News Release Details
The ascent of wind power
New Delhi 25-Jul-2007
Wind power may still have an image as something of a plaything of environmentalists more concerned with clean energy than saving money. But it is quickly emerging as a serious alternative not just in affluent areas of the world but also in fast-growing countries like India and China that are avidly seeking new energy sources. Coal is the predominant source of primary energy in India and China, and is one of the causes of acid rain and respiratory ailments while contributing to global warming. Worried by its reliance on coal, China has imposed a requirement that power companies generate a fifth of their electricity from renewable sources by 2020. This target calls for expanding wind power almost as much as nuclear energy over the next 15 years. India already leads China in wind power and is quickly building more wind turbines. In India, Electricity Boards owned by state governments charge industrial users more than twice as much for each kilowatt-hour as such customers pay in the United States — and they still suffer blackouts almost every day, especially in northern India. Subject to political pressures, the Boards are often slow to collect payments from residential consumers and well-connected businesses, especially before elections. As a result, they often lack the money to invest in new equipment. To stay open and prevent crucial industrial or computer processes from stopping, a wide range of businesses — including auto-parts factories and outsourcing giants — rely on still more costly diesel generators. With natural gas prices climbing as well, wind energy has lately become an attractive option for Indian business since regulatory changes in India have made it financially viable. Worldwide, wind energy is being viewed as the most commercially viable renewable energy source with zero adverse impact on environment. With the technological developments across the world in the field of wind power, the cost of wind-generated electric power has dropped substantially. Globally, wind power generation has more than quadrupled between 1999 and 2005, with a CAGR (compounded annual growth rate) of 24% in the past five years and is projected to grow at a CAGR of 21% over the next five years. The wind power potential at present in India is estimated at 65,000 MW and potential locations are coastal areas in Tamil Nadu, Kerala, Gujarat, Lakshadweep, Andaman & Nicobar Islands, Orissa, Maharashtra, etc. Indian and Chinese officials are optimistic about relying much more heavily on wind. Mr. Kamal Nath, India’s Union Minister of Commerce and Industry, was even more enthusiastic when he said, “India is ideally suited for wind energy. The cost of it works well and we have the manufacturing capability.” The demand for wind turbines has particularly accelerated in India, where the number of installations rose nearly 48 percent last year. Wind farms are starting to dot the southern tip of India, as well as scattered hills and hillocks across central India. Roughly 70 percent of the demand for wind turbines (Wind Electrical Generators or WEGs) in India comes from industrial users seeking alternatives to relying on the grid. The rest of the purchases are made by a small group of wealthy families in India, for whom the tax breaks for wind turbines are attractive. To minimise land costs, wind farms are typically in rural areas, chosen for the strength of the wind there as well as low prices for land. But that can mean culture shock. Doing business in rural areas of the developing world carries special challenges. The new Suzlon Energy wind farm in Khori is a subject of national pride. More than 300 giant wind turbines, with 110-foot blades snatch electricity from air but it has also struggled with the sporadic lawlessness that bedevils India. As sources of renewable energy deplete the world over and corporate & governments scramble to access and harness more viable options, IndianOil is also making a significant imprint in the direction. As a responsible energy major, IndianOil is exploring wind power as another green and renewable energy option. Chennai Petroleum Corporation Ltd. (CPCL), an IndianOil subsidiary, has recently commissioned a windmill power project of 17.6 MW capacity at Palghat pass near Pollachi. With this project, CPCL has earned the distinction of being the first PSU to have its own windmill for captive power consumption. CPCL’s wind farm has an estimated annualised generation of 42.4 Million KwHr of electrical energy with 22 wind electrical generators. The energy produced thus would be wheeled to the grid and redeemed by CPCL in Manali, Chennai for its de-salination plant in the refinery. This will cater to approximately 80% of the power requirement of the desalination plant power load. For this purpose, CPCL has entered into an agreement with the Tamil Nadu Electricity Board. In its quest towards a greener world by offering sustainable and environment-friendly energy options, IndianOil is also exploring the possibility of setting up a 25 MW wind power project in Gujarat.
