Under pressure from the Government, telecom tower companies in India have banded together to float a contract to buy green power from privately owned green companies in India. Note these fierce competitors have formed a cartel to drive down the prices of buying renewable energy from small suppliers. Telecom towers manage to get subsidies of thousands of crores each year by burning subsidized diesel to power their towers. They not only manage to get massive subsidies but contribute heavily to global warming. The companies have been under pressure from Greenpeace to reduce their carbon footprint. The Government had finally acted by mandating that 50% of the power supplied to the towers must come from renewable energy sources. The companies starting under the new government regulation had floated the EOI in response. However they are not happy to loose the massive subsidy as green power will raise their cost.

Telecom Tower Companies in India put lipstick on Diesel Pig

India has around 300,000 Telecom Towers around the country, a large portion of which is not connected to the electricity grid.  Another large portion does not have access to reliable electricity implying they have to install backup power systems in order to run without interruptions. Diesel Generators have been the choice of telecom operators despite their high carbon imprint. This is because of the ease  of buying and installing diesel generators as well as the lower fuel costs as the government in India heavily subsidizes diesel.

Telecom Towers are estimated to burn 2 Billion Liters of Diesel ( around 500 million barrels) annually at a cost of Rs 7000 crores. While the Government has been trying to convert these towers to renewable energy forms, most of the tower operators have been very slow to implement this change. Indus Towers the largest one plans only 2.5% conversion while the others like GTL, Viom and American Tower are doing only marginally better. Note there are easy solution to this problem with alternatives like Fuel Cells, Small Wind and Bio Diesel. But the private operators are only interested in the money and without serious Government prodding would not move. Diesel Prices can easily move up 30-40%, if the Government removes the subsidy. This will really make these Telecom Operators move quickly towards renewable energy instead of the their putting Lipstick on the Diesel Pig. Note most of the telecom expansion will now happen in rural areas where almost every tower will burn more Oil.

Hindu

At least 25 Renewable Energy Service Companies (Rescos) have expressed interest in supplying energy to telecom tower companies.

Tower companies, including Indus, Bharti Infratel, American Tower Corporation and Viom, had floated a joint proposal for the project.

Under this project, the Rescos will set up renewable energy-based power plants near the telecom towers and sell power to the telecom company at a predetermined cost on a pay per use model.

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Future of Nuclear Plants in India

The new nuclear power plants that are coming up in India are facing strong protests by local people worried about the potential radioactive fallout due to a nuclear accident. This has become a regular occurrence in which the heavy hand of the state intervenes leading to violence and killings of protestors in police firings. Note protests against companies encroaching on the environment and precious farm land are not limited to nuclear energy but also extend to thermal power plants. Recently protestors were killed by police in Andhra Pradesh as well. The Government has blamed foreign NGOs for fomenting the violence in Kudankulam but the fact is that nuclear power protests are being seen everywhere in India where citizens are not enamored of nuclear power like the country’s PM. In fact even with all the planned expansion of nuclear energy, the contribution of nuclear energy to India’s electricity will still be in the low single digits. Besides the cost of nuclear energy in recent times has risen prohibitively, making nuclear power plants uneconomical in the developed countries where the emphasis on safety is much greater.

Read more about Nuclear Advantages vs Disadvantages.

Jaitapur Nuclear Power Plant Protests

The Jaitapur Nuclear Power Plant to be built by NPCIL using Areva’s experimental nuclear reactors has got the federal government’s environmental clearance. Note the protests against the plant had got a political color with local opposition parties getting involved. A number of villagers have already been killed by police firing and further protests are expected. Note India’s activist environment minister Jairam Ramesh has proven to be selectively biased towards large industrial projects in Congress ruled states. After appearing to be hero stopping the Niyamgiri project from Vedanta, Ramesh has given the go ahead to politically favored projects. Not a surprise given the endemic corruption present in the ruling coalition which has given birth to a number of corruption scams and scandals. Like everything, even a project of this critical nature, has acquired a political cover with everyone sounding their party positions without worrying about the possibility of a nuclear meltdown in India.

Note Jaitapur lies in   an earthquake region and India’s past nuclear safety record hardly gives much comfort. One of the worse Industrial Disasters the Bhopal Gas Tragedy occurred in India. Safety and Environmental norms are given short shrift by the politician-businessmen nexus as can be seen in the neighboring project in Lavasa. Many prominent persons have appealed against giving the go ahead which includes former atomic energy chairmen, former navy chiefs and prominent social activists. Looks like nothing in India can be done right without the civil society make a huge hue and cry about it.

