Presentation by Mr Sarvesh Kumar

1. GLOBAL OPPURTUNITIES Presentation by Mr Sarvesh Kumar 1

2. GLOBAL : An Overview 2

3. The Global Benefits of Wind Power • Reduces climate change and other environmental pollution. • Creates employment, regional growth and innovation. • Diversifies energy supply, eliminates imported fossil fuels. • Provides energy security and prevention of conflict over • natural resources. • Reduces poverty through improved energy access. • Provides a hedge against the price volatility of fossil fuels. • Fuel source is free, abundant and inexhaustible. • Global wind resource is bigger than global power demand. • Delivers utility-scale power supply. • Modular and rapid to install. 3

4. Harnessing Wind Power • 12% of the World's electricity can be supplied by wind; 11 billion tonnes of CO2 emissions can be saved by 2020. • By 2020, 1250 GW of wind power can be installed. - Wind Force 12 4

5. Contribution of wind energy to national electricity demand (end of 2005) 5

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8. Global Development 8

9. Technology Water RequiredLiters/kWh Nuclear 2.30 Coal 1.90 Oil 1.60 Combined Cycle 0.95 Wind 0.004 Wind Power – Ends pollution • Every installation of a Wind Turbine saves 0.2 Acres of land from mining usage. • India's total Wind installation of 4335 MW, has virtually saved - 867Acres of land from Mining activities. • Wind power production entails very minimal use of water. 9

10. Wind Power – Ends pollution A single 750 KW Wind turbine operated for one year at a site with Class IV wind speeds (Wind averaging 6 - 7 M/sec @ 50 Meters height) can be expected to displace a total of 1179 tons ofCarbon dioxide 6.9 tons ofSulpher dioxide 4.3 tons ofNitrogen Oxide More “Wind Power” means • Less smog • Less acid rain and • Less Green House Gas (GHG) emissions 10

11. India : An Overview 11

12. WIND POWER DEVELOPMENT (Installed Capacity in Megawatt) 4500 4335 4000 3595 3500 3000 2483 2500 Installed Capacity in MW 1870 2000 1628 1340 1500 1167 1024 968 902 1000 733 351 500 115 54 41 37 32 0 March 1990 March 1991 March 1992 March 1993 March 1994 March 1995 March 1996 March 1997 March 1998 March 1999 March 2000 March 2001 March 2002 March 2003 March 2004 March 2005 Dec 2005 12 Month & Year

13. Advantage India • The largest democracy in the world, politically stable, on a high growth path. • Cost effective labour. • Availability of world-class engineering goods and services. • Well established financial and banking system. • Time tested legal systems. • Only country in the world to have a dedicated Ministry of Non-conventional Energy Sources (MNES). • No prior approval is required for Foreign Direct Investment for establishing of wind turbine manufacturing facilities. • Dividends can be repatriated without restrictions. • Disinvestments can be done with prior permission from Reserve Bank of India (RBI) and disinvestment proceeds can be repatriated. 13

14. Why To Invest In India • One of the largest and fastest growing economies in the World. • Strategic locations – access to the vast domestic and south asian market. • Skilled man power and professional managers are available. • Long history of market economy infrastructure. • One of the largest manufacturing sectors in the world. • One of the largest schools of scientists, engineers and technicians in the World. • Well developed R&D infrastructure, technical and marketing services. • A sophisticated legal and accounting system. • Foreign brand names are widely accepted. 14

15. Business Opportunities • India is a land of opportunity for investors in Wind Energy Projects. • In India we provide consultancy services for setting up of manufacturing plants and projects on turnkey basis. • Indian and foreign investors can contribute to technology development, manufacturing of Wind Electric Generators and also participate as developers of large scale wind farm projects. • Opportunity to trade on carbon emissions. • Unlimited potential. 15

