Open Access and RRF can be a game changer for wind power : Vinay Rao, Chairman and MD,Kenergy Wind

Mr. Vinay Rao is the Chairman and Managing Director of Kenergy Wind Farms. Mr. Rao   has over 15 years of rich entrepreneurial experience in international business and technology. In the past he has successfully launched international marketing, sales and distribution and information technology businesses with a strong focus on the Asian and European Markets.

 

1. Tell us something about Kenergy project in Satara, Maharashtra. What kind of turbine and technology you are using. 

Kenergy Wind is developing a 1000 Mw wind energy facility in Maharashtra. Our current role is of Engineering, Development & Construction. The services are for our clients who are Wind IPP’s. The selection of Turbine technology will be chosen based on an International Competitive Bidding Process, manufacturers who meet our stringent standards & quality will be selected.

 

2. What kind of technologies you use for site assessment and wind generation scheduling.

We have a in-house team which conducts exploration works, after initial scoping works, we install our wind mast ( wind data collection ) for a period of 24 months, various wind & weather data are collected ( wind speed, air pressure, wind density, vertical wind speed ), after we have acquired on-site data, we further co-relate similar data from various sources ( eg. From wind farm nearby, 3rd party data services providers). Than we compile the data and use various wind resource software to extrapolate the information.  Also we use wind modeling software (also known as wind flow dynamics modelling).

The final data is used to understand the wind flow patterns on site for optimum setting of wind turbine/s, the same data also provide forecasts, coupled with metrological data we are able to predict the output ( power generation  ) which is used in wind scheduling.

 

3. What is your USP of good wind developer for its investor?

We are a one stop shop for wind asset owners/ IPP, as we provide a comprehensive suite of services. We develop our own land banks we mitigate the startup risk faced by developers and also reduce the startup time (as developers need to wait for 24 months of wind data prior to making any decisions).

A.     Single Window for all services

B.     Reduced Startup Time

C.     Lower Capital Cost

D.     Dedicated power Transmission infrastructure

E.     Power off-take facility (energy generation forecasting)

F.     Emission off-take facility (REC trading)

G.     Energy banking (to be introduced)

H.     All clearance & approvals from Govt. & regulatory

 

4. Renewable Regulatory Fund was supposed to help wind developers for interstate power sale. But nothing is happening on it. Are wind developers lobbying to get it functional?

RRF is been implemented to off-set the UI charges applicable for inter-state power transmission, Open access transmission is still evolving as there still remain hurdles for power generators to sell power to consumers in other states. I believe its still “work in progress” and will take some time for effective implementation.

 

5. What will be the effect on ROI of investor due to discontinuation of incentives like GBI and AD? 

First a prospective GBI is only applicable if you sell to SEB’s, AD is mostly required if project investment are made for tax purpose, with “Open Access” it’s a game changer. Because as a Wind IPP you would like to sell to a good credit worthy client and also secure REC which have a higher payout compared to GBI,  regarding AD  its been now disallowed, post 2012 projects cannot get AD .

 

6. Do you think the matured technology like wind which is almost reaching the grid parity need these kinds of incentives? Should not be the money saved, used for better transmission facilities.

Personal opinion: No it’s not required, as mentioned by you wind industry is mature enough and does not require grand fathering.

 

7. With grid parity for wind in states like Maharashtra, open access and banking has become a issue between DisCom and developers. What can be the best possible solution?

For Open Access the need for scheduling is paramount, today the tools are available, along with RRF the OA issue should iron out. Power banking can be addressed through energy storage technologies ( flywheel, hydro, solid state batteries ) the challenge is cost of storage / Mw this must come down, its already happening , also the business model of energy banking is different, because you need a 3rd party to provide this service to a IPP, that is still developing.

 

8. What is the estimated market projection of the coming in coming years? Future plans to tap this market.

Kenergy Wind will develop 2 GW of on-shore wind infrastructure to meet the growing client’s requirement, we are also in the process to setup an off-shore wind energy projects as we see a large demand, because of the fact that cities can directly draw power from the off-shore wind generators and saving considerable amount of T&D loss.

 

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shivanshtyagi

Mechanical engineer with experience in Power Plant maintenance , operation and auditing for ISI marked products. MBA in Power Management from National Power Training Institute, Faridabad. Working as Consultant for Bridge to India Pvt. Ltd. Expertise in: 1) Power sector regulations 2) Financial Modelling 3) Project Development solar PV plants 4) Strategic consulting 5) Report writing

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