdles. Though, PV power plants are not as complex as some of the other conventional or renewable technologies. However Being an EPC contractor in India can be complex as one has to deal with numerous stakeholders like ministries and departments, statutory and local bodies, clients and internal teams, vendors and subcontractors while constructing the power plant and, at the same time, maintain

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MARKET REVIEW project profitability. With all these roles â&#x20AC;&#x201C; focusing on COST and TIME pressures make the solar PV EPC - a challenging task.

Key Challenges: Although the 100 GW solar targets have created ample opportunities in the segment, the EPC market segment continues to experience a number of challenges. For solar EPC companies the foremost challenges are related to Land acquisition, Engineering, Supply chain, Site operations, Liaising, etc.. In addition, there are certain other issues and challenges that are faced by the segment due to recent reforms.. Land acquisition: This is one of the most challenging tasks in the whole project. A good land parcel is defined through certain parameters such as vicinity of the pooling substation, topography, soil geology, soil characteristics and land shape. The key

challenge lies in giving due consideration to the above parameters while bringing all the stakeholders to an agreement on finalization of the land agreement and completion of land transfer formalities. However, challenges of finding the right land are not the only hurdles, getting a cost agreement for the land is also an issue since in India land holdings are generally divided into several family members. In addition, there are regulatory bottlenecks likelands identified as farmlands cannot be taken for solar installation. Engineering: Every project is unique and to a certain extent requires new thinking and fresh approaches, both at engineering and operational fronts. Innovative engineering systems and processes can help in rapid installation of the project. However, for innovative engineering system to be established, EPC players need detailed geotechnical reports, solar

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resource availability, and ambient conditions. However, as Indian Government doesnâ&#x20AC;&#x2122;t have such important information in store, actions like- maintaining stability of the installations, levelling the field, protecting against wind load, minimizing repairing cost, becomes extremely challenging. Thus a strong engineering arm is critical to the EPC success as it enables optimization of plant design. Further, given the time constraint, an established in-house design team quickly provides solutions to an envisaged or existing problem, thus saving valuable time and cost and help in improving operating margins. Supply Management: A developing trend in the solar industry is the finalization of an EPC contractor at the very end of the allocated project duration. This puts undue burden on the EPC contractor for ordering

Power Insight

August - September 2018

Market REVIEW the EPC players. Due to a high import portion of the project cost, an EPC gets exposed to exchange rate risks. In addition, lack on developers part of not carrying out feasibility studies and making detailed project reports to save small costs and increase their profit margins. These margins, according to industry estimates, hover around 5-10 per cent depending on the execution and management of the projects. In recent times, however, high labour costs, logistical issues and increasing commodity prices have led to further shrinkage of contractor margins.

Conclusion:

and supply of long lead items and completing the project within a reduced time frame. With reduced lead time for plant equipment and other materials it becomes essential to keep a continual vigil on the suppliers to adhere to the delivery schedule. On the other hand, lands selected for large solar installations are far from residential areas (ground mounted). And since transportation in remote areas of India is still not well developed, bringing in all required components for solar installation at desired spot seems a challenging, time consuming, and expensive task. Site operations: The challenge in solar EPC is not that of critical design, high precision or high degree of complication but timely completion as the project schedule is highly overlapping while the execution is driven by a lean team. In addition to this, complete attention to safety and quality at every step ensures delivery of a world class asset that will perform for 25 years. Liaising: Liaising involves dealing with multiple stakeholders, officials and departments across locations. The challenge here is to effectively in-

August - September 2018

terface with all the external agencies to meet the timelines of the project. Very often there are no set processes as networking is official centric and calls for having several rounds of discussions to finalize the sequence of activities for meeting the needs of all the stakeholders.

