Presentation on Renewable Energy Projects (Wind Power) on 16th April’10 by Mr Deepak Sangal, Dy. General Manager (Tender Business), Suzlon Energy Ltd.

1. N ational C onfe re nce on P roj ct F inance M anage m e nt for
e
E ne rgy S e ctor
O rganis e d b y U P E S D e h rad u n
P re s e ntation on R e ne wab le E ne rgy P roj cts (Wind P owe r)
e
on 1 6th Ap ril’1 0
b y Mr D e e p ak S angal, D y. G e ne ral Manage r (Te nd e r Bu s ine s s ), S u zlon
E ne rgy Ltd .

2. R e ne wab le E ne rgy Te ch nology
• Wind Energy : Represents 70% of total RE installed capacity, Matured /
commercially viable, Organized industry, End to End Solution, Low Gestation
period, all major players have presence in India.
• Solar (PV + Thermal) – Sunrise sector in RE
- Currently burdened with high capital costs, Big Players venturing, lack of
operational systems, with new tariff for solar mission; prospects promising.
• Small hydro – Oldest RE source, Limited resources, high gestation period.
• Bagasse Co generation / Biomass – Slow, but promising, Fuel Linkages are a
major concern for Biomass project.

3. Wh y R e ne wab le E ne rgy
• “Availability of Energy on a long term basis” a sacrosanct part to
realise economic growth
– Fossil fuel depleting to fuel the future needs of Developing
Economies
• Fossil based economy : Rising crude oil prices
– May touch more than $100 per barrel according to several
estimates
• Important to take into account the much required ‘Energy
Security’
• Above all an important mitigation option for stabilizing ‘Green
House Gases’

4. Wh y go with th e wind
Wind has been the largest & most preferred RE source because of its
scalability to GW sized projects and the proven techno-commercial
viability amongst the various renewable energy options available today
Set-up cost Competitive set-up cost
& faster payback
Hassle-free End-to-end
end to end solution Running cost
is available in wind Solutions Low running cost as fuel (Wind) is
power
available FREE for life
Proven over 2 decades
161GW installed Proven Technology Faster project execution
globally which is (within 6-9 months)
43% of global RE
Installed-base Maturity
capacity
Wind Solar Biomass Small Hydro

5. Science of Customize Product
Wind Energy
Q - Air Density, V- Wind Velocity, D- Wind Turbine Rotor Diameter.

6. Wind Energy: Global Scenario
• Installations in 2009 : 3 8 , 10 3 M W ( 3 5 % YoY growth)
• Cumulative installations: 16 0 , 0 8 4 M W
2 0 0 9 C a p a c it y A d d it io n ( in C u m u la t iv e in s t a lle d c a p a c it y in
M W) MW
160,084
USA 8,612
. 1% 122,158
36
R
China 13,972
C AG
94,005
Spain 2,331 74,306
59,399
47,912
Germany 1,838
India 1,172
Source : B T M C onsult A pS W orld M arket U pdate 2009 CY04 CY05 CY06 CY07 CY08 CY09
*

7. Global Market Share – Top Suppliers
Top-10 Suppliers in 2009
% of the total market 38,103MW
GOLDWIND (PRC) GAMESA (ES)
7.2% 6.7%
ENERCON (GE) 8.5%
DONGFANG (PRC)
SINOVEL (PRC) 6.5%
9.2% SUZLON (IND)
6.4%
SIEMENS (DK)
5.9%
GE WIND (US)
REPOWER (GE)
12.4%
3.4%
VESTAS (DK) 12.5% Others 18.5%
Source: BTM Consult ApS - March 2010
SUZLON has grown to be 3rd largest* WTG Manufacturer in the
World in 15 Years

