Business development cdm in wind enegry sectorr

``Summers Project Suzlon Energy Ltd.
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CONTENTS
Topic Page Number
Chapter 1
1.0.0 Executive Summary 6
Chapter 2
2.0.0 Objective Of Study 10
Chapter 3
3.0.0 Scope Of the Project 13
Chapter 4
4.0.0 Company Profile 16
4.1.0 Mission 17
4.1.1 Vision 17
4.1.2 Corporate Philosophy 17
4.1.3 Company Details 17
4.2.0 Competitors 18
4.3.0 Marketing Policy 19
4.4.0 Organization Structure 20
4.4.1 Marketing Organization Chart 20
Chapter 5
5.0.0 Introduction 23
5.1.0 UNFCC & Kyoto Protocol 25
5.2.0 Annexure 1 Parties 26
5.3.0 Annexure 2 Parties 27

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Chapter 6
6.0.0 Market segmentation 31
6.1.0 Target Segment 31
6.2.0 Product Life Cycle 32
6.3.0 Marketing Strategies 33
Chapter 7
7.0.0 Research Methodology 36
7.1.0 Type of Questions 37
7.1.1 Objective of study 37
7.1.2 Secondary Data 38
Chapter 8
8.0.0 United Nation Framework For Convention on Climate Change 43
8.1.0 Kyoto Protocol 43
8.1.1 International Emission Trading (IET) 44
8.1.2 Joint Implementation (JI) 45
8.13. Clean Development Mechanism (CDM) 45
8.1.4 Activities Implementation Jointly. (AIJ) 46
8.2.0 Types OF Eligible Projects 47

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Chapter 9
9.0.0 Project cycle for the CDM 51
9.1.0 CDM and wind Project 55
9.1.1Types of Wind Turbines: 56
9.1.2Sizes of Wind Turbines 56
9.1.3Construction of Wind Turbine 57
Chapter 10
10.0.0 Service Provided by Senergy Global 61
10.1.0 Project Approval Process 62
Chapter 11
11.0.0 Data Analysis 65
11.1.0 Findings 73
11.2.0 Limitation of Study 75
11.3.0 Conclusion 76
11.4.0 Suggestions 77
Chapter 12
12.0.0 Bibliography 80
12.1.0 Questionnaire 81
12.2.0 Customer Status Sheet 83

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EXECUTIVE SUMMARY

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Chapter 1
EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY
It s a pleasure to do a project in a company like Suzlon Energy Ltd, which is a market
leader in wind mill sector. It s an honor given by the company to us to work for two
months on new International environmental concept of carbon trading i.e. Clean
Development Mechanisms.
The ultimate goal behind undertaking this project work was to know and make aware to
Public about global warming and their effect to biosphere and contribution of wind (Non
conventional) energy to protect the global environment from green house gas with its
consequences.
Suzlon Energy Ltd is one of India s leading wind power generators having its branches in
USA, GERMANY, AUSTRALIA DENMARK, NETHERLAND and CHINA. Suzlon
has been committed to a clean and green environment. Suzlon specializes in providing
total solutions in Wind Power generation with cohesive integration of consultancy,
design, manufacturing, installation, finance, operation and maintenance services.
The start of this millennium saw Suzlon capture the largest market share in Asia and
feature amongst the top five in the world. Suzlon has developed some of the largest wind
parks of over 338 MW in Dhule, 163.75 MW in Sangli.
Senergy global a sister concern of Suzlon energy is implementing the CDM projects in
India. The targeted customers are Suzlon windmill owners, as windmill projects are
eligible for CDM benefits. Senergy global is assisting Consumers to avail CDM benefits.
It helps them to get registered from UNFCCC and to get them optimum possible benefits.
This comes as value added service since Suzlon is concerned about its customer long
term benefits & customer retention policy. Through this project one can get insight of
carbon trading which is fast evolving, as a weapon to counter act increasing green house
gas emission thus saving our environment .The main job is to educate consumer about
CDM benefits and convey the schemes of Senergy global and help them to register for
CDM benefits.
Many options under CDM could create significant co-benefits in developing countries,
addressing local and regional environmental problems and advancing social goals. For
developing countries that might otherwise give priority to immediate economic and
environmental needs, the prospect of significant ancillary benefit should provide a strong
inducement to participate in CDM

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As in the present scenario Government is promoting Green Power Projects as an
alternative option for conventional energy projects hence there is wide potential in green
power projects. At the same time all the wind power plants are eligible to get the CDM
benefits hence it is also a promising field of extra revenue for clients and also a great
carrier opportunity in marketing field. After the small and mid sized companies, big
players like Reliance, Airtel, Birlas are next to explore options of cashing in on efficient
production technologies to boost the profitability, as polluting foreign companies rush to
meet international deadlines starting next year. India is the largest producer of carbon
credits.
Senergy Global is a reliable player in this field and is providing their clients not only
consultancy but also it helps their clients in actual sale of the CER s in the market as it
has a wide range of the products and also expertise in this sector. This gave me a great
opportunity to get into this field and an option for promising future carrier. I have opted
this as my summer project as I was going to get opportunity to work right from giving
presentation to client, follow up and finally executing the agreement.
Our field of operation was mostly in
1) Pune
2) Mumbai
3) Kolhapur
4) Ichalkaranji
5) Sangli
6) Hubli.
As major client base of Suzlon is located in Western region and our target customers
were the existing customers of SUZLON.
During the course project I came across 50 clients out of which I made 22 agreements for
Senergy Global and some are on hold waiting for the client feedback. The major finding
of our project was that there is great potential in CDM and on the other hand there is less
awareness about the CDM concept.

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OBJECTIVE OF STUDY

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Chapter 2
Objective Of Study

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OBJECTIVE OF THE STUDY
1. To study the Clean Development Mechanism, which provides knowledge of global
warming and its effect on biosphere & its application in business revenue cycle
2. To know how global warming compels United Nations to think on it, and formation
of UNFCCC.
3. To obtain the information of Kyoto protocol and its resolution for reducing carbon
level of environment by 5.2% of 1990 level.
4. To study and gain knowledge of wind power (Non- conventional Resource) and it s
role in carbon trading.
5. To find out awareness and penetration of CDM project through primary and
secondary research methodology.
6. To give extra benefit to the customers for their satisfaction and customer retention by
executing the deals till PDD documentation
7. To study how developing countries will get benefit from the project activities resulting
in certified emission reductions (CERS) and on the other hand how developed countries
will get benefit by using the CERs to meet their commitments.
This project gives the idea of how the consumer receives the extra benefits and their
inclination towards the extra income.
The prime purpose of this study was to find out consumer behavior as a part of
marketing mix and understand why and how the companies provides extra benefits
to achieve customer satisfaction & customer retention to have edge on competitors.

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SCOPE OF THE PROJECT

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Chapter 3
Scope Of the Project

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SCOPE OF THE PROJECT
Scope:
1. There is wide potential in wind power sectors due to growing need of electricity
in each and every sector and hence these projects can fetch a large amount of
revenue through CDM benefits.
2. Production of electricity (non-conventional resource) gets continuous
encouragement from Ministry of Environment and Forestry (MOEF)
Clean Development Mechanism provides extra revenue to the investors along with tax
benefits in non-conventional resource sector.

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COMPANY PROFILE

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Chapter 4
4.0.0 Company Profile
4.1.0 Mission
4.1.1 Vision
4.1.2 Corporate Philosophy
4.1.3 Company Details
4.2.0 Competitors
COMPANY PROFILE

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Suzlon Energy Ltd is the flagship company of the dynamically growing Suzlon group.
Renowned for its in-depth technical expertise and strong financial base, Suzlon
specializes in providing total solutions in wind power generation with cohesive
integration of design, manufacturing, installation, operation and maintenance services.
The start of this millennium saw Suzlon captures largest market share in the growing
Asian markets and featuring amongst the top ten in the world.
Sustained superior performance by Suzlon wind turbine generator (WTG) over the years
have carved out a strong reputation for the company and fuelled vigorous growth. To
meet the rapid growth plans; the company s human resource base worldwide has crossed
the 10,000 mark.
Suzlon selected nearly 28 sites of wind park in states if Maharashtra. Already two major
wind park i.e. Kaudya Dongar wind park Supa in Ahmednagar and Vankusawada wind
park in Satara is filled with wind turbine generators of 57 MW, 201.6 MW capacity
respectively. The site has a mean annual wind speed of 22.08 kmph at 30m height,
producing a average of 26,00,000 unit of electricity from 1MW Wind Turbine Generator.
Suzlon has different range of WTGs i.e. 350 KW, 600KW, 1MW, 1.25MW, 1.5MW and
2MW.
Senergy Global (SG) the sister concern of Suzlon started in India working with Suzlon
on the project on Clean Development Mechanism having corporate office at New Delhi.
Senergy Global s objective is to work with Suzlon s existing customer along with the
new customers and providing them extra benefits from carbon trading through Kyoto
protocol of UNFCCC.
Senergy Global renders following services to national and international project
developers from within India and other developing countries:
1. Purchase of generated Certified Emission Reductions (CERs) from CDM projects.
2. Banking of Certified Emission Reductions (CERs) and trade advisory services.
3. Project identification consultancy
4. Technical assistance in completing various stages of project development.
5. Documents review & analysis
6. International negotiations for sale of Certified Emission Reductions.
7. Technology transfer and overseas Equity Participation assistance.
8. Spot CERs delivery for meeting commitments/delivery targets.
9. Kyoto risk assessment & management facilities for existing as well as upcoming
activities.

