If you are in any way connected with the industry, you will automatically think of the most commonly used energy sources like electricity, oil or coal. But with the rapid depletion of the world’s natural resources, these sources are getting scarce. It’s time humanity looked for a new, preferably inexhaustible energy source. Impossible? Not at all – wind energy is now on its way in.

After successfully powering many countries to success in the last few centuries, wind energy was almost forgotten until the 1970s, when it came to the fore as a clean, renewable and viable energy source. R&D in Europe and the US point to a further fall in energy costs from wind by about 10-20 per cent between now and 2005.

Global scenario

In Europe, there was over 13,000 MW of wind power online as of January 2001, covering the average domestic electricity consumption of seven million people. There has been 18,000 MW installed globally. Wind already provides power to about 14 percent of Danish electricity consumption, a figure that is expected to increase to at least 16 per cent by 2003. Half of Denmark’s electricity consumption will come from wind by the year 2030, according to the plans of the Danish Government. In the US, California is in the forefront in exploiting wind energy commercially. The spectacular growth in wind energy installations in Germany (1,571 MW), the US (500 MW) and Spain (708 MW) in 1999 shows that it is not going to be very long before wind energy once again becomes a common source of energy.

The domestic scene

In India, non-conventional energy sources are gaining ground in the recent times. Though there was a boom in wind energy capacity creation from 1994-96, thanks to a host of tax sops, only 112 MW capacity was created in 1999. One of the reasons for this fall is the absence of a sound policy with assured market for purchasing wind energy that is generated.

The economics of wind energy

The economics of wind energy has improved tremendously during the past 15 years. According to Danish electrical power companies, the energy cost per kilowatt-hour of electricity from wind is the same as for new coal-fired power stations fitted with smoke scrubbing equipment. As the energy content of wind varies with the cube (i.e. the third power) of the wind speed, the economics of wind energy depends heavily on how windy the site is.  There are many sites in India that provide good scope for generating wind energy cost-effectively. Wind turbines have a design lifetime of 20 years, and annual O&M costs are typically in the region of 3 per cent of the cost of the turbine.

In the present scenario, megawatt-sized windmills seem to offer the best option in terms of cost and returns.

Advantage SMEs

In Denmark, three quarters of the 900 megawatts of wind power capacity is privately owned by individuals and wind energy co-operatives. Indian SMEs can emulate the Danish model by forming co-operatives or joint stock companies to generate wind power for captive consumption. SMEs may also consider shifting the manufacturing facility to or near windy sites, so that energy transmission costs are avoided or substantially reduced.

The following are the likely benefits that would accrue:

• Wind energy is a pollution free and renewable source of energy.
• Attractive fiscal incentives are available for investment in wind energy.
• With privatisation of power generation, conventional power is likely to cost more. The cost of power generated from wind energy projects may be stable even in the medium term.
• Running a wind energy project in tandem with grid power may result in stable, uninterrupted and cheaper power for manufacturing units.
• There will be increased employment generation, greater competitive strength of the
• Smells and wider dispersion of industries.

For SMEs and other industries to enjoy the benefits of wind energy, the government has to take an active role and promote this non-conventional power source.

Here are some ways in which the state can help:

• Commissioning the preparation of model project reports.
• Selection of suitable sites by carrying out feasibility studies.
• Dissemination of information among the target group of industries
• De-politicisation of co-operative institutions.
• Creation of a suitable environment for wind energy co-operatives/generation companies to operate successfully and thrive.

With non-conventional energy gaining ground steadily in other countries, it seems high time India gave more importance to wind energy generation. The models used elsewhere in the world could work as well here, giving SMEs a boost and bringing power costs down substantially.