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Power - Wind turbine - 20,000 kW / India
Case study assignment
An Independent Power Producer (IPP) has assigned you the responsibility to assess the feasibility of developing a large windfarm in Andhra Pradesh, India. The windfarm will sell the power to the local utility at a pre-determined tariff that is designed to encourage windfarm developments.
Site information
The site is located on the 20 km-long Kadavakallu ridge in southern Andhra Pradesh at latitude of 17ºN. It has a good wind resource potential which averages 6.2 m/s at 30 m height, as per on-site measurements. The nearest weather station is at Hyderabad. The windfarm developer plans to build a 20 MW windfarm using Lagerwey wind turbines on 36 m towers (manufactured locally). Smaller turbines of less than 300 kW are believed to be more appropriate as this would simplify the transportation and installation of the machines on the ridge.
For the greenhouse gas analysis, the conventional generation fuel mix that the wind energy project would displace is approximately as follows: 50% coal and 50% large hydro.
Financial information
You can assume an inflation rate of 2.5%, discount rate of 12% and a project life of 25 years. The assured energy buy-back price is INR 4.16/kWh and escalates at 5% annually.
Debt financing is available to cover 75% of project cost at an interest rate of 14% for a term of 7 years. Equity will be provided by the client. Since the client is a for-profit company, the corporate tax rate of 35% that is prevalent in India is applicable. Accelerated 100% depreciation on the electromechanical and electrical equipment is available as a tax incentive for the project.
Prepare a RETScreen study, documenting any assumptions that you are required to make, and report on the significant conclusions from this analysis.
Solution
The worked-out solution is the data file selected from within the RETScreen Project Database. The user automatically downloads the Project Database file while downloading the RETScreen software.
Teacher's notes
Results
The 20-MW Kadavakallu Windfarm in Andhra Pradesh, India was constructed by RCI Power (an Independent Power Producer) with the help of the Non-Conventional Energy Development Corporation of Andhra Pradesh Ltd (NEDCAP). It was completed in 2001 and is the largest windfarm at Kadavakallu in the Ananthapur region of Andhra Pradesh. The windfarm has benefited from the Andhra Pradesh government's favourable policies for wind power development, particularly the wind estate scheme of NEDCAP. The windfarm sells power to the Andhra Pradesh Transmission Company (AP Transco) at a remunerative power purchase price that will be escalated by 5% every year. Debt financing for the project was made available by the Indian Renewable Energy Development Agency (IREDA).
RCI Power maintains staff on location at Kadavakallu and at the nearby town of Thadpatri to provide operation and maintenance services to ensure high levels of turbine availability (95% so far).
System description
The windfarm consists of 80 LW30/250 wind turbines of 250 kW capacity manufactured by Lagerwey Windturbine BV of the Netherlands. The nacelle assemblies of the two-bladed machines are mounted on 36-m high lattice towers. The windfarm is spread over a length of 20 km over the Kadavakallu ridge in the north-south direction. Power from the windfarm is delivered to the AP Transco central grid. Since the windfarm is located in a relatively remote location, the operator has developed wireless SCADA control systems that are used to optimize operations and maintenance scheduling at the windfarm.
Lessons learned
Wind power development in India totalled over 1,500 MW of capacity at the end of 2001 and illustrates that large windfarms can also be implemented successfully in non-industrialised regions. Some of the factors which have contributed to the success of wind energy in India are the favourable policies promoted by the Ministry of Non-Conventional Energy Sources (MNES), the policy support of several Indian states, the strength of the Indian wind energy industry and the facilitating role of financiers such as the Indian Renewable Energy Development Agency (IREDA) in financing windfarms.
Photo
Wind farm, Andhra Pradesh, India
References
Case study assignment
An Independent Power Producer (IPP) has assigned you the responsibility to assess the feasibility of developing a large windfarm in Andhra Pradesh, India. The windfarm will sell the power to the local utility at a pre-determined tariff that is designed to encourage windfarm developments.
Site information
The site is located on the 20 km-long Kadavakallu ridge in southern Andhra Pradesh at latitude of 17ºN. It has a good wind resource potential which averages 6.2 m/s at 30 m height, as per on-site measurements. The nearest weather station is at Hyderabad. The windfarm developer plans to build a 20 MW windfarm using Lagerwey wind turbines on 36 m towers (manufactured locally). Smaller turbines of less than 300 kW are believed to be more appropriate as this would simplify the transportation and installation of the machines on the ridge.