8. Wind P ote ntial - Ind ia
Estimated Wind Power Potential in India
State Gross Installed Capacity
Potential Capacity Add. in
(MW) (MW) 09-10 (MW)
Karnataka 11,531 1649.25 140.7
Gujarat 10,645 1880.11 295.8
Andhra
Pradesh 8968 122.50 13.6
Tamil Nadu 5530 4743.88 616
Rajasthan 4858 938 350
Maharashtra 4584 2116.98 143.1
Madhya
Pradesh 1019 236.4 16.6
Kerala 1171 45.6 0.8
Orissa 255 - -
West Bengal - 1.10 -
Others - 3.20 -
TOTAL
(All India) 48,561 11737.02 1576.6
Note :Gross potential is based on assuming 3% of land availability for
wind power generation in potential areas. (Source: MNRE (Erstwhile
MNES))

9. Way Ahead – Suzlon Milestones
Market maker and market leader in India
YoY Capacity Addition (MW)
India Market Total
Suzlon’s Share
Leading with nearly 50% market share each year over a decade
YoY Market Share
No. 1 for 11th Year in a row (H1 FY09-10 capacity addition in India)
Capacity Added (MW)
SUZLON Enercon RRB Vestas All Others

10. P owe r s e ctor C h alle nge s in Ind ia
C a p a c it y S u s t a in in g F u e l M ix C lim a t e C h a n g e
A u g m e n t a t io n
• Current capacity: Fuel Mix for Power Generation: India is the 4th largest
more than150 GW Coal :52%, Hydro:25%, emitter of GHG gases
• Peak Shortage: 13.8% Gas & Oil:11%, RE:9%, globally (total emission of
• Addition Req. by 2020: 150 GW Nuclear:3% 1293 MT CO2e* pa)
Large Hydro Nuclear
25% 2.8% S o lu t io n : W in d P o w e r
Wind
71% • Proven ability & readiness to quickly augment
Renewable
capacities
9% 10.2GW
Thermal • Lowers burden on fossil fuel need
63.2%
Other RE • Mitigation of climate change by substantial CO2
29%
displacement
*Ref: WISE & GWEC Report and CII Report on Power Sector & * Wikipedia 2010 Statistics on GHG emissions

11. Compelling Industry Growth Dynamics
C o nc e rn D e ma nd C a t a ly s t s
A g g r e s s iv e g lo b a l t a r g e t s
C lim a t e • Kyoto Protocol: CO2 emissions to reduce by 5.2% of 1990s levels by 2012
C ha ng e Ze ro • EU declaration: 20% from RE by 2020
a nd c a rb on
• US: 21 States with 10% to 20% RPS mandates
G lo b a l s o lu t io n
W a r m in g • China targets 100,000 MW from RE by 2020
• India: 10 States with 2% to 10% RPO mandates
Loc al • Hedge against geo-political risks - local and secured supply
E ne rg y
a v a ila b ilit • No risk of fuel price volatility
S e c u r it y
y • Socially, ecologically and economically sustainable growth
• Energy - key to economic growth in developing countries (India, China etc.
In c r e a s e d Ab unda nt r
require all sources quickly to bridge gap)
E le c t r ic it y re s ourc e • Wind’s global electricity generation contribution expected to increase from
D e ma nd
0.82% in 2006 to 3.4% in 2030
• I
Improvement in yields (cost/ kWh)
C os t
c o m p e t it iv e n Z e r o fu e l • Cost / kWh of generation: US$ 0.03 - 0.06
ess c os t • Wind Energy directly competing with conventional power
a n d h e d g in g • Frozen lifecycle power cost for utilities

12. Wind E ne rgy D e ve lop m e nt
W in d R e s o u r c e
As s e s s me nt a nd
E s t im a t io n o f
P o t e n t ia l
C o n d u c iv e
P o lic y &
R e g u la t o r y
Fra me w ork
Framework:
Stakeholders -
Technology Providers,
Investors & Financiers
In f r a s t r u c t u r e
f o r G r id
In t e g r a t io n &
Power
E v a c u a t io n

13. P olicy & R e gu lations P u s h ing Wind E ne rgy In Ind ia
C e ntra l G o ve rnme nt
• 8 0 % a c c e le r a t e d d e p r e c ia t io n
• S e c 8 0 IA b e n e f it s u n d e r IT A c t *.
• G e n e r a t io n B a s e d In c e n t iv e s
S ta te L e ve l fra m e w o rk s
• T a r if f s f o r s e ll t o u t ilit y
• W h e e lin g & b a n k in g f r a m e w o r k
• R P S /R P O f r a m e w o r k u n d e r
S e c t io n 8 6 ( i) e o f E A 2 0 0 3
G lo b a l F r a m e w o r k
• C a r b o n c r e d it s u n d e r t h e
K yo to P r o to c o l

