Article No. 15. Mehta

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1 R AIMA Journal of Management & Research, May 2015, Volume 9 Issue 2/4, ISSN Article No. 15 RESEARCH ON PROGRESSIVE OUTLOOK OF WIND W ENERGY - GLOBALL LEVEL Manohar Lal Khirbat Ph.D Scholar,Sharda University Dr.Vinod Kumar Mehta Ex Director, Planning Commission Abstract: Wind power advantages have been indicated like sustainable source of energy, clean and free of pollution. The objective of the study is to bring out that wind power is progressivee and being harnessed due to its climate advantage and free fuel. The review covers World stage which projects progressive electricity generation figures. Another important aspect is of subsidies /incentives which have been given by various countries in order to give boost to wind energy. The role of Research and Development activity in harnessing wind power and to reduce cost has been stressed. Keeping in sight the economic growth and the objective of electricity to every house, wind energy is likely to play a bigger role in years to come. The public private partnershipp (PPP) model is gaining importance in wind due channel finances and efficiency angle from the private sector. to its potential to Key Words: Sustainable energy, wind partnership(ppp) power, electricity generation growth, Public private 1 Introduction Renewable Energy and especially the wind energy is of the utmost importance in the present contextt of increasing concernn about sustainable energy available, protection of the climate, control of global warming and free of Green house gases to attain the norms fixed by World climate change body. The issue has gained further weight in view of various developments taking place, economic and population growth. The wind energy shall stand in good stead to cope up with depleting resources of fossil fuel and also the increasing cost of imported coal as being faced in our country. Global Wind Power installed capacity is set to rise from approx GW in 2014 to GW in year 2020 thus increasing the demand for wind turbines, GWEC (2014).This shall entail a huge investment of the orderr of Dollars 101 billion by the end of 2020.Leading countries will be USA, China, Germany, Spain and India shall remain the topmost producers of wind power. These countries are the largest consumers of fossil fuel energy and the green house gasses (GHGs) emissions. Wind Energy has now firmly established as mainstream option for electrical power generation. Wind power is the least cost option and price likely to come down due to improvement in technology and better project management. Commercially wind power is now adopted by more than 90 countries whichh provided about 3 % of electricity globally in year Copy

2 There is really an amazing success story having progressive addition of generation in various countries.to quote China has bounced back with 25 % growth in 2013 and similarly in India also a high challenging target of Renewable Energy (R.E) has been fixed in the present five year plan. In other countries the most exciting areas of growth are in Brazil, Mexico, South Africa, UK and Canada. Brazil alone is set to harness about 4000 MW and Mexico has fixed a target of 2000 MW /year for next 10 years. 2.0 Wind Energy Scenario 2.1 USA 1. Govt. Subsidies supported the strong growth in wind energy(w.e.) more than the coal and nuclear 2. Tax incentive viz: Production Tax Credit (PTC) was implemented since 1994 and predicted that this would be applicable for long time. If PTC is removed then growth of Wind Energy will be hampered. 3. Another important ruling is to follow Renewable Portfolio Standard(RPS) /Renewable Use obligation to an appreciable percentage 4. In 2010, RPS goal of 20% for installed capacity of W.E. in California, utilities have to purchase Renewable Energy Certificates (REC) from out of the State R.E. producers in order to meet the goal. It is seen that Wind Energy has been growing steadily with added advantage of reduced green house gases (GHGs).The main thrust is on strong legal and policy frame work and the proper incentives like PTC and target of RPS to achieve. 2.2 China 1. In the beginning the transmission lines capacity was limited. With the advent of more wind power into system, the transmission capacity was enhanced. 2. Incentives highly encouraging 3. VAT credits were given 4. After Renewable Energy Law came into being ( 2006) many tax incentives were made available to both producers and manufacturers of wind turbines. 5. Like USA here also supply companies have to produce specified fraction of their electricity from wind energy. Certified R.E. Producers earn certificates for every unit of electricity they produce and can sell these to supply companies along with electricity. For RPS to progress, it is imperative to have adequate transmission lines capacity to cope up with renewable generation. 6. Ruling existed that producers should acquire 70% of the equipment from domestic manufacturers. 7. As regards funding and financing incentives, China is making good effort in funding the Wind projects and R&D activities as well 8. To encourage future development of wind energy, consistent and long term policies and incentives programme are being encouraged.even though obstacles are being faced but China is geared up to overcome this, Li. Junfeng (2012)