Other Challenges To ensure their proper functioning, it is In addition to above, one of the key challenges for EPC contractors that have arisen in recent times is the goods and services tax (GST) - as the earlier untaxed renewable energy equipment is now being taxed at 5 per cent. Moreover, there are several equipment categories that fall under the 12-18 per cent bracket as these do not pertain specifically to the renewable energy market. The ambiguity surrounding the taxes levied on solar energy equipment is also expected to delay EPC works of under-construction projects. This could result in EPC services becoming slightly dearer in the coming few months until the market realigns itself. Moreover, the fluctuation in exchange rates puts pressure on the margins of

Power Insight

The EPC market in India has evolved over the last few years with increased project size. In addition, emergence of new players and expansion of established and global players have led to a boundary-less business world. If we take a look into the past few years, the EPCs have made their significant contribution for the timely and generative execution of the solar power projects across the nation. Despite working in a highly economic challenging market and tremendously increasing competitions, EPCs in India have been successful in guaranteeing timely execution of the projects but not without facing stumbling blocks. Solar is gaining worldwide acceptance and is believed to be able in phasing out fossil fuel in near future. This is a great opportunity for India to utilize this timeframe through initiatives and investments for growth in solar. It is a fact that Government has done exceptional work in building solar parks, which offers already purchased and prepared land ideal for solar installations. States like- Karnataka, Andhra Pradesh, Uttar Pradesh and Rajasthan have already developed policies that simplify land acquisition. Such processes should be followed in every state within India to support solar growth. Better utility side cooperation, adding feasibility in interconnection processes, and supporting solar growth by enforcing policy implementations can help EPC players over the coming years. n

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Power Insight

August - September 2018

Product REVIEW

SUNGROW - SG3125HV Inverter Sungrow released its grid support utility-iterative inverter to help solar plant face no risk to interact with the utility. The inverter will also fetch much more benefits for the solar industry....

ooking at the challenges faced by the utility scale solar PV plants – there aroused a need for new standards in the industry. These new standards require the inverter either to have a wide range ride through capability or special grid support function, to set a high threshold for the inverter To follow the market tide, SUNGROW released its grid support utility-iterative inverter SG3125HV. Sungrow has been focused on the inverter development and manufacturing for over 20 years, the accumulated experience has equipped Sungrow inverter with an excellent reliability performance. In addition to that, the SG3125HV is developed with SUNGROW latest advanced platform and tested with Sungrow world leading testing center. With the application of SG3125HV, the solar plant will have no risk to interact with the utility and it brings much more benefit for the solar plant.

Key Features: The SG3125HV is designed with a 10 feet enclosure and effective cooling system. Based on SUNGROW’s advanced development platform, SG3125HV has an excellent reliability performance and high efficiency. Moreover, the inverter is designed for easy skid integration, convenient for site installation and ultimately reducing the site work and cost. With the application of SG3125HV, the plant construction will move faster and it will finally bring customer a higher ROI.

efficient modulation algorithm and latest magnetic and switching devices, the SG3125HV provides an extraordinary efficiency performance, bringing more energy yield and further increasing project ROI. The maximum efficiency of SG3125HV can reach 99% and Euro efficiency 98.7%.

Wide operating temperature range: Sungrow’s SG3125HV has one of the widest operating temperature ranges available in the industry, with full power available from -30°C to 50°C and operation in power de-rate mode available up to 60°C. The temperature sensing variable speed controlled fans are used for SG3125HV to minimize internal temperature rise, which will lead to a reliable operation, long lifetime, low power consumption.

High integration less initial cost: Sungrow’s SG3125HV is highly integrated and cut initial investment and installation cost for customers. The SG3125HV has integrated the re-combiner into the DC side cabinet, so this extra cost can be saved. Sungrow SG3125HV has integrated the power supply panels including 480Vac and 120Vac, which can be used for the tracker motors, control box, communication box, etc. The plant will not need extra power supply panels, transformers and boxes for the tracker, etc. This will save the space for the SKID integration and site installation efforts, meaning the initial investment will be further reduced.

Efficiency and Reliability:

Advance Design:

Sungrow’s SG3125HV was designed to have a power converter platform that was more efficient than previous generations of products. Utilizing 3-level converter bridge,

Sungrow’s SG3125HV is designed for easy operation and maintenance. This unit has a touch screen which is located on the front door, all of the inverter running information and

August - September 2018

Power Insight

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Product REVIEW

settings can be viewed and changed on this touch screen, which is easy for site operation. All of the components inside the inverter are front accessible, which is easy for maintenance. Specially, the SG3125HV use Sungrow patented air filter design, which is effectively resist the dust going into the inverter, and the filter is easy to be maintenance without any tool. The inverter is easily to be integrated to the SKID, Sungrow provide the installation accessories for customer convenience which will bring more values and reduce the initial cost. All of the interface/plate for installation is designed to be removable and easy to be punched, which will be convenient for customer to install the conduit and connect the cables, all of those design lead to less site work and in hence reduce the installation cost.

