SUMMER TRAINING REPORT

On
Analysis of Wind & Solar Energy Market
&
Identification of Diverse Opportunities in Wind & Solar PV Value Chain
at

Hyderabad
By
Manoj Kumar Pandey
2nd Year Student of MBA in Power Management
Roll no 45
Batch 9th (20010-2012)

August 2011

Affiliated to

Maharishi Dayanand University, Rohtak

Page 1 of 124

Acknowledgement
There is not a more pleasing exercise of the mind than gratitude. It is accompanied with
such an inward satisfaction that the duty is sufficiently rewarded by the performance.
~Joseph Addison
First of all I want to Praise the True Friend MY ETERNAL FATHER who carried me
over. I want to give thanks for His firm hold, silent company, and immense blessings which
all together enabled me to complete my project.

I am also extremely grateful Mr.Sunil Kumar Associate Director, GRID Energy and Utilities ,
PwC for making me feel an invaluable part of the organization.

I would like to express my sedate and sincere gratitude to my Project Guide Mr.
Omkareshwar Pandey Manager GRID, Energy & Utilities, PwC & Mr. Samrat Ray
Senior Consultant GRID Energy & Utilities ,PwC .Their wide knowledge and logical way
of thinking have been of great value for me. Their understanding, encouragement and
personal guidance have provided a good basis for the present project.

I am deeply grateful to my Faculty-guide Mr. N.V .Kumar for his kind support and valuable
advice which has lead to the completion of my due work without any hindrance.
I wish to express my warm and sincere thanks to Mr. Charudutta P.Palekar Principal
Consultant GRID Energy & Utility PwC & Mr.Sathish Kamalabhan Senior Consultant
GRID Energy & Utility PwC for their constant encouragement and guidance.

I feel deep sense of gratitude towards Mr. J.S.S. Rao, Principal Director, CAMPS (NPTI), Mr. D. M
Lokhande, Director, CAMPS, my internal Project Guide Mrs. Indu Maheshwari, Deputy Director, NPTI
and Mrs. Manju Mam, Deputy Director, NPTI ,Mr.Rohit Verma ,Deputy Director NPTI for guiding

me

throughout the work and giving me valuable suggestions.

I would extend my genuine thanks to PwC employees for their worthy suggestions and
timely help. My heartfelt thanks go to all my PwC Family ,Seniors and my batch mates for
their love, guidance, and encouragement
Page 2 of 124

Table of contents

Contents
Executive Summary ................................................................................................................... 5
Objective of the study ................................................................................................................ 7
ABOUT THE ORGANIZATION.............................................................................................. 8
Government Reforms and Institutional Development (GRID) ................................................ 13
1. Introduction .......................................................................................................................... 15
2. Renewable Energy in India .................................................................................................. 17
2.1 Advantages of Renewable Energy.................................................................................. 18
2.2 National Electricity Act 2003 & National Electricity Policy ......................................... 20
3. Market Trends of Wind and Solar Energy Industry............. Error! Bookmark not defined.
3.1 Wind Energy Market ...................................................................................................... 22
3.2 Solar Energy Industry in India........................................................................................ 23
3.3 Key Drivers in Wind & Solar Power Market ................................................................. 24
4. Wind and Solar Power Development in India ..................................................................... 27
4.1 Wind Power Development.............................................................................................. 27
4.2 Solar Power Development .............................................................................................. 29
5. Government Policies & Incentives ...................................................................................... 33
5.1 Promotional Policies ....................................................................................................... 35
5.2 Renewable Energy Certificate ........................................................................................ 36
6. Wind Industry Value Chain ................................................................................................. 38
6.1 Wind Power Technology ................................................................................................ 39
Working principle of wind turbine: .............................................................................. 40
6.2 Wind Power Generation Process .................................................................................... 41
6.3 Major Components of Wind Turbine ............................................................................. 44
6.4 Functions of Wind Turbine Parts.................................................................................... 46
7. Wind Turbine Classification: .............................................................................................. 54
7.1 Classification on the basis of blades ............................................................................... 54
7.2 NEW TECHNOLOGIES IN WIND POWER GENERATION ..................................... 56
7.2.1 MAGLEV WIND TURBINE................................................................................... 56
8. Wind Turbine Related Cost ................................................................................................. 59
9. Service & Support of Wind Turbine Technology ................................................................ 63
10. Solar Power Technology ................................................................................................... 69
11. Components of Solar Power Technology .......................................................................... 70
11.1 PHOTOVOLTAICS ..................................................................................................... 70
11.2 PV CELLS, MODULES, & ARRAYS ........................................................................ 71
12. Manufacturing of solar Power Technology ....................................................................... 75
12.1 POLY-SILICON MANUFACTURING....................................................................... 75
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12.2 Solar Cell Manufacturing ............................................................................................. 82

The anti-reflective coating ................................................................................................ 84
13. Processing Cost .................................................................................................................. 85
13.1 Processing Cost of PV CELL .......................................................................................... 85
13.2 Processing Cost of Solar Cells...................................................................................... 86
13.2.1 Processing Cost (0.2-0.36 $) .................................................................................. 86
13.2.2 Processing Cost ( 0.4.-0.53 $/wp) .......................................................................... 88
14. Business Opportunities in Solar Power............................................................................ 110
14.1 Manufacturing Opportunities ..................................................................................... 111
14.2 Poly-Silicon Manufacturing Opportunities ................................................................ 112
14.3 Solar Cell Manufacturing Opportunities .................................................................... 115
14.4 Solar Module Manufacturing Opportunites ................................................................ 117
15. Case-Study ....................................................................................................................... 119
CONCLUSION ...................................................................................................................... 124

Figure 1: Industries and Services of PWC .............................................................................................................. 8

Figure 2: Backbone of Grid in PwC ..................................................................................................................... 11
Figure 3: India Generating Installed Capacity (MW) ........................................................................................... 19
Figure 4: % contribution in Total Installed Capacity for Renewable ................................................................... 19
Figure 5: Wind and Solar Market Trend ............................................................................................................... 24
Figure 6: Global Wind Technology Installed Capacity as on 31st March (in MW) ............................................. 25
Figure 7: Global Solar Power Capacity & Key Players .................................................................................. 25
Figure 8: Key Players Market Share ..................................................................................................................... 26
Figure 9: Domestic installed Capacity in MW ..................................................................................................... 27
Figure 10: Key Players Market Share 2010 (in percent) ...................................................................................... 28
Figure 11: Solar Atlas of India ............................................................................................................................. 29
Figure 12: State-Wise Feed-In Tariff.................................................................................................................... 37
Figure 13: Wind Industry Value Chain................................................................................................................. 38
Figure 14: Wind Turbine Process ......................................................................................................................... 41
Figure 15: Wind Turbine Analogy ................................................................................................................... 43
Figure 16: Components of Wind turbine .............................................................................................................. 44
Figure 17: Technology of Wind Turbine .............................................................................................................. 60
Figure 18: Cost of Wind Turbine components ..................................................................................................... 60

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EXECUTIVE SUMMARY
It is a well known fact that India has not been gifted by huge sources of non renewable
energy sources like oil and gas, though the country posses huge reserves of coal to sustain its
energy requirements for a couple of decades but the technology to harness these reserves is
not sufficient neither efficient. Also the growing global concern about the destructive effects
of using energy produced from non renewable sources have prompted India to utilize clean
and renewable form of fuels to meet its energy requirements. WIND ENERGY & SOLAR
ENERGY are such a renewable form of energy use of which is showing a growing trend all
round the world including IndiaAs a renewable energy source, solar energy & Wind energy
presents an exciting opportunity for India.

The most important barrier that had stopped Solar PV from becoming a mainstream
renewable energy resource is the high cost of producing power from the resource. This high
cost is in turn a direct result of the high capital costs of the solar PV panels and the balance of
system required. The same is seen in Wind Technology also. Both the technology are
continuously improving in terms of their efficiency.

While 2009 was a challenging year for the wind turbine industry, the situation has worsened
in 2010 with the drought of new orders and the drop in installations in the US, a key growth
market. However, the rise of Chinese wind turbine manufacturers and offshore growth in
Europe signal key areas of opportunity going forward. To adapt, wind turbine component
suppliers are trimming their production capacity and retooling their strategies to compete in a
more technically complex, larger scale and globalized supply chain. Suppliers of blades,
gearboxes, towers, bearings, generators, and power converters recognize the markets steady
march toward larger machines and new technologies such as direct drive, which will require
them to extend their manufacturing reach globally,

By combination of capital cost reduction and efficiency increase, by 2015, solar PV is

expected to reach grid parity in some parts of the world and by 2020, in most parts of the
world. For India, the National Solar Mission and its incentives provide an additional reason
for entrepreneurs and investors to explore this industry. The convergence of decrease in
capital costs, increase in efficiency and significant financial support by the government is
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likely to result in a wide range of attractive business opportunities along the entire solar
energy value chain in India. While solar power production is the final benefit derived from
solar PV, an entire ecosystem is evolving around this end product, and this ecosystem will
result in a range of opportunities for a number of industries, businesses and entrepreneurs.

Page 6 of 124

OBJECTIVE OF STUDY

Analysis of Wind & Solar Energy Power Market

Study Value Chain of Wind & Solar Power & Identification of Business
Opportunities

Page 7 of 124

ABOUT THE ORGANIZATION

PricewaterhouseCoopers (or PwC) is one of the world's largest professional services firms
and the largest of the Big Four auditing firms. It was formed in 1998 from a merger between
Price Waterhouse and Coopers & Lybrand, both formed in London. PricewaterhouseCoopers
earned aggregated worldwide revenues of US$26.2 billion for the fiscal year 2010, and
employed over 163,000 people in 151 countries.
Worldwide, the PwC Energy, Utilities & Mining (EU&M) Group serves 2,500 clients,
making it the largest practice group of its kind in the industry. Nearly 77% of all EU&M
companies in the Fortune Global 500 are PwC clients.

Figure 1: Industries and Services of PWC

PwC is one of the largest professional service organization in India with over 4500
professional staff and offices in New Delhi, Calcutta, Mumbai, Chennai, Bangalore,
Bhubaneswar, Hyderabad and Pune. PricewaterhouseCoopers India is one of the largest
providers of consulting and advisory service in India. PwC professionals work collaboratively
using

connected

thinking

to

develop

fresh

perspectives

and

practical

advice.

PricewaterhouseCoopers is committed to working with its clients to deliver the solutions that
help them take on the challenges of the ever-changing business environment.
Page 8 of 124

Brief snapshot of Company:

PwC consulting net worth was more than Rs 92.61 Crores and annual turnover of Rs
728.29 Crores for FY07-08 in the consulting business.

PwC was involved in various states Power Sector Reforms during the first phase of its
reforms and performed the financial restructuring and distribution configuration
models.

The clients include integrated SEBs, distribution companies, transmission companies,

generators, regulators, state governments, etc.

PwC has worked in almost all the states in the areas mentioned below Haryana,
Rajasthan, Maharashtra, Uttar Pradesh, Uttaranchal, Himachal Pradesh, Orissa,
Andhra Pradesh, Karnataka, Assam, Madhya Pradesh, West Bengal, Bihar.

PwC has worked with Distribution Companies in states of Rajasthan, Assam,

Maharashtra, Uttar Pradesh, Karnataka and Orissa. The company have also worked
with Private Distribution Companies like Tata Power, NPCL, AES CESCO, Reliance
managed companies in Orissa, CESC, Jindal, etc .

PwC has a specialist and dedicated team of more than 100 professionals having more
than 700 man years of experience working in the domain of Power Sector.

Apart from hands-on experience in power sector reforms in all the major states in
India, PwC has undertaken similar assignments in several countries like Bangladesh,
Sri Lanka, Bhutan, Nigeria and Solomon Islands in South Asia and Asia.

Page 9 of 124

Business of the Organization

PricewaterhouseCoopers India Limited serves multiple industries. The depth of its industry
expertise is highly valued by its clients. PwC invests significant resources in building and
sharing such knowledge. It regularly shares its latest research and views on emerging industry
trends and develops industry-specific performance benchmarks based on global best
practices, methodologies and approaches. In addition, PwC network is available to work
together on accounting and technical issues, unique to a particular industry.

The List of Industries PwC serves include-:

1)

Aerospace and Defense

2)

Automotive

3)

Electricity, Power and Mining

4)

Government

5)

Insurance

6)

Oil and Gas

7)

Retail and Consumer.

Page 10 of 124

Policy
Analysis &
Advisory

Provide services on policy analysis and policy development

Demand Side Manage projects on demand side management

Management
Energy Audits Energy management/ conservation studies for corporate as well as government clients

Standard &
Labeling

Develop minimum energy performance standards & labels for energy consuming products

Market
Prepare energy efficiency market assessment plans and business models for energy efficiency
Assessment/ ventures
Business Plan
Assist & Manage bid process for implementation of energy efficiency projects on Public Private
Project
Management Partnership (PPP) mode

Figure 2: Backbone of Grid in PwC

PwC provides a full range of business advisory services to leading global, national companies
and to public institutions. The PwC network channels knowledge and value through seven
lines of service:

1) Consulting
2) Forensic Services
3) GRID
4) IFRS Reporting
5) Internal Audit and Advisory Services
6) Transaction Services
7) Tax and Regulatory Services

The areas of services include performance, operational and functional improvement across
utilities.

PwC

undertakes

comprehensive

institutional

Page 11 of 124

strengthening and

capacity

development programs, financial management systems, human resource development,

customer relations management, Systems and IT Tools development etc.
PricewaterhouseCoopers has been providing professional services to energy and utility
companies for more than 100 years. PwC expertise is helping companies confront the
industry's most challenging issues, including-:

1) Growth
2) Geopolitical risk
3) Transaction risk
4) Regulatory change
5) Operational excellence
6) Reporting and compliance risk
7) Social responsibility
8) Financial risk
9) Workplace size and diversity

In India, the strength of PricewaterhouseCoopers lies in the fact that it is the largest
professional services firm in India providing a full range of services from consulting to
auditing. It has a strong team of consultants having a rich experience in diverse field.

The aggressive methodology followed for bidding has given a considerable edge to PwC over
its competitors. This has provided PwC with the opportunity to provide consultancy services
to many regulatory commissions and utilities. Though PricewaterhouseCoopers India Limited
is performing exceptionally well in almost all the areas, it needs to seriously address the issue
of efficient utilization of resources. It needs to position the organizations culture to ensure
positive attitudes towards managing the existing resources in a better fashion.