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MISSION: Suzlon has been committed to a clean, green and healthy environment.
Torchbearers of eco- friendly energy, Suzlon has taken proactive steps to create
awareness amongst the corporate community for the need of a Greener Tomorrow. It
has consistently been part of the mission to educate, inspire and empower people towards
protecting the environment.
VISION: Asia s fasted growing fully integrated wind power company ranking among
world s top ten has a vision to be number one in wind sectors. Other visions are
Create Global Market.
Adapt Global Technology.
Maintain Global standard and Quality.
Build Global team and Global Rewards.
CORPORATE PHILOSOPHY: To Integrate the company and its people into
wholesomeness and to be competitive enough to bridge the past, the present and future
with common Thread. Suzlon s main philosophy is WE ARE BECAUSE OF
INNOVATIVES .
COMPANY DETAILS:
February 16, 2000 Suzlon Green Power Limited becomes operational
March 1, 2001 Formation of AE Rotor Holding B.V, The Netherlands, a wholly
owned subsidiary of Suzlon Energy Limited
March 9, 2001 Germanischer Lloyd, the premier International Certifying
Agency, type certifies Suzlon's 350KW Capacity Model
June 8, 2001 AE Rotor Holding B.V, The Netherlands, becomes operational
March 19, 2002 Suzlon Energy Gmbh, Germany, becomes operational
March 21, 2002 Center for Wind Energy Technology (C-WET) grants type test
certification to Suzlon's 350KW Capacity model
March 30, 2002 Suzlon crosses the 300MW mark at Site: Vankusawada, Dist:
Satara (Maharashtra)
February 12, 2003 Suzlon adds another feather in its cap by successfully
commissioning its first Wind Turbine in USA
February 21, 2003 Center for Wind Energy Technology (C-WET) grants type test
certification to Suzlon's S-60 1000KW Capacity model

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July 1, 2003 Production of first 100 sets of Blade - AE31 by Rotor Blade
Unit (Daman) of Suzlon Energy Limited
January 15, 2004 Formation & commencement of operations of Suzlon Energy
Australia Pty. Limited, Australia, a wholly owned subsidiary of
Suzlon Energy Limited, India
January 30, 2004 Germanischer Lloyd, the premier International Certifying
Agency, type certifies Suzlon's S66 1250KW - 75m hub height
Capacity Model
February 19, 2004 Suzlon crosses the 500MW mark by commissioning
6.00MW for Tirumala Tirupathi Devasthanum (A.P.), thus
marking its maiden presence in Andhra Pradesh
Competitors: -
Enercon Ltd
Vestas Ltd
G E Wind
NEG Micon
MITCON
PWC

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MARKETING POLICY:
Suzlon includes corporate marketing strategy in their marketing policy. Suzlon have
appointed specialized marketing officers to attract industrialized and celebrity to invest in
wind turbine to create non-conventional electricity to meet the demand of industries.
Suzlon is India's leading manufacturer of wind turbine generators. Its accumulated sales
were 1,488.69 MW as of November 30, 2005. Suzlon has also installed 42.8% of the total
capacity installed in India during the year ended December 31, 2004. It has the sixth
largest wind turbine manufacturer in the world in terms of annual installed capacity for
the year ended December 31, 2004.
(Statistical Performance of Suzlon.)
ORGANIZATIONAL STRUCTURE

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Marketing organization Chart:
VP
Finance
VP
Operations
VP Int.
Business
VP
Marketing
VP
R&D
VP
MARKETING
GM
MARKETING
DGM
MARKETING
WESTERN
ZONE-AGM
SOUTH
ZONE-AGM
MARKETING
EXECUTIVES
MARKETING
EXECUTIVES
C M D
VP
HR

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INTRODUCTION&
CONCEPTUAL BACKGROUND
OF THE STUDY

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Chapter 5
5.0.0 Introduction
5.1.0 UNFCC & Kyto Protocol
5.2.0 Annexure 1 Parties
5.3.0 Annexure 2 Parties

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INTRODUCTION
&
CONCEPTUAL BACKGROUND OF THE STUDY
Only the Earth has an atmosphere of the proper depth and chemical composition. About
30% of incoming energy from the sun is reflected back to space while the rest reaches the
earth, warming the air, oceans, and land, and maintaining an average surface temperature
of about 15 ºC.
The chemical composition of the atmosphere is also responsible for The chemical
composition of the atmosphere is also responsible for The atmosphere carries out the
critical function of maintaining life-sustaining conditions on Earth, in the following way:
each day, energy from the sun (largely in the visible part of the spectrum, but also some
in the ultraviolet, and infra red portions) is absorbed by the land, seas, mountains, etc. If
all this energy were to be absorbed completely, the earth would gradually become hotter
and hotter. But actually, the earth both absorbs and, simultaneously releases it in the form
of infrared waves (which cannot be seen by our eyes but can be felt as heat, for example
the heat that you can feel with your hands over a heated car engine). All this rising heat is
not lost to space, but is partly absorbed by some gases present in very small (or trace)
quantities in the atmosphere, called GHGs (greenhouse gases).
Greenhouse gases (for example, carbon dioxide, methane, nitrous oxide, water
vapour, ozone), re-emit some of this heat to the earth's surface. If they did not perform
this useful function, most of the heat energy would escape, leaving the earth cold (about -
18 ºC) and unfit to support life.
Greenhouse Gases covered by the Kyoto Protocol
Carbon dioxide (CO2)
Methane (CH4)
Nitrous Oxide (N2O)
Hydro fluorocarbons (HFCs)
Per flourocarbons (PFCs)
Sulphur hexafluoride (SF6)

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However, ever since the Industrial Revolution began about 250 years ago, man-made
activities have added significant quantities of GHGs to the atmosphere. The atmospheric
concentrations of carbon dioxide, methane, and nitrous oxide have grown by about 31%,
151% and 17%, respectively, between 1750 and 2000.
The principal reason for the mounting thermometer is a century and a half of
industrialization: the burning of ever-greater quantities of oil, gasoline, and coal, the
cutting of forests, and the practice of certain farming methods.
These activities have increased the amount of "greenhouse gases" in the atmosphere,
especially carbon dioxide, methane, and nitrous oxide. Such gases occur naturally -- they
are critical for life on earth; they keep some of the sun's warmth from reflecting back into
space, and without them the world would be a cold and barren place. But in augmented
and increasing quantities they are pushing the global temperature to artificially high
levels and altering the climate. The 1990s appear to have been the warmest decade of the
last Millennium, and 1998 the warmest year.
The average sea level rose by 10 to 20 cm during the 20th century, and an additional
increase of 9 to 88 cm is expected by the year 2100. (Higher temperatures such countries
as Bangladesh, cause the disappearance of some nations entirely (such as the island state
of the Maldives), foul freshwater supplies for billions of people, and spur mass
migrations.
Agricultural yields are expected to drop in most tropical and sub-tropical regions -- and in
temperate regions, too, if the temperature increase is more than a few degrees C. Drying
of continental interiors, such as central Asia, the African Sahel, and the Great Plains of
the United States, is also forecast. These changes could cause, at a minimum, disruptions
in land use and food supply. And the range of diseases such as malaria may expand.
Global warming is a "modern" problem -- complicated, involving the entire world,
tangled up with difficult issues such as poverty, economic development, and population
growth up with difficult issues such as poverty, economic development, and population
growth. Dealing with it will not be easy. Ignoring it will be worse.

