The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.
Discover the best professional documents and content resources in AnyFlip Document Base.
Search
Published by Repro Graphics, 2018-03-20 16:13:56

Regen Infrastructure

Powering India with
Clean Energy
ReGen Infrastructure and Services Pvt Ltd.


Table of Contents
03 Introduction
The Opportunity Investment Rationale
06 About Regen Infrastructure And Services Pvt. Ltd. (RISPL)
Financials
Contract Structure Arrangement with RPPL O&M customers
O&M Revenue
O&M Plans
Risk Analysis
18 Deconstructing O&M
Components of O&M Important Issues in O&M
24 About ReGen Power Pvt. Ltd. (RPPL)
Corporate Structure Professional Management Team Market Position & Financials Milestones
Accreditations
31 ReGen’s Strengths
State-of-the-art Manufacturing Facilities Research & Development
Strong Customer Base
38 Wind Energy Industry - The energy of the future


Introduction
A fantastic investment opportunity in the fast-growing wind energy sector


Introduction - The Opportunity
THE OPPORTUNITY
To acquire majority equity stake in Regen Infrastructure & Services Pvt. Ltd. (RSIPL), a fast growing company in the wind energy sector having long term iden able cash ows, very high EBIDTA margins, no capex requirements and inherent growth prospects
Company Business Capacity
Revenue Margins Contracts Clients
Employees Track Record
Regen Infrastructure and Services Private Limited (RISPL)
To provide operation and maintenance (O&M) services to wind power projects
Current capacity under O&M : 2300 MW +
Future capacity addition: Exclusive right of O&M of all wind power projects to be commissioned by Regen Powertech Pvt Limited (manufacturing capacity : 1000 MW per year).
Average Revenues are Rs. 8 to 9 lacs / MW with escalation of 5% per year
High and growing EBITDA and PAT margins
Typical tenor of O&M Contracts : 10 years (usually renewed by another 10 years)
Marquee Clients, typically Independent Power Producers (IPPs) and cash rich customers looking for Accelerated Depreciation benefits
350+ well trained team managed by professional management with outstanding track record
With 96%+ machine availability on a consistent basis, RISPL has one of the best machine availability track record in the industry
Wind farm at xxx
Supported by the Government’s initiative of adding 175GW by 2022 including 60GW of wind power projects, India’s wind projects installations are expected to increase, benefiting RISPL as
well.
04


INVESTMENT RATIONALE
Long term assured revenue
• RISPL has long term O & M
contracts (10-20 years) with its
customers
• Contracts have pre-agreed
annual escalations to provide hedge against inflation
Diversified Portfolio
• Client Diversification: No single customer of RISPL contributes to more than 10 to 12% of total revenues
• Geographic Diversification : Wind farms are spread across 7 states in India and also in Sri Lanka
Exclusivity
• RISPL is the exclusive O&M contractor for all wind turbines manufactured by RPPL
Long term assured REVENUE
Established TEAM with proven TRACK RECORD
Diversi ed
PORTFOLIO
INVESTMENT
RATIONALE
CONTROL
Deal
Exclusivity
Operating
STRENGTH
• Exclusive right of O&M of all
future wind power projects to
be commissioned by Regen Powertech Pvt Limited, thus, assuring future growth. RPPL has a strong order book and many new deals in the pipeline.
Established Team with proven track record
• RISPL has a strong team with excellent track record of ensuring machine availability
• Team of 350+ has been provided requisite training to deal with various issues/ breakdowns that WECs
may face
Control Deal
• Transfer of project development and execution business to RPPL will eliminate all the uncertainties associated with project development, providing a long term assured revenue stream to RPPL
• Opportunity available is to acquire controlling stake in the company with long term, stable, identifiable cash flows, with inherent growth prospects
Introduction - Investment Rationale
05


About RISPL
Regen Infrastructure and Services Pvt. Ltd. (RISPL) is a leading wind O&M player with long term stable cash ows and strong growth potential
06


About RSIPL
• RISPL is a 100% subsidiary of Regen Powertech Pvt Limited (RPPL)
• RISPL has long-term O&M contracts (typically 10 years, renewed for another 10 years) with customers of RPPL
• O&M scope: scheduled & unscheduled routine maintenance, major maintenance, supply of spare parts & consumables and remedy of all defects to comply with specifications
• RISPL also provides project development, erection and commissioning services to buyers of wind turbines (discussions underway to transfer this business to RPPL)
• All turbines are connected to ensure 24X7 monitoring at customer premises & at the control room in Chennai
• As per the contract terms, RISPL provides machine availability guarantee to customers in the range of 95% to 97% on an annual basis
O&M Bene ts of ReGen Turbines
1
2
3
Regen Infrastructure & Services Pvt. Ltd. (RSIPL) is a fully owned subsidiary of RPPL (ReGen Power Pvt. Ltd.) and provides Opera ons & Maintenance (O&M) services for wind energy projects
Gearless Machines
ReGen has gearless machines which have lower O&M costs
WEC Capacity
Higher MW capacity (1.5) /WEC leads to lower operations cost / MW
Newer Turbines
95% of ReGen’s capacity is < 6 years old leading to lower O&M costs
07


About RISPL - Financials
O&M BUSINESS
CARVED OUT INCOME STATEMENT
Growing revenues and very high EBITDA margin of 59.60%
PLEASE SEND UPDATED FIGURES
18 months to 31st March 2016
80.4
29.5
109.9
-22.6
-
-
-11.5
-11.7
64.1
58.30%
-44
-16.8
-
3.3
Rs. cr
O&M services
O&M warranty period revenue from RPPL
Revenue from operations
Operating expenses
Trading goods
Change in inventories
Employee cost other expenses
EBITDA
EBITDA (%)
Depreciation and amortization Finance cost
Other income
EBT
59.6% EBITDA margin
12 months to 31st March 2017
154.50
-19.6 -
-
-8.3 -8.7
54.1 59.60% -24.4 -25.6 1.1 5.2
20% Revenue Growth
154.5
Revenue (Rs. Cr.)
08