14. Th e E nd to E nd S olu tions
• Single source solutions:
from land & infrastructure
to supply of WTG, project
commissioning & life cycle
operation & maintenance
• Active assistance for –
Liaison activities, regulatory
approvals, loan processing
• Customer time & manpower
resources are not blocked

15. Project Cycle
Ensuring required
sub-station capacity for
enabling power evacuation
Scientific wind study at to nearby transmission grid
location using a met-mast
Sourcing the suitable land –bank for project
Infrastructure &
access road development
Movement of material at site
Turbine erection
and commissioning

16. Trans m is s ion P roce s s of Wind E ne rgy

17. C ap tive : H ow it h ap p e ns
Wind farm
~X units deduction as
~100 units Wheeling & transmission charges
Metering
Wind as Captive unit
~(100-X) units as credit in monthly bill
Investment by industrial/commercial unit Savings/earnings
For captive consumption •HT bill
Consumer •Electricity duty
Other benefits •Demand cut
•Tax benefits through accelerated depreciation
•Section 80 IA benefits

18. Segmentation of Product Size
Year 2006 2007 2008
Total MW supplied 16,007 22,181 31,281
Product (Size range) % of total MW
"Small WTGs" <750 kW 2.4% 1.3% 0.5%
"One-MW " 750-1499 kW 31.0% 29.8% 13.1%
"Mainstream" 1500-2500 kW 62.2% 63.7% 80.4%
"Multi-MW Class" >2500 kW 4.3% 5.3% 6.0%
Total 100.0% 100.0% 100.0%
Source: BTM Consult ApS - March 2009

19. Wind : M arke t fram e work
Key Stakeholders
In v e s t o r E n d t o E n d S o lu t io n Loc al S ta te
P r o v id e r Powe ERC &
Equipment Supply, EPC, VAS r Nodal
F in a n c ie r Life Cycle Asset Management U t ilit y Ag e nc y
Power Trading Options
Procurement by
Allowance of set-off for captive
Local Utilities at a committed
usage under energy wheeling PPA
feed-in tariff under long term PPA
Multiple Revenue Streams
Fiscal Incentives – IT
Sale / Wheeling of Sale of CERs / VERs
Exemption (S80IA),
Power Generated under Carbon Trading
Acc. Depreciation / GBI

20. S tate P olicie s In Ind ia
S ta te R P O (%) P P A r a t e p e r K W H in IN R – V a lid it y o f W h e e lin g &
S p e c if ie d P P A te nure PPA T r a n s m is s io n
C hg .
R a ja s t h a 7.5% 3.83 levelized tariff 20 15-17%
M .n P . 10% 4.03 reducing at 17 paisa every 20 2% + Trans.
year fixed at 3.36 *
G u ja r a t 2% 3.56 20 10%+ trans.
Ma ha ra s h 3-6% 3.50 + escalation of 15 paisa for 13 10-27%
tra next 12 years* (linked with voltage
level)
K a rna ta k 10% 3.70 10 5% +2%
a
A .P . 5% 3.50 5 Yr. -
T a m iln a d 10% 3.39 20 Yr. 5%
u
*
* Tariff under revision

21. Wid e s t P rod u ct R ange
India + South Asia
China
USA/ Australia/ Brazil
Europe Offshore
600 kW – 1.25 MW 1.25 – 1.5 MW 1.5 - 2.5 MW 2.5 – 3.0 MW 3.0 – 6.0 MW
Suzlon
REpower *
P r o d u c t s s p a n n in g a ll c a p a c it ie s - s u b -M W t o M u lt i-
M W t u r b in e s
P r o d u c t s s p a n n in g t e c h n o lo g ie s - v a r ia b le , s e m i-
v a r ia b le a n d f ix e d s p e e d s
✚
P r o d u c t v a r ia n t s s p a n n in g c lim a t ic c o n d it io n s a n d
* g r id r e q u ir e m e n t s
A b ilit y t o s u p p ly la r g e v o lu m e s a c r o s s v a r io u s
g e o g r a p h ie s
* Suzlon Group controls or influences, either directly or through voting pool agreements, approximately 89% of the votes in REpower

