Transcript Suzlon Energy Investor Presentation

POWER SUMMIT-08
Kathmandu Nepal - Sept. 23 -24, 2008
Harnessing Wind Power in Nepal
Presentation by
Manoj Gupta
Suzlon Energy Limited
Powering a Brighter & Greener Tomorrow
Contents
•
Company overview
•
Global Warming
•
Wind: a promising renewable energy source
•
Harnessing Wind Energy in Nepal
 Wind Resource Assessment
 Govt. Policy & Support
 Infrastructure Development
Pioneering end-to-end wind
power solutions
• Allows customers to benefit
Wind resource mapping
from cost-efficiencies and
Reliance
Energy
economies of scale in wind
farms
Site Identification
Tata
Power
• Avoids need for customers to
undertake cumbersome wind
DLF
farm development process
Land acquisition*
• Provides greater control over
execution timeline
WTG and Component
manufacturing
MSPL
stages
• Leverages Suzlon’s deep
experience across Wind
Operations & Maintenance
services
PTC India
• Control on value chain from
planning to maintenance
Site-development, infrastructure
set-up & WTG installation
Bajaj Auto
energy value chain
* Land acquisition business is mostly operated through associate concerns, not part of Suzlon value chain
ONGC
British
Petroleum
Leverage
capabilities
in
International
markets
Right product for each
market
India
China
USA/ Australia/ Brazil
Europe
350 kW – 1.25 MW
1.25 – 1.5 MW
1.5 - 2.5 MW
Offshore
2.5 – 3.0 MW
3.0 – 5.0 MW
Suzlon
REpower *
Products spanning all capacities - sub-MW to Multi-MW turbines
Products spanning technologies - variable, semi-variable and fixed speeds
✚
*
Product variants spanning climatic conditions and grid requirements
Ability to supply large volumes across various geographies
* Suzlon Group controls or influences, either directly or through voting pool agreements, approximately 89% of the votes in REpower
Robust Sales
Increasing Global Mix
Sales volume in MW
2,311 MW
976
GLOBAL SALES > 6000 MW
1,456 MW
INDIA >3900 MW
964 MW
955
1336
508 MW
883
508
501
81
FY05
1 USD = INR 42.54
@ Does not inlcude REpower and Hansen
FY06
International
FY07
Domestic
FY08
Contents
•
Company overview
•
Global Warming
Global Warming
Threat to World
GLOBAL WARMING
is the increase of the Earth’s average
surface temperature due to a build-up of
greenhouse gases in the atmosphere.
Effects of Global Warming
Rising Sea Level
Habitat Damage and
Species Affected
Increased Temperature
Changes in Water Supply
Global Warming Mitigation
with Renewable Energy
Sources of Renewable Energy
• Wind Power
• Small Hydropower
• Solar
• Biomass
• Geothermal
Wind: a promising
renewable energy source
Come forward to adapt and mitigate the Climate
Change with Wind Power
WIND Energy.wmv
Wind: a promising
renewable energy source
Wind: Cost competitive with conventional power
Critical Success Parameters
6.5
(US cents/ kWh)
Potential to power the future
5.5
Cost Competitiveness
4.5
Wind Energy Status
✔
(3-6 cents/kWh)
3.5
✔
2.5
Nuclear
CCGT
Coal Steam
IGCC
Wind
Established Base
Source: IEA WEO 2006 / BTM Consult ApS WMU 2006
Fastest growing renewable energy source*
50%
60%
70%
80%
90%
✔
100%
Resource Availability
1990
2004
125
227
Biomass & Waste
Source: IEA WEO 2006
4
36
82
Wind
1
56
Geothermal
* Generation in TWh
(19.8 GW capacity addition in
2007)
(72000 GW potential estimated
globally at 80m hub height)
4
Solar
Source: BTM Consult ApS WMU 2007 and Journal of Geophysical Research,
2005 : Stanford University
Compelling industry growth
dynamics
Concern
Demand
Catalysts
Aggressive global targets
Climate Change
and
Global Warming
Energy Security
Increased
Electricity
Demand
Cost
competitiveness
and hedging
Zero carbon
solution
Local
availability
Abundant
resource
Zero fuel cost
Source : American Wind Energy Association
BTM Consult ApS World Market Update 2006
•
Kyoto Protocol: CO2 emissions to reduce by 5.2% of 1990s levels by 2012
•
EU declaration: 20% from RE by 2020
•
US: 21 States with 10% to 20% RPS mandates
•
China targets 100,000 MW from RE by 2020
•
India: 10 States with 2% to 10% RPO mandates
•
Hedge against geopolitical risks - local and secured supply
•
No risk of fuel price volatility
•
Socially, ecologically and economically sustainable growth
•
Energy - key to economic growth in developing countries (India, China etc.