New Delhi 25-Jul-2007
Wind power may still have an image as something of a plaything of environmentalists more concerned with clean energy than saving money. But it is quickly emerging as a serious alternative not just in affluent areas of the world but also in fast-growing countries like India and China that are avidly seeking new energy sources. Coal is the predominant source of primary energy in India and China, and is one of the causes of acid rain and respiratory ailments while contributing to global warming. Worried by its reliance on coal, China has imposed a requirement that power companies generate a fifth of their electricity from renewable sources by 2020. This target calls for expanding wind power almost as much as nuclear energy over the next 15 years. India already leads China in wind power and is quickly building more wind turbines. In India, Electricity Boards owned by state governments charge industrial users more than twice as much for each kilowatt-hour as such customers pay in the United States — and they still suffer blackouts almost every day, especially in northern India. Subject to political pressures, the Boards are often slow to collect payments from residential consumers and well-connected businesses, especially before elections. As a result, they often lack the money to invest in new equipment. To stay open and prevent crucial industrial or computer processes from stopping, a wide range of businesses — including auto-parts factories and outsourcing giants — rely on still more costly diesel generators. With natural gas prices climbing as well, wind energy has lately become an attractive option for Indian business since regulatory changes in India have made it financially viable. Worldwide, wind energy is being viewed as the most commercially viable renewable energy source with zero adverse impact on environment. With the technological developments across the world in the field of wind power, the cost of wind-generated electric power has dropped substantially. Globally, wind power generation has more than quadrupled between 1999 and 2005, with a CAGR (compounded annual growth rate) of 24% in the past five years and is projected to grow at a CAGR of 21% over the next five years. The wind power potential at present in India is estimated at 65,000 MW and potential locations are coastal areas in Tamil Nadu, Kerala, Gujarat, Lakshadweep, Andaman & Nicobar Islands, Orissa, Maharashtra, etc. Indian and Chinese officials are optimistic about relying much more heavily on wind. Mr. Kamal Nath, India’s Union Minister of Commerce and Industry, was even more enthusiastic when he said, “India is ideally suited for wind energy. The cost of it works well and we have the manufacturing capability.” The demand for wind turbines has particularly accelerated in India, where the number of installations rose nearly 48 percent last year. Wind farms are starting to dot the southern tip of India, as well as scattered hills and hillocks across central India. Roughly 70 percent of the demand for wind turbines (Wind Electrical Generators or WEGs) in India comes from industrial users seeking alternatives to relying on the grid. The rest of the purchases are made by a small group of wealthy families in India, for whom the tax breaks for wind turbines are attractive. To minimise land costs, wind farms are typically in rural areas, chosen for the strength of the wind there as well as low prices for land. But that can mean culture shock. Doing business in rural areas of the developing world carries special challenges. The new Suzlon Energy wind farm in Khori is a subject of national pride. More than 300 giant wind turbines, with 110-foot blades snatch electricity from air but it has also struggled with the sporadic lawlessness that bedevils India. As sources of renewable energy deplete the world over and corporate & governments scramble to access and harness more viable options, IndianOil is also making a significant imprint in the direction. As a responsible energy major, IndianOil is exploring wind power as another green and renewable energy option. Chennai Petroleum Corporation Ltd. (CPCL), an IndianOil subsidiary, has recently commissioned a windmill power project of 17.6 MW capacity at Palghat pass near Pollachi. With this project, CPCL has earned the distinction of being the first PSU to have its own windmill for captive power consumption. CPCL’s wind farm has an estimated annualised generation of 42.4 Million KwHr of electrical energy with 22 wind electrical generators. The energy produced thus would be wheeled to the grid and redeemed by CPCL in Manali, Chennai for its de-salination plant in the refinery. This will cater to approximately 80% of the power requirement of the desalination plant power load. For this purpose, CPCL has entered into an agreement with the Tamil Nadu Electricity Board. In its quest towards a greener world by offering sustainable and environment-friendly energy options, IndianOil is also exploring the possibility of setting up a 25 MW wind power project in Gujarat.