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Variations of the Earth's surface temperature for the past 140 years
The Earth s surface temperature is shown year by year (red bars) and approximately
decade by decade (black line, a filtered annual curve suppressing fluctuations below near
decadal time-scales). There are uncertainties in the annual data (thin black whisker bars
represent the 95% confidence range) due to data gaps, random instrumental errors and
uncertainties, uncertainties in bias corrections in the ocean surface temperature data and
also in adjustments for urbanization over the land. Over both the last 140 years and 100
years, the best estimate is that the global average surface temperature has increased by
0.6 ± 0.2 °C.
THE UNFCCC & THE KYOTO PROTOCOL
Increasing scientific evidence of human interference with the global climate system,
along with growing public concern about the environment, pushed climate change onto
the political agenda in the mid-1980s. In 1988, the United Nations Environment
Programme (UNEP) and the World Meteorological Organization (WMO) established the
Intergovernmental Panel on Climate Change (IPCC) to provide policymakers with
authoritative scientific information. The IPCC, consisting of hundreds of leading
scientists and experts on global warming, was tasked with assessing the state of scientific
knowledge concerning climate change, evaluating its potential environmental and
socioeconomic impacts, and formulating realistic policy advice.
Two years later in 1990, the IPCC published a report concluding that the growing
accumulation of human-made greenhouse gases in the atmosphere would enhance the
greenhouse effect, resulting on average in an additional warming of the Earth s surface
by the next century, unless measures were adopted to limit emissions. The report
confirmed that climate change was a threat and called for an international treaty to
address the problem. Later that same year, the Second World Climate Conference echoed
the same call.

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The United Nations General Assembly responded by formally launching negotiations on
a framework convention on climate change and establishing an Intergovernmental
Negotiating Committee to develop the treaty. Negotiations to formulate an international
treaty on global climate protection began in 1991 and resulted in the completion, by May
1992, of the United Nations
Annex 1 Country Parties
Developed countries.
Adopt policies and measures to limit their anthropogenic emissions of GHGs and
protect/enhance their GHG sinks and reservoirs to demonstrate that they are
taking the lead in modifying longer-term trends.
Australia Netherlands
Austria New Zealand
Belarus Norway
Belgium Poland
Bulgaria Portugal
Canada Romania
Croatia Russian Federation
Czech Republic Slovakia
Denmark Slovenia
Estonia Spain
European Community Sweden
Finland Switzerland
France Turkey
Germany Ukraine
Greece
United Kingdom of Great
Britain and Northern Ireland
Hungary United States of America
Iceland Lithuania
Ireland Luxembourg
Italy Monaco
Japan
Latvia
Liechtenstein

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Annex 2 Country Parties
Under Article 4.2 of the UNFCCC, developed country parties included in Annex II
(Annex 1 countries minus the economies in transition) have the following additional
commitments:
Provide new and additional financial resources to meet the agreed full costs
incurred by developing country Parties in complying with their obligations under
Article 12.
Provide financial resources, including transfer of technology to meet the agreed
full incremental costs of measures to be undertaken by developing country Parties
under Article 4.
Promote, as appropriate, the transfer of, or, facilitate and finance access to,
environmentally sound technologies and know-how to other Parties, particularly
the developing ones to enable them to implement the provisions of the
Convention.
Afghanistan Cameroon Egypt
Albania Cape Verde El Salvador
Algeria
Central African
Republic
Equatorial
Guinea
Angola Chad Eritrea
Antigua and
Barbuda
Chile Ethiopia
Argentina China Fiji
Armenia Colombia
The former
Yugoslav
Republic of
Macedonia
Azerbaijan Comoros Gabon
Bahamas Congo Gambia
Bahrain Cook Islands Georgia
Bangladesh Costa Rica Ghana

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Barbados Cuba Grenada
Belize Cyprus Guatemala
Benin Côte d'Ivoire Guinea
Bhutan
Democratic
People's
Republic of
Korea
Guinea-Bissau
Bolivia
Democratic
Republic of the
Congo
Guyana
Bosnia and
Herzegovina
Djibouti Haiti
Botswana Dominica Honduras
Brazil
Dominican
Republic
India
Burkina Faso Ecuador Indonesia
Burundi Cambodia
Iran (Islamic
Republic of)
Israel Mexico
Republic of
Korea
Jamaica
Micronesia
(Federated
States of)
Republic of
Moldova
Jordan Mongolia Rwanda
Kazakhstan Morocco
Saint Kitts and
Nevis
Kenya Mozambique Saint Lucia
Kiribati Myanmar
Saint Vincent
and the
Grenadines
Kuwait Namibia Samoa
Kyrgyzstan Nauru San Marino
Lao People's
Democratic
Republic
Nepal
Sao Tome and
Principe
Lebanon Nicaragua Saudi Arabia
Lesotho Niger Senegal

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MARKETING STRAGIES

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Chapter 6
6.0.0 Market segmentation
6.1.0 Target Segment
6.2.0 Product Life Cycle
6.3.0 Marketing Strategies

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Marketing Mix Used During The Project:-
Market Segmentation: -
Any market is made up of several sub markets, or sub groups of
consumers distinguished from one another from their varying needs and buyer s
behavior.
It is feasible to disaggregate the consumers into segments into such
a manner that it needs characteristics and buying behavior the members would vary
significantly among or across segment but would be homogenous into each segment
Market Segmentation for CDM: -
Basically our market segment was Non
conventional energy sectors which is widely divided into
Non-Conventional Energy Sectors
Target Segment: -
Through market segmentation a firm divides a market into many
segment and all these segments need not form its target market. Target market signifies
only those segments that it wants to adopt as its market. A selection is thus involved in it.
In choosing the target market firm basically carries out an evaluation of various segments
and selects those segments that are appropriate to it.
Since we were working in Suzlon Energy Ltd our target segment
was wind turbine investors, which were the existing customers of Suzlon.
Hydro Wind Solid
waste
Fuel
S/Wing
NuclearBio
Gas

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Product Life Cycle: -
Product passes certain distinct stages during its life and these
stages are called product life cycle.
There are four distinct stages in product life cycle
Market Pioneering Stage (introduction)
Market Growth Stage
Market Maturity Stage
Market Decline Stage
a) Market Pioneering Stage (introduction):-
During market pioneering stage the product is
in introductory stage at this stage there may not be ready market for the product sales are
low, the product undergoes teething troubles, demand has to be created or developed and
the customers have to be promoted to try out the product.
b) Market Growth Stage:-
During the market growth stage demand for the product
increases and size of the market grows, pioneers sales and profit grows up during this
time competitors may increase
c) Market Maturity Stage: -
In the market maturity stage demand tends to reach saturation
point and there is enough supply from several competing sources Pioneering may try out
various packaging, modifications and promotional deals and makes special offers to new
market segments so that I has sales volumes do shrinks. Long term and short term
marketing plans are implemented so as to prolong the maturity stage.
d) Market Decline Stage: -
In the decline stage sales begin to fall demand for the product
shrinks probably due to new and functionally advanced products being available into
market. Firms do perceive in this stage the impending total decline stage and prepare for
a gradual phasing out of the product. Successful firm do keep new products ready in que
to fill in the vacuum created by the decline of existing product.