Problems with Nuclear Power in India

The cost of nuclear power has grown at a distressing pace with massive time and cost overruns. The Areva Nulcear Plant is going to cost Rs 20 crore a MW which is much more than a Thermal Power plant and even costlier than Solar Power which has the highest capital requirement amongst major energy sources. Besides disposal of nuclear energy waste is a huge problem even for countries like USA and Japan which have huge nuclear power industries. For a country like India with poor safety record, nuclear waste disposal would be a nightmare. India should learn from the example of Germany and Italy and stop going down the nuclear path and look for other green energy sources. Note different forms of Renewable Energy have their own pros and cons but Nuclear Energy Risks are too great to be ignored.

NIMBY Protests Growing

Rawatbhata Nuclear Power Plant in Rajasthan is situated near a major dam which makes it susceptible to major flooding. Besides the villages near the plant have reported higher incidences of abortion and cancer which is typical of radiation effect of human health. A new plant being proposed in Bhavnagar, Gujarat too is seeing protests being organized by villages near the plant.

Nuclear Plants face massive cost overruns

New Nuclear Power Plants face massive delays leading to much higher costs as rules and regulations become tougher. The Nuclear Power, already the nuclear renaissance which was supposed to be boosted by India and China is coming under attack. India’s nuclear power plant to be built at Jaitapur by Areva is seeing massive protests by local villagers as well as intellectuals alike. India has around 4.5 GW of Nuclear Power Plant Capacity which it proposes to increase by around 1-2 GW every year. This will hardly make a huge difference to India’s massive power needs which requires 10 GW of power every year. Nuclear Energy Disadvantages with the Tail Risk of a Meltdown are too huge to be ignored. China is the other country with massive nuclear power plans, however the government too has decided to be careful.  China has more than doubled its solar power target to 50 GW by 2020 from 20 GW.

First Post

One person was killed in police firing in Tuticorin as anti-nuclear protesters turned violent today after police foiled their repeated attempts to lay siege to the atomic power plant here against loading of uranium fuel.

A 44-year old fisherman was killed when police opened fire at a group of people who clashed with them while blocking a road in Manapad coastal village as the protest spilled to neighbouring Tuticorin District, police said.

At Kudankulam in Tirunelveli District, the main scene of protests for the last two days, police resorted to lathi-charge and burst teargas shells to disperse over 2,000 protesters who fought pitched battles throwing stones and logs.

Renewable Energy India

India has sharply increased its target for Renewable Energy in the next 5 years to 30 GW from the earlier 17 GW. Greenworldinvestor had predicted that the 17 GW was too low a target in order to meet India’s 15% target of energy generation from green power sources ( see below). Though the Government has increased the green power target there are huge hurdles to achieving the target. India plans to meet 50% of the renewable energy increase from wind energy. However 3 GW from wind power looks tough considering that all the subsidies and incentives have been removed and major wind energy companies are predicting only a 1 GW capacity increase in the current year. Solar Power is also facing some teething problems though some states like Gujarat have made impressive gains in solar energy generation. The other major problems plaguing the green power industry are:

a) Inadequate and low quality transmission and distribution electricity infrastructure

b) High interest rates and capital funding problems

c) Financial viability of customers.

India’s 12th Five Year Renewable Energy Plan

Renewable Energy in India has seen decent growth in the past, mainly driven by Wind Energy which accounts for almost 65% of the estimated 20 GW of Green Energy capacity installed in the country. However to meet India’s 2020 Green Energy Target of 15% of power to be generated from renewable sources set by CERC, at least 40 GW more would need to be installed (that is a conservative estimate as load factors for green energy are lower). This is assuming that India meets its target of raising the power capacity to 400 GW by 2020 from around 175 GW at present. Solar Energy in India has not got off to a good start despite immense potential as the federal subsidy program JNNSM has seen irrational bidding by bit players and debt financing is difficult. Wind Power in India has seen the most growth amongst the green sources of power but it too faces hurdles as good quality wind sites have all been taken.

Why 17000 MW is too Low

Biomass, Small Hydro and other sources of green power face problems of scale making the 40-80 GW of the required green energy capacity quite difficult unless the government changes its policies even more. Note 17 Gw of renewable energy between 2012 and 2017 equates to around 3 GW of alternative energy capacity per year which is much lower than the 4-8 GW of green energy needed per year. While out of the 100 Gw of power capacity expected 17 G may seem higher, note that renewable energy load capacity is around 25-33% of a normal thermal/gas power plant which means that the power generated from the green sources will be only 7% from the newly installed 100 GW capacity much lower than the 10% target by 2015. That would leave around 23 GW to be installed in just 3 years which seems quite impossible.

