Procure Green Power through Wind Group Captive
For many Indian companies, procuring wind power through the group captive mechanism has emerged as a truly feasible and viable option.
Wind power sourced via the group captive avenue is available at an attractive price of less than Rs 5/ kWh, making it already competitive to grid electricity costs. With ever increasing costs of grid power, green power from wind will become only even more economically attractive in future.
With the above definition, it can be seen than by investing a total of 26%, even as a group, your company is eligible for procuring power from a power plant and this will be treated as captive green power generation, providing you with significant benefits in the process.
Today, the group captive concept for wind is being utilized by a number of companies across India moving towards sustainability goals
Why Group Captive? And Why not Open Access?
A consumer buying electricity from inside or outside the state via open access, ends up paying electricity charge to the generator plus the wheeling charges depending upon intra- or inter-state and then the cross-subsidy surcharge. The sum of these three invariably makes open access electricity purchase an unviable option.
Consumers of group captive power need not pay cross-subsidy charges as they are exempted for a captive power plant under section 42 of the Electricity Act, 2003. Adding to this benefit, the electricity duty is also being waived off.
The above two benefits make the group captive route a far more sustainable option to open access. Thus, with much less investments than what your company will have to do for owning a captive power plant, you get benefits similar to owing one.
In summary, through wind group captive, manufacturers and IT companies for whom energy is a major cost, will get green power, reduce or handle their obligations and compliance issues and most importantly have a fixed energy cost for the future.
EAI can provide a complete end-to-end solution to make your company derive the benefits of wind group captive. Starting with understanding of your requirements until putting in an effective monitoring system for your green power consumption, EAI will enable your company to go green smooth and fast.
Our team first acquires a comprehensive understanding of the following:
- Energy Consumption pattern to arrive at monthly/ annual energy requirement.
- Peak power consumption pattern in terms of number of units and number of hours.
- Present billing structure and tariff
- Existing alternatives power sources.
- Prior conditions and constraints such as share holding pattern etc.,
- Structuring the power consumption pattern under group captive arrangement
- Structuring of the share holders agreement
- Drafting of specific criteria for suppliers such as number of projects executed, total wind asset holding and available wind energy for allocation
- Working out and incorporation of monthly/annual energy requirement as a part of RfQ
- Identification of the major wind power suppliers for invitation to submit budgetary offers
Execution of the tender, analysis of quotations and comparative overview of the responses
Evaluation of response to RfQ with emphasis on the following
- Model Tariff calculation based on provided energy requirement
- Sample Monthly energy allocation based on provided energy requirement
- Sample Share Holders Agreement (SHA)
- Sample Power Purchase Agreement (PPA)
- Preparation of prerequisite specifications and finalization of RfP document for the proposed group captive power purchase.
- Technical evaluation of the offer submitted by various parties to ensure their completeness and compatibility as per the requirements
- Authenticate the verity of the claims and commitments put forward by the suppliers.
- Obtaining and negotiating various guarantees.
- Arranging one on one interaction meetings with the supplier to help the client understand the contract details and advice the client on completeness of contract
- Finalization of supplier.
Due diligence and comprehensive vetting of the specifics of SHA and PPA document shall be carried out before the client signs a formal contract.
Regular monitoring of the pattern and volume of wind power wheeled shall be carried out to ensure that power dispatch is in accordance with the group captive contract.
In summary, the Wind Group Captive service of EAI will assist you in the following:
- Assist you in understanding the key benefits of group captive and enable you to do decide on going ahead
- Assist you in every stage of completing the procedures required for procuring group captive wind power – these include assistance in all operational, commercial and technical aspects
- Provide you with monitoring support once you have started procuring wind power, to ensure that all your original goals are met.
Senior Research Analyst
Energy Alternatives India
Mobile: 91 - 90432 39679
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EAI's consulting team has been assisting several organizations in a variety of areas of renewable energy.
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An analysis of Opportunities in the Wind Power Value Chain
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Why EAI for Wind
EAI, along with its partners, has over 100 person years of experience in the wind energy sector
The EAI Wind team has undertaken assignments for not just wind power production, but also for unique opportunities in wind turbine components
Our assignments so far have provided us with hands-on knowledge about the ground realities of wind power in all the major wind power states of India
EAI Wind Consulting Team
Being located in Chennai, the EAI team has the advantage of being in the state (Tamilnadu) that has the largest wind power installed capacity in the country. Our Wind Power Consulting team have been interacting with the key stakeholders in wind energy at both the state and national level for the past many years. In addition, our team’s exceptional tie-ups with technical experts and turbine vendors provide us with unique insights that few, if any, in the country have.
The Research & Consulting Team at Energy Alternatives India comprises professionals from reputed universities such as the IITs and IIMs who have considerable experience in and acquaintance with the Indian renewable energy sector.
The EAI team has undertaken a number of research and consulting assignments spanning the entire spectrum of renewable energy sources. See the profiles of our consulting team here http://www.eai.in/ref/team/team.html
The EAI Expertise
The EAI team has a dedicated focus on the Indian alternative and renewable energy industry. This focus, combined with its experienced team of professionals makes EAI an ideal partner to help your company in benefiting from the opportunities in this industry.