FOR SETTING UP WIND POWER PLANT IN

MADHYA PRADESH

DECISION SUPPORT SYSTEM DECISION SUPPORT SYSTEM (DSS(DSS))

SUBMITTED BY:SUBMITTED BY:

ASHISH BATHRI

R100107021

INTRODUCTIONINTRODUCTION India’s total installed wind energy capacity now stands at 8757.4 MW in

comparison with 6,270 MW in 2006 and 4,430 MW in 2005.  The gross potential in Madhya Pradesh is 1019 MW whereas installed

capacity up to 31st March 2008 is only 187.7 MW. Utilized only 18.42% of potential Essential requirements for a wind farm High wind resource at particular site Adequate land availability

Suitable terrain and good soil condition Proper approach to site

Suitable power grid nearby Techno-economic selection of WEGs

Scientifically prepared layout

Reasons for Lack of Investment In Reasons for Lack of Investment In Wind Power PlantWind Power Plant

1. Specific Site Generation2. Low Plant Load Factor3. Lack of Knowledge regarding Investment4. Problem in taking Clearances5. Regulatory Complexity6. Information regarding Returns from the

Project

Investor Decision

Technical Parameters

Regulatory Parameters

Financial Parameters

Final Decision

Steps in Building a Wind Steps in Building a Wind FarmFarm1. Understand Your Wind Resource Minimum annual average wind speed Local weather data available from airports and meteorological stations

may provide some insight as to averages. Wind maps for your state on CWET Web site.2. Determine Proximity to Existing Transmission Lines3. Secure Access to Land Both private and public, will expect to be compensated for any wind

energy development that occurs on their land. Lease agreements will need to be discussed with all parties involved. Roads, transmission equipment, maintenance infrastructure, turbines, and

the like all need to be considered.

Construction of a wind farm necessitates the use of heavy industrial equipment.

The cooperation of landowners and, in some cases, the local community.

4. Establish Access To Capital

5. Identify Reliable Power Purchaser or Market

6. Address Siting and Project Feasibility Considerations Is there high raptor activity in the area?

Endangered or protected species that could be jeopardized by the presence of the facility?

Is the site's geology suitable and appropriate for industrial development? Will noise and aesthetics be issues for the local community?

Will the turbines obstruct the flight path of local air traffic?

7. Understand Wind Energy's Economics The power a wind turbine can generate is a function of the cube of the average

wind speed at its site, which means that small differences in wind speed mean large differences in productivity and electricity cost.

The swept area of a turbine rotor is a function of the square of the blade length .A modest increase in blade length boosts energy capture and cost-effectiveness.

Financing methods can make a major difference in project economics.

8. Obtain Zoning and Permitting Expertise

9. Establish Dialogue With Turbine Manufacturers and Project Developers

10. Secure Agreement to Meet O&M Needs

Wind Energy BasicsWind Energy BasicsWind Energy and Power

Pwr/A is Wind Power Density (WPD)

WPD depends mainly on • Density of Air• Velocity of Wind

Pwr / A = ½ * * V³ρ

Table Showing Density Table Showing Density Temperature

°CelsiusTemperature

°FarenheitDensity, i.e. mass of

dry air kg/m³Max. water content

kg/m 3

-5 23 1,317

0 32 1,292 0,005

5 41 1,269 0,007

10 50 1,247 0,009

15 *) 59 1,225 0,013

20 68 1,204 0,017

25 77 1,184 0,023

30 86 1,165 0,030

35 95 1,146 0,039

40 104 1,127 0,051

*) The density of dry air at standard atmospheric pressure at sea level at 15º C is used as a standard in the wind industry

Distribution of Wind Distribution of Wind SpeedSpeed

CHOOSING A TURBINECHOOSING A TURBINE

Turbine SitingTurbine Siting (Wind Park Effect): (Wind Park Effect):