Page 12 of 124

Government Reforms and Institutional Development (GRID)

The Government Reforms and Institutional Development (GRID), one of the Strategic
Business Units (SBU) of PwC, has extensive experience in electricity and other basic
infrastructure, and has been closely working with clients in the electricity service providers,
Government, Regulators etc. PwC India has one of the biggest advisory services targeted at
the government sector. The Government Reforms & Institutional Development (GRID)
practice

is

also

one

of

the

fastest

growing

sectors

in

PwC.

The government market is targeted at five levels:

International multilateral/ bilateral organizations & funding agencies

National/central government departments or ministries

Regional/state governments

Local/municipal governments

Quasi-government bodies

The GRID practice is unique to South Asia and specializes in five sectors:

Energy & Utilities (Power, Oil and Gas)

Infrastructure (Urban Infrastructure, Transport Infrastructure and Industrial Clusters)

Social Sector (Health, Education, and Livelihoods)

State Level Governance Reforms and Public Finance

Public Sector Restructuring and Reforms

The governments role as the largest development organization is irreplaceable in the

economy. PwC has a suite of services tailored to strengthen the organizational capacity,
policy framework and implementation capability of different government bodies.
Services administered by the GRID:

Policy Development

Performance Improvement
Page 13 of 124

Institutional Strengthening and Capacity Building

Accounting and Financial Management Systems

Human Resource Development

Change Management and Organization Development

Public-Private-Partnerships

Regulatory Reform

Feasibility Studies

Financial Advisory and re-engineering

I got an opportunity to work in the GRID at PwC, Hyderabad office. The major work carried
out in the GRID Hyderabad include consultancy and advisory related to
1) Renewable sources of energy
2) Mining
3) Roads and other infrastructure.
4) International Reforms.

Leveraging PwC's global network is a significant competitive advantage for clients as it has
centers of excellence in key regions with more than 3,000 specialists serving energy and
utility

Page 14 of 124

1. INTRODUCTION
Energy is a basic requirement for economic development. Every sector of Indian economy
agriculture, industry, transport, commercial, and domestic needs inputs of energy. The
economic development plans implemented since independence have necessarily required
increasing amounts of energy. As a result, consumption of energy in all forms has been
steadily rising all over the country. This growing consumption of energy has also resulted in
the country becoming increasingly dependent on fossil fuels such as coal and oil and gas.
Rising prices of oil and gas and potential shortages in future lead to concerns about the
security of energy supply needed to sustain our economic growth. Increased use of fossil
fuels also causes environmental problems both locally and globally. Against this background,
the country urgently needs to develop a sustainable path of energy development. Promotion
of energy conservation and increased use of renewable energy sources are the twin planks of
a sustainable energy supply.
Indias substantial and sustained economic growth is placing enormous demand on its energy
resources. The demand and supply imbalance in energy sources is pervasive requiring serious
efforts by GoI to augment energy supplies. India imports about 80% of its oil. There is a
threat of these increasing further, creating serious problems for Indias future energy security.
There is also a significant risk of lesser thermal capacity being installed on account of lack of
indigenous coal in the coming years because of both production and logistic constraints, and
increased dependence on imported coal. Significant accretion of gas reserves and production
in recent years is likely to mitigate power needs only to a limited extent. Difficulties of large
hydro are increasing and nuclear power is also beset with problems. The country thus faces
possible severe energy supply constraints.

Economic growth, increasing prosperity and urbanization, rise in per capita consumption,
and spread of energy access are the factors likely to substantially increase the total demand
for electricity. Thus there is an emerging energy supply-demand imbalance. Already, in the
electricity sector, official peak deficits are of the order of 12.7%, which could increase over
the long term.
.

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In view of electricity supply shortages, huge quantities of diesel and furnace oil are being
used by all sectors industrial, commercial, institutional or residential. Lack of rural lighting
is leading to large-scale use of kerosene. This usage needs to be reduced, as it is leading to
enormous costs in form of subsidies and increasing the countrys import dependence.

At the same time, a very large proportion of the citizens continue to live with no access to
electricity and other forms of commercial energy. More than 50% of the population has little
or no commercial energy access for their living and livelihood. Others with access often have
to cope with poor and erratic availability of electricity and other fuels. With constraints faced
in resource availability and in delivery mechanisms, traditional means of energy supply are
falling short. This is likely to be the case in the foreseeable future so that energy access will
continue to remain a problem.

Table 1: All India Region wise Installed Capacity (MW) of Power Utilities
Fortunately, India is blessed with A variety of renewable energy sources, the main ones being
biomass, biogas, the sun, wind, and small hydro power. (Large hydro power is also renewable
in nature, but has been utilized all over the world for many decades, and is generally not
included in the term new and renewable sources of energy.) Municipal and industrial wastes
can also be useful sources of energy, but are basically different forms of biomass.

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2. RENEWABLE ENERGY IN INDIA

Nearly two decades ago the Indian economy was snatched back from the brink of a
composite economic crisis1. The Indian government undertook some hard-hitting
liberalization measures that would have been unthinkable in a business as usual political
landscape. Largely as a result of those actions, today India is in a position to be counted as
one of the emerging economies. Successive governments have looked towards locking in an
average economic growth rate of at least 6-8%, up from 3.5% from the 1950s through the
1980s. The original objective of the 11th Five Year Plan (2007-20122) was to achieve a GDP
growth rate of 9% over this period. This was revised to 8.1% last year3 by the Planning
Commission. Given the plans for rapid economic growth, the requirement for energy services
and supporting infrastructure is simultaneously escalating.

Electricity demand has continuously outstripped production, and a peak energy shortage of
around 12.7% prevailed in 2009-104. To meet this shortfall as well as the National Electricity
Policy target of Electricity for All by 20125, the cleanest options available to India are
Renewable Energy Technologies (RETs). For the government to seriously consider meeting
its promise of electricity for all by 20126, renewable energy options including wind power
will have to play a crucial role in Indias emerging energy mix. Not only are they
environmentally sound but also their project gestation periods are significantly shorter than
those for thermal or nuclear power plants.

According to the Ministry of New and Renewable Energy (MNRE), today the share of
renewable based capacity is 10.9% (excluding large hydro) of the total installed capacity of
170 GW in the country, up from 2% at the start of the 10th Plan Period (2002 2007). This
includes 13,065.78 MW of wind, 2,939 MW of small hydro power, 1,562 MW of (biogas
based) cogeneration, 997 MW of biomass, 73.46 MW of waste to power and 17.80 MW of
solar PV for grid connected renewable at the end of 20107. The originally stated cumulative
target for the current plan period was to add 92 GW8 of new capacity of which about 14 GW
was to come from renewable sources. Given the right mix of regulatory and institutional
support, renewable sources could meet the proposed capacity addition of 14 GW from
renewable energy before the end of the 11th five year plan-period (2007-2012). This would

Page 17 of 124

bring the total share of renewable energy sources upto 15% of the new installed capacity in
the 11th plan-period.

Over the next decade, India will have to invest in options that not only provide energy
security but also provide cost effective tools for eradicating energy poverty across the board.
India is a signatory to the United Nations Framework Convention on Climate Change
(UNFCCC) and has as part of its obligations released a National Action Plan on Climate
Over the next couple of decades renewable energy will play amajor role in delivering that
shift.

2.1 Advantages of Renewable Energy

1. Perennial
2. Available locally and does not need elaborate arrangements for transport
3. Usually modular in nature, i.e. small-scale units and systems can be almost as economical
as

large-scale ones

4. Environment-friendly
5. Well suited for decentralized applications and use in remote areas.
The Ministry of Non-Conventional Energy Sources has been implementing comprehensive
programmes for the development and utilization of various renewable energy sources in the
country. As a result of efforts made during the past quarter century, a number of technologies
and devices have been developed and have become commercially available. These include
biogas plants, improved wood stoves, solar water heaters, solar cookers, solar lanterns, street
lights, pumps, wind electric generators, water-pumping wind mills, biomass gasifiers, and
small hydro-electric generators. Energy technologies fo the future such as hydrogen, fuel
cells, and bio-fuels are being actively developed. India is implementing one of the worlds
largest programmes in renewable energy. The country ranks second in the world in biogas
utilization and fifth in wind power and photovoltaic production. Renewable sources already
contribute to about 5% of the total power generating capacity in the country. The major
renewable energy sources and devices in use in India are listed along with their potential and
present status in terms of the number of installations or total capacity.

Page 18 of 124

All India Generating Installed Capacity (in MW)

Figure 3: India Generating Installed Capacity (MW)

% Contribution in Total Installed Capacity (174361 MW) as

on 31st March 2011
Nuclear
3%

RES
11%

Hydro
21%
Thermal
65%

Figure 4: % contribution in Total Installed Capacity for Renewable

Renewable Energy Target

Page 19 of 124

th

11 Five Year Plan (2007- 12) = 14000MW (*10693 MW is achieved as on 30 April

2011)
th

12 Five Year Plan (2012-17)=17000 MW

13 Five Year Plan (2012-17)=22500MW

2.2 National Electricity Act 2003 & National Electricity Policy

National Electricity Policy 2005
The National Electricity Policy aims at achieving the following objectives.

Access to Electricity available for all households in the next five years.

Availability of Power demand to be fully met by 2012. Energy and peaking

shortages to be overcome and spinning reserve to be available.

Supply of reliable and quality power of specified standards in an efficient manner and
at reasonable rates.

Per capita availability of electricity to be increased to over 1000 units by 2012.

Minimum lifeline consumption of 1 unit/household/day as a merit good by 2012.
Financial turnaround and commercial viability of electricity sector. Protection of
consumers interests.

Page 20 of 124

The Electricity Act 2003

The Electricity Act contains the following provisions pertaining to nonconventional energy
sources.

Sections 3(1) and 3(2)

Under Sections 3(1) and 3(2), it has been stated that the Central Government shall, from time
to time, prepare and publish the National Electricity Policy and Tariff Policy, in consultation
with the state governments and authority for development of the power system based on
optimal utilization of resources such as coal, natural gas, nuclear substances or material,
hydro and renewable sources of energy.

Section 4
Section 4 states that the Central Government shall, after consultation with the state
governments, prepare and notify a national policy, permitting stand-alone systems (including
those based on renewable sources of energy and other non-conventional sources of energy)
for rural areas.

Section 61
Section 61, 61(h) and 61(i) state that the appropriate commission shall, subject to the
provision of this Act, specify the terms and conditions for the determination of tariff, and in
doing so, shall be guided by the following, namely, the promotion of cogeneration and
generation of electricity from renewable sources of energy; and the National Electricity
Policy and Tariff Policy.

Section 86(1)
Section 86(1) and 86(1)(e) state that the state commissions shall discharge the following
functions, namely, promote cogeneration and generation of electricity from renewable
sources of energy by providing, suitable measures for connectivity with the grid and sale of
electricity to any person, and also specify, for purchase of electricity from such sources, a
percentage of the total consumption of electricity in the area of a distribution license.

Page 21 of 124

3. MARKET TRENDS OF WIND AND SOLAR ENERGY INDUSTRY

3.1 Wind Energy Market

The progress made in wind turbine installed capacities, the progress of the overall wind
energy ecosystem has been encouraging as well. Pointers to this are the increasing number of
component manufacturers and the rapid utilization of India's land for wind energy. While the
growth of wind power in India was largely driven by tax incentives until recently, it is
expected that more IPPs (independent power producers) will be interested in investing in this
segment with the recent announcement of generation-based incentives.

Wind Energy Industry in India

The development of wind power in India began in the 1990s, and has progressed steadily in
the last few years. The short gestation periods for installing wind turbines, and the increasing
reliability and performance of wind energy machines have made wind power a favoured
choice for capacity addition in India. Currently, India has the fifth largest installed wind
power capacity in the world. Wind power accounts for 6% of India's total installed power
capacity, and it generates 1.6% of the country's power . It is estimated that 6,000 MW of
additional wind power capacity will be installed in India between 2010 and 2012, taking the
total installed capacity beyond 15,000 MW

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3.2 Solar Energy Industry in India

India is located in the equatorial sun belt of the earth, thereby receiving abundant radiant
energy from the sun. The India Meteorological Department maintains a nationwide network
of radiation stations, which measure solar radiation, and also the daily duration of sunshine.
In most parts of India, clear sunny weather is experienced 250 to 300 days a year. The annual
2

global radiation varies from 1600 to 2200 kWh/m , which is comparable with radiation
received in the tropical and sub-tropical regions. The equivalent energy potential is about
6,000 million GWh of energy per year. Figure 1 shows map of India with solar radiation
levels in different parts of the country. It can be observed that although the highest annual
global radiation is received in Rajasthan, northern Gujarat and parts of Ladakh region, the
parts of Andhra Pradesh, Maharashtra, Madhya Pradesh also receive fairly large amount of
radiation as compared to many parts of the world especially Japan, Europe and the US where
development and deployment of solar technologies is maximum.

Solar Energy Market

PV constitutes a miniscule part in Indias installed power generation capacity with grid
connected solar PV generation less than 25 MWp as of Feb 20111. Off-grid installed capacity
of solar PV power plants including street lights are 100 MWp as of Sep 20102. Today, PV
installations in India predominantly comprise of small capacity applications. These are most
visibly seen in lighting applications (street lighting, and home lightning systems) in cities and
towns, and in small electrification systems and solar lanterns in rural areas. But the potential
is enormous for solar PV to become a key renewable energy power source for India

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3.3 Key Drivers in Wind & Solar Power Market

WIND & SOLAR MARKET

MARKET POTENTIAL

GOVERNMENT POLICIES
& INCENTIVES

Figure 5: Wind and Solar Market Trend

Page 24 of 124

SUPPLY CHAIN

250000

194390

200000

157899
150000

100000

50000

44700

40181
27214

20676

26546
14335

5797

5660

5204

4009

3752

2009

2011 ( Mar)

Figure 6: Global Wind Technology Installed Capacity as on 31st March (in MW)

2010

17300

3800 3600 35002500

5100

40 000
MW

2009

9900

3400

2600 12001600

3100
23000

2008

Mw

6100

2007

3300

4200

2006

2900

700

200

2100 5001200

1900

1700

100800

50600

2190

1580

16000
MW

9500

1430

MW

0%

20%

Germany
Czech Rep.