For the greenhouse gas analysis, the conventional generation fuel mix that the wind energy project would displace is approximately as follows: 50% coal and 50% large hydro.
Financial information
You can assume an inflation rate of 2.5%, discount rate of 12% and a project life of 25 years. The assured energy buy-back price is INR 4.16/kWh and escalates at 5% annually.
Debt financing is available to cover 75% of project cost at an interest rate of 14% for a term of 7 years. Equity will be provided by the client. Since the client is a for-profit company, the corporate tax rate of 35% that is prevalent in India is applicable. Accelerated 100% depreciation on the electromechanical and electrical equipment is available as a tax incentive for the project.
Prepare a RETScreen study, documenting any assumptions that you are required to make, and report on the significant conclusions from this analysis.
Solution
The worked-out solution is the data file selected from within the RETScreen Project Database. The user automatically downloads the Project Database file while downloading the RETScreen software.
Teacher's notes
- The real project had a complex financing structure with several small investors who contributed equity and/or debt. This has been simplified in the case presented. Also, there was a grant component that improved the project viability but was excluded from the case presented.
- A maximum turbine capacity is prescribed to ensure that the case study is consistent with the real project. Large turbines would be difficult to transport and commission on the remote and complex terrain.
- The wind speeds were measured at a 10 m height and extrapolated to 30 m.
- Array losses are expected to be small due to the advantageous ridge-top location of the wind turbines.
Results
The 20-MW Kadavakallu Windfarm in Andhra Pradesh, India was constructed by RCI Power (an Independent Power Producer) with the help of the Non-Conventional Energy Development Corporation of Andhra Pradesh Ltd (NEDCAP). It was completed in 2001 and is the largest windfarm at Kadavakallu in the Ananthapur region of Andhra Pradesh. The windfarm has benefited from the Andhra Pradesh government's favourable policies for wind power development, particularly the wind estate scheme of NEDCAP. The windfarm sells power to the Andhra Pradesh Transmission Company (AP Transco) at a remunerative power purchase price that will be escalated by 5% every year. Debt financing for the project was made available by the Indian Renewable Energy Development Agency (IREDA).
RCI Power maintains staff on location at Kadavakallu and at the nearby town of Thadpatri to provide operation and maintenance services to ensure high levels of turbine availability (95% so far).
System description
The windfarm consists of 80 LW30/250 wind turbines of 250 kW capacity manufactured by Lagerwey Windturbine BV of the Netherlands. The nacelle assemblies of the two-bladed machines are mounted on 36-m high lattice towers. The windfarm is spread over a length of 20 km over the Kadavakallu ridge in the north-south direction. Power from the windfarm is delivered to the AP Transco central grid. Since the windfarm is located in a relatively remote location, the operator has developed wireless SCADA control systems that are used to optimize operations and maintenance scheduling at the windfarm.
Lessons learned
- The project was built at a location with a reasonably good wind resource and good financial and fiscal incentives for windfarm development. This enhances the project's financial viability.
- A large number of turbines, concentrated at one windfarm site, allows for favourable economies of scale in regard to planning, development, construction, operation and maintenance costs.
- The project breaks even shortly after the repayment of its debt and continues to generate profits over the remainder of its life. A longer debt term would lead to an even earlier break-even.
Wind power development in India totalled over 1,500 MW of capacity at the end of 2001 and illustrates that large windfarms can also be implemented successfully in non-industrialised regions. Some of the factors which have contributed to the success of wind energy in India are the favourable policies promoted by the Ministry of Non-Conventional Energy Sources (MNES), the policy support of several Indian states, the strength of the Indian wind energy industry and the facilitating role of financiers such as the Indian Renewable Energy Development Agency (IREDA) in financing windfarms.
Photo
Wind farm, Andhra Pradesh, India
References
- Mohan, Ram, "Personal communication," NEDCAP, Wind Energy Division-Ananthapur, India, 2002.
- Parthan, Binu K., "Personal communication," IT Power India, 2002.