About RISPL - Financials
BALANCE SHEET OF RSIPL
Particulars
Non-current assets
Property, Plant and Equipment Capital work-in-progress Investment Property
Other Intangible assets Financial Assets
Investments
Loans
Other non-current assets Total Non - Current Assets
Current assets
Inventories Financial Assets
Trade receivables
Cash and cash equivalents
Bank balances other than (ii) above Others Current Financial Assets
Other current assets
Total Current Assets
Total Assets
Equity
Equity Share capital
Other Equity
Equity attributable to owners of the Company Total equity
Non-current liabilities
Financial Liabilities Borrowings
Other financial liabilities Provisions
Deferred tax liabilities (Net) Other non-current liabilities Total Non - Current Liabilities
Current liabilities
Financial Liabilities Borrowings Trade payables
Provisions
Other current liabilities
Total Current Liabilities Total Equity and Liabilities
As at
In Rs. lakhs
October 01, 2014
11,009.54 720.41 796.55 30,955.05
6 2,032.72 584.97 46,105.24
8,115.02
10,869.24 294.54 23.21 23,682.32 277.25 43,261.58 89,366.82
3,195.82 1,904.93 5,100.75 5,100.75
146.31 31,000.00 - 986.24
32,132.55
2,020.28 49,686.94 - 426.3 52,133.52 89,366.82
March 31, 2017
March 31, 2016
30,990.31
14,908.74
835
31.18
779.89
786.55
34,131.16
32,301.66
12.01
12.01
5,194.21
4,281.28
20
20
71,962.58
52,341.42
6,480.10
8,688.28
2,946.61
17,692.76
708.43
2,166.35
217.83
201.59
11,016.53
18,400.66
1,546.28
150.13
22,915.78
47,299.77
94,878.36
99,641.19
7,329.15
7,329.15
33,657.31
31,265.10
40,986.46
38,594.25
40,986.46
38,594.25
16,380.00
19,051.90
3,954.95
3,359.70
36.73
22.72
2,285.95
1,177.15
22,657.63
23,611.47
1,898.33
1,972.18
9,426.96
31,271.62
29.93
19.49
19,879.05
4,172.18
31,234.27
37,435.47
94,878.36
99,641.19
09


About RISPL - Contract Structure
CONTRACT STRUCTURE
Key Contract Structure (Current)
Enters into a contract
RPPL RISPL RPPL
Key Contract Structure (Planned)
Enters into a contract
Business Transfer
RISPL
Buyer (AD/IPP)
Buyer (AD/IPP)
• Design
• Manufacturing • Supply
Contract 1 • Project
Development
and Execution Contract 2
• O&M services
>
• Design
• Manufacturing • Supply
Project Development and Execution
O&M Services
• Project development and execution business to be transferred to RPPL – business transfer agreement under discussions
• Pursuant to the business transfer, RISPL would house only the O&M business
• RISPL would therefore have a business model with assured revenue from the existing as well as future
WECs to be commissioned by RPPL
10


FUNCTION
ROLE OF RPPL
About RISPL - Arrangement with RPPL
RSIPL ARRANGEMENT WITH RPPL
The business arrangement between RISPL and RPPL has been running smoothly over many years
• RISPL need not keep inventory of major components at site/wind farms
• RPPL to immediately provide components from its inventory at factory/sites as & when required
Inventory of Major Components
Corrective Maintenance/ Refurbishing/
Major Breakdown
Warranty Period O&M
• RPPL to undertake O&M of all WTGs under warranty period /reimburse any costs incurred by RISPL for servicing warranty period machines
• RPPL to repair/refurbish any major components, at RPPL’s cost, during initial 10 years of WTG life
• RPPL is responsible for implementing required IT systems including SCADA for smooth operations
• RPPL will not charge any cost/overheads to RISPL for shared services / IT systems / SCADA systems
IT System/SCADA
Technology
• RPPL will provide all technological support and inputs for O&M operations
11


About RISPL - O&M Top 20 customers
O&M TOP 20 CUSTOMERS
Long term contracts with marquee clients providing assured, identifiable cash flows with pre-agreed annual
cost escalation
10,00,000 10,00,000 10,00,000 10,00,000 10,40,000 10,50,000 11,96,736 13,00,000 9,56,000
USD 35000 6,21,370 11,00,000 9,50,000 10,39,500 11,00,000 12,90,000 10,00,000 12,00,000 6,48,000 4,32,000 4,14,245
USD 60000
Customer Name
Agreement date
State
WECs
MW
Contract term (Yrs)
Value (Rs./ WEC/ year)
Apr-14
TN
66
99
10
Jan-11
MH
33
49.5
10
Jun-11
TN
67
100.5
10
May-08
KN
28
42
20
Apr-13
May-12
MH
30
45
10
TN
33
49.5
20
Sep-11
TN
17
25.5
10
Aug-12
AP
36
54
10
Sep-08
MH
24
20
Jun-11
Sri Lanka
16
8
12
5
Mar-13
RJ
25
37.5
10
May-10
Sept-09, Aug- 11, May-11
TN
6
9
10
MH
12
18
10
Oct-11
Mar-10
MH
33
49.5
13
TN
11
16.5
20
Oct-12
RJ
13
19.5
12
Nov-10
Apr-10
TN
10
8
15
10
TN
12
10
Mar-12
RJ
10
15
10
Mar-12
RJ
10
15
10
Mar-13
RJ
25
37.5
10
Sri Lanka
07-Oct-10
7
10.5
5
The Tata Power Company
The Tata Power Company
Echanda Urja Private Limited
NSL Renewable Power
ReNew Wind Energy (Rajkot)
NSL Wind Power Company (Phoolwadi)
Gail (India)
Hetero Wind Power
Jindal Steel & Power
Daily Life Renewable Energy Ltd
Clean Wind Power (Devgarh) NuPower Wind Farms Shraddra Energy & Infraproj Bhilwara Green Energy iEnergy Wind Farms (Theni) Orange Renewable
TVH Energy Resource Ambika Cotton Mills Green Infra
Green Infra
Clean Wind Power (Devgarh) Nirmalapura Wind
(Pvt)
12