Flexibility: SG3125HV is flexible in 6.25MW or 12.5MW. 6.25MW solution uses two SG3125HV inverters to access three winding transformer. It can save initial transformer, cable and MV switchgear investment. 50MW plant just needs 8 block.

Excellent Grid Support: SG3125HV has an advanced voltage and frequency ride through capability. The high voltage ride through is up to 1.4 Un and It can compensate reactive power during LVRT. With the application of Sungrow SG3125HV, the customer will enjoy the high availability and get satisfied with the flexibility. The inverter also has a good reactive power capability and it can inject active power with power factor 0.8. Moreover, the inverter can supply reactive power to the grid at night to support the grid, this will reduce investment on SVG equipment.

Summed Up: SG3125HV is designed to bring a high ROI for utility scale PV plant, with the application of this containerized inverter, the total system cost will be reduced due to saved integration cost, installation cost, O&M cost, and lower initial cost. Moreover, this grid support utility-iterative inverter brings more reliability to the utility and will further reduce the grid interconnection risk. We can expect that Sungrow SG3125HV will bring much more benefit for the solar industry. n

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Power Insight

August - September 2018

Industry INSIGHT Indsutry Insight

Indian Transformer Industry Indian transformer industry expects a strong demand coming from government programs and investments that support the growth of the T&D grids....

rowing population coupled with increase in industrialisation and urbanisation has led to increase in capacity utilisation across sectors resulting in a surge in demand for power in India. Currently through reforms such as ‘Power for all’, government plans to add 93 GW by 2022, this would require a sound power sully infrastructure base in the country which is set to fuel the demand for power transmission and distribution equipment. Backed by government’s on-going reform and financial restructuring drive in the energy sector, India is now witnessing fiscal discipline in utilities, sufficient coal availability and an unprecedented growth in the green energy market. Thus, on account of these initiatives - Indian power and

August - September 2018

Picture for reference only - - image courtsey : Marson Limited

Transformer Industry

distribution transformer market is expected to witness significant growth over the coming years.

Industry Overview As per various researchers, the Indian power and distribution transformer industry is going to increase by more than 10 per cent CAGR in the next 5 years and the market is forecasted to reach $2.9 billion by 2022. The Indian transformer industry has since its inception grown considerably. Transformer manufacturers have also matured and demonstrated noteworthy technological advancements in recent years by developing transformers upto 1,200 KV ratings, the highest capacity power transmission system voltage in the world. Today, India’s domestic transformer market is valued at

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Rs 14,000 crore in which power transformers account for 45 percent while distribution transformers make up the remaining share of 55 percent. As there is a demand upswing for reliable power in the country, the transformers market is witnessing a growth trend. The transformer industry which had more than doubled its capacity over the past years anticipating huge domestic and overseas demand was witnessing the situation of overcapacity. However, with a shift in the government’s focus to strengthen the power transmission and distribution system has unleashed abundant opportunities for the power and distribution transformer market. Although the market size of the medium power transformer segment is large, yet the growth of the large

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INDUSTRY INSIGHT been stagnant over the past 1-2 years due to slowdown in projects both in the power transmission and distribution sectors. In addition, ambiguity around GST rates for capital goods products has added further to the business slowdown. It has also been observed that the number of projects, especially in the transmission sector which have been initiated have been put on hold due to delay in approvals and lack of funds. Presently the government is taking major steps to strengthen the power transmission and distribution network. Both power as well as distribution network is getting strengthened all across the country. The government initiatives like DDUGJY, IPDS and growing FDI in power industry are few growth drivers in the industry. Further, the government has projected an investment of INR 146,000 crore in the countryâ&#x20AC;&#x2122;s transmission sector by FY 2019 which is bound to result in giving boost to demand for distribution and power transformers.

power transformer segment is higher. This is due to the increase in HVDC transmission projects mainly in the Asia-Pacific region. HVDC, EHV, and UHV projects being undertaken for reducing transmission losses during transmission over large distances is the major growth driver of the large power transformer market. The industry has been going through technological evolution and now the focus is on raising energy efficiency, given the urgency to fight climate change. Indian Transformer Manufacturers Association (ITMA) has been working with the government to usher in technological changes and globally acceptable energy efficiency norms.