Components of WTGComponents of WTG

Technical ParametersTechnical Parameters

Main Components and Technical Data of 1250 kW wind turbine generator

Rated Capacity: 1250 KW

Cut in wind speed Approx 3 m/s

Cut out wind speed Approx 25 m/s

Rated wind speed 12 m/s

Survival wind speed 67 m/s

Rotor Dimeter 64 m

Regulation Pitch Regulated

Gear Box

Type Helical

Gear Ratio 1 : 74.917

No. of steps 3

Generator

Rated Power Output 1250 KW

Type Asynchronous, 3 Phase

Voltage 690 V

Rated Current 1185A

No Load Current 300A

Revolutions 1509 rpm

Frequency 50 Hz

Tower

Type Tubular/Lattice

Height 63 m

Number of Legs 9

Nacelle Frame Hot Dip Galvanized/ Epoxy/ PU Coated

Rotor

No. of Blades 3

Diameter 64 m

Swept area 3217 sq. m

Speed 13.9/20.8 rpm

Blades

Length 31 Mtr. Length

Material FRP

Controls

Microprocessor Based

Regulatory ParametersRegulatory Parameters Debt: Equity ratio of 70:30 Return on Equity is 16% Return on Debt is 11% Power Tariff is Rs 4.03 per annum decreasing @17paisa

per year and then constant tariff Rs 3.36 per year after 5th year

@Depreciation @ 7% for initial first 10yrs and balance 2% per annum

1% on capital cost as O&M expenses for 5 years and increase thereafter @5% per annum.

Tax rate of 33.93%

MODELMODEL

Model Showing the calculation of Financial Parameter

RESULTRESULT

Sr. No. INVESTMENT – RESULTS

1 Profit before Tax 764.33 Lacs

2 Profit after Tax 556.85 Lacs

3 Cash Profit (PAT + Depreciation) 908.11Lacs

4 Cumulative Inflow/ MW 1195.50 lacs

5 Project Payback 7.38 years

6 I R R (20 Yr.) 9.98 %

INTERPRETATION INTERPRETATION

The Key points found from the Financial Model are:

The project is getting low IRR which is only 9.98%

If the O&M expenses is decreased by 0.5% the IRR will increase by 1%

Decrease in interest rate by 1% will result in increase in PAT by 9.79%

In case the plant get Carbon Benefit of 10 Paisa per unit the IRR becomes 7.38%

Limitation of Financial Limitation of Financial Model :Model : The tariff is fixed for the first 5 periods. This model

can’t be applied to projects which have different tariff for the initial 5 years.

Free O& M is considered for the 1st year. It is assumed that the scrap value will be at least 5% Model is designed taking accelerated depreciation @7%

per annum for the first 10 years on 80% of the book value and 2% per annum for the remaining period.

The value of components considered for calculating project cost like land cost, erection and commissioning cost, substation charges and other components cost can vary.

LIMITATIONS OF THE LIMITATIONS OF THE DISSERTATION PROJECTDISSERTATION PROJECT

Uses the Secondary data for the wind speed, wind density, site location and survey analysis which can’t be fully trusted.

Certain data was taken from various websites which are not fully updated. The reason for outdated data is lack adequate research.

The model is made specifically for the Madhya Pradesh which has its own regulatory provisions which varies with states. So this model can be suggested to apply only for the developers who want to establish wind farm in Madhya Pradesh.

The constraints like political constraints, climatic constraints, Local People Interventions can affect the project in real situation, Such constraints are not considered in the Project

.

SCOPE FOR FUTURE WORKSCOPE FOR FUTURE WORK Provides the Technical Knowledge about Wind

Power Plant Provides the knowledge regarding Regulatory

Aspects required for setting up Wind Power Plant. Help investor to take decisions regarding their

investment. Better policies regarding the promotion of wind can

be designed using this model which is beneficial to encourage the investors.

The regulatory body of Madhya Pradesh can design better tariff model which attracts more private player in the field of wind power development.

THANK YOUTHANK YOU