About RSIPL - O&M Revenue
O&M REVENUE
The Tata Power Company Limited 8.2 Echanda Urja Private Limited 5.5 NSL Renewable Power Private Limited 2.6 ReNew Wind Energy (Rajkot) Pvt Ltd 2.8 NSL Wind Power Company (Phoolwadi) Pvt Ltd 2.8 Gail (India) Ltd 1.6 Hetero Wind Power Limited 3.6 Jindal Steel & Power Limited 1.5 Daily Life Renewable Energy (Pvt) Ltd 1.6 Clean Wind Power (Devgarh) Pvt Ltd 2.1 Nirmalapura Wind Power Pvt Ltd 1.3 NuPower Wind Farms Limited 1.2 Shradda Energy & Infraproj Ltd 1 Bhilwara Green Energy Limited 2.5 I Energy Wind Farms (Theni) Pvt Ltd 1 Orange Renewable Power Private Ltd 1.3 TVH Energy Resource Pvt Ltd 0.8 Ambika Cotton Mills Limited 0.8 Green Infra Wind Farm Assets Ltd 2.5 ITC Limited 0.9 Green Infra Wind Energy Assets 0.9 Grace Infrastructure Pvt Ltd 1.4 Texmo Industries 0.6 Green Infra Wind Energy Ltd 2.9 NSL Wind Power Company (Satara) Pvt Ltd 1.7 NSL Wind Power Company (Kayathar) Pvt Ltd 1.6
O&M revenue (Rs. cr)
18M16
12m FY17
10.6
7
4.9
3.8
3.6
3.4
3.2
2.8
2.7
2.6
2.5
2.4
2
1.9
1.9
1.8
1.5
1.5
1.4
1.2
1.1
1
1
-
0.1
-
0.2
-
-
-
0.1
-
0.4
0.1
13.7
80.4
ReNew Wind Energy (Devgarh) Pvt Ltd ReNew Wind Energy (Rajasthan) Pvt Ltd Green Infra Wind Generation Limited Orange Mamatkheda Wind Pvt Ltd Mytrah Energy (India) Limited
Green Infra Wind Power Limited Matrix Power (Wind) Private Limited Mangalore Energies Private Limited Others (<Rs. 1 cr in both periods) Reported revenue
1.6 1.6 1.4 1.4 1.2
Diversified 1.1 clientele 1 ensuring low 1
concentration 8.6 risk 73.6
13


About RISPL - O&M Plans
O&M PLANS - IN THE PIPELINE
3rd Party O&M Contracts
There is potential for about 10,000 MW of O&M for turbines manufactured by third parties who are under distress and not able to effectively provide O&M services. RISPL is actively targeting such opportunities and is in discussion with many large IPPs for maintenance of these contracts. There is visibility of an immediate contract of 1300 MW which will be soon added to RISPL’s portfolio.
The estimated maintenance cost will be in range of Rs. 10 lakh per turbine with a margin of 65%.
The surplus generated by RISPL from 3rd Party O&M and other sources will be utilized towards setting up Independent Power Providers (IPPs) in RISPL. The IPPs will provide greater value to RISPL’s portfolio and ensure steady and growing O&M business in future.
IPP Business – Rational
High Power Yield
• IPPs are developed at very windy sites which have a very high power yield. RPPL has invested in very good sites, a list of which is attached alongside.
• Such sites are very rare and considered prized locations as compared to other normal sites. The premium on these sites is very hefty.
Returns
• Effective IRR of 14-16% on equity for a project cycle of 25 years in a low interest regime.
• The project is able to service higher amount of debt.
• It makes a sense to invest in IPP as the debt component will be paid off in a very
few years and the projects soon become debt free.
• The value of the project expands as the premium increases, as projects become
debt free and generation is actually visible.
Potential
• The IPPs are ‘Role Model Projects’ for investors who are not looking for depreciation benefits.
• IPP business is preferred by Overseas Institutional Investors and Fund Managers.
Se ng up of IPPs
14


LAND BANK FOR - Interstate Transmission
Loca on
Vagarai, Tamil Nadu Onamakulam, Tamilnadu Gunti - Andhra Pradesh Rajasthan
Nature
Interstate Transmission Interstate Transmission Interstate Transmission Interstate Transmission
Nature
State Transmission State Transmission State Transmission State Transmission State Transmission State Transmission State Transmission State Transmission State Transmission
group will be bidding for
About RISPL - O&M Plans
RPPL has invested in the following highly prized sites:
Land Bank in RPPL Group for future projects
Install Capacity (Mw)
600
385
500
600
2085
Install Capacity (Mw)
400
60
50
50
300
120
100
110
70
1260
Upcoming Tenders
Total
LAND BANK FOR - Within State Projects
Loca on
Vagarai, Tamil Nadu Chenabaipalli, Andhra Pradesh Karadikonda, Andhrapradesh Devangiri, Rajasthan
Oshyan, Rajasthan
Golaratti, Karnataka
Site K, Karnataka
Khareda, Gujarat
Various sites, Gujarat
Total
TOTAL LAND BANK in Mw 3345
In addition to 200 MW of Bids wherein RPPL group is L1, the the following projects during FY 2017-19
NTPC – 250 Mw
SECI – 1000 Mw
NALCO – 25 Mw
Gujarat – 750 Mw
Rajasthan (State Govt) – 600 Mw
15