On the Growth Path: The Indian transformer industry has

Most importantly government has undertaken imitativeness such as UDAY for financial turn-around of power distribution companies who are one of the main end users for the industry. With implementation of UDAY and other discom schemes there is a huge acceleration of infrastructural amendment in India. Also the discoms are instructed to reduce losses to the tune of 10 to 12 per cent which means they have to go for efficient transformers. This has influenced invitation for bids for refurbishment and up-gradation of existing T&D network. Moreover a recent BIS circulation has issued strict norms on transformer losses. It is expected that in next 3 yearsâ&#x20AC;&#x2122; time - discoms will have to replace all existing transformers with level 3 transformers (5-Star Rated Transformers). Transformer manufacturers have to manufacture and supply these new transformers in millions to the discoms in a maximum period of 3 years. The demand from these schemes is expected to continue and in addition new schemes such as Saubhagya scheme which aims to provide last mile

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connectivity to rural consumers should increase future demand. Infrastructure segment (especially Metro Rail Projects) are witnessing increase in demand for distribution transformers and increased government spending in this segment is set to drive demand in future. In addition, intra-state transmission projects (400 kV and below) are expected to drive demand for power transformers. State TRANSCOS will majorly drive this demand and float new transmission projects through the TBCB model. PGCIL, which is mainly into executing and implementing interstate projects, is planning to aggressively enter intrastate projects by forming joint ventures with state utilities. The power transformers hence also needs replacement or relocation to less populated demand centre. Most of the solar power generation built last year are now almost connected to the national grid and often throwing huge power flow in the cycle which is meeting country 23 per cent power demand in few demand centres during peak hours. The solar boom has crashed a new demand of Inverter duty special transformers. The prevalent scenarios suggest an optimistic growth potential within the organised sector of the industry as only efficient and quality focused organisation can be benefited from such drivers.

Outlook In spite of the recent slowdown, we are confident that the Indian transformer industry will benefit from the strong demand expected from government programs and investments that support the growth of the T&D grids. As the government aims to increase the renewable energy generation capacity to 175 GW by 2022 and to have renewable energy account for 40 per cent of installed capacity by 2040. In this scenario, solar transformers in particular are expected to see a sharp rise in demand. n

Power Insight

August - September 2018

Industry INSIGHT Indsutry Insight

The Green Choice Eco-friendly, Efficient and Economical the new concept of Green Transformers - is an answer to growing environmental concerns....

Picture for reference only - - image courtsey : Siemens

Transformer Industry

ransformer is one of the most important and vital components in the power system. The increase of electric power demand and the high pressure to apply environment friendly solutions for transmission and distribution require new and innovative systems, products and technologies.

The Concept In order to meet the current and future energy challenges, there is need for an energy efficient, market efficient, grid reliable and environment friendly technology. The answer to these concerns came forward in Green Transformer concept that contains new technologies and materials in respect of sealing, cooling and insulat-

August - September 2018

Power Insight

ing, switching (tap changer) as well as control and predictive monitoring linked to Smart Grid technologies. Thus, all the constituent parts of the new, innovative and environment friendly technologies lead to limited aging and higher lifetime as well as drastically reduced maintenance and lower life cycle costs. In conventional transformer design, the HV and LV windings are immerged in a metal tank with sufficient cooling capacity to keep the temperature inside the tank within limit. Mineral oil is used in conventional transformer design which comes from natural resources after processing of the mother earth raw materials taken from mines. Modern technology and innovations are

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INDUSTRY INSIGHT expandable radiators and OLTC with vacuum switch

uncertain temperature rise within the tank.

n Innovative technologies to reduce acoustic energy transferred and optimise design of the active part

High eco-efficiency : A major benefit of a Green Power Transformer is its optimised life cycle cost. Standard process coupled with design choice and high-performance materials help in achieving low losses and results in optimal capitalised cost of the transformer.