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As per the Kyoto protocol signed in 1997 the first crediting period is fro 2008 to2012 and
most of the Annex I countries have started to buy CER s from Annex II countries to
fulfill their commitment given to UNFCCC.
So in India the CDM market is just at the beginning stage and it is going to grow in
coming future so we can say that CDM market is going to be a boom in near future.
During our project in first stage we have created awareness about CDM concept
and in the latter half we have targeted customers in that particular segment by
executing deals
Marketing strategy: -
Marketing strategy is a complete and unbeatable plan designed
specifically for attaining marketing objectives of the firm for the business unit. Marketing
objectives indicate what the firm wants to achieve and marketing strategy provides design
for achieving them.
Right now Senergy Global is concentrating on Wind Power
Sector, because all the wind power are eligible to get CDM benefit and they form the
ready market for Senergy Global through the project Suzlon also tries to give extra
benefits to the existing customer for customer retention.
In current situation Senergy Global is only concentrating on
Suzlons existing clients for creating its reliable brand in CDM market.
In future Senergy Global is also going to target other non-conventional energy sector for
CDM projects to extend their arm of action.
Introd.
Growth
Maturity
Decline
Time
S
A
L
E

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RESEARCH METHODOLOGY

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Chapter 7
7.0.0 Research Methodology
7.1.0 Type of Questions
7.1.1 Objective of study
7.1.2 Secondary Data

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RESEARCH METHODOLOGY
PRIMARY SOURCE
Definition:-
Research is a careful or critical inquiry or examination in seeking facts or principles,
diligent investigation in order to ascertaining something. The process in which data/facts
is collected to solve the problem in a most effective manner is known as Research
Methodology.
The data, which a researcher collects, is divided into two types, which are based on
nature of collecting data. They are as follows: -
PRIMARY DATA:
It is the method in which the data is collected by on field research. These are the data
collected or gathered specially for the project in hand. The sources of primary research
are
Personal Interviews
Questionnaire Interviews
Telephonic Interviews
Survey Method
Observations
COLLECTION OF DATA THROUGH QUESTIONNAIRES METHOD:
This method of data collection is quite popular, particularly in case of big enquiries. It is being
adopted by private individuals, research workers, private and public organizations and even by
governments. In this method, a questionnaire is sent to the persons concerned with a request to
answer the questions and return questionnaire. A questionnaire consists of a number of
questions printed or typed in a definite order on a form or set of forms.
Our questionnaire was of following type
Structured-non-disguised

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A structured questionnaire is a formal list of questions framed to get the facts. The
interviewer asks the questions strictly in accordance with a pre-arranged order.
.
Structured-non-disguised - A structured-non-disguised questionnaire is one
where the listing of questions is in a pre-arranged order and where the object
of enquiry is revealed to the respondent.
TYPES OF QUESTIONS
In our research we have Open ended questions, Dichotomous questions& Multiple-
choice questions for our questionnaire.
And their details are as follows
The second important aspect in the designing of a questionnaire is to decide which types
of questions are to be used. Questions can be classified in various ways. One way of
classification is as follows
1. Open ended questions An open-ended or simply open or free answer
question gives the respondent complete freedom to decide the form, length and
detail of the answer. Open questions are preferred when the researcher is
interested in knowing what is uppermost in mind of the respondent.
However, open questions pose certain problems. At the time of actual interview, it
becomes difficult for the interviewer to note down the respondent s answer
verbatim.
2. Dichotomous questions a dichotomous question has only two answers in the
form yes or no , true or false , use or do not use etc. There cannot be a
third answer. However, in some cases, there may be a third answer, which may
come from those who do not want to take a definite stand one-way or other.
3. Multiple-choice questions in this type the respondent is offered two or more
choices. The marketing researcher exhausts all the possible choices and the
respondent has to indicate which one is applicable in his case.
OBJECTIVES OF THE STUDY:-
a. To assess services provided by Suzlon Energy.
b. To know about the general awareness about CDM.
c. Most preferred sources of information.
One of the objectives for carrying out survey is to assess the conditions of the services
provided by the Suzlon Energy. Senergy Global is sister concern of Suzlon Energy hence
a person who is satisfied by the services of Suzlon will only be willing to go with
Senergy Global.

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SECONDARY DATA:-
The secondary data are those which have already been collected by someone else and
which have already been passed through the statistical process. When the researcher
utilizes secondary data, then he has to look into various sources from where he can obtain
them. In this case he is certainly not confronted with the problems that are usually with
the collection of original data. Secondary data may either be published data or
unpublished data. Usually published data are available in:
1. Various publications of the central, state or local governments;
2. Various publications of foreign governments or of international bodies and their
subsidiary organizations;
3. Technical and trade journals;
4. Books, magazines and newspapers;
5. Reports and publications of various associations connected with business and
industry, banks, stock exchanges, etc.;
6. Reports prepared by research scholars, universities, economists, etc. in different
fields.
7. Public records and statistics, historical documents, and other sources of published
information.
In case of our project the main sources of secondary data were from
Company existing data,
Internet ,
Technical and trade journals.
Samples:
Samples considered from universe were from the Non-conventional Energy sector.
Sample Size:
Sample size considered for our project was actually from the existing customers of
Suzlon Energy Ltd. which was around Fifty.
Sampling Techniques:
Sampling technique used by us was Deliberate Sampling since the samples were
selected from wind power sector and that too the existing clients of Suzlon Energy Ltd.

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Some of the secondary data collected from Internet is given below-
A. (Kinds of wind project in India sector wise)
KIND OF CDM PROJECTS IN INDIA
4% 2% 7%
44%13%
14%
7%
9%
HFC BIOMASS
WIND HYDRO
BIOGAS SOLAR
GAS TO ENERGY OTHERS
B. (Market Share of Suzlon in India)

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C. (Market Share of wind farms in 2006)
TOP TEN WTG SUPPLIERS IN
WORLD,IN 2006
27.90%
17.70%
13.20%
12.90%
6.10%
5.50%
3.10%
2.60%
2.10%
2%
5%
VESTAS GE WIND ENERCON
GAMESA SUZLON SIEMENS
REPOWER NORDEX ECOTECNIA
MITSUBISHI OTHERS

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UNITED NATIONS
FRAMEWORK FOR
CONVENTION ON CLIMATE
CHANGE

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Chapter 8
8.0.0 United Nation Framework For Convention on Climate Change
8.1.0 Kyto Protocol
8.1.1 International Emission Trading (IET)
8.1.2 Joint Implementation (JI)
8.1.3. Clean Development Mechanism (CDM)
8.1.4 Activities Implementation Jointly. (AIJ)
8.2.0 Types OF Eligible Projects

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UNITED NATIONS FRAMEWORK FOR CONVENTION ON CLIMATE
CHANGE.
The UNFCCC was opened for signature at the UN Conference on Environment and
Development (the Earth Summit) in Rio de Janeiro, Brazil, in June 1992, and entered into
force in March 1994. The Convention sets an ultimate objective of stabilizing
atmospheric concentrations of greenhouse gases at safe levels. Such levels, which the
Convention does not quantify, should be achieved within a time frame sufficient to allow
ecosystems to adapt naturally to climate change, to ensure that food production is not
threatened and to enable economic development to proceed in a sustainable manner. To
achieve this objective, all countries have a general commitment to address climate
change, adapt to its effects, and report their actions to implement the Convention. As of
December 2001, the Convention currently has received 186 instruments of ratification.
The Convention divides countries into two groups: Annex I Parties, the industrialized
countries who have historically contributed the most to climate change, and non-Annex I
Parties, which includes primarily the developing countries. The principles of equity and
common but differentiated responsibilities contained in the Convention require Annex I
Parties to take the lead in returning their greenhouse gas emissions to 1990 levels by the
year 2000. They must also submit regular reports, known as national communications,
detailing their climate change policies and programs, as well as annual inventories of
their GHG emissions.
KYOTO PROTOCOL.
The Kyoto Protocol was adopted in December 1997. The Protocol creates legally binding
obligations for 38 industrialized countries, including 11 countries in Central and Eastern
Europe, to return their emissions of GHGs to an average of approximately 5.2 percent
below their 1990 levels as an average over the period 2008-2012.
The targets cover the six main greenhouse gases: carbon dioxide, methane, nitrous
oxide; hydro fluorocarbons (HFCs); per fluorocarbons (PFCs); and sulphur hex
fluoride. The Protocol also allows these countries the option of deciding which of the six
gases will form a part of their national emissions reduction strategy. Some activities in
the land-use change and forestry sector, such as deforestation and reforestation, which
emit or absorb carbon dioxide from the atmosphere, are also covered.
Negotiations continued after Kyoto to develop the Protocol s operational details. While
the Protocol identified a number of modalities to help Parties reach their targets, it does
not elaborate on the specifics. After more than four years of debate, governments finally
in 2001 agreed to a comprehensive rulebook the Marrakech Accords on how to
implement the Kyoto Protocol. The Accords also intend to provide governments with
sufficient clarity to consider ratification.