require all sources quickly to bridge gap)
•
Wind’s global electricity generation contribution expected to increase from
0.82% in 2006 to 3.4% in 2030
•
Improvement in yields (cost/ kWh)
•
Cost / kWh of generation: US$ 0.03 - 0.06
•
Wind Energy directly competing with conventional power
•
Frozen lifecycle power cost for utilities
Strong historical growth
•
Installations in 2007 : 19,791 MW (32% YoY growth)
•
Cumulative installations: 94,005 MW in Dec ‘07
2007 Capacity Addition (in MW)
Average Growth *
Cumulative installed capacity in MW
94,005
USA
5,244
35.7%
74,306
China
3,287
97.0%
59,399
Spain
3,100
40,301
Germany
1,667
10.2%
India
1,617
37.8%
Source : BTM Consult ApS World Market Update 2007
* Average growth over 2004 2007
47,912
21.2%
CY03
CY04
CY05
CY06
CY07
Contents
•
Company overview
•
Global Warming
•
Wind: a promising renewable energy source
•
Harnessing Wind Energy in Nepal
 Wind Resource Assessment
 Govt. Policy & Support
 Infrastructure Development
Harnessing Wind Energy
in Nepal
Basic Requirements
Wind Resource Assessment
Govt. Policy & Support
Infrastructure Development
Harnessing Wind Energy
in Nepal
Wind Resource Assessment
Exploring the Potential Wind Sites
Wind data Collection & Analysis
Wind Mapping of potential areas
Micrositing & Feasibility Study
Harnessing Wind Energy
in Nepal
Govt. Policy & Support Required
National Renewable/wind energy policy providing suitable
measures for connectivity with the grid and sale of
electricity like Hydro Power Policy
Purchase Obligation on Power distribution companies from
renewable sources as percentage of total distribution
Purchase obligation on Captive (from conventional sources)
power producers as percentage of total generation
Open access policy including nominal rates for Wheeling &
Banking of wind energy to push captive market model &
third party sale model
Harnessing Wind Energy
in Nepal
Govt. Policy & Support Required
Fiscal Incentives
Wind power PLF being lower needs special attention from
Govt. i.e. following fiscal incentives:
Introduction of Preferential Tariff for Purchase of Power from
wind power producers
Accelerated depreciation (i.e.80-100% in 1st year of
commissioning of project)
Generation Based Incentives
Import duty & tax relaxation for wind power equipments
Interest Subsidy
Harnessing Wind Energy
in Nepal
Infrastructure Development
Providing land (revenue/forest) on lease basis
for 30 years
Accessibility to windy sites for transportation of
wind generator equipments
Power Evacuation/Grid at remote wind power
generation sites
Harnessing Wind Energy
in Nepal
Look forward for the support from
Govt. of Nepal and AEPC to
Harness the Wind Power in Nepal
Thank you
Corporate Office: Suzlon Energy Limited, 5th Floor, Godrej Millennium, 9, Koregaon
Park Road, Pune – 411001, India. Tel: +91-20-40122000. website: www.suzlon.com
Sales Office Delhi, India: 9th Floor, Eros Corporate Tower, Nehru Place, New Delhi –
110019. Tel: +91-11-46506000.
Disclaimer :
“Information and terms mentioned in the presentation are Indicative in nature and solely for
information purpose.”