n Optimised low loss levels n On-line MS3000 monitoring system

Key Advantages: The concept of “Green Transformers” offers a new alternative to customers who want to preserve the environment by offering a lower carbon footprint, limited pollution risk and optimised life cycle costs and less maintenance. Other advantages include reduced ageing, lower noise levels and increased fire safety. To further maximise operational management and prevent faults and damages, advanced on-line monitoring systems can also be added. Noise reduction : Environmental benefits include reduced noise levels to limit disturbance in urban or ecologically sensitive areas. Noise level reduction above 10 dB (A) is made possible due to selection of high-performance materials and equipment, optimised design of active parts and innovative mechanical structures. helping society to extract oil from various vegetable seeds which are of similar property and otherwise is a waste or remains as an extracted by products. Though, the conventional transformers can also be easily designed with vegetable oils which can be termed as Green Transformers. Natural ester oils are very well accepted solution in this regard. A Green Power Transformer is a sustainable, eco-efficient product with one or more of the following functionalities: n Filled with ester oil instead of mineral oil n Hermetically-sealed tank design, equipped with patented

Increased safety and reliability : Through the use of ester oil instead of mineral oil, the Green Power Transformer helps in prevention of pollution. Since ester oil is biodegradable and less toxic, it plays an important role in limiting pollution risk during operation, installation and end of life. Moreover, with use of ester oil fire safety is improved considerably, offering increased security, not only for operators but also for those in close proximity. Ester oil has a fire point above 350 degree C, as compared to 150 degree C of mineral oil. Thus, Green transformers are less flammable and reduce fire spreading. In addition, hermetically sealed tanks design helps to protect the surroundings from any splash of oil due to

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Majorly focusing on the designing factor of the transformers CCA, by using concepts such as amorphous cores or finer grades of CRGO, the losses can be reduced significantly; saving both the ownership cost of the asset as well as the carbon-foot print from power generation. Though with use of these factors there is increase the investment cost of the transformer but on the other hand it significantly reduces the cost of ownership of the asset. However, regular condition monitoring, right from the stage of its factory testing to installation and commissioning is the key factor to ensure that the system is reliable and in turn efficient.

Way forward With implementations of BIS NORMS across the length and breadth of distributions transformer industries in the country, more and more distribution networks are getting connected with low loss transformers while replacing the existing high loss transformers and thus line capacities are indirectly growing to handle denser network without replacing existing line conductors and connected cables. The Journey of Green transformers has begun in India. In order to make governments ‘UDAY’ and ‘Power for ALL’ mission a great success the transformers industries has taken up the challenge to manufacture more and more eco-friendly and eco-efficient transformers to help Discoms in terms of optimum capacity utilisation while cutting on the losses in a much better and efficient manner. n

Power Insight

August - September 2018

Industry INSIGHT

Challenges

Transformer Industry Indian Transformer industry is prone to certain challenges which need to be addressed for industry to grow smoothly and to become more competetive at global level...

ith foreseen government plans to push strengthening of T&D infrastructure in country to support its on-going initiatives in the power sector, we expect major boost in the demands for transformers.

However, there are some key challenges, which restrict the Indian transformer industry from growing of its full potential and targets.

The Challenges n Lack of Input Material: The inadequate supply of CRGO is one of the major challenges in this industry as the requirement is completely met through imports. It is

in fact challenging to assess the prime quality Cold Rolled Grain Oriented (CRGO) steel by transformer manufacturers in the country. India needs 3.0 lakh tonnes of CRGO every year and an appalling 70 per cent of this is scrap grade material even after the implementation of the Quality Control Order on Steel & Steel Products dated 12th March 2012 on CRGO electrical steel. This challenge needs to be overcome by forecasting material planning properly. n Quality Concerns: Indiaâ&#x20AC;&#x2122;s transformer market is predominantly unorganised with many small participants catering to the smaller distribution transformer markets. However, many are slowly graduating to the mediumsized category, thus expanding the organised participantsâ&#x20AC;&#x2122; base. Still due to the low entry barriers in the distribution transformer market a large number of unorganized players are entering the market and competing on the price factor. Since, Discoms/Utilities historically follow the lowest bidder selection criterion, which has led to proliferation of many small players that compromise quality of transformers. This makes the market more competitive and price sensitive rather than quality. As a result we are witnessing high failure rate of distribution transformers posing a big concern for the transformer industry in India. The average operational life of a transformer is between 25 to 30 years; however, transformers in India are known to be recalled for repair in as early as three years. The failure rate of distribution transform-