India already faces a massive energy deficit and that will only increase as the prices of fossil fuels like coal and oil are increasing at a parabolic rate driven by the growing demands of China and India. With the fossil fuel a depleting source of fuel, renewable energy is the only alternative left. While the government has put in decent efforts, it has been bogged down by a lack of clear thinking. Using the auction mechanism did not help with JNNSM while Wind Power too faces problems of getting proper payments from bankrupt state distribution companies. It needs to structurally reform the whole electricity market in order to meet the growing energy demand of the country. Otherwise the 8% GDP growth rate will look like a pie in the sky.

Wind Power in India Problems

Wind Power Plants in India are finding the going tough in 2012  as we had written earlier with a number of factors affecting the growth of the industry in India. Not only have the central subsidy schemes like accelerated depreciation and GBI have been removed, but the wind power players are also facing tactical problems like collecting of dues from the state distribution utilities. Most of the state power distribution companies are saddled with massive debt and payment to suppliers is always a perennial problem. In the case of the wind energy developers, the problem of working capital has become acute with payment delays of more than a year.

Wind Companies are also facing capital escalation of costs with the prices of materials like steel and cement showing a sharp appreciation leading to a 30-40% increase in the cost of wind farms. The rise in costs with a fall in electricity tariffs are squeezing the wind energy developers. Wind energy installations in Tamil Nadu which accounts for almost 40% of the wind capacity in India, has already dropped by a startling 70% in the first quarter of fiscal 2012. With the industrial conditions getting worse it is expected that the trend will continue and wind capacity could drop to just 1000 MW from 3000 MW last year.

ET

India is expected to see renewable energy capacity addition of 30,000 MW, with significant contribution from wind power, over the next five years.

“At the end of 12th Five Year Plan (2012-17), the country is expected to have total renewable energy generation capacity of 55,000 MW,” Joint Secretary at the Ministry of New and Renewable Energy Tarun Kapoor said here today.

Of the projected 30,000 MW capacity addition, around 15,000 MW would be from wind power.

According to him, there are also certain issues such as financial health of power distribution companies (discoms) and availability of transmission lines for renewable energy projects.

Problems of Power Industry in India

The problems faced by the electricity companies in India are quite well known and those who did not, the biggest power blackout in human history would have brought it home (quite literally). The root cause of the problem is the Indian Government which has been stuck in paralysis for the last 2-3 years. The only time it shows some life is to defent itself from attacks by the opposition or to play political games to break an opposition group during some event like the Presidential elections. Rest of the time it is happy to let the country go under. India’s economic growth has been going downhill quite fast and the power industry has been one of the worst hit. The main problems are:

a) Lack of fuel as Coal India the monopoly producer is a den of waste and corruption. There is no coal to feed the new thermal power plants despite India sitting on hundreds and billions of coal reserves

b) The distribution and transmission sector owned by the government is a total mess

c) The coal industry has come under fire from the Auditor General for indulging in widespread corruption

d) Foreign governments have imposed duties and taxes on coal exports to India making the big power plants unviable. The Reliance power plant being built in AP is now stuck as it is no longer feasible to supply power at the contracted prices at the current fuel cost

e) Gas power plants are stranded as well as domestic gas production has dived (as usual due to government incompetence and corruption).

I had referred to the Indian Power Industry being a Bubble a year ago itself flagging the problems.

India’s Power Sector is seeing massive investments with innumerable business groups setting up thermal power plants in the country spurred by the electricity deficit of more than  15% and the GDP growth of more than 8% expected in the next decade. India’s private power companies are competing with each other in setting up massive ultra mega thermal power plants of 4 GW capacity. However India’s pathetic state of electricity distribution may lead to huge losses for the investors in the power sector. The reason is that the electricity distribution is controlled by the state utilities which have cumulative losses of  $13 billion which is expected to double to $26 billion in another 5 years. These “discoms” don’t have money  to pay the private producers of power even with an electricity deficit. With India’s electricity market a tangle of red tape, losses and government control the situation looks bleak for all the business groups deciding to enter the power sector.