About RISPL - Operating Strengths
RSIPL’S OPERATING STRENGTHS
Strong team supported by robust systems and technologies ensuring best machine availability across the industry
ReGen’s SCADA (Vayu Pro ler)
• 24x7 surveillance of individual WECs & the wind farms
• Web based application for monitoring & control of the wind farm at ReGen HO, Site Offices as well as clients’ premises
• User can login to the system with online to view different reports: daily, monthly yearly performance reports both tabular and graphical formats as required by the user
Team Pro le
• A team of 350 skilled manpower with robust track record in preventive and routine maintenance of wind farms
• In-house training for efficient operations
• Team is fully equipped with all infrastructure to handle large wind farms
16


RISK ANALYSIS
Risks Mi gants
About RISPL - Risk Analysis
Revenue Risk
Technology dependence on RPPL
Penalties in case of non performance
Force majeure events
• Long term contracts with reputed clients provide assured revenue streams with pre-agreed annual escalation
• No incidence of clients moving away from Wind Turbine Manufacturers (WTMs), even though some WTMs have become financially weak and not able to provide satisfactory O&M services
• Considering O&M expenses are about 10% of revenues for Project Developers, they are not expected to default in payment to RISPL
• Contract with RPPL for continued support performance of RISPL
• Performance and sustained business (order book) of RPPL depends on RISPL’s
performance on O&M front, so RPPL is unlikely to renege on its responsibility • Even in case of a default by RPPL, spare parts/materials can be sourced from
suppliers in China (Goldwind is a licensee of Vensys technology in China)
• Over the years, availability of wind turbines managed by RISPL has been over 96% which is considered to be one of the best in the industry
• Given the experience of the team and robust process in place, there is very limited scope for non-performance
• Adequate insurance in place (~Rs. 6000 cr currently) to take care of any major failures / calamities
17


Deconstructing O&M
Proper Management of operating windfarms is critical to maximising returns from a windfarm investment. This requires pro-active Operation and Maintenance (O&M) to extract every possible hour of availability from the turbines.
18


Introduc on
Proper Management of operating windfarms is critical to maximising returns from a windfarm investment. Unlike traditional electricity generation plants, the operation and maintenance (O&M) of a windfarm is often outsourced to a third party. This is particularly true given that many windfarm owners are investment consortiums, who have no intention of taking a hands-on approach to managing the operation of their windfarm. The role given to a windfarm Operations Manager varies from site to site, and the scope is usually tailored to suit the needs of the windfarm owner. If the owner views the windfarm asset purely as an investment, he may wish to see no more than a monthly production and budget statement. Owners who have a more substantial portfolio of generation facilities may take on the day-to-day management themselves, and engage assistance for specialised services only.
Purpose of O&M
The primary aim of windfarm operations and maintenance is to minimise the production costs per unit of energy generated over the life of the asset.
Broadly, this is achieved by:
• minimising operational and maintenance costs
• improving turbine performance/yield
• lowering insurance risk
• protecting assets
Opera on and Maintenance Costs
Modern wind turbines are designed to work for 120,000 hours throughout their estimated life-span of 20 years. This would be the turbine operating for approximately 66% of the time for two decades. The maintenance costs of a new turbine are usually very low but as the turbine ages these costs increase.
For modern machines, the estimated maintenance costs are in the range of 1.5% to 2% of the original investment per annum. Older wind turbines have an average annual maintenance cost of 3% of the original cost of the turbine.
Because newer turbines are usually substantially larger, there is an economy of scale and lower maintenance costs per kW of rated power. This is simply because one does not need to service a large turbine any more often than a small one. Further, with the constant development of new materials and techniques, R&M costs on modern machines is lower. Studies done in Denmark on the 5000 wind turbines installed in the country since 1975 has demonstrated that each new generations of turbines has had
lower repair and maintenance costs than the previous generation. (The studies compared wind turbines which were built and erected at approximately the same time, but which belong to different technological generations).
Most of the maintenance cost of a wind turbine is a fixed amount each year for regular servicing, but is preferable to base the maintenance cost on a kWh rate. This is purely because wear and tear increases on the turbine with increasing production, so there is a balance between savings and cost.
Deconstructing O&M
19


Components of O&M
Site Management
Condition Monitoring
• Liaison
• Response to
Site Issues
• Site Inspections
• Health & Safety
• Use of Condition Monitoring Systems
• Remote Monitoring Centres
• Collect & analyse data
Generating Plant
Reporting of Data
• Response to Alarms
• Inspections
• Repairs &
Maintenance
• Extract relevant data
• Present in concise form
• Monthly & Annual Reports
COMPONENTS OF O&M
Generating Plant
Response To Alarms
Operations Managers will usually need to guarantee response times to alarms, 24 hours per day, 7 days per week. Depending on the alarm, a local or remote reset may be necessary, or technicians may be asked to attend site for a diagnosis.
Inspections
Inspection of wind turbines should be conducted on a regular basis, usually at three monthly intervals. The nacelle should be checked carefully for oil leakage or any other indicators that may suggest an imminent problem.
Repairs And Maintenance
The Operations Manager is responsible for ensuring scheduled maintenance is carried out. Non-scheduled repairs and maintenance must be carried out swiftly and in times of low wind to minimise loss of production. Prompt assessment, organisation and supervision of the work is of utmost importance. To reduce the potential for extended downtime due to lead time in obtaining spares, the Operations Manager may be asked to advise on and maintain an inventory of spares on site, particularly if the windfarm is located in a remote area.
20