Spain
France

40%

60%
Japan
China

80%
Italy
ROW

100%
U.S

7000
MW

Figure 7: Global Solar Power Capacity & Key Players

Page 25 of 124

Players Market Share(194.39 GW) 2010

( in %)

Other
17%

Sinovel
11%

United Power
4%

Dongfang
7%

Suzlon
7%

Gold wind
9%
Vestas
14%
GE Wind
9%

Re Power
3%

Enercon
7%

Gamesa
6%
Siemens
6%

Figure 8: Key Players Market Share

Page 26 of 124

4. WIND AND SOLAR POWER DEVELOPMENT IN INDIA

4.1 Wind Power Development

Wind turbine generator (WTG) capacity addition in India has taken place at a CAGR19 of
24.67% for the period of 1992- 2010. The installed capacity increased from a modest base of
41.3 MW in 1992 to reach 13,065.78 MW by December 2010. The official installation
figures show that amongst the states, Tamil Nadu ranks the highest both in terms of installed
capacity and in terms of energy generation from wind, with shares of 41.8% and 53.4%
respectively. Other states like Gujarat, Maharashtra and Rajasthan have seen significant
growth in wind capacity over the last four to five years, also due to a stable policy and
regulatory regime. Below Chart provides an overview of the share of different states in
installed capacity (MW)

40000

38068
5424

35000

30000
8767.8
25000
3333.2
20000

14435

15000

10242
10000

8757
7093

11807

1524.8
1730

1088.3
1472.8
1938.8

2310.8

1011.4
1487.65
1353

1327.4
1755.8
1666.6

3492.75

3873.42

4304.52

4906.72

5904.4

2006-07

2007-08

2008-09

2009-10

CURRENT

5000

9801

2273.2

2175.5

1863.7

8469.5

0
Untapped Potential

-5000
TamilNadu

Gujarat

Maharashtra

Karnataka

Rajasthan

Andhra Pradesh

Figure 9: Domestic installed Capacity in MW

Page 27 of 124

Others

Key Players Market Share 2010 (1693 MW)

( in %)

Southern Wind
Farm
1%
Letiner ShriRam
1%
Pioneer wincon
2%
Global Wind
Regen
Others
1%
3%
4%
Gamesa
1%

Enercon
22%

Vestas
8%

RRB
8%

Suzlon
49%

Figure 10: Key Players Market Share 2010 (in percent)

Page 28 of 124

4.2 Solar Power Development

Figure 11: Solar Atlas of India

The National Solar Mission is a major initiative of the Government of India and State
Governments to promote ecologically sustainable growth while addressing Indias energy
security challenge. It will also constitute a major contribution by India to the global effort to
meet the challenges of climate change.
The National Action Plan on Climate Change also points out: India is a tropical country,
where sunshine is available for longer hours per day and in great intensity. Solar energy,
therefore, has great potential as future energy source. It also has the advantage of permitting
the decentralized distribution of energy, thereby empowering people at the grassroots level.

Page 29 of 124

Based on this vision a National Solar Mission is being launched under the brand name Solar
India.

The objective of the National Solar Mission is to establish India as a global leader in solar
energy, by creating the policy conditions for its diffusion across the country as quickly as
possible.

JNNSM (Solar Mission)

Application Segment

Target

Cum.Target

Cum.Target

(Phase-1)

(Phase-2)

(Phase-3)

Grid Solar Power

1000+100

4000 MW

20000 MW

(inc.Roof Top)

(MW)
200 MW

1000 MW

2000 MW

7 million sq k.m

15 million sq k.m

20 million sq.km

Off-Grid

Solar

Applications
(inc.Solar lights)
Solar Collectors

Table 2:Phase-wise JNNSM Solar Mission

th

th

MNRE 11 Plan and first year of the 12 Plan (up to 2012-13) as Phase 1, the remaining 4
th

th

years of the 12 Plan (2013-17) as Phase 2 and the 13 Plan (2017-22) as Phase 3. At the end
th

th

of each plan, and mid-term during the 12 and 13 Plans, there will be an evaluation of
progress, review of capacity and targets for subsequent phases, based on emerging cost and
technology trends, both domestic and global. The aim would be to protect Government from
subsidy exposure in case expected cost reduction does not materialize or is more rapid than
expected. The immediate aim of the Mission is to focus on setting up an enabling
environment for solar technology penetration in the country both at a centralized and
decentralized level. The first phase (up to 2013) will focus on capturing of the low-hanging
options in solar thermal; on promoting off-grid systems to serve populations without access
to commercial energy and modest capacity addition in grid-based systems. In the second
phase, after taking into account the experience of the initial years, capacity will be
Page 30 of 124

aggressively ramped up to create conditions for up scaled and competitive solar energy
penetration in the country.

To create an enabling policy framework for the deployment of 20,000 MW of solar

power by 2022.

To ramp up capacity of grid-connected solar power generation to 1000 MW within

three years by 2013; an additional 3000 MW by 2017 through the mandatory use of
the renewable purchase obligation by utilities backed with a preferential tariff. This
capacity can be more than doubled reaching 10,000MW installed power by 2017 or
more, based on the enhanced and enabled international finance and technology
transfer. The ambitious target for 2022 of 20,000 MW or more, will be dependent on
the learning of the first two phases, which if successful, could lead to conditions of
grid-competitive solar power. The transition could be appropriately up scaled, based
on availability of international finance and technology.

To create favourable conditions for solar manufacturing capability, particularly solar

thermal for indigenous production and market leadership.

To promote programmes for off grid applications, reaching 1000 MW by 2017 and
2000 MW by 2022 .

To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million
by 2022.

To deploy 20 million solar lighting systems for rural areas by 2022.

Page 31 of 124

Solar PV Installed Capacity

Total Installed Capacity as on june 2011 was 116 MW & the contribution of off Grid & on
Grid was 69 & 47 MW respectively.

On Grid , 47, 41%

Off Grid
69
59%

% Capacity Contribution (1440 MW) by Domestic Key Players ( in

%)

Indo
solar
8%
Others
31%

TBP
8%

Moserbaser
10%
Birla Surya
1%
BHEL
1%
Waaree
Solar
2%

Vikram
solar
3%
emvee solar
8%

Titan Energy
7%
Photon
2%
PLG Solar
3%

HHV Solar
3%

Page 32 of 124

Solar Semiconductor
13%

5. GOVERNMENT POLICIES AND INCENTIVES

1. India is endowed with a large, viable and economically exploitable wind power
potential.
2. Over the last 10 years wind capacity has grown at a CAGR of 22%.
3. Cumulative installed capacity is expected to reach 12 GW by 2010.
4. Indias potential is conservatively estimated at 45,561 MW for setting up wind
farms @ 12 ha/MW in sites having wind power density greater than 200 W/ sq.
mt. at 50 m hub-height.
5. Indian government envisages a capacity addition of 10,500 MW during the 11th
Five Year Plan period (2007-2012).
6. India is placed at the third position in the world in terms of new additions in 2008
and this corresponds to an overall increase of over 40% in new wind power
stations.
7. India is net exporter of wind turbines and wind turbines components.
Indigenously produced wind turbines and components valued at about US $ 655.4
million were exported to Australia, Brazil, Portugal, Spain, Turkey and USA
during the Indian fiscal year 2008-09.
8. A programme entitled Small Wind Energy and Hybrid Systems is developed
every year for the small wind-power station segment i.e. those with a capacity up
to 30 KW and wind-powered water pumps produced in India.

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Some of the fiscal and financial incentives are as follows:1. Concession on import duty on specified wind turbine parts
2. 80% accelerated depreciation over one or two years
3. 10 year income tax holiday for wind power generation projects
4. Excise duty relief on certain components
5. Some states have also announced special tariffs, ranging from Rs. 3-4 per
kWh, with a national average of around Rs 3.50 per kWh
6. Wheeling, banking and third party sales, buy-back facility by states
7. Guarantee market through a specified renewable portfolio standard in
some states, as decided by the state electricity regulator by way of
power purchase agreements
8. Reduced wheeling charges as compared to conventional energy

Page 34 of 124

5.1 Promotional Policies

Land policies

The Ministry of Environment and Forests has issued guidelines for diversion
of forest lands for non-forest purposes, particularly to enable wind generation

Clearance of leasing and forest land for up to a period of 30 years for wind
developers.

State Policies
A number of State Governments have implemented quotas for a renewable energy share
of upto 10% and have introduced preferential tariffs for electricity produced from
renewable sources. In addition, several States have implemented fiscal and financial
incentives for renewable energy generation; including energy buy back (i.e. a guarantee
from an electricity company that they will buy the renewable power produced),
preferential grid connection and transportation charges and electricity tax exemptions.
Some States with Renewable Portfolio Standards (RPS) or other policies to promote
wind generation, have introduced feed-in-tariffs for wind generation which are higher
than that for conventional electricity.
Financial assistance

The Indian Renewable Energy Development agency (IREDA), the premier finance
agency of the Government of India provides soft loans for renewable energy projects,
particularly for demonstration and private sector projects.

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Wind resource assessment

The Government of India has set up the Centre for Wind Energy technology
(C-Wet) to map wind energy potentials

The C-WET has set up more than 1,000 wind monitoring and wind mapping
centers across 25 states

Wind mapping at 50 meters (C-WET) and 60-80 meters height (private

companies)

National Feed-in-Tariff & Generation Based Incentive

In June 2008, the GOI announced a national generation-based incentive scheme for grid
connected wind power projects under 49 MW, providing an incentive of 0.5 Rupees per
kWh (0.7 euro cents) in addition to the existing state incentives. Investors which,
because of their small size or lack of tax liability cannot draw any benefit from
accelerated depreciation under the Income tax can opt for this alternative incentive
instead.
Renewable Energy Certificate
A Renewable Energy Certificate (REC) is a tradable certificate of proof that one MWh
of electricity has been generated by a RE plant in the state. Under this framework, RE
generators can trade RECs through a power exchange platform that will allow market
based price discovery, within a price range determined by the CERC. The respective
price limits are called forbearance price and floor price and their values are calculated
separately for solar and all non-solar energy sources (wind, biomass, small hydro).
While the CERC has stipulated33 floor and forbearance price for non-solar RECs and
for solar RECs, respectively, the real price of an REC would be determined at the power
exchanges. RECs will be traded in the power exchange within the boundary set by the
forbearance price and floor price, determined by the CERC from time to time. For wind
power generation, this range is Rs 1,500 to Rs 3,900 per REC.

Page 36 of 124

Figure 12: State-Wise Feed-In Tariff

Other Policies

Financial Assistance for Solar Mission projects

A target-driven R&D policy for developing indigenous solar technologies

An aggressive initiative on HRD to ensure adequate availability of manpower.

Page 37 of 124

6. WIND INDUSTRY VALUE CHAIN

The wind energy value chain consists of a number of specific and distinct steps from the
supply of raw materials to the transmission of electricity. These steps, along with the
prominent supporting products and services for each, are given below. The illustration below
also provides a bird's-eye view of the opportunities available along the entire wind energy
value chain.

Figure 13: Wind Industry Value Chain

Page 38 of 124

6.1 Wind Power Technology

Growing concern for the environmental degradation has led to the world's interest in
renewable energy resources. Wind is commercially and operationally the most viable
renewable energy resource and accordingly, emerging as one of the largest source in terms of
the renewable energy sector.
Wind is the natural movement of air across the land or sea. Wind is caused by uneven heating
and cooling of the earth's surface and by the earth's rotation. Land and water areas absorb and
release different amount of heat received from the sun. As warm air rises, cooler air rushes in
to take its place, causing local winds. The rotation of the earth changes the direction of the
flow of air.
Basic Technology:
Wind electric generator converts kinetic energy available in wind to electrical energy by
using rotor, gearbox and generator. The wind turbines installed so far in the country are
predominantly of the fixed pitch stall regulated design. However, the trend of recent
installations is moving towards better aerodynamic design; use of lighter and larger blades;
higher towers; direct drive; and variable speed gearless operation using advanced power
electronics. Electronically operated wind turbines do not consume reactive power, which is a
favourable factor towards maintaining a good power factor in the typically weak local grid
networks.
State-of-the-art technologies are now available in the country for the manufacture of wind
turbines. The unit size of machines is going up from 55-100 kW in the initial projects in the
1980s, to 2000 kW. Wind turbines are being manufactured by 12 indigenous manufacturers,
mainly through joint ventures or under licensed production agreements. A few foreign
companies have also set up their subsidiaries in India. Which some companies are now
manufacturing wind turbines without any foreign collaboration. The current annual
production capacity of domestic wind turbine industry is about 1500 MW. The technology is
continuously upgraded, keeping in view global developments in this area. The progress of
phased indigenisation by leading manufacturers of wind electric generators up to 500 kW has

Page 39 of 124

led to 80% indigenisation level. Import content is high in higher capacity machines, since
vendor development of higher capacity machines will take some time. The industry has taken
up indigenised production of blades and other critical components. Efforts are also being
made to indigenise gearboxes and controllers. Wind turbines and wind turbine components
are exported to the US, Australia, and Asian countries. The wind industry in the country is
expected to become a net foreign exchange earner by 2012.
Working principle of wind turbine:
The blades of modern wind turbines are similar to airplane wings. The wind passes over both
surfaces of the air foil shaped blade. It passes more rapidly over the longer (upper) side of the
air foil creating a lower pressure area above the air foil. The pressure difference is created
between top and bottom which results in a force, called aerodynamic lift. In addition to lift
force, a drag force perpendicular to lift force impedes the rotor rotation. The prime
objective of wind turbine design is to increase lift to drag ratio.