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The Protocol establishes three cooperative mechanisms designed to help industrialized
countries (Annex I Parties) reduce the costs of meeting their emissions targets by
achieving emission reductions at lower costs in other countries than they could
domestically.
International Emission Trading (IET)
Joint Implementation (JI)
Clean Development Mechanism (CDM)
Activities Implementation Jointly.(AIJ)
(A) International Emission Trading (IET)
International emission trading permits countries to transfer parts of their allowed
emissions ( assigned amount units ).An emission trading is a market-driven means of
lowering the cost of reducing greenhouse gas emissions. By putting a market value on
emissions reductions, emissions trading gives companies a positive incentive to reduce
emissions. Emissions trading transfers certified emissions reduction credits from sellers
who are able to reduce emissions cheaply to buyers who have only limited options or
who would incur higher capital investment costs for reducing their own emissions
relative to the cost of purchasable credits. In this win-win transaction, sellers make a
profit and buyers are able to apply the credits to their emissions reductions targets and
meet their own or regulated emissions reduction targets. Companies are also better able to
promote economic efficiency and better resource planning.
Emissions trading give businesses greater flexibility in achieving their emissions
reduction targets. Because this type of trading provides profits to sellers and reduces costs
for buyers, businesses prefer this approach to legislation, which can be difficult and
expensive to comply with and implement. As well, the uniform nature of legislation and
its focus on point sources, rather than mobile and area sources may not effectively
address emissions created by certain sources or industry sectors. However, the extent to
which industry will reduce emissions without legislation remains in question, as the most
successful emissions trading market, CO2, is largely due to legislation that enforces
emissions limits and imposes penalties for non-compliance.

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(B) Joint Implementation (JI)
Joint implementation allows countries to claim credit for emission reductions that arise
from investment in other industrialized countries, which result in a transfer of equivalent
emission reduction units between the countries.
Joint implementation" is a Programme under the Kyoto Protocol that allow industrialized
countries to meet part of their required cuts in greenhouse-gas emissions by paying for
projects that reduce emissions in other industrialized countries. In practice, this will likely
mean facilities built in the countries of Eastern Europe and the former Soviet Union -- the
"transition economies" -- paid for by Western European and North American countries.
The sponsoring governments will receive credits that may be applied to their emissions
targets; the recipient nations will gain foreign investment and advanced technology (but
not credit toward meeting their own emissions caps; they have to do that themselves).
The system has advantages of flexibility and efficiency. It often is cheaper to carry out
energy-efficiency work in the transition countries, and to realize greater cuts in emissions
by doing so.
The atmosphere benefits wherever these reductions occur. The operation of the joint
implementation mechanism is similar to that of the "clean development mechanism" and
similarly complicated. To go ahead with joint implementation projects, industrialized
countries must meet requirements under the Protocol for accurate inventories of
greenhouse-gas emissions and for detailed registries of emissions "units" and "credits"
(steps that also are required for the international trading of emissions on the "carbon
market"). If these requirements are met, countries may carry out projects and receive
credits beginning in 2008.
(C) Clean Development Mechanism (CDM)
The Clean Development Mechanism (CDM) is an emissions trading mechanism between
industrialized and developing countries that allows industrialized countries to invest in
low cost emissions reduction projects in developing countries and to earn credits for the
emissions reductions that result. These credits from climate-friendly sustainable
development projects can be applied against corporate and national emissions reduction
targets as set out in the Kyoto Protocol. The benefits of these investments will encourage
developing countries to become fully engaged in climate change initiatives.
Under Article 12 of the Kyoto Protocol, the Clean Development Mechanism has three
goals:
To assist in the achievement of sustainable development in developing
countries that support initiatives to slow climate change.
To contribute toward meeting the overall emission reduction targets outlined
in the Kyoto Protocol.
To help industrialized countries meet their emissions reduction targets.

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CDM initiatives can be either bilateral or multilateral, project-based collaborations
between industrialized and developing nations. The CDM is the only Kyoto Mechanism
that permits a transfer of credits from developing countries not bound by the Kyoto
Protocol to governments seeking to meet Kyoto obligations. As well, it is the only
mechanism that can be implemented for credit immediately. Other Kyoto Mechanisms do
not provide credits prior to 2008.
CDM allows emission-reduction projects that assist in creating sustainable development
in developing countries to generate certified emission reductions (cers) for use by the
investor. The mechanisms give countries and private sector companies the opportunity to
reduce emissions anywhere in the world wherever the cost is lowest and they can then
count these reductions towards their own targets.
Through emission reduction projects, the mechanisms could stimulate international
investment and provide the essential resources for cleaner economic growth in all parts of
the world. The CDM, in particular, aims to assist developing countries in achieving
sustainable development by promoting environmentally friendly investment from
industrialized country governments and businesses.
D) Activities Implemented Jointly. (AIJ)
Activities Implemented Jointly allows countries to claim credit for emission reductions
that arise from investment in other industrialized countries, which result in a transfer of
equivalent emission reduction units between the countries.
Activities Implemented Jointly is a Program under the Kyoto Protocol that allow
industrialized countries to meet part of their required cuts in greenhouse-gas emissions by
paying for projects that reduce emissions in other industrialized countries.
The sponsoring governments will receive credits that may be applied to their emissions
targets. The system has advantages of flexibility and efficiency. It often is cheaper to
carry out energy-efficiency work in the transition countries, and to realize greater cuts in
emissions by doing so.

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Types of Eligible Projects:
There are many opportunities for developed or developing countries industry, non-
governmental organizations and all levels of government to get involved in CDM
projects. Projects might include:
Renewable Energy
Small-scale hydro-power
Biomass fuel sources, such as anaerobic digesters
Wind energy
Solar photovoltaic and solar thermal technologies
Irrigation using wind pumps
Fuel Switching
Cogeneration technologies
Recovery and use of coal bed methane
Fuel wood gasification with pulp residues
Alternative combustion technologies
Biogases-based electricity cogeneration.
Industrial Applications
Efficiency improvements in equipment
Energy-saving processes
Use of zero-emission fuel cells
Electricity production and distribution
Forestry
Biodiversity protection through sustainable forest management
Sustainable forestry
Silvi culture activities and community woodlots
Agriculture
Developing biomass fuel sources
Soil tillage alternatives and sustainable agriculture
Agro-forestry projects
Flood control activities
Waste management activities

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Annex I Parties must refrain from using CERs generated through nuclear energy to meet
their targets. In addition, for the first commitment period (2008-2012), the only sink
projects allowed are those involving afforestation or reforestation, and Annex I Parties
can only add CERs generated from sink projects to their assigned amounts up to 1% of
their baseline emissions for each year of the commitment period. Further Guidelines for
carbon sink projects will be developed to ensure they are environmentally sound.
In order to make small projects competitive with larger ones, the Marrakech Accords
establish a fast track for small-scale projects with simpler eligibility rules renewable up
to 15 MW, energy efficiency with a reduction of consumption either on the supply or the
demand side of up to 15 giga watt-hours/yr, and other projects that both reduce emissions
and emit less than 15 kilotons of CO2 equivalent annually. The Executive Board has been
tasked with defining modalities and procedures for the fast track, and will submit them to
the Eighth Conference of the Parties (COP 8), to be held in New Delhi in October 2002.
The Executive Board
The CDM is supervised by an Executive Board, which itself operates under the authority
of the Parties. The Executive Board is composed of 10 members, including one
representative from each of the five official UN regions (Africa, Asia, Latin America and
the Caribbean, Central and Eastern Europe, and OECD), one from the small island
developing states, and two each from Annex I and non-Annex I Parties. The Executive
Board held its opening meeting at the Marrakech talks in November 2001, marking the
launch of the CDM.
The Executive Board will accredit independent organizations known as operational
entities that will validate proposed CDM projects, verify the resulting emission
reductions, and certify those emission reductions as CERs. Another key task is the
maintenance of a CDM registry, which will issue new CERs, manage an account for
CERs levied for adaptation and administrative expenses, and maintain a CER account for
each non-Annex I Party hosting a CDM project.
Project Identification and Formulation
The first step in the CDM project cycle is the identification and formulation of potential
CDM projects. A CDM project must be real, measurable and additional. To establish
additionally, the project emissions must be compared to the emissions of a reasonable
reference case, identified as the baseline. The project participants according to approved
methodologies on a project-specific basis establish the baseline. These baseline
methodologies are being developed based on the three approaches in the Marrakech
Accord:

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CDM PROJECT CYCLE

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Chapter 9
9.0.0 Project cycle for the CDM
9.1.0 CDM and wind Project
9.1.1 Types of Wind Turbines:
9.1.2 Sizes of Wind Turbines
9.1.3 Construction of Wind Turbine

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Project cycle for the CDM:
CDM PROJECT CYCLE
HOST INVESTOR
Project Development
Design & Financing
Monitoring
Executive Board Operational Entity
Validation /
Registration
Verification
Certification
Certified
emission
reductions
(CERs)

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The CDM project cycle as shown on the figure has seven basic stages: project design
and formulation, national approval, validation and registration, project finance,
monitoring, verification/certification and issuance of CERs. The first four are performed
prior to the implementation of the project, while the latter three are performed during the
lifetime of the project.
Existing actual or historical emissions;
Emissions from a technology that represents an economically
attractive investment; or,
The average emissions of similar project activities under taken in the previous five
years under similar circumstances and whose performance is among the top 20% of their
category. CDM projects must also have a monitoring plan to collect accurate emissions
data. The monitoring plan, which constitutes the basis of future verification, should
provide confidence that the emission reductions and other project objectives are being
achieved and should be able to monitor the risks inherent to baseline and project
emissions.