Already private utilities like Adani Power and Monnet Ispat are having trouble in selling the power to discoms as these utilities don’t have cash. Monnet Ispat has been forced to sell power for as low as 1c/KwH as demand has plummeted. This has happened despite Indian customers facing power blackouts even after paying more than 10c/KwH for power. The distorted nature of  the electricity market with government entities in the middle is responsible for this situation. Even India’s largest utility NTPC has seen its profit growth dip as state discom  are not buying power despite electricity shortage. These discoms buy power at inflated rate during elections and once they are over stop buying power. India’s pathetic transmission and distribution infrastructure is a major hurdle in installing more renewable energy in India as was seen in the case where solar power plants are not being debt financed by banks due to bankrupt discoms. India’s Solar Program JNNSM launched with much fanfare is already facing problems on multiple fronts, this will only add to them.

The Minister of Power instead of solving the critical problems is considering to change the accounting treatments so as not to make these non-running electricity generators as Non Performing Assets. Note the Indian banks have made massive amounts of loans and they would show huge losses if they were to follow prudential accounting norms. The government wants to take a shortcut as usual and not do anything substantial.

Hindu

Nearly 8,770 MW of power projects ready for commissioning but stranded due to lack of fuel supplies may get some relief.

The Government is looking to bring in changes in accounting standards that would prevent these units from being categorised as non-performing assets.

“It is on serious consideration of both the Ministries (Power and Corporate Affairs). The Power Ministry is reviewing the issue and would soon send the recommendations to the Corporate Affairs Ministry. No sooner this exercise is done, we will take the decision. It will not take more than 10-15 days,” said Veerappa Moily, who holds charge of both the ministries – Power and Corporate Affairs.

To prevent the projects from turning into NPAs, private power producers have approached the Corporate Affairs Ministry for change in Accounting Standards 10 and 16, to allow provisioning of capitalisation of borrowing cost for the stranded gas-fired power units.

Moily on Friday met private power producers to discuss issues related fuel linkage, finalisation of standard bidding documents, commissioning of hydro power projects and distribution sector reforms, among others.

Biomass

Biomass Energy is the non-glamorous green energy form, which is one of mankind’s biggest energy providers. Biomass Energy is not frequently used to generate electricity like Wind and Solar Energy, but is mostly used in cooking and heating particularly in developing countries. Biomass Energy has been the principal provider of energy to humans until a century ago when coal took over. Biomass Plants have not grown at the rates seen by solar and wind energy due to:

a) Lack of Fuel availability

b) Pollution caused due to bad design and construction.

Now Biomass Plants have come under fire in the USA for creating air and water pollution. WSJ has criticized Biomass Plans in the USA for pollution citing reports from the EPA. However the article fails to compare the pollution caused by Biomass Plants to the Thermal Power Plants. It also fails to mention that Coal Mining not only leads to massive pollution but causes the deaths of thousands of people every year through accidents. Coal Mining and Power Generation also leads to health hazards for hundreds of thousands due to sulfur and carbon emissions besides mercury poisoning. While WSJ says that biomass plants receive subsidies and still cause pollution, it fails to mention that Fossil Fuel receives $500 billion in global subsidies each year. While Green Energy is still in infancy and needs subsidies and support to grow, Fossil Fuel on the other hand because of its massive disadvantages needs to be penalized instead of being supported.

Pros & Cons of Biomass Energy As Compared to Coal

Biomass Energy Pros

1) Carbon Neutral– Biomass Energy results in no new net GHG emissions as it is part of the carbon cycle. Unlike coal and others forms of fossil fuel which have been buried millions of years ago and burning them adds to carbon in the atmosphere, responsible biomass energy generation results in no new carbon emissions or pollution.

2) Use of Waste – Biomass Energy is an Efficient Process which results in the use of mostly animal and crop wastes which would be converted into carbon dioxide anyway. To use it as energy before the conversion is an important use of the millions of tons of waste that is generated by human activities.

3) Continuous Source of Power – Biomass Energy can be generated almost 24×7 unlike other forms of renewable energy like wind and solar that are intermittent in nature.

4) Large variety of Feedstock – Biomass Energy can use a large variety of feedstock such as wood pellets, rice husk, bagasse etc.

5) Low Capital Investment – The capital investment required for biomass based power plants is relatively less at $1-2/watt of biomass capacity. Note wind energy is slightly higher while solar is even higher. Biomass Energy has similar capex characteristics as other forms of conventional energy like coal, gas, oil etc.

6) Distributed Nature – Biomass plants can be built in remote areas and used as a distributed form of power generation.