Page 40 of 124

Figure 14: Wind Turbine Process

6.2 Wind Power Generation Process

In a Wind Electric Generator a set of turbine blades mounted on a metallic hub, to seize
power from the up-stream wind. This in turn drives the generator to produce electric power.
The generator, along with its associated components is housed in a common enclosure, called
the nacelle. In the most widely used configuration, the blades are held with their axis
horizontal to the ground in what is known as horizontal-axis WEG, whereas the distinct
feature of vertical-axis WEG lies in vertical positioning of the blades with one of their ends
resting at ground level. For horizontal-axis WEG, the turbine blades (and also the nacelle)

Page 41 of 124

are mounted on the tower, for better reach to un-obstructed wind. The power captured by the
turbine blades is transferred to the generator through the drive train. Since in most of the
WEGs, the rotor (rotating parts including the blades, hub, etc) moves at a fixed (and slow)
rpm (revolution per minute), a gearbox is included in the drive train, which increases the
speed at the generator end of the shaft. There are however a few design options where the
rotor speed is either variable or the generator is direct drive. The latter makes use of gearbox
redundant. A mechanical brake disc is mounted on the shaft to work as back-up for aerodynamic braking system attached to the blades a yaw mechanism (multi-motor drive using 2
to 6 number of small motors) turns the nacelle and the rotor assembly to face the wind as it
changes its direction. This change is sensed by a wind vane which is mounted on the top of
the nacelle along with an anemometer also mounted on the top to monitor wind speed. The
WEGs are designed for un-attended operation with minimum maintenance and provided with
comprehensive control system housed in the control panel placed at/close to the base of the
tower. The systems workings are based on continuous monitoring of various parameters and
working conditions and also include protection against internal machines faults. The
commercial models of WEGs usually deliver rated power at around 12 to 14 m/s (called the
rated wind speed) since it does not pay to design for very strong wind, which is a rare event.
The power control features incorporated in the machines manoeuvre to extract optimum
output from the wind within its entire speed range up to 25 m/s, beyond which all operations
are stopped to avoid structural overload under severe weather. This is the cut-out wind speed
and measured as the 10-minute average for IEC Wind Class-I and II WEGs. For IEC Wind
Class-III WEGs, the cut-out value is in the range of 17-20 m/s.

Page 42 of 124

Figure 15: Wind Turbine Analogy

Page 43 of 124

6.3 Major Components of Wind Turbine

First Tier Components

Second Tier Components

Figure 16: Components of Wind turbine

Page 44 of 124

First Tier Components

Main components of a wind electric generator are:
1. Tower
2. Nacelle
3. Rotor
4. Gearbox
5. Generator
6 Yaw System

Tier-2 Components & Materials

1. Braking System
2. Controllers
3. Sensors

Page 45 of 124

6.4 Functions of Wind Turbine Parts

Turbine Blade
A modern wind turbine blade is a hollow cantilever structure with very high load bearing
capacity. The blade is usually made of fibre-glass reinforced plastic (FRP) or wood epoxy
laminates. The design is based on the aerodynamic principles developed for aeroplanes and
helicopters, but has been adopted with modifications to cope with the specific properties of
wind as seen in its changing speed and directions. The geometric shape of a turbine blade is
such that the air moving across its upper surface is faster than that traversing its lower part.
As a result, the pressure is lower on the upper surface creating an upward thrust. This is the
lift phenomenon, which drives the blades through the air. Opposite to lift is drag. This is due
to the air resistance which occurs when the areas of the blade facing the direction of motion is
increased. A correct balance between these two phenomena is needed for optimum use of the
wind power.
The rotating blades interface with the wind at an angle, known as the angle of attack, which is
a function of the blades angle to the plan of rotation (called the pitch). This also depends on
the apparent wind arising due to a shift in the direction of the natural flow of the wind
caused by rotation. A change in the angle of attack provides a means to control the wind
power.
Since the tip of the blade moves faster than the parts close to its root, it requires to be shaped
with an edge-wise twist during manufacture so that the angle of attack is maintained
unchanged. Simultaneously, the blade tapers the tip to keep the lift constant along its entire
length. Use of both two-bladed and three-bladed systems is preferred by the WEG
manufacturers. The two-bladed option, although dynamically well balanced, has to withstand
very high cyclic load unless provided with teeter bearing to alleviate the blade and tower
head loading. In three-bladed rotor, gyroscopic forces developed are balanced enough and
requires no teeter. It also delivers smooth output and works at slightly higher efficiency.
Two-bladed option however offers reduction in both fabrication and maintenance cost.

Page 46 of 124

Generator
Two basic types of generators are used for the WEGs. These are: synchronous and
asynchronous. The latter is more commonly known as induction generator, and mostly used
because of robustness of construction (using squirrel cage rotating part) and cost economy.
In both these options, there is a cylindrical shaped stator (so called because it doesnt
rotates) inside which a rotor is placed. The stator is essentially the same for both types of
machines. The windings embedded in the stator are connected to three-phase supply. As
alternating current (a.c.) passes through the winding, magnetic fields are induced with
changes in magnitude. By symmetrical arrangement of the windings around the stator, this
changing magnetic field gives the effect of a rotating field as if produced de to the physical
presence of 2, 4 or even more number of magnetic poles depending upon the generator speed.
Thus, change in number of poles provides a means to vary the rpm of the machine. For
example, the machine with 4-pole connected to three-phase supply at 50 Hz. Frequency
rotates at 1500 rpm and that of 6-pole at 1000 rpm. Frequency change (instead of keeping it
fixed at 50 Hz) is another method of changing machine rpm.
In synchronous machine, the magnetic field on the rotor could be created in two ways: (a) By
using magnet(s), in which case it is a permanent magnet machine; or, more commonly
(b) By feeding the windings would on the rotor with direct current (d.c) to produce an
electromagnet in what is called the wound-rotor machine.
In synchronous machine, the rotor magnetic field tries to align itself to the rotating magnetic
field created by the stator making it (the rotor) to rotate at the same speed of the rotating
field, so called the synchronous machine. The wound rotor type synchronous machine has
the advantage of controlling the generator voltage or the power factor by adjusting the rotor
magnetic field by externally changing the current fed through the slip rings. If the machine is
operating as a generator, and more torque is applied to the shat (say, by coupling with wind
turbine), the rotor will advance slightly relative to the rotating magnetic field (with leading
power factor), but in steady-state operation the speed is firmly held by the supply frequency.
The important point of induction machine is that it acts as a motor (i.e. converts electrical
power to mechanical power) when the rotor speed is slightly less than the rotating field. It
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works as a generator, if the rotor speed is slightly above the synchronous speed. The power
transmitted is directly proportional to this speed difference, hence it is also called
asynchronous machine. This difference in speed is the slip, which at full power output is
around 1%. Squirrel-cage induction generators are more commonly used in WEGs. These
however draw reactive power from the supply grid, which is not desirable especially in weak
network. The reactive power consumption is compensated by providing capacitor banks.
Drive Mechanism
Different options for fixed speed and variable speed operations are briefly mentioned below:
(a) Fixed Speed Drive
It uses squirrel-cage induction generator, in either single-speed or dual-speed version,
connected to the supply grid via a gearbox. This arrangement is commonly referred to as a
fixed speed drive though the speed is not exactly constant but changes marginally due to
change in generator slip with power generation.
The advantage of fixed speed drive lies in its relatively simple construction, but has to be
quite robust to withstand the fluctuating wind load since variation of wind speed directly
transferred into the drive train leading to structural stress. Depending on the strength of the
grid, the resultant power fluctuation may cause undesired flicker.
(b) Semi-variable Speed Drive
So called since the speed range is marginally variable in 1.1 to 1 ratio. Here, thevariable slip
concept is advantageously used by introducing a resistance in series with the rotor resistance
of the induction generator by using fast-acting power electronics. This concept has been
successfully commercialized by Vestas under their opt slip trade name. A number of WEGs
ranging from 600 kW to 2.75 MW have been equipped with this system. This is a cost
effective option though the operation is limited to a narrow variable speed.

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(c) Variable Speed Drive

This can be achieved by decoupling electrical grid frequency and mechanical rotor frequency.
To this end, power electronic converters are used, such as AC/DC/A Cconverter combined
with advanced control systems. In double-fed induction machines the stator is directly
connected to the grid as in case of fixed-speed machine, but the rotor winding is fed at
variable frequency via an electronic converter which makes variable speed operation
possible. The range is about 1.5 or 2 to 1 and only to part of the output power flows through
the frequency converter (typically 25 or 30%).One advantage of the design is the use of the
type of generator, which is a standard market product. It also requires a smaller converter
with favourable cost factor. There is however the need of a rather maintenance-intensive
gearbox in the drive train. (Examples 600 kW to 2.0 MW Dewind, 600 kW to 1.5 MW NEG
Micon, 600 kW to 1.3 MW Nordex, 850 kW Pioneer Gamesa).
The wide range variable speed drive (speed variation in 2.5 to 3.0 to 1 ratio) provides
maximum flexibility in WEG operation. The gearbox is still needed. The size of power
electronic converter is also bigger with higher cost. Both induction and synchronous
generators could be used. The energy generation pattern of variable speed drive shows
significantly less fluctuation than from fixed speed system. This is mainly due to rotor inertia,
which does not response immediately to minor and/or transient variation of wind speed
bringing in a stabilizing effect on generated power (Example: 250 kW Logerwey, 600 kW to
750 kW REpower).
(d) Direct Drive
With no gearbox used, all direct drive WEGs are variable speed. The generator is directly
engaged with the rotor and rotates at low rpm archived by adopting multi-pole design (ringshaped) synchronous generator, which could be both permanent magnet or would rotor type.
The variable speed is possible due to power electronic converter for change of frequency
before connecting the generator to the fixed frequency supply grid. (Example: 600 kW
Enercon, 750 kW Emergya wind/Jeumant, 900 kW/1500 kW GE Wind Energy). The
drawbacks of direct drive design are use of large and complex ring generator and large
electronic-converter through which 100% of the power generation has to pass.

Page 49 of 124

Power Control
Power from wind is influenced by three factors. These are:
1) Air density (which varies with altitude and temperature). The change in kinetic energy of
wind is proportional to air density. Power output of WEG is usually referred to at 1225 g/m3,
which is the air density under the standard temperature and at the altitude of the mean sea
level (m.s.l).
2) Rotor Area i.e. the area intercepted by rotating blades. Power received from wind
depends upon this swept area. Since the rotor area increases with the square of the rotor
diameter (declared in the manufacturers catalogue), a WEG with twice as large rotor
diameter will theoretically receive four times energy.
3) Wind speed the power in wind varies with the cube of the wind speed. If the wind speed
is twice as high it contains eight times more power. The output characteristic of a WEG is
established through type test carried out with reference to the wind speed and is declared by
the manufacturer as the power curve for use in estimating generation under site specific wind
conditions. WEG is designed to extract optimum power covering its entire speed range but at
the same time not to exceed the rated output and other limiting parameters. The operating
efficiency of the rotor depends on the tip speed ratio, which is the ratio of the rotor blade
speed and this could reach optimum value at one wind speed, (or at two speeds for two-speed
WEG). For variable speed, on the other hand, the change in tip speed ratio depends on both
wind speed and rotor speed. For maximum rotor efficiency, the rotor speed is controlled to
maintain the tip speed ratio normally at 6 to 8. Because of this flexibility, a variable speed
drive option could generate more energy for the same wind speed regime.
Several control techniques have been developed which are based on two distinct approaches.
These are:
(a) Stall Control
(b) Pitch control

Page 50 of 124

In stall control, the rotor blades are fixed at an angle. The blade profile is shaped such that at
high wind speed turbulence is created to cause a collapse in aerodynamic efficiency to limit
the power output. This behaviour is intrinsic to the blade design without separate control
system to maintain output from the turbine blades constantly close to the rated value beyond
the rated wind speed. In stall-regulated configuration there are chances of overshooting the
power output since the system depends on atmospheric condition. Generators used for WEGs
are mostly designed for class F insulation but operation is restricted to class b to allow higher
margin on temperature rise. For optimum efficiency, the setting of the blades may be adjusted
twice in a year but this is a labour incentive exercise, which is generally avoided. The stall
system may have a provision to open-up the tip of the blade to act as a fail-safe braking as
supplementary to the mechanical brake. However, because of the metal components, the tip
brake also carries more risks to lighting strike.
The basic advantage of stall control is that it requires a few moving parts and easy dominated
the market in sub-MW range. Setting isolated examples, 1.3 MW Nordex and 1.5 MW NEGMicon models have been developed on this control concept.
In pitch control the blades are gradually turned out of the wind so that the angle of attack
changes and the aerodynamic efficiency is reduced depending upon the wind speed. The pitch
mechanism is usually activated by hydraulic-power or electric motor drive. It however reacts
with a certain time log and builds-up considerable peak load when guest wind hits the blade.
Optislip control, patented by Vestas, is provided with an electronic circuitry where the
generator slip may be temporarily increased to fast speed up the rotor (up to 10% of its
nominal rpm) for operating at higher efficiency and advantageously store energy developed
under gusty condition to release the same on normalcy.
A relatively recent innovation is active stall (or semi-pitch) concept where, instead of only
the tip portion, the full blade can be turned along its longitudinal axis. On reaching the rated
output, the blade changes its alignment to result in which is called deeper stall effect
whereby excess energy in the wind is wasted to keep the output constant for all wind speeds
between the rated and cut-out wind speed. An advantage of this arrangement is better start up
characteristics. In some system, the blades are programmed to pitch at a fixed steps

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depending upon the wind. (Combi-stall system developed by Bonus is also a type of active
stall control).

A current trend is for active pitch which is in fact the pitch control provided separately for
individual blade, and is getting increased acceptance for WEGs in MW range, specially used
for off-shore application. In general fixed speed WEGs use stall for technical reasons, while
variable speed turbines are usually provided with pitch control
Anemometer
Anemometers are used to measure the speed and the direction of the wind.
Blades
Most turbines have either two or three blades. Wind blowing over the blades causes the
blades to "lift" and rotate. The rotor blades capture the wind and transfer its power to the
rotor hub. On a modern 1000 kW wind turbine each rotor blade measures about 27 metres (80
ft.) in length and is designed much like a wing of an aero plane.
Brake
A disc brake, which can be applied mechanically, electrically, or hydraulically to stop the
rotor in emergencies
Gear box
Gears connect the low-speed shaft to the high-speed shaft and increase the rotational speeds
from about 30 to 60 rotations per minute (rpm) to about 1200 to 1500 rpm, the rotational
speed required by most generators to produce electricity.
Generator
Usually an off-the-shelf induction generator that produces 60-cycle AC electricity.

Page 52 of 124

Nacelle
The rotor attaches to the nacelle, which sits at top of the tower and includes the gear box,
low- and high-speed shafts, generator, controller, and brake.