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The monitoring plan can be established either by the project developer, or by a
specialized agent. The baseline and monitoring plan must be devised according to an
approved methodology. If the project participants prefer a new methodology, it must be
authorized and registered by the Executive Board. The project participants must choose
whether the crediting period shall be 10 years or 7 years with a possibility to be renewed
two times (a maximum of 21 years).
Approval designated national authority (DNA)
All countries wishing to participate in the CDM must designate a National CDM
Authority to evaluate and approve the projects, and serve as a point of contact. Although
the international process has given general guidelines on baselines and additionality, each
developing country has the responsibility to determine the national criteria for project
approval. Together with the investor, the host country must prepare a project design
document with the following structure:
General description of the project;
Description of the baseline methodology;
Timeline and crediting period;
Monitoring methodology and plan;
Calculation of GHG emissions by sources
Statement of environmental impacts;
Stakeholder comments.
The National CDM Authority issues the necessary statements: that the government
participates voluntary in the project and confirms that the project activity assists the host
country in achieving sustainable development.
Validation and Registration (DOE)
A designated operational entity will then review the project design document and, after
public comment, decide whether or not it should be validated. These operational entities
will typically be private companies such as auditing and accounting firms, consulting
companies and law firms capable of conducting credible, independent assessments of
emission reductions. If validated, the operational entity will forward it to the Executive
Board for formal registration.

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Monitoring, Verification and Certification
The carbon component of a mitigation project cannot acquire value in the international
carbon market unless submitted to a verification process designed specifically to measure
and audit the carbon component.
Therefore, once the project is operational, participants prepare a monitoring report,
including an estimate of CERs generated, and submit it for verification by an operational
entity.
Verification is the independent ex-post determination by an operational entity of the
monitored reductions in emissions. The operational entity must make sure that the CERs
have resulted according to the guidelines and conditions agreed upon in the initial
validation of the project. Following a detailed review, an operational entity will produce a
verification report and then certify the amount of CERs generated by the CDM project.
Certification is the written assurance that a project achieved the reductions as verified.
The certification report also constitutes a request for issuance of CERs. Unless a project
participant or three Executive Board members request a review within 15 days, the
Executive Board will instruct the CDM registry to issue the CERs.
National Value and Benefits
The basic principle of the CDM is simple: developed countries can invest in low-cost
abatement opportunities in developing countries and receive credit for the resulting
emissions reductions, thus reducing the cutbacks needed within their borders. While the
CDM lowers the cost of compliance with the Protocol for developed countries,
developing countries will benefit as well, not just from the increased investment flows,
but also from the requirement that these investments advance sustainable development
goals. The CDM encourages developing countries to participate by promising that
development priorities and initiatives will be addressed as part of the package. This
recognizes that only through long-term development will all countries be able to play a
role in protecting the climate.
From the developing country perspective, the CDM can:
Attract capital for projects that assist in the shift to a more prosperous but less carbon-
intensive economy;
Encourage and permit the active participation of both private and public sectors;
Provide a tool of technology transfer, if investment is channeled into projects that
replace old and inefficient fossil fuel technology, or create new industries in
environmentally sustainable technologies; and,
Help define investment priorities in projects that meet sustainable development goals.

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Specifically, the CDM can contribute to a developing country s sustainable
development objectives through:
Transfer of technology and financial resources;
Sustainable ways of energy production;
Increasing energy efficiency & conservation;
Poverty alleviation through income and employment generation; and
Local environmental side benefits
The drive for economic growth presents both threats and opportunities for sustainable
development. While environmental quality is an essential element of the development
process, in practice, there is considerable tension between economic and environmental
objectives. Increased access to energy and provision of basic economic services, if
developed along conventional paths, could cause long-lasting environmental degradation
both locally and globally. But charting a different course and providing the technological
and financial assistance to follow it could avoid many potential problems.
UNFCCC FUND 2%
Out of the total revenue generated from CDM projects UNFCCC takes a share of 2%of it
and is put as an fund used for creating awareness regarding Green House Gases Global
Warming and its effect on the enviourment.
It also utilizes this fund as a relief fund for suffers of natural calamities such as Tsunami,
Draught, Cyclone and Floods etc.
UNFCCC also runs its separate department for CDM where project Registration,
Verification and Issuance etc is carried out. The activities of these offices are carried out
from this fund.
CDM AND WIND PROJECT
Wind is a form of solar energy. The uneven heating of the atmosphere by the sun, the
irregularities of the earth s surface, and rotation of the earth cause winds. Wind flow
patterns are modified by the earth's terrain, bodies of water, and vegetation. Humans use
this wind flow, or motion energy, for many purposes: sailing, flying a kite, and even
generating electricity
The terms wind energy or wind power describes the process by which the wind is used to
generate mechanical power or electricity. Wind turbines convert the kinetic energy in the
wind into mechanical power. This mechanical power can be used for specific tasks (such
as grinding grain or pumping water) or a generator can convert this mechanical power
into electricity

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So how do wind turbines make electricity? Simply stated, a wind turbine works the
opposite of a fan. Instead of using electricity to make wind, like a fan, wind turbines use
wind to make electricity. The wind turns the blades, which spin a shaft, which connects to
a generator and makes electricity. Take a look inside a wind turbine to see the various
parts. View the wind turbine animation to see how a wind turbine works.
Types of Wind Turbines:
Modern wind turbines fall into two basic groups: the horizontal-axis variety, as shown in
the photo, and the vertical-axis design, like the eggbeater-style Darrieus model, named
after its French inventor.
Horizontal-axis wind turbines typically either have two or three blades. These three-
bladed wind turbines are operated "upwind," with the blades facing into the wind. The
other common wind turbine type is the two-bladed, downwind turbine. Horizontal axis
turbines are the most common type used today. DOE research focuses on development of
horizontal axis turbines.
Sizes of Wind Turbines
Utility-scale turbines range in size from 350 kilowatts to as large as 2 megawatts. Larger
turbines are grouped together into wind farms, which provide bulk power to the electrical
grid.
Single small turbines, below 350 kilowatts, are used for homes, telecommunications
dishes, or water pumping. Small turbines are sometimes used in connection with diesel
generators, batteries, and photovoltaic systems. These systems are called hybrid wind
systems and are typically used in remote, off-grid locations, where a connection to the
utility grid is not available. Suzlon energy ltd has different wind turbine generators i.e.
350 kilowatt, 600 kilowatt, 1meggawatt, 1.25 megawatt & 2 megawatts.

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Construction of Wind Turbine:
Anemometer:
Measures the wind speed and transmits wind speed data to the controller.
Blades:
Most turbines have either two or three blades. Wind blowing over the blades
causes the blades to "lift" and rotate.
Brake:
A disc brake, which can be applied mechanically, electrically, or hydraulically to
stop the rotor in emergencies.
Controller:
The controller starts up the machine at wind speeds of about 8 to 16 miles per
hour (mph) and shuts off the machine at about 65 mph. Turbines cannot operate at
wind speeds above about 65 mph because their generators could overheat.
Gearbox:
Gears connect the low-speed shaft to the high-speed shaft and increase the
rotational speeds from about 30 to 60 rotations per minute (rpm) to about 1200 to
1500 rpm, the rotational speed required by most generators to produce electricity.
The gearbox is a costly (and heavy) part of the wind turbine and engineers are
exploring "direct-drive" generators that operate at lower rotational speeds and
don't need gearboxes.