16. The Indian Power Sector - A Quick Glance • Per capita electricity consumption : 606units • Installed power generation capacity (utilities) : 1,23,668 MW (DEC.2005) • Overall generating capacity (includes thermal, : 120,000 MW • hydro, nuclear & wind) • Distribution of total installed capacity : 90 % owned by Public Sector • (60 % : State Government 30 % : Central Government) • Rest 10 % is owned by the Private Sector • Projected installed capacity (2012) : 210,000 MW • Power generation (2002-03) : 530 billion units • Energy deficits (Mar 2002) : 7.5 % • Peak deficit : 12.6 % 16

17. The Indian Power Sector - Projected Generation • The Ministry of Power has proposed to add approximately 100,000 MW by 2012. • New additions planned : • 10th Plan (2002-07) 62160 MW • 11th Plan (2007-12) 79156 MW • Break-up of these additions (10th plan) (11th plan) • Central Sector 31080 MW 39443MW • State Sector 21370 MW 28258 MW • Private Sector 9710 MW 11185 MW • Total 62160 MW 79156 MW 17

18. Renewable Energy - Indian Scenario • Estimated potential 1,00,000 MW. • Achieved approx. 7000 MW ( Approx. 7%). • About 85% of total investment from the private sector. • Growth rate 25% per annum. • Wind, Solar, Small Hydro and Bio-mass are the major sources of • renewable energy. 18

19. Tremendous business potential in India Technology Units Estimated Potential Achievements World Position Wind Power MW 45,000 4435 MW Fourth Small Hydro power MW 15,000 1729 MW Tenth (< 25MW) Bio-Mass (POWER) MW 19,500 348 MW Fourth Urban & Industrial Waste MW 2,700 42 MW - Solar Photo VoltaicMW/Sq Km 20 121 MW Fifth Annual turnover of RE industry in India is Approx. One Billion Euro. 19

20. Indian Wind Power Sector – At A Glance • Gross Wind Power Potential 45,195 MW • Total Installed Capacity 4,435 MW (DEC. 2005) • Demonstration Projects 70 MW • Commercial 4,365 MW • Additional Target by Indian 9,000 MW by 2012 • Government (Around 750 MW per Annum) • More than 95% investment is by private sector 20

21. Growth of Wind Sector in India (MW) Year Capacity Addition Growth % 2000-011340 173 15 2001-02 1628 288 21 2002-03 1870 242 15 2003-04 2484 615 33 2004-05 3595 1111 44 UP TO DEC05 4435 840 42 (1500MW by March 2006) 21

22. Forecast - India • 10% of the proposed capacity addition of 100,000 MW in the next 10 years would be from renewables and 75% of this 10% is expected to be from Wind. • 10,000 MW of additional Wind Power capacity is expected to be added to the Indian grid-networks by the year 2012. 22

23. Swot Analysis - Industry • 1. STRENGTH:- • (i) Ability to offer state of the art technology by six large players. • (ii) Annual Market size is around 1500 MW. • (iii) Growth in the last three years is phenomenal. • 2. WEAKNESS:- • (i) Less R & D on technology adaptation and innovation. • OPPORTUNITY:- • (i) Fast track growth due to need and necessity of power. • (ii) Encouragement to FDI’s to invest in the sector. • (iii) Conducive policy in 7 States. • THREAT:- • (i) Risk factor associated with non uniform State policy. 23

24. Wind Power and Corporates • Rising Power tariff of conventional power projects. • Low Gestation Period. • Hassle Free Operations and Maintenance. • Declining cost due to improving technologies. • Cost per Kwh is the lowest on full life cycle basis. • IRRs in the range of 10% - 25% for Investments in Wind Power • generation. • Green power which qualifies generally for Carbon Credits. • Accelerated Depreciation of 80%. Corporates have a major role to play in tapping the Wind Power potential available in the country. 24

25. India Shining • Indian Economy on a resurgent mode. • GDP growth of 8.6 % in 2004-05. • Banks now funding projects at interest rates of 9%. • Industry on an upbeat mood - New investments in automobile, steel and • power. • Infrastructure development projects on high gear. 25

26. THANK YOU 26