A cover protects the

components inside the nacelle. Some nacelles are large enough for a technician to stand
inside while working.
Tower
Towers are made from tubular steel or steel lattice. Because wind speed increases with
height, taller towers enable turbines to capture more energy and generate more electricity.
Reinforced concrete towers and pole towers are also used
Power in the wind turbines
= 1/2 X air density X swept rotor area X (wind speed) 3
( *

A * V3)

Density = P/(R x T)

Area = r2

P - Pressure (Pa)
R - Specific gas constant (287 J/kgK)
T - Air temperature (K)

Page 53 of 124

7. WIND TURBINE CLASSIFICATION

Horizontal Axis Turbine:

Axis of rotation is Horizontal.

Gearbox & Generator is mounted at the top of the Tower.

Installation cost & maintenance cost is higher compared to VAT.

Vertical Axis Turbine:

Axis of rotation is Vertical.

Gearbox & Generator is grounded.

Used for Low or higher wind speed.

7.1 Classification on the basis of blades

Single / Mono blade rotors :

Simple & lighter Construction.

Favorable Price & Easy Installation and Maintenance.

Not suitable for higher Power rating ( 15 KW 30 KW )

High Vibration (Wind vanes are used for orientation).

Generally used for Agricultural irrigation and for Remote loads.

Page 54 of 124

Twin / Two bladed rotors

Designed for large unit rating (2 MW 3 MW) & for Grid connection.

Cost is higher than Mono blade and lower than Three Bladed turbine.

Faced to difficulty of vibration during orientation of Yaw (Teething Control).

Three-bladed rotors

Power rating from small to very large (15 KW 3M).

Dont give vibration problems during Yaw orientation.

Operational reliability.

Cost is slightly more than two bladed systems.

Page 55 of 124

7.2 NEW TECHNOLOGIES IN WIND POWER GENERATION

7.2.1 MAGLEV WIND TURBINE

Background
Maglev for transportation was invented in 1934 by Hermann Kemper. Today, Maglev trains
operate in Germany, China and Japan. Maglev trains currently hold many land speed records
and are most noted for energy efficiency, on time performance and low maintenance.
The Maglev platform is highly versatile. The Chinese have already begun to
integrate magnetic bearings into their wind power technology.
Key Asset
The Maglev Wind Turbine for commercial energy production was invented by Ed Mazur
of MAGLEV WIND TURBINE TECHNOLOGIES in 2004. It is designed to generate
electricity from wind power with a new standard of efficiency.
Market Size
It is currently estimated that the global electrical power generation market is a multi-trillion
dollar industry. Maglev Wind Turbines will make wind power highly profitable.
Scientific Consensus
The earth is currently in a warming period in which the weather conditions are becoming
more volatile. Wind velocity is expected to increase significantly over the next 20 years.
Science Centers
Science and educational centers will be established at designated Maglev Wind Turbine
Facilities to promote the benefits of clean electrical energy.

Page 56 of 124

Floating on Air
Once the wind is captured, it then must be efficiently converted into power. Conventional
wind mills continue to rely on obsolete mechanical components such as roller bearings,
transmissions and generators which absorb much of the potential power because of friction.
These high maintenance systems are expensive and highly sensitive to extreme temperature
fluctuation.
MAGLEV systems are also used in sophisticated ship elevators, amusement park rides such
as the people mover in Disney World, aircraft carrier catapults and a variety of other
conveyance applications. The MAGLEV platform is highly versatile.
Chinese Ingenuity
Magnetic bearings have already been introduced into conventional wind mills in China. THE
SHANGHAI DAILY reports a Technological Breakthrough in friction management with the
next generation of wind mills. Replacing roller bearings with magnetic bearings, the Chinese
claim to have increased the efficiency of their wind mills by 20%.

Page 57 of 124

Upgrade with MLWTH Technology

Wind Farmers have been considering various alternatives of operating existing wind farms
and the construction of new wind farms because of the lack of profitability. From resulting
meetings and in depth discussions, resulting wind farm research and analysis have led to the
unanimous conclusion by existing wind farmers to approve upgrading existing wind farms.
MAGLEV WIND TURBINE HOLDINGS (MLWTH) intends to replace all existing obsolete
wind mills with the new industry standard MAGLEV wind turbines. The new MAGLEV
power plants will produce approximately 1GWh each. The electricity generated will reduce
local conventional power demand. The excess power will be sold off to local utilities.
The environmental and community impact will be considerably less than any conventional
wind farm based on the fact that MAGLEV wind turbines will reclaim great sections of land
from obsolete wind farms. This greatly improved wind project successfully demonstrates that
renewable energy plants can be sited responsibly and sized appropriately within the
environment they are meant to protect. This project reaffirms our commitment to renewable
energy, reduces our dependency on fossil fueled energy and reduces energy costs while
balancing the environmental and community impact.
Scaling down the land area for projects only makes economic sense because MAGLEV wind
turbines utilize existing infrastructure at the wind farm sites. New sites would require only
one MAGLEV wind turbine in order to justify the increased infrastructure costs. MLWTH
further believes that installing only one new unit minimizes the impact to the environment
while still providing a significant amount of renewable energy to its customers.

Mag-Wind has developed a magnetically-levitated vertical-axis wind turbine for residential

applications. The use of magnetic levitation reduces friction, as well as that horrible
squeaking sound associated with roof-mounted wind vents. The MW-1100, a Canadian
invention, is reportedly able to generate the same electrical output from its 4 foot sweep as a
much larger blade turbine. The MW-1100 is capable of outputting 1,100 kWh per month with
an average wind speed of 13mph, and has a cut-in speed of less than 5mph. It has a top speed
of over 100mph, meaning it will easily handle most storms and winds. At optimal output,
Page 58 of 124

over 10 years the electricity produced by the MW-1100 turbine is 3.5 cents per kWh. In terms
of financial payback, if your current electrical bill is $300 per month or more, the MW-1100
wind turbine will pay for itself in 3 years or less.

8.Wind Technology Trend & Related Cost

Technology Trend
WTG Make

Rating

Drive

Speed

Generator

(kw)
Enercon

800

Gearless

Variable

Sync.

GW Wind

1500

Geared

Variable

DFIG

Suzlon

1250

Geared

Dual

Async.

1500

Geared

Variable

Async.

2100

Geared

Variable

Async.

1650

Geared

Variable

Async.

1800

Geared

Variable

Async.

RRB

1800

Geared

Variable

Async.

Regen Powertech

1500

Gearless

Variable

Sync.

Kenersys

2000

Geared

Variable

Sync.

Siemens

2300

Geared

Variable

Async.

Gamesa

800

Geared

Variable

DFIG

2000

Geared

Variable

DFIG

Vestas

Page 59 of 124

Figure 17: Technology of Wind Turbine

Related Component Cost

Components

Rotor

Subcomponents

Sub-Component

Component Cost

Cost (%)

(%)

Blade

16.6

28

Hub

7.2

Pitch

mechanism

&

Bearing
Nacelle

Gearbox

13.4

Main shaft & bearing

3.6

46

block
Brake

0.6

Generator

6.7

Power electronics

6.9

Yaw drive & bearings

1.8

Others

10

Tower

20.6

21

Foundation

100

100

Total

Figure 18: Cost of Wind Turbine components

Page 60 of 124

WTG Tier-1 Components

Wind
Tower

Made from concrete or steel

Types Guyed ,Lattice ,Tubular

Blade

Design is based on the aerodynamic principles

Made up of fibre-glass reinforced plastic (FRP) or
wood epoxy laminates.

Gearbox

Steps-up or steps down the speed of turbine and

transmits rotating mechanical energy to the
generator.

Generator

Converts mechanical energy into electric energy

Types Synchronous ,Asynchronous , Double
fed induction generator& PMG

Used to keep rotor facing into as the wind

direction changes
Yaw Drive

Page 61 of 124

WTG Tier -2 Components

Shaft

Used to drive the generator.

To bear the variable Stress

Bearing

Pitch
System

Alters the pitch angle to turn blades in or out of

the wind stream

Brake

Used for stopping the turbine in high wind

conditions

Others

Steel, Fabric Glass, Screw ,nut, bolt, Ladder

,Adhesives, Cables ,Paints Etc

Page 62 of 124

9. Service & Support of Wind Turbine Technology

Various types of Support & Services in Wind Technology are as follows-:

Feasibility studies and project development

Geotechnical services

Logistics support

Construction Services

Operations and maintenance

Wind farm developers are responsible for developing the wind project from concept to
commissioning, and they undertake all the planning, design and project development work in
this regard. Some developers perform services beyond the commissioning stage as well, such
as operations and maintenance support. As part of their role, wind power project developers
also take up the role of establishing access to capital for investment. In addition, they also
assist in the construction of roads and related infrastructure that can accommodate the
transport of heavy industrial equipment and components. Owners of wind farms (many times
distinct from wind farm developers) could be private companies that have an interest in
power generation, or power production utility companies. Depending on the nature of
contract, the wind project developer sometimes has a managing interest in the project when it
is complete, but in most cases the real ownership lies with the wind farm owner. Wind power
feasibility studies and project development for commercial-scale wind farms is a
multifaceted, lengthy process, often requiring collaborative efforts among several companies.

Page 63 of 124

Project developers perform the following:

Wind power feasibility analysis,

Site selection,

Wind farm design and layout,

Wind turbine selection and acquisition,

Obtaining state permits,

Feasibility Studies and Project Development

Construction contracting,

Acquiring wind rights and leases,

Energy production estimates, and

Project financing

Geotechnical services

Deals with the geological analysis and examines the suitability of a certain location for the
proposed wind farm infrastructure. These services mainly include the analysis of the stability
of the subsoil and foundation advice. While geotechnical services are a part of project
development, owing to the specific importance that these services carry i the context of wind
farms, this has been mentioned as a separate section.

For onshore wind farms, geotechnical services include:

Geotechnical and geo hazards aspects of site selection, master planning and
environmental impact assessment and management.

Geotechnical and geo-environmental site investigation, including terrain evaluation

and contaminated land assessment, Foundation and ground improvement design for
static and dynamic load conditions.

Access road and cable routes - selection, investigation and design.

Page 64 of 124

Geo hazard assessment and mitigation unstable slopes, surface and groundwater,
seismic hazards.

Site reinstatement and restoration, including erosion control and planting regimes.

Offshore Geotechnical Services

Construction supervision

Due diligence and expert witness services

Foundation and design assessment

Subsea cabling

Sea bed geotechnical service

Currently, offshore wind is in its infancy in India and is more relevant to countries in
north Europe and to a certain extent, for the United States. It is however expected that
the offshore wind industry could start gaining momentum during the next few years,
so entrepreneurs will do well to watch that space

Logistics

Transporting wind turbines presents unique challenges and opportunities. Transporting these
machines involves handling components that have an unusual weight, length and shape; thus
companies that serve the industry must have equipment to transport very large and heavy
cargo. The nacelles, blades, and turbine towers must be transported from the manufacturing
facility to the wind farm location. The wind turbine industry needs to rely on collaborative
transportation management processes, whereby manufacturers, logistics companies,
transportation companies, and shipping ports share information and integrate their functions
to achieve an effective delivery process .Modes of transportation for the wind industry
include trucking, shipping and rail freight. There are considerable opportunities for
transportation providers in all sectors . A single wind turbine can require up to eight hauls,
and for a large project of 150 MW, transportation requirements could be as much as 689
truckloads, 140 railcars, and eight ships As the wind power industry continues to grow,
demand increases for companies that are capable of transporting heavy and large loads. This
could lead to the emergence of a specialized sector in the transportation industry.

Page 65 of 124

Operation & Maintenance Services

Companies involved in large scale wind project construction generally offer turnkey
arrangements, according to criteria specified in

the contract. Turnkey construction

contractors provide engineering, procurement and construction services, including civil

works, laying cables for electrical infrastructure, and installing wind turbines. Over the past
decade, a number of construction companies in India have contributed to and benefitted from
the wind energy sector growth, and this trend is expected to continue in future as well. The
reliability of the turbine system is essential to a wind power project; thus, operation and
maintenance (O&M) services are critical. Operations include scheduling site personnel,
observing turbine operation, dealing with equipment failure, and coordinating with the utility
to respond to curtailments or outages Maintenance includes both scheduled (preventive)
services, such as periodic equipment inspections, oil and filter changes, calibration of
electronic sensors, blade cleaning, and unscheduled services to repair component
malfunctions. When wind turbines are installed and the wind farm is in use, routine
maintenance is important to ensure maximum efficiency and lifespan of the machines.
Generally, wind turbine manufacturers' service turbines during the first 2-5 years while the
wind turbines are still under warranty. Thereafter, wind farm operators may perform
maintenance on their own, or subcontract the service to independent service companies Some
companies in India are focused on offering only repair and maintenance services to existing
wind farms, as they see a potential to add significant value owing to their focus.

Legal service

Legal Services providers play a role in development, financing, and acquisition of wind
Power projects.

Insurance Services

Companies specializing in underwriting, loss adjusting and risk engineering wind Power
projects provide insurance services. These include:

Page 66 of 124

Insurance Cost Estimating

Insurance Brokerage/ Risk Management

Contract Review/ Analysis/ Document Drafting

Underwriting/ Marketing

Fire Protection/ Property Preservation

Risk Assessments

Life/ Safety Risk Control

Claims Consulting

Page 67 of 124

Page 68 of 124

10. Solar Power Technology

The PV supply chain consists of manufacturers of different components of a Solar PV
system; it includes the raw material supplier- makers of silicon, ingots and wafers, cell and
module manufacturers and different balance of system (BOS) manufacturers and the vendors
for the necessary equipments .A diagram showing the different stages of manufacturing and
the typical flow of materials and money are shown the following diagram (Source- PVPS
Report IEA).

