The Hindu Business Line : Power in the wind

WITH OVER 1,100 MW of capacity added in 2004-05 — a 45 per cent growth over the previous year — one would have expected those involved in the wind power sector to be a happy lot. Not quite so. The potential is vast — about 45,000 MW by official estimates, more than ten times the current capacity — but the problems are many. Not insurmountable, but given the attitude of State power utilities and the officials, solving them may require considerable effort and convincing. What the Ministry of Non-Conventional Energy Sources (MNES) is doing is not enough if the wind energy sector is to grow and its full potential is to be harvested. A number of other entities — both at the Centre and in the States — need to get into the act if the blades are to keep rotating to harness a `fuel' that is freely available for much of the year.

The Centre has to push through a number of initiatives and not stop with mere policy pronouncements. For one, it has to decide on the right fuel mix for electricity generation and accord a higher share for renewable sources. The MNES now seeks a 10 per cent share for renewable sources, but given the environment-friendly nature of this mode, the target must be raised to 25 per cent. If the hidden cost of using fossil fuels, specifically the pollution load, is brought into the equation, wind power does not compare too adversely on the economics. The Ministry of Environment and Forests should also decide whether the tracts on which the wind turbines are sought to be put up, though classified as forest land, are really so. If not, the land should be re-classified or at least approvals given for putting up the turbines without delaying the applications. The Centre also needs to attract into the country the latest in technology on wind turbines, by removing any taxes and duties that place a premium on them. One fallout of this can be that India — with its perceived advantage over China in protecting intellectual property rights — can become a manufacturing base for wind turbines, despite the obvious cost advantage that China enjoys. Faster growth in the wind energy sector may even lead to local manufacture of components, such as gears, bringing down the capital cost of a wind turbine further. There also seems to be justification in the industry's demand that it be included in priority sector lending so that more funds are available readily.

While the Centre's role is limited, it is at the State level that a much bigger change — of mindset — is required. True, wind is unreliable — a 20 per cent variation last year, against the normal of 5 per cent, led to a drop in electricity generated — but that does not mean the sector should not be encouraged. State electricity boards or regulatory commissions should fix tariffs at realistic levels to encourage more investment in the sector. After all, the SEBs have seen the plant load factor of wind turbines go up to an average of 30-35 per cent against 12 per cent a few years ago, and the turbines recording steady performance. The turbines have also become more advanced, with a lot more electronics embedded in them, allowing them to generate more electricity from the same wind speeds. Problems in evacuating the power generated have to be sorted out quickly so that the potential is not wasted and the investment does not become a burden on the investor.

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