3 The wind energy has progressed greatly even though started late compared to other countries achieved a figure of MW in year 2009 and at present targeting approx.1,00,000 MW.This is mainly due to consistent and long term Govt. Policy, encouraging incentives and promulgation of sound Wind Energy Law. Proper tax incentives are given to producers, manufacturers, VAT credits and boost to indigenous production of Wind Turbines components. China is already in the field of making sets of 5MW and 6MW capacity and now has started R&D on 10 MW sets. Development Trends in China In year 2010, the Govt. established number of R&D centres and key laboratories for wind power industry to carry out fundamental research, promoted technology as supported by Chinese scientific research institutions and leading industry enterprises, Peidong Zhang,Yonghong Zheng (2009). Such type of set up is lacking in India and needs to be established on priority to catch up with the other countries. Similar to our National Institute of Wind Energy (NIWE) earlier C-WET, the China certification centre is a scientific and technical service agency specialized in inspection and certification of R.E. products. 2.3 Denmark Denmark was a pioneer in developing commercial wind power during the 1970s and today substantial share of wind turbines around the World are produced by Danish manufacturers like VESTAS and Siemens Wind Power along with many component suppliers. Wind power produced the equivalent of 33% of Denmark s electricity consumption in 2013 and 39% in 2014 and further planning to go to 50% by 2020.Denmark has the highest proportion of wind power in the World with 39% of total power consumption. It may be noted that many countries failed to continue with subsidies, Denmark is an exception providing 30% of initial capital cost in the early years which gradually reduced to zero but still maintaining a Feed in Tariff (FIT), a booster to Producers. FIT is an incentive to developers through fixing a set tariff for long period say years to ensure competition of power generation. It is commendable that wind energy is contributing 39% of the installed capacity and may even touch 50% by 2020.There is continuity in subsidies (no break in between) maintaining Feed in Tariff( FIT) to give boost to developers. The biggest achievement in tapping wind power is co-operative movement by families/residents and incentive to come forward and invest in wind power for their own consumption of electricity on co-operative basis.the movement has worked very well without depending on the Govt. which is an example in itself. 2.4 Spain

4 The wind sector hosts the involvement of 500 companies with nearly 150 Wind Turbines production plants and their machinery across Spanish region and supported number of jobs. Sets have been exported to China, India, Mexico, Turkey, Tunesia, Argentina and Brazil. Three factors mainly responsible for wind development are:- 1. The capability of wind farms network to hold and harness power 2. The cost of energy 3. Environmental effects Spain is the fourth biggest producer of wind energy with installed capacity of MW and share of approx of 13.8% in 2009 and approx 18% of total consumption in year Govt. policy is progressive and supportive to generate severe competition between various companies involved. 2.5 Brazil In Brazil Wind energy and Hydro power work together (Hybrid) in the power system, an ideal for wind power development. It has installed capacity of 1509 MW even though started very late. The target was 5000 MW by August 2014 and shall attain approx.8000 MW by 2016.Wind market is very promising due to better wind resources available there. 2.6 Germany Wind energy contribution is 8.4 % of the total consumption adding 5200 MW capacity in Coal added 3300MW and gas 2300 in 2014, which indicates the renewable energy is catching up fast. More than Wind Turbines are presently working in Germany. The major challenge is of transmission lines not matching the wind power production.the stress is now being given to off shore wind energy as well. Some of the policy matters are:- 1. Grid operators to pay for renewable energy feed into their power network 2. Stipulation of Feed in Tariff for a period of years for a fixed price 3. To abide by CO2 emission law. 2.7 Installed capacity The installed capacity figures of these countries are given in table below. % of MW installed total installed USA Germany Spain Denmark Portug China India