Site Management
The scope of a full operation and maintenance contract may extend beyond the generating plant to include the entire windfarm site including access tracks, auxiliary buildings and electrical infrastructure.
Liaison
Liaison is a key role in managing an operational windfarm. The Operations Manager is the conduit
for communications between the windfarm owner, turbine manufacturer, maintenance contractors, inspectors, land owners, neighbours, authorities and emergency services. Public relations duties with local press or schools may also be required.
Response To Site Issues
Events which may require immediate response include reports of trespassers, accidents or vandalism on site.
Site Inspections
Although modern data systems mean that a full time presence on windfarm sites is not necessary, regular and thorough inspections of the balance of windfarm infrastructure is a must. This includes inspection of gates, fences, access tracks, signage, met masts and electrical infrastructure. When site facilities do require repair or maintenance, it is up to the Operations Manager to organise quotations for the work, ensure its satisfactory completion and certify resulting invoices.
Health & Safety
A Health & Safety Management Plan, incorporating risk assessments, method statements and procedures, should be created and maintained for the life of the windfarm. Health and safety auditing of contractors and regular inspection of on site safety equipment are carried out.
Condition Monitoring
The latest trends in wind turbine maintenance and operation strategies incorporate the use of condition monitoring systems.
Condition monitoring involves the measurement of physical operating parameters and analysing time based trends and specific characteristics to predict failure of individual components.
Different methods are used for condition monitoring such as measurement of vibration for moving parts, sample particle levels in oil and thermographic temperature sensing, use of strain gauges (including optic fibre) embedded into structural elements such as blades and towers, incorporating condition monitoring technologies into newer multi MW designs. Many of the wind turbine manufacturers offer centralised remote monitoring centres that are able to monitor the wind turbines, reset remotely and notify local personnel if on site attendance is required.
Condition monitoring requires also putting in place the systems that to ensure receipt of appropriate and timely data and further, that the data collected is analysed and respond to correctly.
21


Reporting
From the enormous amount of data collected on the databases of modern windfarms, the Operations Manager must extract what is most relevant to the windfarm owner and present the information in a concise, readable form. Monthly and annual reports are the norm. This includes production (in MWh and monetary terms) versus budget, scheduled and non-scheduled servicing, availability, capacity factors, alarms, downtime, expenditure and any other information which would be of interest to the windfarm owner.
IMPORTANT ISSUES IN O&M
Economies of Scale
Economies of Scale: As well as the economies of scale which you would benefit from based on the size of the turbine, there may be savings that can be made when operating wind parks over individual turbines. These economies would be based on the six-monthly maintenance visits, surveillance and administration, of the site. This would be saving on a per kW basis.
Turbine Reinvestment: Some of the components within a wind turbine are subject to more wear and tear than others. Generally a moving part wears out faster than a static
part and an exposed component faster than its shielded alternative. The parts which
generally wear out fastest are the rotor blades and gearboxes.
In many cases, when a wind turbine comes to end of its technical design life, it
may be more cost effective to refit the existing turbine to increase its lifetime rather than replace it, since the the tower itself would be in good condition and safe for a considerable amount of time. A major overhaul would include a replacing some of the internal workings and the rotor blades.
Although the typical price of replacement components (set of rotor blades, a gearbox and generator) is 15% - 20% of the price of a new turbine, a thorough check has to be made of the other components to be sure that they are safe and suitable.
Turbine Reinvestment
Design Life me, Actual Life me
Design Lifetime, Actual Lifetime: The components of a wind turbine are typically designed to remain operational for twenty years. The design lifetime of a component compared to its actual lifetime means that a wind turbine can last far longer than originally planned. How long it will continue working depends on the quality of all of the turbine components and the local environmental conditions. Environment isn’t just the wind factors, like how much turbulence is experienced at the site, but also the air density, average humidity, even seismic factors.
An offshore turbine may last longer, simply due to the fact that with no obstacles to the wind there is lower turbulence at sea. This would in turn result in lower maintenance costs, but this would be balanced by the increased cost in accessing the turbine to carry out any maintenance.
22