August - September 2018

Power Insight

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INDUSTRY INSIGHT ers in India is estimated at 10-15 per cent. If an organisation focuses on quality manufacturing of transformers, they can sustain the competition and have incremental growth. n Lack of Testing Facilities: The growth in testing infrastructure has not kept pace with that of production, both, quantitatively and qualitatively. There are wide variety of products and different star ratings requirement from customers/clients. So, certifications of each and every product become an expensive process due to less number of testing facilities. Testing infrastructure available at Indiaâ&#x20AC;&#x2122;s premier agency, the Central Power Research Institute (CPRI) and Electrical Research Development Association (ERDA) is proving short of demand. So, large power transformers are sometimes sent to overseas facilities for testing which is expensive. Apart from this, huge logistical costs and lead time are also involved.. Moreover, the introduction of new BIS efficiency standards last year has led to a few hiccups on the distribution transformers market. It takes around 2-3 months for BEE certification. Dual certification from both BIS and BEE is required in India which is even more challenging and causes significant delay thus hampers the ease of doing business.

n Growing Imports: One of the major concerns for the industry is the growing imports from China & South Korea. As per estimates, the Chinese manufacturers share in Indian electrical equipment imports has increased. The absence of a level playing field for the domestic industry poses a major threat to local manufacturers. The industry expects that Government should ensure the level playing field by modifying the tax structure and by imposing antidumping duty to improve global competitiveness of the industry. In addition there are other issues that are of concern and need to be addressed. One such challenge is delay in release of payments by power utilities which adversely effects top line & bottom line of the industry. In addition, low investment in R&D and lack of standardization of product specification, design parameters and ratings for generation & distribution equipment across different utilities is also a challenge faced by the industry.

Way forward Indian transformer industry is still preaching the age old techniques and technologies. Weather it is on the front of equipment design, or composition materials, diagnostics tool, maintenance practices, etc.

and new technological advancements - the only way of becoming more competitive. Moreover, investments in the renewable energy sector will necessitate the industry to add new technologies which will require stringent design processes and manufacturing controls. Moving forward, maintaining stringent efficiency levels mandatory under BIS certification will lead to consolidation in the industry; as currently 50-60 per cent of manufacturers have applied or obtained BIS certification out of the total industry size of 500 plus. Further, with the commissioning of National High Power Test Laboratory at Bina, there may be some relief for the manufacturers which had to opted at times for testing with overseas facilities like Korea Electro technology Research Institute (KERI) and KEMA which is expensive. Transformers account for significant capital expenditure for the utilities. One of the key goals for the industry will be to gradually move from CAPEX based mind set to look at the transformer total cost of ownership which in long run will benefit the utilities.n

The industry needs to focus more on R&D

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Power Insight

August - September 2018

Communication Features World’s largest Lithium ion battery based UPS project rolled out in India Consul Neowatt is supplying Lithium ion based UPS systems to power innovative Cloud Based IP Surveillance System project in Andhra Pradesh, India

onsul Neowatt Power Solutions Pvt Ltd (CNPS) is the fastest growing UPS Company in India and the only Indian company to manufacture and supply a full range of power electronics products, services and solutions. The company has announced that it is supplying UPS systems with Lithium ion battery to power the IP CCTV cameras that is being installed across Andhra Pradesh as part of the government program for enhanced safety across the state. This is one of the largest deployments of Lithium ion UPS solution in the world covering over 6,000 locations. Speaking on the project Sriram Ramakrishnan, CEO& MD, Consul Neowatt Power Solutions said, “Our customer came to us with the stringent requirement of a long life and maintenance free UPS solution for outdoor environment to power the CCTV cameras which are spread over length and breadth of Andhra Pradesh. From our experience we know that VRLA (Valve Regulated Lead Acid) batteries are highly susceptible to high temperature and have a very low useful life in outdoor environments. The in-house R&D team at Consul Neowatt evaluated and selected a Lithium ion battery technology which can withstand higher ambient temperatures and has 5 times more cyclic life than VRLA batteries. We then developed and deployed a smart, safe and reliable UPS solution with the Lithium-ion battery for this critical application. This is yet another example of Smart