Page 69 of 124

11. Components of Solar Power Technology

11.1 PHOTOVOLTAICS
Photovoltaics (PV) or solar cells as they are often referred to,
are semiconductor devices that convert sunlight into direct
current (DC) electricity. Groups of PV cells are electrically
configured into modules and arrays, which can be used to
charge batteries, operate motors, and to power any number of
electrical loads. With the appropriate power conversion equipment, PV systems can produce
alternating current (AC) compatible with any conventional appliances, and operate in parallel
with and interconnected to the utility grid.
HOW PV CELLS WORK
A typical silicon PV cell is composed of a thin
wafer

consisting

of

an

ultra-thin

layer

of

phosphorus-doped (N-type) silicon on top of a

thicker layer of boron-doped (P-type) silicon. An
electrical field is created near the top surface of the
cell where these two materials are in contact, called the P-N junction. When sunlight strikes
the surface of a PV cell, this electrical field provides momentum and direction to lightstimulated electrons, resulting in a flow of current when the solar cell is connected to an
electrical load.
Regardless of size, a typical silicon PV cell produces about 0.5 0.6 volt DC under opencircuit, no-load conditions. The current (and power) output of a PV cell depends on its
efficiency and size (surface area), and is proportional the intensity of sunlight striking the
surface of the cell. For example, under peak sunlight conditions a typical

Commercial PV cell with a surface area of 160 cm^2 (~25 in^2) will produce about 2 watts
peak power. If the sunlight intensity were 40 percent of peak, this cell would produce about
0.8 watts.

Page 70 of 124

11.2 PV CELLS, MODULES, & ARRAYS

Photovoltaic cells are connected electrically
in series and/or parallel circuits to produce
higher voltages, currents and power levels.
Photovoltaic modules consist of PV cell
circuits

sealed

in

an

environmentally

protective laminate, and are the fundamental

building block of PV systems. Photovoltaic
panels include one or more PV modules
assembled as a pre-wired, field-installable unit. A photovoltaic array is the complete powergenerating unit, consisting of any number of PV modules and panels.

The performance of PV modules and arrays are generally rated according to their maximum
DC power output (watts) under Standard Test Conditions (STC). Standard Test Conditions
are defined by a module (cell) operating temperature of 25oC (77 F), and incident solar
irradiance level of 1000 W/m2 and under Air Mass 1.5 spectral distribution. Since these
conditions are not always typical of how PV modules and Arrays operate in the field; actual
performance is usually 85 to 90 percent of the STC rating.Todays photovoltaic modules are
extremely safe and reliable products, with minimal failure rates and projected service
lifetimes of 20 to 30 years. Most major manufacturers offer warranties of twenty or more
years for maintaining a high percentage of initial rated power output.
Page 71 of 124

Crystalline solar cells

Most solar cells are made of a single crystal or multi-crystalline silicon material. Silicon
ingots are made by the process of crystal growth, or by casting in specially designed furnaces.
The ingots are then sliced into thin wafers. Single crystal wafers are usually of 125 125
mm or larger sizes with pseudo-square shape; multi-crystalline wafers are typically
square-shaped with a dimension of 100 100 mm or larger. Using high temperature diffusion
furnaces, impurities like boron or phosphorous are introduced into the silicon wafers to form
a pn junction. The silicon wafers are thus converted into solar cells. When exposed to
sunlight, a current is generated in each cell. Contacts are attached to the top and bottom of
each solar cell to enable inter-connections and drawing of the current.

Mono-crystalline silicon:
Mono-crystalline Silicon has a single and continuous crystal lattice structure with
practically zero defects or impurities.One of the many reasons Mono-crystalline
Silicon is superior to other types of silicon cells are their high efficiencies - which are
typically around 15%.Because the manufacturing process required producing Monocrystalline Silicon is more involved and detailed than other types, this results in
slightly higher costs for Mono-crystalline Silicon than other silicon technologies.

Page 72 of 124

Figure: monocrystalline silicon cell and crystal

Multi-crystalline silicon:
Polycrystalline silicon (or semi-crystalline silicon, poly-silicon, poly-Si, or simply
"poly") is a material consisting of multiple small silicon crystals. Polycrystalline
silicon is composed of many smaller silicon grains of varied crystallographic
orientation. This material can be synthesized easily by allowing liquid silicon to cool
using a seed crystal of the desired crystal structure. Additionally, other methods for
crystallizing amorphous silicon to form poly-silicon exist such as high temperature
chemical vapor deposition (CVD).
Single crystals are grown using the
Czochralski process,
float-zone and
Bridgman techniques.

Page 73 of 124

Figure: Multicrystalline structure and ingot

Thin-film solar cells

Thin-film solar cells are made from amorphous silicon (a-Si), copper indium
selenide/cadmium sulphide (CuInSe2/CdS) or cadmium telluride/cadmium sulphide
(CdTe/CdS), by using thin-film deposition techniques. The silicon is deposited on glass,
plastic or metal which has been coated with a layer of transparent conducting oxide (TCO)

Page 74 of 124

12. Manufacturing of solar Power Technology

12.1 POLY-SILICON MANUFACTURING

Typical production flow:

MG-Si: The first step in poly-silicon production is the extraction of quartz from a silica
mine. The quartz is then mixed with a carbon source (a mixture of coal with coke,
woodchips or charcoal) and heated in a furnace to reduce silicon (Carbothermic
Reduction). This produces liquid silicon, carbon dioxide and silica fumes (used in other
industrial applications). Liquid silicon is further refined, allowed to solidify and then
crushed. The resulting silicon material is referred to as metallurgical silicon (MG-Si)
and is 9699%pure.

TCS-Synthesis: MG-Si then reacts with HCl in a TCS-Reactor to form liquid

Trichlorosilane (TCS). TCS is then distilled and vaporized.

CVD Deposition: The resulting gas is then deposited onto heated silicon rods under
high temperature (1100 C) and under higher pressure in a Siemens Reactor in a process
called Chemical Vapour Deposition (CVD).

STC-TCS Conversion: A second reactor converts the exhaust gas (STC; silicon
tetrachloride) created in the CVD process to TCS and subsequently re-uses it for polysilicon production. This conversion and re-use of gases in the production process
significantly reduces the production cost of silicon. The final product is a rod of polysilicon that is broken up into smaller pieces (chunk poly-silicon).

Page 75 of 124

Poly Silicon Process

Page 76 of 124

Different poly-silicon production technologies

The Siemens Reactor Method

The Fluidized Bed Reactor (FBR) Method

Czochralski (CZ) Method

Float Zone

Directional Solidification/Casting

Bridgman techniques

Page 77 of 124

Poly Silicon Grade

Electronic Grade (9N)

Medium Grade Silicon (6-7 N)

Upgraded metallurgical grade Silicon (UMG) ( > 5 N)

Production Cost

Production Cost 32-44$/K.G

Others
10%

Electricity
26%
Depriciatio
-ns
45%

Material
17%
Labor
Cost
2%

Page 78 of 124

Global Key Players in Poly- Silicon

Players Market Share 2010 (203160 MT) ( in %)

Others
18%

Hemlock
20%

OCL
12%
JSSI
1%

Mitusubhisi
3% Tokuyama
MEMC
6%
9%

Wecker
18%
Rec
13%

Wafer production

Poly-silicon is the starting material for the production of silicon wafers. Siltronic
sources the majority of its poly-silicon requirements from its parent company, Wacker.
Other suppliers include Tokoyama (Japan) and Hemlock, a joint venture between Dow
Corning, Shin-Etsu and Mitsubishi.

The most commonly used method for crystal growth is the Czochralski method (CZ).
The poly-silicon is heated to a liquid state and a small seed crystal for silicon is
positioned at the surface of the molten silicon. . During this process, a thin film of pure
and crystalline silicon adheres to the seed crystal. This process is repeated until the
desired size of the crystal ingot is achieved. An alternative method to the CZ technique
is the float zone method.

Two methods are used to cut the ingot into wafers. A rotating diamond with an inner
peripheral blade is often used for wafer diameters up to 150mm. For larger wafer
diameters, a special multi-wire saw method has been developed.

Page 79 of 124

The wafer is ground with a diamond tool to attain the required diameter and circular
outer shape. In order to increase the parallelism and reduce surface roughness
incorporated by the sawing process, both surfaces are lapped by spinning the wafer
between two rotating lapping plates and alumina abrasives.

The damage induced by the previous mechanical production steps is removed

by

chemical etching. The wafers are rotated in acid solution. The subsequent chemical
mechanical polishing step (CMP) improves parallelism and results in a mirror-like
surface. During this process, the wafer surface is pressed against a rotating plate
covered with a polishing cloth.

The wafers are cleaned by using ultra-pure water and chemicals. Depending on the
required surface quality, the wafers might be annealed in an H2 or an Ar ambient and an
epitaxial clean silicon layer might be deposited or an oxygen layer incorporated. The total
cycle time amounts to between five and seven days. The clean room requirements get
more stringent with every production step. In the packaging area, the typical conditions are
a clean room of class 10, corresponding to a maximum of 10 sizeable particles per square
feet.

Page 80 of 124

Various steps for wafer production

Page 81 of 124

12.2 Solar Cell Manufacturing

Photovoltaic solar cells are thin silicon disks that convert sunlight into electricity. These disks
act as energy sources for a wide variety of uses, including: calculators and other small
devices; telecommunications; rooftop panels on individual houses; and for lighting, pumping,
and medical refrigeration for villages in developing countries. Solar cells in the form of large
arrays are used to power satellites and, in rare cases, to provide electricity for power plants.

Manufacturing Process

Purifying the silicon

Making single crystal silicon

Doping

The anti-reflective coating

Encapsulating the cell

Doping
The traditional way of doping (adding impurities to) silicon wafers with boron and
phosphorous is to introduce a small amount of boron during the Czochralski process in step
#3 above. The wafers are then sealed back to back and placed in a furnace to be heated to
slightly below the melting point of silicon (2,570 degrees Fahrenheit or 1,410 degrees
Celsius) in the presence of phosphorous gas. The phosphorous atoms "burrow" into the
silicon, which is more porous because it is close to becoming a liquid. The temperature and
time given to the process is carefully controlled to ensure a uniform junction of proper depth.
A more recent way of doping silicon with phosphorous is to use a small particle accelerator to
shoot phosphorous ions into the ingot. By controlling the speed of the ions, it is possible to
control their penetrating depth. This new process, however, has generally not been accepted
by commercial manufacturing.

Page 82 of 124

Placing Electrical Connections

Electrical contacts connect each solar cell to another and to the receiver of produced
current. The contacts must be very thin (at least in the front) so as not to block
sunlight to the cell. Metals such as palladium/silver, nickel, or copper are vacuumevaporated

This illustration shows the makeup of a typical solar cell. The cells are encapsulated
in ethylene vinyl acetate and placed in a metal frame that has a mylar backsheet and
glass cover. through a photoresist, silkscreened, or merely deposited on the exposed
portion of cells that have been partially covered with wax. All three methods involve
a system in which the part of the cell on which a contact is not desired is protected,
while the rest of the cell is exposed to the metal.

Page 83 of 124

After the contacts are in place, thin strips ("fingers") are placed between cells. The
most commonly used strips are tin-coated copper.
The anti-reflective coating

Because pure silicon is shiny, it can reflect up to 35 percent of the sunlight. To reduce
the amount of sunlight lost, an anti-reflective coating is put on the silicon wafer. The
most commonly used coatings are titanium dioxide and silicon oxide, though others
are used. The material used for coating is either heated until its molecules boil off and
travel to the silicon and condense, or the material undergoes sputtering. In this
process, a high voltage knocks molecules off the material and deposits them onto the
silicon at the opposite electrode. Yet another method is to allow the silicon itself to
react with oxygen- or nitrogen-containing gases to form silicon dioxide or silicon
nitride. Commercial solar cell manufacturers use silicon nitride.
Encapsulating the cell
The finished solar cells are then encapsulated; that is, sealed into silicon rubber or
ethylene vinyl acetate. The encapsulated solar cells are then placed into an aluminum
frame that has a mylar or tedlar backsheet and a glass or plastic cover.

Page 84 of 124

13. Processing Cost

13.1 Processing Cost of PV CELL
Others
5%

Depriciation
37%

Electricity
3%

Material
52%

Labor Cost
3%

Global Key Players Market Share ( 37191 MW)

LDK
Solar
10%

REC ASA
8%
Solar World
5%

Others
48%

ReneSola
4%
Glory Silicon
6%
GCL
9%

Trina
3%

Page 85 of 124

Yingli Silicon
4%
TLX Corp
3%

13.2 Processing Cost of Solar Cells

13.2.1 Processing Cost (0.2-0.36 $)

*Material Cost
Excludes
Wafer
Depreciation

37%
Other
5%

Material
52%

Labour Cost Electricity

3%
3%

Domestic Key Players Indo Solar, Moserbaer, Titan ,Photon ,Solar Semiconductor etc
Global Key Players Q Cells ,Suntech ,YGE ,JASO ,Motech,Gintech, TSL

Page 86 of 124

Solar Module Assembly

Solar module assembly usually involves soldering cells together to produce a string of
cells, and then laminating it between toughened glass on top and a polymeric backing
sheet on bottom. Frames are usually created to allow for mounting in the field. The
laminates may also be separately integrated into a mounting system for a specific
application, such as building integration.

Efficiency Of Solar PV Technology

Technology

Lab

Current

Projected

Test
C-Si

25.5

16-18

22

Thin-Film

13

5-7

10-12

20

8-14

14-17

16.5

6-11

13

(a-Si)
Thin-Film
(CIS)
Thin-Film
(CdTe)

Page 87 of 124

13.2.2 Processing Cost ( 0.4.-0.53 $/wp)

Depriciation
4%
Electricity
1%
Labour
1%

Feed Stock
(Cell Cost)

Feed Stock
43%
Material
Cost
51%

Capital costVaries from 45 lakhs to 75 lakhs per MW for Cell to Module Manufacturing

System Assembly
The final part of the overall manufacturing process is the solar system assembly and
Installation. First, an array structure is chosen for the mechanical integration of the
Solar module. This array structure will depend on the final location of the system, which
could involve retrofitting onto a roof, integrating into building materials for roofs or vertical
walls, or pole-mounting, ground-mounting, or attaching to an industrial structure.
Second, the electrical components are integrated with other parts of the solar energy system.
This will include the connection of elements such as inverters, batteries, wiring, disconnects,
and regulators (charge controllers).

Page 88 of 124

Solar PV Products and Tailored Solutions

Apart from power production and manufacturing cells and modules, other business
opportunities using solar PV include the installation and maintenance of stand-alone/off grid
systems for different sectors, and manufacturing solar PV based appliances. A whole range of
solar PV products is emerging in the off-grid sector. Some of the prominent ones are solar
lanterns, solar street lamps and solar powered water pumps. Other less known ones are solar
pool covers and pool heaters, solar fencings, solar candles, solar LED signals and road studs
etc. While for many of these products the current market sizes are small, the growth rates are
expected to be high as larger sections of unelectrified India start yearning for the fruits of
electricity and the costs of solar panels decrease at a fast clip. Companies such as Tata BP
Solar, Selco, d.Light Designs are already developing innovative products for specific
markets. In addition, companies provide custom made solar solution for various sectors like,
bank, telecom, rural development, education and roads & highways. Some of these segments,
where installation services can be done in relatively small scale are:
Telecommunication Sector
BTS (Base Transceiver Station) sites require constant and uninterrupted power for the safe
operation of the network. Solar panels can be installed to generate the required power.