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Generator:
Usually an off-the-shelf induction generator that produces 60-cycle AC
electricity.
High-speed shaft:
Drives the generator.
Low-speed shaft
The rotor turns the low-speed shaft at about 30 to 60 rotations per minute.
Nacelle:
The rotor attaches to the nacelle, which sits atop the tower and includes the
gearbox, low- and high-speed shafts, generator, controller, and brake. A cover
protects the components inside the nacelle. Some nacelles are large enough for a
technician to stand inside while working.
Pitch:
Blades are turned, or pitched, out of the wind to keep the rotor from turning in
winds that are too high or too low to produce electricity.
Rotor:
The blades and the hub together are called the rotor.
Tower:
Towers are made from tubular steel (shown here) or steel lattice. Because wind
speed increases with height, taller towers enable turbines to capture more energy
and generate more electricity.
Wind direction:
This is an "upwind" turbine, so-called because it operates facing into the wind.
Other turbines are designed to run "downwind", facing away from the wind.
Wind vane:
Measures wind direction and communicate with the yaw drive to orient the
turbine properly with respect to the wind.
Yaw drive:
Upwind turbines face into the wind; the yaw drive is used to keep the rotor facing
into the wind as the wind direction changes. Downwind turbines don't require a
yaw drive; the wind blows the rotor downwind.
Yaw motor:
Powers the yaw drive.

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SENERGY GLOBAL & ITS
SERVICE

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Chapter 10
10.0.0 Service Provided by Senergy Global
10.1.0 Project Approval Process

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SERVICE PROVIDED BY SENERGY GLOBAL:
According to the rule of Kyoto Protocol Suzlon through its sister concern Senergy
Global, has formulated a novel scheme to provide the financial benefits of carbon
emission reduction to wind energy projects. Suzlon have created various models for
harnessing the CDM revenue, while minimizing the risks involved in CDM project
development and revenue realization.
The major plans of Senergy global provides to the customer are-
Fixed Price method
Success premium method
Requirements of documents for development of PDD for your Wind Project:
The following documents will be required at the first stage for preparation of PDD
1. Copy of decision of the company to invest in wind power project
2. Proof of consideration of CDM as one of the possible revenue stream to mitigate
the generation risks during the repayment period of the project
3. Copies of loan application submitted to financial institutions
4. Copies of financial appraisal / loan sanction letter
5. Project financials proposed by the EPC contractor (cash flow, IRR & DSCR)
6. Copies of Purchase orders to EPC contractor
7. Copies of land acquisition documents
8. Proof of acceptance of Purchase Order by EPC contractor
9. Copies of Power Purchase Agreement / Wheeling Agreement
10. Copies of Commissioning certificate
11. Copies of Operation & Maintenance agreement
12. Micro-site drawings and with metering locations
13. Documents for export of power to the grid (JMR Sheets)
14. Actual project financials (cash flow, IRR & DSCR)
15. Barriers faced by project proponent during implementation of project like-
arranging debt, regulatory risk etc.
Option Customer will Absorb Senergy Global Absorb
Fixed Price plan Validation Fee PDD Development Fee
Project Registration Fee
Annual Verification Fee
ERPA/LegalAgreement Fee
Success Price plan Validation Fee
Project registration Fee
Annual Verification Fee
PDD Development Fee
ERPA/LegalAgreement
Fee.

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PROJECT APPROVAL PROCESS:
Stage 0
MoU between Senergy Global Client
Supply of documents by client
Stage 1
Preparation of PIN - MoEF
Preparation of PDD - UNFCCC
Stage 2
Host Country Approval
(MoEF / Indian DNA)
Stage 3
Project Validation
(DOE DNV / SGS/ TUV/ BVQI)
Stage 4
Submission for Registration
(UNFCCC)
Stage 5
Issuance of CERs
(DOE & UNFCCC)
60 Days
45 Days
0 Days
90 Days**
50 Days
395 Days

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DATA ANALYSIS

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Chapter 11
11.0.0 Data Analysis
11.1.0 Findings
11.2.0 Limitation of Study
11.3.0 Conclusion
11.4.0 Suggestions

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DATA ANALYSIS:-
(A) ANALYSIS FROM QUESTIONNAIRE:
1. Awareness of Clean Development Mechanism in target segment .
On the basis of answers obtained following Bar graph is plotted
From above Bar graph, it is inferred that 74 customers out of 100 are aware of Clean
Development Mechanism.
Hence, here it becomes the responsibility of Suzlon Energy to educate his clients
regarding CDM and help them to reap its benefit.
This shows us awareness of CDM in Target Segment.
0
20
40
60
80
Awareness about CDM
Series1
Yes No

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2. Source of information for CDM
Based on the responses following Bar graph is plotted
0
1
2
3
4
5
Internet Consultant Print media Developer
Source of information
Number of respondent
One comes to know that Print media is strongest source of information. 5 respondent out
of 11 answered that they have obtained information about CDM from print media that is
around 45.45% of person s looks print media as source of information. It is important to
signify that print media includes newspapers, magazines, periodicals, journals and
research studies.
The second source of information is developer from whom the client got his WTG. The
third source of information is from consultants that carry out functions of registering the
client s project with UNFCCC. They work independently and contact various companies,
which have their own WTGs and make them aware of CDM.
The last source information is from Internet only 1 person among 11 has this information
from Internet. Internet is second most preferred source of information after someone got
little insight into the concept.
When one gets information from print media, consultant or from developer he
searches on Internet to get more information about the concept.

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3. Correspondence from Senergy Global.
The responses are plotted as follows
0
1
2
3
4
5
6
7
YES NO
Correspondance from Senergy Global
Number of respondents
Senergy Global has recently started its operations at Pune that is the reason why only
36.36% of respondents are aware of services provided by Senergy Global. With the
passage of time, this figure will increase.
Persons who have been already contacted by Senergy Global are in the process of
registration or they are having some queries regarding CDM.
So Senergy Global should contact more number of customers to increase their
area of operation.

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4.Project other than Wind Mill (WTG) i.e., non-conventional .
The results obtained are plotted as below
Other non conventional energy projects
0
0.5
1
1.5
2
2.5
3
3.5
number of respondents 3 1 0 0
Solar energy Fly ash Biomass
Small hydro
projects
According to assessment the number of clients having other projects apart from
WTGs from this one comes to know that only 3 persons out of 25 are having solar
projects but they are of small capacities. Apart from this, only one client is having fly
ash utilization in tile making.
The reason could be sited as in case of WTG the pay back period is of 5 yrs since
one can show depreciation of up to 80% within first year of operation and rest
20% in coming five years. That is why it is one of the most preferred non-
conventional energy resources for investment.

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5.Future investments in CDM.
0
5
10
15
20
25
YES NO
Likely to invest in CDM
All investors are interested to invest in CDM projects all the respondents answered
yes.
This shows that CDM promises good rate of return, which attracts the investors.
So there is wide scope in near future for CDM projects.

70/83
6.Option accepted by investors.
0
5
10
15
20
Fixed Price option Success fee option
Preffered option
The success fee option is most preferred one since it includes speculation. Success fee
option is mostly suggested to companies having two or more than two WTGs.
Accordingly there is some risk is also attached with it, if the price of CER s fall the
investor has to bear it. However, a chance of it is very less.
Fixed price option is suggested to those investors having small capacity WTG.
Investor will get regular rate of return however the market would be.
It is also noticed that some companies having more than 5 WTGs are willing to
go with fixed price option. The reason for this is that they don t want to bear any
risk for CDM. Fixed price option is hassle free option.

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7.Awareness of services provided by Senergy Global.
The above graph shows that there is very less awareness about Senergy Global and its
service offer in the CDM sector.
So some special effort should be taken by Suzlon and Senergy Global to promote
in the market.
0
50
100
Yes No
Customers aware of services
Provided by SG

72/83
8. Awareness of CERs parking facility provided by Senergy Global.
Parking facility is one of the advanced concepts adapted by CER traders. Senergy
Global in CDM market in current scenario uniquely provides this parking facility.
The bar graph indicates that out of 100 customer of Suzlon, nearly 72 are not aware
of the parking facilities benefit provided by Senergy global.
So it is required for both Senergy global and Suzlon to make aware the customer
about the parking facility for better customer satisfaction so customer will go
with SG.
0
50
100
Yes No
Customers aware of Parking
Facility provided by SG