Power Solutions that we have developed and deployed in India. We have repeatedly shown the ability to be at the forefront of the next technological wave and lead it right here in India”. This project requires a 24 hour operation of the cameras installed on poles in key areas across the state. To ensure uninterrupted operation of the cameras on 24 hour basis requires an assured power supply. This assured uptime is provided through a specially designed Consul Neowatt single phase UPS integrated with the Lithium ion battery that is kept in a special IP55 metal enclosure below the camera. The decision to go with Lithium ion batteries instead of the conventional Lead acid batteries was taken keeping in mind the life of the battery in high heat condition and further the Lithium ion battery has a lower weight and smaller foot print compared to Lead Acid batteries. Consul Neowatt is also supplying high power Three Phase UPS in Parallel Redundant configuration for the Command Control Centers (CCC) in all the districts of Andhra Pradesh for this project. All the Consul Neowatt UPS supplied for this project are IoT(Internet of Things) ready and will be monitored at the district CCC along with the video feed from the IP CCTV cameras to ensure uninterrupted operations of the Cloud based surveillance. system. n

Enzen launches its second research centre located out of Bengaluru

nzen, the global energy and water specialist company based out of Bangalore, India has recently opened its Energy Research Centre (ERC) at its Bengaluru corporate office. The 7,500 square feet centre will have 75-80 researchers drawn from a multidisciplinary talent pool and also serve as an incubation hub for start-ups. Encouraged by the opportunities emerging from its initial R&D Centre in the United Kingdom, Enzen has established its second R&D centre in India. This multi-million research facility will develop niche technologies and solutions for electric vehicles, energy storage and affordable water treatment technologies. This centre will serve as an innovation

August - September 2018

and collaboration hub and develop cutting-edge technology and solutions with the aim of futureproofing the energy and water space. In addition to nurturing talent within the organisation, it will collaborate with start-ups, academia, research institutes, think tanks and other stakeholders from across the globe to co-create solutions that solve tomorrow’s problems, today. The center has already signed up to collaborate with various groundbreaking programmes run by worldclass universities in the UK to develop solutions for the energy and water sectors. Amongst these programmes are the Artificial intelligence and Innovative Networks (AIIN) at Warwick University, as well as the Supergen

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Energy Network hub at Newcastle University. Dr. Uma Rajarathnam, Head of Enzen’s Applied Research & Collaboration (ARC) stated that “This centre will bring together ideas, solutions, technology, passion as well as the best minds to address the emerging needs of our focus sectors. It will develop products and solutions within the areas of electric vehicles, energy storage, and water resource management, leveraging the potential offered by the internet of things (IoT), artificial intelligence (AI), robotics and mixed realities. It addition, it will incubate dedicated Centers of Excellence (CoEs) for artificial intelligence, mixed realities, and storage solutions for sub500 kW applications.” n

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Communication Features Senvion showcases its robust footprint in India at RE-INVEST 2018

envion, a leading German manufacturer of wind turbines, continues to enhance its India footprint and is taking significant steps to support the country’s national goal of achieving energy security.

With a confirmed order intake of over 700 MW from four different customers in the last three quarters and a solid customer response to its 2.3 M 130 turbines, Senvion has already captured more than 10% market share in the completed auctions. Furthermore, Senvion has been manufacturing wind turbine nacelles in India since its acquisition of Kenersys India Private Limited in Baramati in 2016 and is working on setting up a blade manufacturing facility in Gujarat next year. Participating at the second Global RE-INVEST India-ISA Partnership Renewable Energy Investors Meet & Expo, at Greater Noida. Amit Kansal, CEO and Managing Director of Senvion India, says: “We are delighted to be a part of India’s flagship renewable energy event, RE-Invest 2018. Over a short span of time, Senvion has been able to establish its position as a credible partner for India’s needs in the wind energy sector by successfully providing complete turnkey projects to our local clients. I look forward to the next days, as this is a great platform for us to meet and enhance our ties with the top decision-makers, thought leaders and colleagues from the industry.” n