Solar Water Pumps

Solar water pumping systems can be uses in a wide range of applications from livestock
watering to remote home or village water supply and irrigation.
Captive Power Generation
Diesel-based captive power generation is used extensively in the country today to bridge
power supply deficits and to overcome supply quality problems in industrial, commercial and
domestic applications. These can be replaced with solar power

Page 89 of 124

Support & Services

Services & Support in Solar PV Technology are as follows-:

Financing Support

EPC

Project Development Support

Design and Engineering Support

Construction and Commissioning Support

Operation and Maintenance

Training Support

Others

Financing Support

EPC Services

Training

Software Support

Page 90 of 124

Financing Support

Due to high capital requirements for solar power generation, few large projects are financed
by the sponsor's balance sheet. Instead, tailor-made financing is achieved through project
finance.Support from the relevant finance experts will be required at this stage.

EPC (Engineering Procurement and Construction) Services

EPC contractors can provide the following services and supports:

1. Project Development Support
This phase consists of-:
Assessment of the customer's needs and objectives;
Identifying potential sites for a solar farm, acquiring land and securing the rights to use the
site for the generation of solar electricity.
Securing permits to construct, connect, integrate and operate the plant.
In most instances, project developers will also be involved in arranging financing as well as
design and construction.

(2) Design & Engineering Support

Every site has its own specific characteristics including geographic location and solar
radiation level, site topography, local regulations and requirements for grid connectivity.
During the Design & Engineering phase, the optimal structure and choice of components will
bedetermined, based on all input factors. This will require support from specialized experts.

(3)Construction & Commissioning Support

The physical construction begins after the design phase and ends with the act of
commissioning when the facility is handed over to the operator, which is in most instances a
different organization. Construction companies will find opportunities in this phase.
Small Installations - Small installations for residential rooftop applications are
implemented by local installers and electricians directly. Module manufacturers and
distributors often maintain lists of certified installers nationwide. This is a very fragmented
Page 91 of 124

segment of the value chain with very few companies that operate at national level, let alone
globally.

Large Installations - Big projects undergo various stages of development even before
construction can begin. Generally, this is a high-margin segment with some companies that
are operating globally.

Operation & Maintenance

This stage begins after the construction phase. Operation & maintenance includes activities
such as facility monitoring, cleaning solar glass, breakdown management, repair work and
warranty management.

Training and Support

MNRE has estimated that in order to achieve the target of 20 GW by 2022, over 1, 00,000
skilled solar professionals will be required, comprising multiple skill sets. This presents a
significant opportunity for businesses that can impart skill sets at various levels such as
system design, project management, installation and maintenance.

Other Services in Solar PV Technology

Software: A number of software companies offer solutions specifically tailored to the

solar market. There are three main categories

Forecasting Tools: Mainly for planning purposes, simulation software applications

can assist both upstream and downstream players as well as end-customers.

Manufacturing Support: Enterprise tools like SAP offer PV-manufacturing

components to help manufacturers optimize their business processes.

Page 92 of 124

System Control: Software that helps measure and monitor the solar generating
system, the output of which can be used to optimize the facility. Photovoltaic system
monitoring is a combination of hardware (dataloggers) and software tools. Yield
analysis is usually also part/task of such monitoring system. Standard options are
local or remote monitoring (via web for example). In India, companies such as HCL
Technologies and Wipro Eco-energy have already developed embedded software for
solar power plant monitoring.

Page 93 of 124

Page 94 of 124

WTG Cost Scaling Model

Based on NREL s Wind Turbine Cost & Scaling Model by L. Fingersh, M. Hand, and A.
Laxson.

Basics Of Model
This model is intended to provide projections of the impact on cost from changes in economic
indicators such as the Gross Domestic Product (GDP) and Producer Price Index (PPI). The model
described has been built from work originally done by University of Sutherland under a United
Kingdom Department of Trade and Industry Study and work performed for the U.S. Department
of Energy (DOE) under its Wind Partnerships for Advanced Component Technology (Wind
PACT) projects. These models are intended to provide reliable cost projections for windgenerated electricity based on different scales (sizes) of turbines. They are not intended to predict
turbine pricing, which is a function of volatile market factors beyond the scope of this work.
The models in this study allow projections of both land-based and offshore technologies, though
offshore technologies are still in their infancy and forecasts are extremely rough. These models
also allow modeling of the cost impacts of certain advanced technologies that were studied under
the WindPACT and Low Wind Speed Technology (LWST) projects. Cost estimates are projected
based on turbine rating, rotor diameter, hub height, and other key turbine descriptors. Cost scaling
functions have been developed for major components and subsystems. With current industry
information , the models have been cross checked or improved based on this industry information

About Model

The Cost scaling model is a spreadsheet-based tool that uses simple scaling relationships to
project the cost of wind turbine components and subsystems for different sizes and configurations
of components. The model does not handle all potential wind turbine configurations, but rather
focuses on those configurations that are most common in the commercial industry at the time of
writing. This configuration focuses on the three-bladed, upwind, pitch-controlled, variable-speed
wind turbine and its variants. It is believed that this configuration will dominate wind energy for
some extended period, and the model can best be maintained using data for these designs as they
become available. The model is not intended to be a stagnant, final product, but rather a
constantly evolving tool that can be refined as new data become available. Formulas in the

Page 95 of 124

model, in its early versions, are quite simple. In most cases, cost and mass models are a direct
function of rotor diameter, machine rating, tower height, or some combination of these factors. In
cases where better definition is available, more sophisticated approaches are used or are under
development. These will be discussed in each component section below. The results of each
model are assumed to be in 2002 dollars. This has been done for purposes of consistency. Where
cost data was available from different years, it was converted to 2002 dollars before the cost and
scaling factors were developed. Cost data is based on a mature design and a 50 MW wind farm
installation, with mature component production

Cost Model Modification

Taking Prices of Steel, Producer Price index ,Labor cost index in to account , the Model is
escalated to 2010$ .
WTG Cost Model A Tool

To project the cost of wind turbine components and subsystems for different sizes and
configurations of components.

To Map Advantage of vertical integration by taking Suzlon various WTG models.

To find out individual Components market by 2017.

Result

Continuous Margin around 19-27 lakhs / MW ,which shows that Suzlon has taken benefit of
its vertical integration .

Margin S 88 (2.1 MW)

Period
2005-06
2006-07
2007-08
2008-09
2009-10

Margin (Lakhs /MW )

19.18
23.74
27.45
20.4
22

Page 96 of 124

Margin (in Lakh/MW)

30
25
20
15

Margin (in
Lakh/MW)

10
5
0
2005-06

2006-07

2007-08

2008-09

2009-10

Opportunities

WTG Tier-1 Components manufacturing Opportunites

Tier 2 Components Manufacturing Opportunities

Consolidated WTG Manufacturing opportunities

based on -:
(a) Technology
(b) Rating & Output
(c) Order Book Strength
(d) Price
(e) Local & International Vendor Support
(f) Past Performance

Page 97 of 124

in ( 2000-3000 MW Segment)

Manufacturing Opportunities

Manufacturers

Tower

Altec Fabricators
Aster
Barakath Engg. Industries Pvt.
Ltd
Bhilai Engineering Corporation
Ltd.
D N Wind System
Hitech Components & Pressings
Jayshri Enterprises
Lakshmi Engineering Works
Larsen & Toubro Ltd
R.M.H.Fabrications Pvt Ltd
Shah Infrastructure
Shrenik Industries
Shri Ganesh Wind Power
Engineering
Simplex Engg. & Foundry Works
Ltd
Srujana Fabricators & Engineers
Pvt. Ltd
Trichy Engineering Works
Autokast Ltd.
Lakshmi Machine Tools Ltd.
Southern Alloy Foundaries Ltd
Bharat Forge
Nu-Tech Industrial Spares &
Services (P) Ltd
Binny Ltd
Empee Engineering Pvt. Ltd.
Gosend Enterprises
Mechano Engg. Co.
Nu-Tech Industrial Spares &
Services (P) Ltd
Pyramid Fabricators &
Engineers
Sidharth Heavy Equipments Ltd
Page 98 of 124

Hub

Shaft

Nacelle
Frame

Manufacturers
Sonal Composites

Pitch Mechanism &

Bearing

Suvarna Fibrotech Pvt. Ltd.

Velumurugan Heavy Engg
Industries
Pvt. Ltd Services
Advanced Technikal
Arrkay Power Transmission
Bonfiglioli Transmission (Pvt) Ltd.
Bonfiglioli Transmission (Pvt) Ltd.
Brevini India Pvt. Ltd.
Devi Engineering Works
Larsen & Toubro Ltd
Nu-Tech Industrial Spares &
Services (P) Ltd
Power Drives Enterprises (I) Pvt.
Sastha Engineers & Consultants
Care Technocraft
Modular Drive System (Svendborg
Dealer)
Welbond Products
R.S.Windtech Engineers (P) Ltd
Rathi Turboflex (Dealer of Twiflex)
Sastha Engineers & Consultants
Sree Vasudeva Agencies (Sime
Dealer)
Stromag India Pvt. Ltd.(Sime
Brakes)
Sidharth Heavy Equipments Ltd

Page 99 of 124

Yaw Motor
Drive

Mechanical Brake

Sri Krishna & Co.

Victory Windfarm Services Pvt.
Ltd.

Manufacturers

Pitch
Mechanism &
Bearing

Advanced Technikal Services

Arrkay Power Transmission
Bonfiglioli Transmission (Pvt) Ltd.
Bonfiglioli Transmission (Pvt) Ltd.
Brevini India Pvt. Ltd.
Devi Engineering Works
Larsen & Toubro Ltd
Nu-Tech Industrial Spares &
Services (P) Ltd
Power Drives Enterprises (I) Pvt.
Sastha Engineers & Consultants
Care Technocraft
Modular Drive System (Svendborg
Dealer)
Welbond Products
R.S.Windtech Engineers (P) Ltd
Rathi Turboflex (Dealer of Twiflex)
Sastha Engineers & Consultants
Sree Vasudeva Agencies (Sime
Dealer)
Stromag India Pvt. Ltd.(Sime
Brakes)
Sidharth Heavy Equipments Ltd
Sri Krishna & Co.
Victory Windfarm Services Pvt. Ltd.
Page 100 of 124

Yaw Motor
Drive

Mechanical Brake

Target Manufacturer & Supplier For Indian Market

S.No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
23
24
25
26
27
28
29
30
31
32
33

WTG Manufacturer & Suppliers

Acciona
Alstom Power
Avantis
Clipper
Doosan
e.n.o. energy
Eviag
Fuhrlander
GE Wind
Goldwind
Guangdong Mingyang
Guodian
Hyundai
IMPSA
Lagerway
Leitwind
Mitsubishi
Nordex
Northern Power Systems
PowerWind
Repower
Samsung
Sany
Schuler Pressen
Shandong Swiss Electric
Sinovel
Statoil
Vensys
Windey
Windflow
Windtec
Wintech

Page 101 of 124

Repowering Opportunities

Repowering
Repowering is the process of replacing older, smaller wind turbines with modern and more
powerful machines, which would reap considerably more power from the same site. In India,
about 46% of the WTGs were rated below 500 kW in 2010, adding up to 2,331.3 MW (about
18% of cumulative installed capacity).

Many of the states facing power shortages are also host to sites with good wind power
potential which is not being used efficiently and is currently saddled with old and inefficient
wind turbines. Repowering with more powerful turbines would bring considerable benefits to
these states.
Large areas are occupied by more than 8,500 small rating turbines (<500 kW capacity),
manufactured by suppliers that have long since disappeared from the Indian market (as of
March 2009). This leads to lapses in operations & maintenance (O&M), which in turn
increases a machines down time and reduces revenue. In addition, maintenance costs tendto
be higher for aging WTGs.
Breakdown of critical components badly affects machine availability and O&M cost for
smaller capacity machines .The effective capacity utilization factor of small (<500
kW)machines in Tamil Nadu is estimated at less than 15%
.
Old wind turbines were often installed at maximum hub-heights of 30 to 40 meters and
occupy land on good resource sites. However, these sites could benefit from modern turbines
extracting energy from the much higher wind power density at high hub heights.

Page 102 of 124

Small Wind Turbine in India

Good windy locations are occupied buy large number (>8500) of old small capacity(<500
kW) wind turbines.

Drawbacks of Small Old Wind Turbine

Low PLF (4 - 15 % ).

O&M cost is very high.

Breakdown of critical components & non-availability of outdated components badly

affects the machine availability.

Distribution of wind turbine installed

capacity in India

44.47%

23.30%
32.23%

<500 kW
500-1000 kW
>1000 kW

Page 103 of 124

Repowering Potential in India

Before 2002
S.No.

State

No.

Of

WTG(<

After 2002
Total capacity

500

No.
WTG(<

kW)

Of

Total capacity

500

kW)

Tamilnadu

3069

809.765

2488

740.03

Maharashtra

788

247.805

163

47.155

Gujarat

800

175.09

119

30.57

Andhra Pradesh

337

86.74

1.35

Karnataka

121

28.85

123

36.16

Madhya Pradesh

103

22.59

1.25

Rajasthan

14

4.1

149

46.375

Orissa

21

1.19

Kerala

11

2.35

10

West Bengal

1.75

11

Goa

0.11

5273

1380.34

3053

902.89

Total

A special drive for repowering of old wind farms undertaken by the central government
would encourage the industry to take this up on a larger scale. This could be done by way of
creating suitable mechanisms and offering support along with financial incentives, to make
new repowering projects viable. Currently, neither the states nor the central government
provides dedicated policy support or incentives to encourage Indian wind power developers
or investors to repower their old projects. However, there are some challenges to be
addressed before a comprehensive repowering attempt in India. Some of the key challenges
are listed below-:

Page 104 of 124

Turbine ownership: Repowering will reduce the number of turbines and there may
not be one-to-one replacement. Thus, the issue of ownership needs to be handled
carefully.