7) Can be built on small scale – Biomass plants can be built in 1 Mw sizes unlike other types of power which require much larges scale. For example nuclear energy requires a typical plants size of at least 500 MW to make it economical.

8) Reduces Methane which is a major GHG gas – Decomposition of organic matter releases methane. Capturing this methane yields energy while protecting the atmosphere. The animal industry and landfills produce significant amounts of methane.

9) Easy Availability – Biomass is readily available in almost all parts of the world except the desert areas where finding biomass is difficult.

10) Low Cost Resource – Biomass Energy can be produced cheaply if there is a good availability of feedstock.

Biomass Energy Cons

1) Pollution in case of Poor Technology – Biomass Energy can lead to air pollution in the form of char if the biomass is not completely combusted. This happens in the case of biomass energy being produced in rural areas through bad technology.

2) Feedstock Problems – One of the biggest drawbacks of biomass energy is the problem of feedstock. The plants are forced to run at lower utilization leading to higher costs if feedstock is not available due to some reason like a drought.

3) Good Management Required – The operations of a biomass plant requires very good management otherwise it may run into losses or even in some cases have to shut down. It requires a skill of high order to run the plant optimally and make use of alternative feedstock in case the regular one is not available.

4) Limited Potential – Biomass Energy has smaller potential than compared to other forms of energy like solar, hydro etc.

5) Controversial NIMBY – Large Biomass Plants like the one in Scotland have run into massive protests as people think it might lead to air pollution and health hazards if constructed near their homes.

Advantages of Coal

1) Abundance – Coal is located almost universally, it can be found on every continent in over 70 countries, with the biggest reserves in the USA, Russia, China and India.

2) Continuous, Predictable, Reliable Source of Power – Coal Based Energy can be generated almost 24×7  unlike other forms of renewable energy like wind and solar that are intermittent in nature.

3) Low Capital Investment – The capital investment required for Coal based Power plants is relatively less at $1-2/watt of Thermal  Capacity. Note wind energy is slightly higher while Solar is even higher. Coal Mines are also quite cheap to build and mine with Open Cast Mines providing coal at a very low cost.

4) Low Cost – Coal is one of  the cheapest forms of energy making it the energy of choice in developing countries like India and China. In India it is possible to get cheap coal at just $20/ton while international prices of coal range in the region of $100/ton. Note Coal based electricity can be produced at 2-4c/KwH making it the cheapest electricity source.

5) High Load Factor – Thermal Power Plants have very high load factors in excess of 80%. They can generate power almost 24/7 and only require shutdown for periodic maintenance. Coal Based Plants which have become too old or have been shutdown due to environmental concerns can still be used for backup power.

6) Large  Potential compared to Oil –Coal  Energy Potential is quite large compared to other Fossil Fuels like Oil and Gas. Coal Reserves globally are estimated to be around 1 trillion tons which implies that Coal can be consumed at the current rates for another 200 years.

7) Big Industrial Base – Coal Energy has been present since the start of the Industrial Revolution with the development of the Steam Engine based on Coal. The technology and industry of the Coal Industry and Thermal Power Plants is well developed and mature. This allows a rapid deployment of Coal Power in most places in the world.

8) Coal to Liquids and Coal to Gases – Coal is now being looked upon as source of Transportation Fuels as Oil becomes scarce and increasingly costly. Coal to Liquid Plants are being constructed in India and China though the Technology is quite immature and the use of the technology is still questionable on environmental grounds.

Disadvantages of Coal

1) Greenhouse Gas Emissions – One of the biggest cons of Coal Energy is that it releases Carbon Dioxide which has been sequestered for millions of years in the dead bodies of plant and animals. This transfer the Carbon from the Earth to the Environment leading to the Global Warming Effect. Global Treaties have failed in putting a Cost on this, though individual countries are tying to account for this through Carbon Taxes and Cap and Trade.

2) Coal Mining Deaths – Coal Mining has resulted in thousands of deaths each year ever since man discovered coal. Note Coal Deaths happen not only in countries which don’t have good safety regulations like China but also in developed countries like USA and New Zealand.

3) Devastation of Earth and Scenery Near Coal Mines – Open Cast Mining of Coal has resulted in destruction of the habitat and destruction of the scenery. It leads to removal of trees and pollution of air and water in areas surrounding the mines. Coal Mine Fires have burned for hundreds of year underground and make living in those areas hazardous. Those burning underground can be difficult to locate and many cannot be extinguished. Fires can cause the ground above to subside, their combustion gases are dangerous to life, and breaking out to the surface can initiate surface fires as well.