5 3.0 Public Private Partnership(PPP) Limitations of Govt resources and capacity to meet the infrastructure gap led to the present focus on PPP mode of projects. Apart from investment flows, PPPs also deliver efficiency, latest technology, better management, timely completion of projects and have risk taking capability. Private developers ensure maximum /optimum use of finances & proper use of man, money and power, R.N.Joshi (Vision Publication) To quote an example of PPP in wind power which is prevalent in Portugal where the Govt. plays regulatory role and does framework of some policies and legal aspects. Various issues have been highlighted in the PPP model like project risk sharing and their mitigation, Ana Cravinho,Carlos Oliveira Cruz,Rui Cunha Marques (June 2011). Also thrust need to be given to Feed in Tariff (FIT) mode and also the need of no. of channels needing various clearances to cut short project execution period. In India also, most of the wind projects have been/ are being executed by PPP/Independent power producer. 4.0 Research & Development Angle India has projected to quadruple its renewable power to 175 GW by 2022 from present capacity of 34 GW as part of the Govt. target to supply electricity to every house hold. In this Solar shall be 100 GW, 60 GW of wind, 10 GW of biomass and 5 GW of hydro projects. To achieve this it is being assured by the Govt. that there shall be no break in tax incentives prevalent now. Further continuous innovation and development of new and advanced technology is a must for harnessing wind power. The main research areas are:- - Wind characteristics - Wind power technologies - Grid integration/transmission lines - Social acceptance, environmental impacts and educational issues The major R & D activities in the wind energy sector are undertaken in Europe and USA. Within Europe, R & D takes place both at the EU level and in individual countries. There is also significant international cooperation in wind energy R & D. Through International Energy Agency (IEA), some R & D is also carried out by industry. Also R & D is done as part of national education and research consortium like the Danish Academy of Wind Energy.According to IEA, USA expenditure for wind energy research was approx. US Dollars 50 million in year 2007 and EU s approx.2-3 times. 5.0 MNRE s R & D Approach:- Ministry of New and Renewable Energy (MNRE)-India is the nodal agency responsible for developing policy framework and driving development of India s shift towards alternative sources of energy.

6 A Research and Development Project Appraisal Committee works to give guidelines and direction to R & D efforts. Salient points of MNRE s approach on R & D are:- - R & D for technology development be industry driven and target oriented - Access the technological development elsewhere thus avoiding re-inventing the wheel - Indigenization of R & D for new, emerging technologies and improvement of available technologies. 6.0 Conclusion There is tremendous growth of wind energy globally touching approx. 611 Gigawatts (GW) by 2020 and approx.964 GW by 2030, GWEC( 2014). These figures would be possible if proper climate regime and political atmosphere is in place. The wind energy cost in equivalent INR may also come down to INR 5.0 Cr/MW installed by (2020) from INR Cr/MW installed in (2013).Global Wind Energy is also increasing by approx. 16% over installed capacity of To keep up this tempo in wind energy, political and social support is must and in this connection World Wind Energy Association (WWEA) will intensify its advising policy about its benefits.there is an urgent need to follow WWEA s guidelines for harnessing the new upcoming markets. In the time to come wind will be a dominating factor of power and no efforts shall be less to tap wind potential in India (potential 1,02,772 MW) by following sound policy framework and similar steps taken by countries World over.india s present installed capacity is MW. Our Govt. Target is to add 10,000 MW per year of wind power which is too ambitious a target to achieve. The focus lies on states like Gujarat, Maharashtra, Karnataka, Andhra Pradesh, Rajasthan, Tamil Nadu and Madhya Pradesh where wind resource is plenty. Summing up wind power is an undisputed pillar/lighthouse of electricity in most parts of the globe keeping in view the future shortage of fossil fuel and the ruling for elimination of GHGs by World body. We have to follow the steps adopted by other countries to achieve targets of power generation in 12 th plan and beyond. References 1. Ackermann.T, Soder. L (2000),wind energy technology and current status: A review, Renewable and sustainable energy review, 4: Xinlin. Li, Development of wind energy in the US and China: A comparative study 3. Peidong Zhang, Yaliyang, Jin Shi, Yonghong Zheng, Xinrg Ng Li,(2009) Opportunities for Renewable Energy policy in China, renewable and sustainable energy review, 13, pp David Appleynd, Wind energy outlook Feb GWEC 2014, Global Wind Energy Outlook 6. Mansfred Stiebler, Wind energy system for electric power generation, Springer publication 7. Ana Cravinho Martins, Carlos Oliveira Cruz, PPP for wind power Generation- Portuguese case, (2012)

7 8. R.N.Joshi, Public Private Partnership in Infrastructure, Vision Publication 9. Pramod Deo, Shrikant Modak, Electricity Reforms & Green Power Development- Regulatory and Tariff Issues, WISE Publication 10. G.M.Pillai, Wind Power Development in India, WISE Publication 11. Wind Power Today and Tomorrow Energy Efficiency and Renewable Energy, US Department of Energy 12.Kristina.Ek, Public and Private attitudes towards green electricity: the case of Swedish wind power,(2005), Energy Policy 33, Xi Lu, Michael B,Juha Kiviluoma, Global Potential for Wind Generated Electicity15 th Regulators and Policymakers Retreat, Power Watch India.July 2014