Land ownership: Multiple owners of wind farm land may create complications for
repowering projects.

Power Purchase Agreement: PPAs were signed with the state utility for 10, 13 or 20
years and the respective electricity board may not be interested in discontinuing or
revising the PPA before its stipulated time.

Electricity evacuation facilities: The current grid facilities are designed to support
present generation capacities and may require augmentation and upgrading.

Additional costs: The additional decommissioning costs for old turbines (such as
transport charges) need to be assessed.

Disposal of old turbines: There are various options such as scrapping, buyback by
the government or manufacturer, or export. Local capacity may need to be developed.

Incentives: One of the primary barriers to repowering is the general lack of economic
incentive to replace the older WTGs. In order to compensate for the additional cost of
repowering, appropriate incentives are necessary.

Policy package: A new policy package should be developed which would cover
additional project cost and add-on tariff by the State Electricity Regulatory
Commissions (SERCs) and include a repowering incentive (on the lines of therecently
introduced generation-based incentive scheme by MNRE)

Page 105 of 124

Support Services & other Opportunities

Geotechnical Services
Opportunities

Opportunities exist for Indian construction and civil

engineering companies to be sub-contractors for
specific services

Feasibility Study & Project

Management Opportunity

Opportunities are available for other businesses to

be sub-contractors to such companies for Various
services.

Construction Opportunity

A number of construction companies in India have

contributed to and benefitted from the wind energy
sector growth..

Logistics Opportunity

Scarcity of special Multi-axle Trailers to transport

Towers, Blades & large heavy sub-assemblies of
Turbines & Very Few Service providers for supply
of special trailors

Operation & Maintenance

Companies in India can focused on offering only

repair and maintenance services to existing wind
farms, as there is a potential to add significant
value

Trading Opportunity

Other Opportunity

A market for micro-wind turbines emerge in future,

opportunities could arise for traders and small
system integrators,
Power Trading
Leasing Land , Training ,R & D ,Software ,
Financial, Legal,Insurance, Consultancy etc

Page 106 of 124

Comapanies/Contractors

WTG
ERECTION

Continental Transport Organisation Pvt. Ltd.

Divine Wind Technik
India Wind Power Ltd.

Kintech Synergy (P) Ltd

Mesuka Engineering Company P. Ltd.
Rameez Engineering Construction Corporation

Royal Engineering Works

RPP Windtech Services

R.S.Windtech Engineers (P) Ltd.

SANA Engineering Company
Sastha Engineers & Consultants
Sri Ganesh Wind Power Engineers Pvt. Ltd.

Victory Windfarm Services Pvt. Ltd.

Vitaa Zeus Energy Pvt. Ltd.
Weltech Engineers
Windcare India Pvt. Ltd.
Weltech Engineers
Windengineering India

A.G. Immanuel Construction

Page 107 of 124

O&M

Construction
Services

Bardai Pvt.Ltd
Dear Constructions (Engineers & Contractors)

D. H. Pawar
Kamla Electricals & Engineering Co.
Krishna Pillai & Co.
Lars Enviro Pvt. Ltd
Narmada Infrastructure (P) Ltd.
N.D. Shetty
Nashtel Optronics
Petron Civil Engg. Ltd.
PGP Engineers & Consultants
Ponkumari Wind Farm
S.Ponnaiyan Associates
Ramawat Construction Company
SANA Engineering Company
Sharvari Construction
Sri Satya Sai Constructions
T.R.Trehan Constructions Pvt. Ltd.
Windfab
Yeses Infrastructure Pvt. Ltd
Mesuka Engineering Company P. Ltd.

R.S.Windtech Engineers (P) Ltd.

Batliboi enXco Pvt. Ltd.

Divine Wind Technik
ENERGY TOWER

Page 108 of 124

Golden Non Conventional Energy Systems

Pvt.Ltd. (Splst of Bonus WEGs)
Greenweiz Projects Ltd
Henel Engineers Pvt. Ltd
Hitech Wind Solutions
India WindPower Ltd.
Kalani Industries Limited
Kasturba Nagar, Bhopal-462023

M.P.Windfarms Limited

Powerzen Technologies

R.S.Windtech Engineers (P) Ltd.

Rajee Wind Energy Services
Renewable Energy System Group
Simms Wind Power Services
Star Energy Systems
Subhash Projects & Marketing Ltd.
Suzlon Windfarm Services Pvt. Ltd
Utility Powertech Ltd.
Vasanth Energy Consultants
WINCO (Wind Mill Division)

Page 109 of 124

14. Business Opportunities in Solar Power

Page 110 of 124

14.1 Manufacturing Opportunities

SWOT

Strength

Poly-Silicon

Weakness

Opportuni
ties

Threats

Low Labor
Cost
Government
policies &
incentives

Wafer

Cell

Low Labor
Cost
Governme
nt policies
&
incentives

Low Labor
Cost
Government
policies &
incentives
Experience
in Cell
Manufacturi
ng

Lack of R &
D
Dependabilit
y on Foreign
Technology

Others
(Glass/ Chemical,
Electrical
Components)

Low Labor
Cost
Low Capital
cost
Government
Policies &
incentives
Experience in
Module
Manufacturing

Lack of R & D
Dependability
on Foreign
Technology

High interest
rate
Unavailabilit
y of man
power skills
High capital
cost
Less
experience

Huge Global
Demand(721
MT& by
2015)
Huge
Domestic
Requirement

Huge
domestic
market
demand
(490 MT&
3130 MT
by 2013&
2022
resp)

Huge domestic market

demand
(6400 MW & 40900
MW by 2013 & 2022
resp.)

Huge domestic market

demand (6400 MW &
40900 MW by 2013 &
2022 resp.)

Competition
from Chinese
players
Fluctuation
in Poly
Silicon
Market
(Prices)

Competiti
on from
Global
players
Fluctuatio
n in Poly
Silicon
Market
(Prices)

Competition from
Global players

Competition from Global

players

Dependab
ility on
Foreign
Technolog
y
High
interest
rate
Less
Experienc
e

Module

Page 111 of 124

Low Labor
Cost
Governmen
t policies &
incentives
Experience
in
Manufactur
ing

Dependabil
ity on
Foreign
Technology
Lack of
awareness

Huge
Global &
Domestic
Demand

Competition from
Global players

Core Solar Products & Raw Materials

Polysilicon

Wafer /Ingot

Solar Cell

Solar PV Module

14.2 Poly-Silicon & Wafer- Ingot Manufacturing Opportunities

Poly Silicon Market
Prices

MARKET PRICE OF PV COMPONENTS/RAW

MATERIALS

31/03/2009 28/04/10 30/04/10 30/06/10 Current

POLY SILICON $/Kg

97.2

54.75

54.5

55.6

Wafer (Poly) $/kg

4.3

3.25

3.5

3.45

Wafer (Mono) $/kg

4.8

3.5

3.75

3.7

Cell ($/w)

1.63

1.24

1.35

1.33

1.25

Module $/w

2.27

1.85

1.78

1.73

1.75

Page 112 of 124

43

Global Poly- Silicon Market Scenario

350000
300000
250000
200000

Demand

150000

Supply

100000
50000
0
2009

2010

2011

Global Poly-Silicon Demand

2010

Year
Global Market of Solar PV(MW)
Global Requirement of Poly Silicon (MT)

40000
220

2015
(REF)

2015
(MOD)

131240
721.82

195950
1077.725

2013
6400
35.2

2017
16400
90.2

Domestic Poly-Silicon Demand

Year
Domestic Market of Solar PV(MW)
Domestic Requirement of Poly Silicon (MT)

Page 113 of 124

Current
(2011)
116
0.638

2022
40900
224.95

Wafer / Ingot Manufacturing Opportunities

Wafer Market Prices

31/03/2009
Wafer (Poly) $/kg
Wafer (Mono) $/kg

28/04/10 30/04/10

30/06/10 Current

4.3

3.25

3.5

3.45

4.8

3.5

3.75

3.7

Wafer Ingots Market Scenario

70,000
60,000
50,000
40,000
Supply
30,000

Demand

20,000
10,000
2008

2009

2010

Page 114 of 124

2011E

Global Wafer Ingot Market Demand

Global Market of
Wafers
Requirement of Poly Silicon Gms per
wp

76.53

Year

2010

2015
(REF)

2015
(MOD)

Global Market of Solar PV(MW)

40000

131240

195950

Global Requirement of Wafer (MT)

3061.2

10043.797

14996.0535

14.3 Solar Cell Manufacturing Opportunities

Solar Cell Market

50,000
45,000
40,000
35,000
30,000
25,000

Supply

20,000

Demand

15,000
10,000
5,000
1

Page 115 of 124

Solar Cell Market

Prices
31/03/2009
Cell ($/w)

1.63

28/04/10

30/04/10

1.24

1.35

30/06/10 Current
1.33

Global Market of Cells

Year
Global Market of Solar Cell (MW)
Global Requirement of Wafer (MT)

2010
40000
0

2015
(REF)
131240
0

2015
(MOD)
195950
0

Domestic Market Of Solar Cells

Year
Domestic Market of Solar Cell(MW)

Current
(2011)
116

Page 116 of 124

2013
6400

2017
16400

2022
40900

1.25

14.4 Solar Module Manufacturing Opportunites

Solar Module Market

40000
35000
30000
25000
20000

Supply

15000

Demand

10000
5000
0
2009

2010

2011E

Thin Film Module Prices

2
1.5
1
CdS/CdTe

0.5

a-Si/Mew-Si

a-Si
CdS/CdTe

Page 117 of 124

MARKET SHARE %
Technology

2010

2015E

2020E

Crystalline Silicon

79

66.31

61.11

Thin Film

21

33.69

38.89

GLOBAL MARKET OF SOLAR MODULE

Year
Market of Solar PVModule (MW)
Market of C-Si Module (MW)
Market of Thin Film Module
(MW)

2010
40000
31600

2015 (REF)
131240
87025.244

2015 (MOD)
195950
119745.045

8400

44214.756

76204.955

Domestic Market Of Solar Power

Year

2013

2017

2022

Domestic Market of Solar

PV(MW)
By JNNSM
By State (Own Target)

6400
1100
5100

16400
4000
11400

40900
22000
18900

Page 118 of 124

15.

Support Services & other Opportunities

Financing Opportunity

EPC Services

Training & Support

Opportunity
Software Service
Opportunity

Trading Opportunity

Tailor-made financing is required

Support from the relevant finance experts will be
required.
.Project Development Opportunity
Design & Engineering Opportunity
Construction & Commissioning Opportunity
Operation & Maintenance Opportunity
Significant opportunity to impart skill sets at
various levels such as system design, project
management, installation and maintenance
Forecasting Tool
System Support
Manufacturing Support

Trading of solar products such as solar panels

,balance of systems solar lanterns ,and other solar
based lighting products for the mass market.

Page 119 of 124

CASE STUDYCAPITAL COST OF CRYSTALLINE SOLAR MODULE MANUFACTURING UNIT

Company

Project Capacity (20

mw)

Capital Cost

Capital Cost INR per

MW

TATA BP

20

200111233.6

10005561.68

XL TECHNO

24

210407933.7

8766997.24

CENTROTHERM

60

450000000

7500000.00

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Non-core Solar Products

In addition to the core business opportunities in manufacturing available along the solar PV
value chain, there are non-core opportunities for entrepreneurs and investors in this industry.
List of the prominent non-core manufacturing opportunities below

Solar Glasses

For crystalline cells, solar glass is used for protection and performance enhancement. In the
case of thin films, glass is used as a substrate. Worldwide, in 2010, 179 million tons of glass
was produced. Of this, 70 million tons were flat glass, which is used in solar modules and
reflectors. The flat glass market is worth 29 billion annually but, only four companies
namely NSG Group, AGC, Saint-Gobain and Guardian Industries produce around 60% of the
world's high quality float glass.
Few companies in India currently make glasses for solar cells, and Saint Gobain is one of
them; the Indian arm of the French glass giant is making serious efforts at extending its glass
products to cater to the demand of solar panels sector. Recently, Gujarat Borosil launched
solar gradeglasses in Dec 2010.

Electrical Components: Inverters, Wires and Transformers

The manufacturing of inverters, charge controllers, wires and transformers is largely a

commodities business. In the case of inverters, efficiencies of these devices are already
relatively high, offering only limited room for technical differentiation. There are exceptions
- for instance, Steca Solar of Germany provides a solution to the problem of partial shading
when solar modules become as inefficient as under full shading. The global leaders in
inverters are SMA Solar Technologies, Kaco and Fronius. In India, the transformer and wires
are sourced locally. Inverter manufacturers like Su-kam, Luminous and Numeric are yet to

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fully start producing inverters for grid connected power plants; hence, as of Feb 2011, the
inverters for MW scale solar PV power plants are mostly being imported.

Manufacturing Chemicals for Solar Industry

The manufacturing of photovoltaic modules, thermal receivers and reflectors requires a

number of chemicals and materials such as coatings, laminates, photovoltaic materials and
solar glass.. Production of many of chemicals also offers opportunities to Indian companies
already in the chemicals industry.

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Target Segment & Role of PWC

Facilitating &
Consulting 1 st Tier &
2nd Tier
Manufacturers

Bringing the Service

providers into the
market
Making them aware
of business

Facilitating Merger &

Acquisition for Big
giants.

Manufacturing

Service &
Support

Others

Trading
Developing
business models
for retail & Whole
sale Marker
Consultation for
Power Trading

Developing
business models for
Other business like
training ,Software
services,Financial &
Legal Services ets

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CONCLUSION

The following are the key inferences:

Solar PV& Wind power production represents the most prominent opportunity segment.
But while the grid connected power production is in the limelight most times, attractive
opportunities are emerging for entrepreneurs in the off-grid segment as well
Some emerging business models in solar power production & Wind Power Production
could considerably reduce the risk of adoption and be a win-win for all parties involved.
Significant opportunities exist beyond power production, in which companies in all sectors
manufacturing, trading and services could play a role.
Opportunities along the solar PV & Wind value chain exist for all sizes of businesses
small, medium and large.
Specific industries that could benefit from these diverse opportunities include electrical,
chemical, software, construction/EPC service providers with equipment installation and
maintenance capabilities, and engineering and design firms.

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