22. Wind Power Project Snapshot
Sale to Electricity Board Captive
Model S - 82 S - 82
No. of Turbines 1 1
Project Size (kW) 1500 1500
Commissioning Period (in months) 4-6 4–6
Cost Per WTG (Rs. Lacs) 950 950
Service Tax Extra Per WTG (Rs. Lacs) AT ACTUAL
Project Funding thru’ FIs 70:30 70:30
Free Warranty Period 1 Year 1 Year
O & M Charges( Rs.Lacs) 17 17
Escalation 5% 5%
Generation @ controller @100% Grid per WTG 35 to 40 Lacs 35 to 40 Lacs
Project IRR (%) 19% to 22% 18% to 40%
Project Payback in Year 3 to 6 1 to 5
State Tarriff Rs./kwh 3.39 to 4.03 4 to 11
PPA / WBA State utility / DISCOM

23. Major Clientele - India
• S TA TE & C E N TR A L P S U S • P R IV A T E
• Gujarat State Petroleum Corp. Ltd. – 105.00 MW • DLF Limited – 217.50 MW
• GMDC Ltd. – 100.00 MW • MSPL Limited – 133.75 MW
• Raj. State Mines & Minerals Ltd. – 91.30 MW • Gujarat NRE Coke – 87.50 MW
• Gujarat Alkalis & Chemicals Ltd. – 83.75 MW • Tata Group – 110.00 MW
• Oil & Natural Gas Corporation Ltd. – 51.00 MW • Ruchi Group - 72.95 MW
• Hindustan Petrol Corporation Ltd. – 50.50 MW
• Reliance Energy – 42.00 MW
Guj. State Fertilizers & Chem. Ltd. – 40.00 MW
• Gujarat State Electricity Co. Ltd. – 40.00 MW • Bajaj Group – 75.00 MW
• Raj. Renewable Energy Corp Ltd. – 27.10 MW • Aditya Birla Group – 75.00 MW
• Indian Oil Corporation Ltd. – 21.00 MW • J. P. Group – 50.00 MW
• Gujarat Narmada Fert. Corp. Ltd. – 21.00 MW • Gujarat Flouro Ltd. – 42.00 MW
Tamil Nadu News Prints Ltd. – 17.50 MW
• K.S. Oil Ltd. – 42.00 MW
• State Bank of India – 15.00 MW
• British Petroleum – 40.00 MW
• Integral Coach Factory – 10.50 MW
• Aarvee Denims – 21.00 MW
• National Mineral Dev. Corp. Ltd. – 10.50 MW
• Nuclear Power Corp. of India Ltd. – 10.00 MW • Era Group – 20.50 MW
• Tirumala Tirupati Devasthanam - 06.00 MW • KRBL – 37.70 MW

24. Inau gu ration C e re m ony of O N G C
Shri R S Sharma – CMD - ONGC
Inaugurating 50 MW Wind Power Project in Gujarat

25. Inau gu ration C e re m ony of N M D C
Shri Rana Som – CMD - NMDC
Inaugurating 10.50 MW Wind Power Project in Karnataka

26. Inau gu ration C e re m ony of Ind ian oil
Shri Sarthak Behuria CMD IOCL
inaugurating 21 MW Wind Power Project at Kutch Gujarat

27. Inau gu ration C e re m ony of
Inte gral C oach F actory
Shri Sukhbir Singh – Member Electrical – Ministry of Railways
Inaugurating 10.50 MW Wind Power Project in Tamil Nadu

28. R e ne wab le : Toward s E ne rgy Ind e p e nd e nce
Priority to harness
In ecologically
sound manner
Priority to harness
all sources within
our country
Priority
towards
Energy
generation
For sustainable growth, lets develop our world with the right social, economical, ecological
balance “Thank You”