 4) Displacement of Humans due to Mining Destruction – In West Bengal India, people are being displaced in huge numbers as the hollowing of the earth due to underground coal mining has made those places unsafe as the  Land Caves in without warning.

5) Emission of Harmful Substances like Sulfur Dioxide, Carbon Monoxide, Mercury, Selenium, Arsenic, Acid Rain – Thermal Plants emit harmful substances such as Mercury and Sulfur Dioxide which cause health hazards among the surrounding population and Acid Rain.While modern equipment has reduced the emission of these harmful substances, it is still very harmful to humans.

Woodworking Network

 Wood-fueled and other biomass fired electric generating plants are losing green credentials as they rack up citations for air and water pollution, says a Wall St. Journal report.

The Journal highlights Blue Lake Power, operated by Renewable Energy Partners, Inc. in Blue lake, CA, cited multiple times for polluting the air. The Journal report says 85 biomass-fueled power plants have been cited for air or water pollution of the 107 operating as of January 2012. The period studied covered the past five years. Some infractions were minor.

While spending millions subsidizing wood burning and other biomass plants, governmental agencies can trip over each other. The USDA and the Department of Energy both support and seed efforts to encourage renewable energy sources such as biomass.

The Department of Justice announced plans to claw back $5 million in investment made in Thompson River Power LLC, a Montana wood-fueled power plant that filed for Chapter 7 bankruptcy earlier this year. It was acquired from Wayzata Investment by ecoTech Energy Group last year.

But the EPA and state agencies treat wood-fired power plants as it would those that burn fossil fuels: generators of soot, carbon dioxide and other pollution.

Other Must Reads on GWI:

 

 

Indian Wind Industry

India is the 5th largest wind energy market in the world and installed a record ~3000 MW last year. The growth of the Wind EnergyIndian wind energy market has been mainly due to the Government policy of supporting green energy through accelerated depreciation. However, this subsidy has come to an end in 2012 as it was mainly supporting investments to lower the tax burden for organizations with the quality of the wind farms quite poor, as investors had little incentive to maximize power generation. The load factor for Indian wind farms was quite low at 15-20 percent especially for the smaller wind farms.

But now with big companies entering the wind farm space and taking the issue of power generation seriously, the game has changed. Also wind turbine technology has improved quite rapidly with wind farms now possible even in areas with low wind speeds. Greenko which is one of India’s biggest green utilities has come out with a statement saying that its costs have fallen below those of thermal power plants. The company says that the reason for the falling costs are low speed wind turbines that it is buying from GE which also manage to give very high load factors in the 30% range. The company also claims a return of 19% on its investment even in the current scenario where the subsidy of accelerated depreciation has been cancelled by the government.

Wind Power Plant Cost in India

The capital cost is slightly higher than fossil fuel power plants but much lower than a solar power plant. For a wind farm, the capital cost ranges between 4.5 crores to 6.85 crores per MW, depending upon the type of turbine, technology, size and location. The Running Cost  of a Wind Farm is very low as the fuel cost is zero and operations and maintenance costs are low also.

Wind Power Capacity in Different States in India

  1. Tamil Nadu 4900 MW
  2. Maharashtra 2077 MW
  3. Gujarat 1863 MW
  4. Rajasthan 1088 MW
  5. Karnataka 1472 MW
  6. Madhya Pradesh 230 MW

Total 11800 MW

Note the above capacities are till March 31, 2010 and since then the wind capacity has risen by another 1200 MW to reach 13 GW. According to MNRE a total capacity of 13284 MW has been established up to February, 2011, mainly in Tamil Nadu, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Rajasthan. Wind electric generators of unit sizes between 225 kW and 2.1 MW have been deployed across the country.

Bloomberg

Greenko began operating its first wind project in Ratnagiri in Maharashtra state this year using 1.6-megawatt GE turbines designed for low winds. That farm is “achieving efficiencies never before seen in India,” with a 30 percent plant load factor, Kolli said today by telephone. That’s a measure of a site’s actual generation compared with its theoretical capacity.

The executive didn’t specify the cost of generation, which varies according to state. Estimates from Bloomberg New Energy Finance show the most efficient wind projects in India run at a similar cost to new coal-fed plants. The best projects have a levelized cost of energy, which allows for comparison between different fuel sources, of 2.7 rupees (5 cents) to 4.4 rupees a kilowatt-hour, compared with coal’s 1.9 to 4.8 rupees, Ashish Sethia, an analyst at London-based BNEF, said in a July 3 note.

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