Energy Output from a Wind Turbine:
GWh/year for a typical Danish 630 kW windn turbine
3.0 k=1.5 k=2.0 k=2.5
1.5
Energy Output
The annual output of a wind turbine is
calculated based on the average wind
speed, the average air density, the rated 2.5 output of the generator and the length 2.0 of rotor blades. The graph shows how
annual energy production in million kilowatt
hours varies with the windiness of the site. When it 1.0
comes to choosing a site, the energy output can will be proportional to the average wind speed at the height of the turbine. For instance, a mean wind speed of 6.75 m/s would generate approximately 1.5 million kilowatt hours (kWh) of energy per year.
Energy output will vary roughly along the line of the cube of the wind speed. Exactly how sensitive the energy output of a turbine is to changes in wind speed varies with the wind probability distribution.
0.5
0.0
4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0m/s
source:1998 www.windpower.org
The Availability Factor: A wind turbine will need to be serviced and inspected every
six months so as to be sure that it is still in safe working order. Although servicing and inspection does not reduce total output by an appreciable amount, component failures or accidents (lightning strikes for instance) can disable wind turbines and leave them inactive for some time until repairs can be completed.
Availability Factor
Data shows that turbines from the best manufacturers will consistently meet 98% operational time. The effect on total energy output would be less than 2% of the total, as wind turbines would never be serviced during peak operating conditions (high winds).
Performance Based Operations: Manufacturers generally offer availability guarantees during warranty at 97 %. A well run wind farm with the right technology selection can achieve levels higher
Performance Based Opera ons
than this; 99 % is not unheard of. To achieve this requires a far closer and personal relationship between the Operations Manager and the wind turbine that a large remote monitoring facility cannot supply.
Each percentage point of availability translates into a significant higher revenue per annum. There is a growing trend towards performance based operations contracts with smaller local operators where the reward associated with increased performance and reliability is shared between the Windfarm Owner and the Operations Manager.
Wind turbine manufacturers are also starting to offer long term warranties up to 12 years or more, with all operations and maintenance bundled at a fixed price. This has the effect of taking all risk away from the owner, though at a cost premium. The growth of this offering is slow as individual manufacturers learn to understand the long term risks for the different regions that they operate in. Performance bonuses will eventually be seen as part of these offerings.
23


About ReGen
India’s 3rd largest and fastest growing wind energy company with a strong track record of providing complete wind energy solutions
24


About ReGen
ABOUT REGEN
One of India’s largest manufacturers of Wind
Energy Convertors (WECs)
Established in 2006, Regen Powertech Pvt Ltd, the group’s holding company is one of the largest manufacturers of multi-megawatt direct drive (gearless) wind turbines in India.
ISO 9001, ISO 14001 and OSHAS 18001 cer ed
company o ering full turnkeyinstalla ons
Most preferred turbine manufacturer across all customer groups, especially by Independent Power
Producers
ReGen offers total “Turnkey Solutions” for wind power projects through its subsidiary Regen Infrastructure Services Pvt. Ltd. These include consultancy, manufacturing, supply, erection, commissioning, and operations and maintenance services of WECs.
Exclusive technology license agreement with Vensys, Germany, a globally leading
name in WEC design and development
ReGen has an exclusive technology license agreement with Vensys Energy AG of Germany for the Indian sub-continent.
Technology: Direct drive (gearless) WECs with permanent magnet (PMG) technology. Professional Team
Has a strong team of 1,800+ experienced professionals.
Ownership
ReGen was founded by Madhusudan Khemka and R. Sundaresh in 2006. Currently, the founders along with Prabhakar Rao own 59.36% in ReGen while the rest is held by blue chip investor names, including Everstone Capital (32.24%), IDFC (3.42%), MCap India Fund (3.06%) and TVS Sundaram Growth Fund (1.92%).
25


About ReGen - Corporate Structure
GROUP CORPORATE STRUCTURE
ReGen was founded by Madhusudan Khemka, R. Sundaresh (the “Founders”) in 2006. Currently, the Founders along with Prabhakar Rao own 59.7% in ReGen, while the rest is held by blue chip investor names, including Everstone Capital (32.24%), IDFC (3.42%), MCap India Fund (3.06%) and TVS Sundaram Growth Fund (1.92%).
32.24%
3.42%
1.92%
3.06%
Holding company; operations include manufacturing and supply of turbines, project development and project execution services
Holding Company of Wind Direct, Germany
R. Sundaresh
12.2%
41.4%
6.1%
Indiavision India Partners
IDFC AMC
TVS Shriram Growth Fund
MCap / Summit FVCI
ReGen Powertech Pvt. Ltd.
ReGen Renewable Energy Genera on Global Ltd., Cyprus
Wind Direct, Germany
26
Khemka Family
Prabhakar Rao/ Mandava Holdings Pvt. Ltd.
100%
100%
100%
ReGen Infrastructure & Services Pvt. Ltd.
Engaged in project development, execution and O&M operations
In-house R&D arm


PROFESSIONAL MANAGEMENT TEAM
Mr. Madhusudan Khemka, Managing Director
• Has over two decades of rich and in-depth experience in all aspects of wind turbines business including manufacturing, marketing, project management, customer relationship management
• He has been instrumental in pioneering the market for wind energy in India
• He has been the Chairman of Indian Wind Turbine Manufacturers’ Association
Mr. R. Sundaresh, Joint Managing Director
• Has over two decades of experience in corporate finance, corporate affairs, law and general management
• He has experience and expertise in raising financial resources in the domestic and international market as well as financial structuring of wind power projects
Mr. Varahala Rao Kavala, Director
• Former General Manager of Bharat Heavy Electrical Limited (an industry leading state-owned enterprise)
• He is a graduate in mechanical engineering with 41 years of experience in power plant engineering, materials management, project management & development of power plants.
Mr. Joseph Chaly, President & Execu ve Director
• A mechanical engineer with rich experience of more than 30 years in
production, sales and marketing in large MNC engineering companies
• His last position was Managing Director and Country Head of LM Wind
Power
Mr. Vijay Poddar, Execu ve Director ‐ Finance
• He is a member of The Institute of Chartered Accountants of India.
• Has more than 20 years of experience in managing the finances of
well–established industrial houses.
About ReGen - Management Team
27


About ReGen - Market Position & Financials
RPPL - MARKET POSITION & FINANCIALS
Growing Revenue, healthy EBITDA margin and a strong Balance Sheet
Mar‐17 (12 months)
2,184
252
12%
162
38
53
660
-
751
1.14
Par culars
Revenue EBIDTA EBITDA % Interest cost Depreciation PAT
Net Worth LT Debt ST Debt
Debt : Equity Ratio
In Rs. Cr.
Mar‐16 (18 months)
2,694 397 15% 226 40 42
611 7 691 1.14
Others 8.3%
32.4 GW
Suzlon 34.9%
Windworld 15.1%
28
RRB Energy 3.6%
Inox Wind 6.7%
GE 3.1%
ReGen 7.0%
Vestas 6.6%
Gamesa 14.7%
Break-up of Cummulative Installed Capacity of Wind Power in India upto March 2017


