India - Suzlon, Vestas open 15-MW wind energy account in Kerala

Wind turbine majors Vestas India and Suzlon Energy have signed agreements with the Kerala government for 15 MW wind power project. While Vestas claimed the bigger slice of the wind power pie in the State, Suzlon Energy is slated to be the first to be commissioned in Kerala. "Now that the pact has been signed, we'll be able to get the first 16 turbines commissioned by end of September," Suresh Kumar (deputy general manager, Suzlon Energy) told FE. The company is setting up a 4.8 MW turbine unit at Agali in Palakkad district.
Suzlon has purchased 500 acres of land in Attapadi to set up wind farms totalling 100 mw. Pune-based Suzlon had been in dialogue with the State government for over six years, but the issue had been stuck in a dispute over the wheeling charges. This has been decided at Rs 20 lakh per year. Chennai-based Vestas India, however, is readying to set up a project of double size that of Suzlon Energy at Ramakkalmedu in Idukky district. This is expected to yield 9.8 MW.

Kerala is estimated to have 5000 MW wind power potential, according to Ramesh Kymal, chairman, Indian Wind Turbine Manufacturers Association. Vestas India has installed over 1000 wind turbines across the country. "Monsoons have upset the initial civil works schedule. Still the Kerala project will be ready by December 2007," says Kymal, managing director Vestas India.

How much the wind energy will be priced for the Kerala consumer is the onus of State Electricity Tariff Regulatory Commission. According to the new deal, KSEB is likely to get power from these entrepreneurs at Rs 1.50 per unit for 20 years. The companies spend roughly Rs 5 crore per MW for installing the turbines. Meanwhile, Kerala's thirst for low-cost hydel power is also yet to be quenched. The State government has revived a MoU signed with the Chinese government six years ago to set up 14 mini hydel projects with Chinese technology.

The MoU had been committed to taking up 18 projects. However, only four could be fructuated. The rest had been aborted during the former UDF government's tenure. The LDF government intended to go ahead with these 14 projects, state power minister AK Balan said. These would total to 83.3 MWs, he said. Hydel power costs only 85 paise per unit for production.