Danfoss India launches its’ first Enclosed Low Harmonic drive

anfoss India, unveiled its latest product to the Variable Frequency Drives segment – an Enclosed Low Harmonic drive with passive filters, at the Energy Efficiency Summit at Hyderabad, in the presence of His excellence Mr. Sergio Dario Barrientos, Ambasador of Bolivia, Mr. Pankaj Kumar, Secretary, Bureau of Energy Efficiency, Mr. Ravichandran Purushothaman, President, Danfoss India and several other industry experts on Energy Efficiency. The Low Harmonic Drive, which is IEEE 519-2014 grid compliant is set to disrupt the power industry with its distinct feature to mitigate harmonic worries and achieve a Total Harmonic Distortion of 5 percent. The product will also help in reducing the energy consumption of external components and reduce the loss of energy in the process. The drive is also backed with a stable power network with low cost of maintenance. Mr. Ravichandran Purushothaman, President - Danfoss Drives, said, “Over the last several decades, Danfoss Drives has been focused developing, manufacturing and supplying technologies whose strengths lie in its high-quality, application-optimized products and services with maximum process performance, energy savings and minimized emissions. With the launch of the new Low Harmonic Drive, we seek to affirm our commitment to our customers and partners by engineering the best possible drive solutions without compromises and find the optimum outcome for their challenges.” n

Essar Power commissions 337-km, 400 kV Mahan-Sipat transmission line

ssar Power Ltd has announced in the last week of September 2018, the commissioning of the 337-km Mahan-Sipat transmission line, the final leg of a 465-km transmission system consisting of three interstate transmission lines that have been built at an investment of Rs 2,400 crore. The 400 kV lines will help Essar Power’s 1,200 MW Mahan Thermal Power Plant in Madhya Pradesh to evacuate its entire generation. The Mahan-Sipat transmission line is part of the Inter State Transmission System that has been built by Essar Power Transmission Company Ltd. an arm of Essar Power. It extends from Mahan in Madhya Pradesh to the Sipat pooling station in Bilaspur, Chhattisgarh, which is connected to the National Grid.

“The commissioning of these transmission lines is a major milestone for Essar Power, and will help us access a nationwide market for the power generated from our Mahan plant. It has also helped establish our presence as a key player in the power transmission sector” said Mr Pradeep Mittal, Executive Vice Chairman, Essar Power Ltd.

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Essar’s power owns power plants in India and Canada with a total planned generation capacity of 5,090 MW, of which 3,830 MW is operational. The operating plants in India are at Mahan in Madhya Pradesh, Hazira & Salaya in Gujarat, and Paradeep in Odisha. Another 1,260 MW of thermal power capacity is under construction at Tori, Jharkhand, and Paradeep, Odisha. n

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August - September 2018

Events Diary Up-Coming Events

WRETC 2018 21 August 2018 - 23 August 2018 Convention Centre -NDCC Parliament Street , New Delhi, India

BOGOTA INTERNATIONAL TRADE SHOW 2018 24 September 2018 - 28 September 2018 BOGOTA, COLOMBIA, BOGOTA, COLOMBIA.

Renewable Energy India Expo 2018 18 September 2018 - 20 September 2018 India Expo Centre, Greater Noida, India

Future Energy Expo 2018 20 October 2018 - 22 October 2018 Labh Ganga Exhibition Centre, Indore, India

PTC Asia - Power Transmission & Control 06 November 2018 - 09 November 2018 Shanghai New International Expo Center, Shanghai, China

BV Tech Expo 2018 22 November 2018 - 24 November 2018 NSIC Ground, New Delhi, India

LED EXPO New Delhi 2018 06 December 2018 - 08 December 2018 India Exposition Mart Ltd., Greater Noida, India

Intersolar India 2018 11 December 2018 - 13 December 2018 BEC - Bombay Exhibition Centre, Mumbai, India

Energy Storage India 22 Jan 2019 - 23 Jan 2019 The Ashok, New Delhi, India

2nd Renewable Energy Expo 21 Feb 2019 - 21 Feb 2019 Chennai Trade Centre, Chennai, India

Eenergy Tech India 08 Mar 2019 - 10 Mar 2019 Gandhinagar, Gujarat, India

Intersolar India - Mumbai 04 Apr 2019 - 05 Apr 2019 Goregaon Exhibition Centre, Mumbai, India

August - September 2018

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