Milestones
2006
Commenced Operations
About ReGen - Milestones
MILESTONES
Investment by Everstone Capital; Technology partnership with Vensys
2007
2008
2009
Inauguration of Manufacturing facility at Andhra Pradesh
50 MW cumulative installations
First WEC exported to Sri Lanka; 150 MW order from Tata Power; 200 MW cumulative installations
2010
500 MW cumulative installations 2011 Investment by MCap Fund Advisors and IDFC Private Equity
1 GW cumulative installations
2015
2012
2013
1.70 GW cumulative installations
29


About ReGen - Milestones and Accreditations
ACCREDITATIONS
IWEF Award
Wind-Solar Hybrid Project of the year for outstanding contribution towards the development of the wind energy industry
VCCircle Award Top PE/VC backed Cleantech Company
Tremendous growth in their respective industries and long- standing impact on the economy and the industry in general
Best Management Award
2016
2013
2013
30


ReGen’s Strengths
Expertise in complete wind energy solutions, state-of-the-art manufacturing facilities and technologically superior products
31


ReGen’s Strengths
REGEN’S STRENGTHS
1
2
Technological Advantage
Exclusive perpetual technology license agreement with Vensys of Germany, one
of the leading global wind turbine manufacturers and the global leader in gearless technology provides technological advantage. ReGen has exclusive product distribution rights in Indian Sub-continent region. The Company expects to leverage its technology and cost advantage to gain market share in other countries
State‐of‐the‐art Manufacturing Facili es
ReGen operates two state-of-the-art wind turbine manufacturing facilities at Tada, Andhra Pradesh and Udaipur, Rajasthan with a production capacity of 500 turbines (750 MW) and 200 turbines (300 MW) respectively
3
Strong Order book
The order book stands at 630 MW, with 425 MW capacity having termsheet and / or contract signed as of March 31, 2015. Additionally, as of July 31, 2015, ReGen has identified 2,133 MW of commercially viable sites based on internal wind studies
Established Client Base
ReGen is currently the third largest Indian wind turbine manufacturer with a market share of ~18% based on FY2015 turbines commissioned and has established relationships with major IPPs in India with presence in all ‘wind energy rich’ Indian states
4
32


ReGen’s Strengths
Credible Experience
It has a strong track record of project execution with 2 GW of wind power projects installed in India since inception and an established reputation driven by an experienced in-house project execution team
5
6
7 8
R&D Capabili es
Independent of its relationship with Vensys, ReGen has invested significantly in R&D through its German R&D subsidiary, Wind Direct (WD). ReGen’s R&D is focused on innovation, development and continuous product improvement
Unique Wind Solar Hybrid System
ReGen's unique 'wind solar hybrid' produces a single electricity output more efficiently. This product will reduce cost of solar projects by >15% per MW, and will enable ReGen to retrofit upto 500 MW solar projects with its existing 2.0 GW wind farms
Exper se in End‐to‐end Wind Energy Solu ons
ReGen provides complete end-to-end wind energy solutions including wind resource assessment, project development, manufacturing, erection and commissioning of the wind turbine and Operations & Maintenance (O&M) services
33


ReGen’s Strengths - Technological Advantage
TECHNOLOGICAL ADVANTAGE
Exclusive technology license agreement of 20 years with Vensys of Germany for 1.5 MW, 2.0 MW, 2.5 MW and 3.0 MW gearless turbines with permanent magnet generators
• Based in Germany, Vensys is a leading global wind turbine manufacturer and the global leader in gearless technology, having installed over 12,200 turbines with over 136,000 MW
• Xinjiang Goldwind, China’s leading wind turbine manufacturer has extensively deployed the Vensys technology across over 19 GW installations is now the principle shareholder of Vensys
• The technology license is for exclusive product distribution in India, Sri Lanka, Bangladesh, Nepal and Bhutan
Erection of Wind Energy Turbine
34


RESEARCH & DEVELOPMENT CAPABILITIES
Development of wind turbines of large sizes 2.8 MW and 3 MW
• Independent of its relationship with Vensys, ReGen has invested significantly in R&D through its German R&D subsidiary, Wind Direct (WD)
• ReGen has recently commissioned a prototype wind turbine WD 2.8 with a rated power output of 2.8 MW and rotor diameter of 109 meters, which is the largest capacity turbine with the biggest rotor diameter to be developed in India
• It is also planning to launch a larger wind turbine with rotor diameter between 120 meters and 125 meters suitable for the low wind sites prevalent in India
• The wind solar hybrid generates electrical energy by using a combination of
wind turbines and solar PV modules.
• Provides better energy output compared to standalone wind turbines and solar
ReGen’s Strengths - R&D Capabilities
Development of
wind solar hybrid • system
PV module
The Company has in-house manufacturing capability for most components of wind solar hybrid system and plans to retrofit ~500 MW of solar projects with its existing 2.3 GW wind farms
Improving turbine •
Work is currently underway to improve power performance of Vensys
• ReGen commissioned India’s first wind-solar hybrid demonstration project at Vagarai, Tamil Nadu on July 5, 2015
efficiency
Turbine testing facility
Others
Certifications
77/82/87/89 turbines in operating wind farms
• ReGen is the only Indian wind turbine manufacturer to have its own turbine
testing facility
• The facility, located in Tamil Nadu, was established in partnership with Windtest
Grevenbroich Gmbh and is equipped with the latest testing and measuring
equipment
• Other R&D developments include development of Digital Regler board
replacing previous analog design and a system for data monitoring of
operational wind farms called Supervisory, Control & Data Acquisition (SCADA)
• Digital Regler board has improved performance, lowered failure instances and
cost optimization
• SCADA would provide real time supervisory controlling, monitoring of each
wind turbine in operation. SCADA also collects historical data logged and
performs analysis for each wind turbine and for the entire wind farm
• Design compliance certificate and type approval from TUV Nord and TUV Sud
• ISO 9001 for Quality Management System, ISO 14001 for Environmental
Management System, OHSAS 18001 for Health & Safety, ISO 50001 for Energy Management System and Class III-A and III-B certification
35


