Wind energy accounts for nearly 10% of India\’s total installed power generation capacity. Industries are currently spending a lot of money on electricity every month and can now reduce between 25% to 45% (percentage varies depending on state and consumption) on monthly electricity expenditure by shifting to wind power.
WHAT IS THE AREA REQUIRED FOR A 1 MW WIND FARM?
A single turbine of 1 MW (less than 1 MW machines are not available in the Indian market) will typically require 2 acres of land to set up, including the land needed for a transformer and transmission cabling. The area varies depending on the rotor diameter of the turbine.
PRICE OF A 1 MW WIND FARM
Over the past few years, wind power costs have decreased rapidly. The average cost of a fully installed 1 MW wind farm in India is around 6.5 crores per MW. For anyone looking to install a 1 MW turbine, this price can be a reference point. Some companies may offer a lower price, while others may offer a higher price. The thing to look for is the comparative value of the turbine– a balance between the quality and the price.
OUTPUT
The output of a 1 MW wind farm depends on factors like:
- Wind density or wind speed
- Plant Load Factor (PLF)
- Availability of grid
- Availability of machine
- Transmission losses
DAILY PRODUCTION
The table below shows us how many kWh of energy a 1 MW wind farm will generate per day (on average throughout the year) in India’s cities.
| Performance of a 1 MW wind farm | |
| State | Average number of units generated per day (kWh) |
| Tamil Nadu | 8400 |
| Maharashtra | 8400 |
| Gujarat | 8400 |
| Rajasthan | 7920 |
| Karnataka | 7900 |
WHEN TO CHOOSE A 1 MW WIND FARM?
The installation of a 1 MW wind farm, apart from being a cheap source of energy, will lead to a higher power tariff for the industry. Although, we recommend you select a system size that would allow you to consume at least 30% of the wind energy generated.
FINANCIAL RETURNS
At the moment, there are no feed-in-tariffs available for wind power, but to bring more clarity and minimise the risk to developers, the government introduced the reverse bidding system in 2017. The current reverse bidding rate is Rs. 2.83 per unit. Likewise, you will be benefited the most if you are consuming most of the energy that is generated by the installed wind farm. Because of the reverse bidding process, rates in general, are lower than the rate of electricity, you will pay for the energy from the grid. Thus, the more wind energy you use, the more you will save.
Now, let us see how much an industrial consumer in Karnataka saves from 1 MW wind farm.
ASSUMPTIONS
On average, an industrial consumer in Karnataka has monthly electricity consumption of 3.5 lakh units. They install a 1 MW wind farm to reduce their electricity bills. As the consumption is high, they pay per unit cost which is Rs. 8 per unit.
AVERAGE COST ANALYSIS
| The total initial cost of a 1 MW wind farm in Karnataka | Rs. 6.5 crores |
| Average energy generated per month (units) | 2.4 lakhs |
| Total energy generated in a year (units) | 28 lakhs |
| Total savings in 25 years (Rs.) | 24 crores (captive option) |
| Payback period (years) | 6-7 years |
| IRR (percentage) | 13-14% |
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