73/83
FINDINGS:-
It is inferred that 74 customers out of 100 are aware of Clean Development Mechanism.
Hence, here it becomes the responsibility of Suzlon Energy to educate their clients
regarding CDM and help them to reap its benefit.
From survey it comes to know that Print media is strongest source of information. 5
respondent out of 11 answered that they have obtained information about CDM from
print media that is around 45.45% of person s looks print media as source of information.
It is important to signify that print media includes newspapers, magazines, periodicals,
journals and research studies.
The second source of information is developer from whom the client got his WTG. The
third source of information is from consultants that carry out functions of registering the
client s project with UNFCCC. They work independently and contact various companies,
which have their own WTGs and make them aware of CDM.
The last source information is from Internet only 1 person among 11 has this information
from Internet. Internet is second most preferred source of information after someone got
little insight into the concept. When one gets information from print media, consultant or
from developer he searches on Internet to get more information about the concept.
Senergy Global has recently started its operations at Pune that is the reason why only
36.36% of respondents are aware of services provided by Senergy Global. With the
passage of time, this figure increases.
Persons who have been already contacted by Senergy Global are in the process of
registration or they are having some quarries regarding CDM.
The service provide by Suzlon on other projects apart from WTGs comes to know that
only 3 persons out of 25 are having solar projects but they are of small capacities. Apart
from this, only one client is having fly ash utilization in tile making.
The reason could be sited as in case of WTG the pay back period is of 5 yrs since one can
show depreciation of unto 80% with in first year of operation and rest 20% in coming
five years. That is why it is one of the most preferred non-conventional energy resources.
Parking facility is one of the advanced concepts adapted by CER traders. Senergy Global
in CDM market in current scenario uniquely provides this parking facility. The bar graph
indicates that out of 25 customer of Suzlon nearly 16 of are not aware of the parking
facilities benefit provided by Senergy global. So it is required for both Senergy global
and Suzlon to make aware the customer for better customer satisfaction.

74/83
When asked whether you are interested to invest in CDM projects all the respondents
answered yes. This shows that CDM promises good rate of return, which attracts the
investors.
The success fee option is most preferred one since it includes speculation. Success fee
option is mostly suggested to companies having two or more than two WTGs.
Accordingly there is some risk is also attached with it, if the price of CER s fall the
investor has to bear it. However, a chance of it is very less.
Fixed price option is suggested to those investors having small capacity WTG. Investor
will get regular rate of return howsoever the market would be. It is also noticed that some
companies having more than 5 WTGs are willing to go with fixed price option.
It is observed that 44% of customer rates Suzlon s service as good and nearly 40% rated
service as very good and average. So performance of Suzlon is good.

75/83
LIMITATION OF THE STUDY:-
1. It is difficult to know whether willing respondents are truly representative.
2. This method is likely to be the slowest of all.
3. The customers base is very small (Niche) as compare to other sectors of energy.
1. Very less awareness about CDM concept in the Market.
2. Time required for getting revenue through CDM project is more.

76/83
CONCLUSION:-
From the data analyzed, it is inferred that the awareness about CDM in target segment is
not up to the mark and the persons who are aware of this concept come to know about it
only from print media and from other consultancy.
Therefore awareness about CDM should be increased.
It is also inferred that companies are ambitious about the increasing rates of CER s hence
they are going with Success fee option, which involves greater risk factor than fixed fee
option.
New flexible plan should be introduce along with existing plans.
Since all the clients are willing to go with Senergy Global, it could be said that Suzlon
energy services are good and clients are looking forward for some more investment in
Suzlon.
So there is wide scope in near future.
The CDM s objectives of advancing the development goals of developing countries
recognizes that only through long-term sustainable development will all countries be able
to play a role in climate protection.
With thoughtful planning and development of a national CDM strategy, it can also
assist in addressing local and regional environmental problems and in advancing
social goal.

77/83
SUGGESTION:-
As CDM projects are getting positive response from customers
therefore its area of operation should be expanded.
New flexible plan should be introduce along with existing plans.
For solving queries of customers there should be better
communication .
While installing WTG prior information about CDM benefits should
be given to investors that will automatically increase the level of
awareness.
Appropriate follow-up system for customers should be adopted.

78/83
BIBLIOGRAPHY,
QUESTIONNAIRE &
CUSTOMER STATUS STEET

79/83
Chapter 12
12.0.0 Bibliography
12.1.0 Questionnaire
12.2.0 Customer Status Sheet

80/83
BIBLIOGRAPHY
Books:
1. Research methodology By C.R.Kothari
Second Edition (Page 100-104).
2. Marketing research By G.C.Beri.
Second edition (Page 101).
3. Marketing management By Philip Kotler.
12th
edition (Page 256-283).
4. The Economic Times 24th
July 2006.
Websites referred:
1. www.carbonpositive.com
2. www.rtcc.org
3. www.asiacarbon.com
4. www.zenithenergy.com
5. www.adb.org
6. www.enn.com
7. www.pwc.com
8. www.blogs.cgdev.org
9. www.abc.net.au/science/news/stories.
10. www.blonnet.com
11. www.indianwindpower.com
12. www.renewableenergyaccess.com
13. www.cerindia.com
14. www.euets.com
15. www.teriin.org
16. www.unfccc.int/cdm
17. www.gsn-trade.com
18. www.prototypecarbonfund.org
19. www.ifc.org
20. www.cdmwatch.org

81/83
QUESTIONNAIRE
Demography information of Wind farm investors :-
Name of the company: - ________________________________________________
Address: - ____________________________________________________________
____________________________________________________________
____________________________________________________________
Name of Concern Person : _____________________________________________
Designation & Department: ____________________________________________
Domain of Operation: ____________________________________________
Contact Details:-
Telephone Numbers:
Mobil No: ___________________________
Landline: ____________________________
__________________________
E-mail ID: __________________________
Details of Project/ Wind farm:
Location of Wind farm: __________________________________________________
Number of WTG: ________________________________________________
Capacity of Wind farm (Numbers of units generated/ year):
______________________________________________
Distribution Pattern: ________________________________________________

82/83
Questionnaire:
Sr.
No.
Questions: Yes No
1 Are you aware of CDM (Clean Development Mechanism) & CER
(Certified Emission Reduction) concept?
2 Are you aware of CDM & CER Benefits?
3 What was the source of information?
Internet Consultant Journals/Print media
Developer
4 Was there any previous correspondence from Synergy Global?
5 Are you aware of services provided by Synergy Global?
6 Do you have any project other than Wind Mill (WTG) i.e. Non-
conventional?
If yes details: __________________________________
7 Are you aware of CER parking facility provided by Synergy
Global?
8 Would you like to invest in CDM/CER project?
9 Which options are you wiling to accept? / In which option are you
interested?
Fixed Price Contract Success Fee Contract

83/83
Customer Status Sheet:-
Sr.No Name Customer Remarks Capacity
1 Sable Waghire MOU Signed (Fixed) 0.35Mw
2 Chaphalkar Brothers MOU Signed (Fixed) 1.25Mw
3 Jayshree Ploymers MOU Signed (Fixed) 0.60Mw
4 Premier Seals MOU Signed (Fixed) 0.60Mw
5 Pravin Masalewale MOU Signed (Success) 1.25Mw
6 Vajayshree Alloys MOU Signed (Fixed) 0.35Mw
7 Manav Promoters MOU Signed (Success) 1.25Mw
8 G I Energies MOU Signed (Fixed) 0.60Mw
9 Suttati Enterprises Waiting for Client F/b
10 Nanvalakha Translines Decision Pending
11 Rajiv Govind Joshi Done Agreement with PWC
12 Rajmal Lakhichand MOU Signed (Success) 4.0 Mw
13 Accurate Engg Not approach yet
14 Vanaz Engg Pvt. Ltd. Waiting for Client F/b 1.25Mw
15 S G Associates Waiting for Client F/b
16 Dishti Ind. Cant get the app.
17 CTR Ind. Ltd. MOU Signed (Success)Revised 1.25Mw
18 Raj Group Waiting for Client F/b
19 Sahyadri Ind. MOU Signed (Success)Revised 2.5Mw
20 Vaman Presstressing Waiting for Client F/b
21 Shah Promoters
Placed order for 1.25Mw* 4 so all WTG of 8
turbines will
be bundled in a single PDD ( Case will be
handel by K.Patel)
22 Hotel Sheetal MOU Signed (Success) 1.25Mw
23 P. R. Patil
MOU will be singed as per the client
Availability
24 Shraddha Constructions Pvt. Ltd. MOU Signed (Success) 1.25Mw
25 Raj Promoters & Civil Engg. Pvt. Ltd. MOU Signed (Success) 1.25Mw
26 aerolex industries Waiting for Client F/b
27 ZF Steerings Gear(India)Ltd Waiting for Client F/b
28 Hercules(Mumbai) MOU Signed (Fixed for 20 paise) 2.5Mw

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Business development cdm in wind enegry sectorr

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