ReGen’s Strengths - Manufacturing Facilities
STATE-OF-THE-ART MANUFACTURING FACILITIES
Tada, Andhra Pradesh
March 2008
500 turbines (750 MW)
Generator manufacturing facility, integrated R&D, ultra-modern converter manufacturing facility and a full-fledged training centre
Synchronous generator, hub assembly, nacelle assembly, frequency converter, pitch system
~60 km from Chennai 45 acres
45 acres
Convenient road and sea transport (Chennai Port & Krishnapatnam Port)
3.0 MW and 100% backup
30,000 sq. meter
ISO9001, ISO14001 & OHSAS 18001
Facility
COD
Production capacity
Facilities
Products manufactured
Distance Acreage
Location advantage
Power and back-up Facility built up area Certifications
Udaipur, Rajasthan
January 2013
200 turbines (300 MW)
Generator manufacturing facility, tower fabrication facility & converter manufacturing facility
Synchronous generator, hub assembly, nacelle assembly, frequency converter and tubular steel tower
~25 km from Udaipur 77 acres
77 acres
Convenient road transportation on Udaipur-Chittorgarh highway
1.77 MW and 100% backup 19,250 sq. meter
ISO9001 and ISO14001
Nacelle Assembly in progress at the Tada factory
36


ESTABLISHED CUSTOMER BASE
ReGen’s Strengths - Customers
Customer group
WEGs commissioned till 31.3.2017 (MW)
Green Infra
Renew Power
NSL Group
Tata Power
NuPower
Orange Group
Hetero Group
Mytrah 100.5
324.0
243.0
195.0
169.5
120.0 since inception
RPPL has strong track record of 2,300+ MW capacity installed
Malpani Group Bhilwara Energy Betul Wind Farms PTC Energy
Clean Wind Power Grace Infrastructure GAIL (India)
124.4
117.0 57.0 49.5 49.5 37.5 31.5 25.5
customer base beyond its core of domestic and international IPPs
• In particular, RPPL intends reaching out to smaller customers who can benefit from accelerated depreciation
142.5 • RPPL plans to diversify its
Jindal 24.0 Others 451.6
Total
2,262.0
37


Industry Outlook
Wind Power - The Energy of the Future
A very attractive investment sector
due to fast growing domestic energy consumption, favourable regulatory framework and cost competitiveness of wind-based energy vis-a-vis conventional energy sources
38


The increased government support at the highest level will drive growth in the wind energy sector. The Ministry for Renewable Energy plans to add 60 GW of wind capacity by 2022.
Regulatory impetus to support the GoI targets
Mandatory CSR
Demand from PSUs and other corporates to strengthen
Establishment of Green Corridor
Strengthen grid and address offtake constraints
Clean Energy Cess
Access to low cost funding for infrastructure augmentation
Streamlining of Excise Duty Structure
To bring clarity on duty structure Reduce potential litigations
RPO
Help achieve renewable energy sourcing target of 15% by 2020
The outlook for the wind energy sector in the long run is favourable driven by strong policy support, favourable regulatory framework, strong domestic demand for power as well as the cost competitiveness of wind-based energy vis-a-vis conventional energy sources.
Wind Energy Industry Outlook
INCREASED REGULATORY SUPPORT
39


40


DIRECT DRIVE WIND TURBINE MARKET - GLOBAL TRENDS & FORECASTS
The direct drive (gearless) wind turbine is the low-speed generator turbine that eliminates the need
for a gearbox from the turbine’s drive train. These turbines have advantages such as - they are lighter than conventional turbines, these have significantly lower maintenance costs, and it eliminates gearbox replacement as they are gearless
The two types of direct drive generators currently in the market are Electrically Excited Synchronous Generator (EESG) and Permanent Magnet Synchronous Generator (PMSG). The most preferred direct drive wind turbine generator is the permanent magnet type generator, as it is lighter in weight and possesses high reliability for offshore applications.
Asia-Pacific has been identified as the largest market among all regional markets for direct drive wind turbines as well as forecast to be the fastest growing in the next five years. Europe is the second largest regional market after Asia-Pacific. In Asia-Pacific, China is the main growth contributor. Globally, China is also the largest country level market and thus its growth significantly affects the global market.
The direct drive or gearless wind turbine market can be segmented by turbine size (capacity range) i.e. turbines less than 1 MW, 1 MW - 3 MW, and more than 3 MW sizes. The turbine size ranging 1 MW - 3 MW has the highest market share.
Gearbox failure and supportive regulatory environment are believed to be the most important market drivers for gearless wind turbines. Off-shore potential has been identified as a major opportunity for direct drive wind turbine manufacturers.
41



Click to View FlipBook Version
Previous Book
2018_1Q_Insects_ABC
Next Book
Q2 2018 Tool News