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 Reliance

from cost-efficiencies and Energy
Wind resource mapping
economies of scale in wind
Tata
farms
Power
Site Identification • Avoids need for customers to
undertake cumbersome wind DLF
farm development process Leverage
Land acquisition* Bajaj Auto capabilities
• Provides greater control over
in
execution timeline International
WTG and Component PTC India markets
manufacturing • Control on value chain from
planning to maintenance MSPL
stages
Site-development, infrastructure
set-up & WTG installation • Leverages Suzlon’s deep ONGC
experience across Wind
British
Operations & Maintenance energy value chain
services Petroleum

* Land acquisition business is mostly operated through associate concerns, not part of Suzlon value chain
 Right product for each
market

India
China
USA/ Australia/ Brazil
Europe Offshore

350 kW – 1.25 MW 1.25 – 1.5 MW 1.5 - 2.5 MW 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
1,456 MW GLOBAL SALES > 6000 MW

INDIA >3900 MW
964 MW
955

508 MW 1336
883

508 501
81
FY05 FY06 FY07 FY08
International Domestic
1 USD = INR 42.54
@ Does not inlcude REpower and Hansen
 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 Increased Temperature

Habitat Damage and

Species Affected 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 Potential to power the future

6.5 Critical Success Parameters Wind Energy Status

(US cents/ kWh)

5.5

Cost Competitiveness
✔
4.5
(3-6 cents/kWh)
3.5

2.5 ✔
Nuclear CCGT Coal Steam IGCC Wind Established Base (19.8 GW capacity addition in
Source: IEA WEO 2006 / BTM Consult ApS WMU 2006
2007)
Fastest growing renewable energy source*
50% 60% 70% 80% 90% 100%
✔
Resource Availability (72000 GW potential estimated
globally at 80m hub height)
1990 125 4 36 1

2004 227 82 56 4

Biomass & Waste Wind Geothermal Solar Source: BTM Consult ApS WMU 2007 and Journal of Geophysical Research,
Source: IEA WEO 2006 * Generation in TWh 2005 : Stanford University
 Compelling industry growth
dynamics

Concern Demand Catalysts

Aggressive global targets
• Kyoto Protocol: CO2 emissions to reduce by 5.2% of 1990s levels by 2012
Climate Change • EU declaration: 20% from RE by 2020
Zero carbon
and
solution • US: 21 States with 10% to 20% RPS mandates
Global Warming
• 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

Local
Energy Security • No risk of fuel price volatility
availability
• Socially, ecologically and economically sustainable growth

• Energy - key to economic growth in developing countries (India, China etc.

Increased Abundant require all sources quickly to bridge gap)
Electricity resource • Wind’s global electricity generation contribution expected to increase from
Demand
0.82% in 2006 to 3.4% in 2030

• Improvement in yields (cost/ kWh)

Cost • Cost / kWh of generation: US$ 0.03 - 0.06
competitiveness Zero fuel cost
• Wind Energy directly competing with conventional power
and hedging
• Frozen lifecycle power cost for utilities

Source : American Wind Energy Association

BTM Consult ApS World Market Update 2006
 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

47,912
Spain 3,100 21.2%
40,301

10.2%
Germany 1,667

37.8%
India 1,617

CY03 CY04 CY05 CY06 CY07

Source : BTM Consult ApS World Market Update 2007
* Average growth over 2004 2007
 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.”