Regen Annual Report

Annual Report 2015-16

Wind & Sun...
Our Perfect Partners

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Significant Cost Savings
Higher Efficiency
Greater Output

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Higher Returns to Investor

2 ReGen Powertech Ltd.

Creating long-term value

Delivering growth

Emerged as third largest player in Indian market.
installed capacity close to 2,000 MW

Building for the future

Project pipeline of 1000 MW under
execution and 4,000 MW under
planning and development

Focused on our customers

Preferred suppliers across all customer
groups and especially by Independent
Power Producers (IPP)

Expanding overseas

Market leader in Sri Lanka; foray into Bangladesh

Annual Report 2016 3

Socially, economically
and environmentally
sustainable

03 About Us  Contents
03 Chairman's Message
03 Management Team 03 Balance Sheet
03 Strategic Report 03 Profit & Loss Account
03 Cash Flow Statement
03 Notes to the Accounts

4 ReGen Powertech Ltd.

About Us

Leading Renewable Energy Company
ReGen Powertech is a renewable energy company incepted in
Dec 2006 with a focus on providing turnkey solution in the wind
energy sector. Today ReGen has more than 1200MW of wind
turbines installed across India and Sri Lanka.

End-to-end Wind Energy Solutions
ReGen provides end-to-end wind energy solutions including
wind resource assessment, infrastructure and evacuation
development, manufacturing and assembly of the wind turbine,
erection, commissioning and Operations & Maintenance.

State-of-the-art manufacturing facilities
Regen has state-of-the-art manufacturing facilities in Andhra
Pradesh and Rajasthan with a combined production capacity
of over 1,000 MW per annum. It also has a ReGen has a
technology tie-up with Vensys AG in Germany and it boasts of
its own R&D centre at Tada.

Solar Energy Systems
Recently ReGen has ventured into the solar PV central inverter
manufacturing and has a technology agreement with Provotek
Germany. The Company has launched for the first time in India a
containerized 2MW solar PV central inverter with Water Cooling
System which can operate without de-rating at high temperatures.

Annual Report 2016 5

Aiming for
greater heights

6 ReGen Powertech Ltd.

Our Vision

To be world class in quality in production of wind energy converters
and as wind farm developers. Being world class means providing
outstanding quality, service, growth and value to every customer, supplier,
shareholder, employee and to society.

Our Mission

To achieve and sustain highest market share and total satisfaction of all
stakeholders by providing state of the art technology and sound business
strategies.
We are poised for growth by:
• Providing high ROI to customers
• Partnering suppliers
• Building the future of our employees
• Creating wealth for share holders.
• Providing the benefits of clean and green energy to society

Annual Report 2016 7

Our Success Formula

Team

Technology @

Product Development

Tailor made solutions

Cost Optimization `

8 ReGen Powertech Ltd.

• 1,766 professionals with 3000 years of collective experience
• 5 SBUs headed by Individuals with over 25 years of experience

• Technology partnership with Vensys Energy AG, Germany for 1.5 / 2 / 2.5 / 3 MW
• 2.8 MW WEC developed by Wind Direct – ReGen’s R&D subsidiary Division based in Germany
• Variants of 1.5 MW – V77, V82, V87, V89 IEC class IV

• Wind Resource Assessment
• Land, micro-siting, Roads and Site Development
• Power Evacuation Facilities

• Concept to Commissioning (Turnkey solutions)
• Supply, Erection & Commissioning
• Comprehensive Operation and Maintenance Service

• Indigenization
• Value Engineering
• Wind-Solar Hybrid

Annual Report 2016 9

Management Team

Madhusudan Khemka, R Sundaresh, Varahala Rao Kavala,
Managing Director Joint Managing Director Director

Mr. Madhusudan Mr. R. Sundaresh has Mr. Varahala Rao
Khemka has over two over two decades Kavala is a former
decades of rich and of experience in General Manager
in-depth experience corporate finance, of Bharat Heavy
in all aspects of corporate affairs, Electrical Limited
turbines including law and general (a leading Indian
their manufacturing, management. Industry - state owned
marketing, project enterprise).
management, He has experience and
customer relationship expertise in raising He is a graduate
management. financial resources in mechanical
in the domestic and engineering with 41
He has been international market as years of experience in
instrumental in well as financial thermal power plant
pioneering the market structuring of wind engineering, materials
for wind energy in power projects. management, project
India. management &
development of
He is the Chairman of thermal power plants
Indian Wind Turbine and wind power
Manufacturers’ plants.
Association.

10 ReGen Powertech Ltd.

Joseph Chaly, Manoj Bakshi, Vijay O. Poddar,
President & Executive Executive Director, Supply Executive Director -

Director Chain Management & Finance
Manufacturing
Mr. Vijay O. Poddar
Mr. Joseph Chaly Mr. Manoj Bakshi is a member of The
is a graduate is a graduate in Institute of Chartered
in mechanical metallurgical Accountants of India.
engineering and engineering from He has more than 20
possesses rich Indian Institute of years of experience in
experience of more Technology, Kanpur managing the finances
than 30 years in with 25 years of of well-established
production, sales and experience in industrial houses.
marketing in large automotive and wind
MNC engineering industry.
companies, having
served at top He has expertise
management positions in strategic turn
in diverse industries. around and growth
in profitability in
His last position was production and supply
Managing Director chain management.
and Country Head of
LM Wind Power.

Annual Report 2016 11

Our business explained

Wind Research Manufacturing Solar
& Assessment Technology
2 fully integrated, state-
Identification of wind rich sites, of-the-art manufacturing Technical tie up with
wind study by establishing facilities at Andhra Provotec, Germany
wind monitoring stations, Pradesh and Rajasthan for Unique Wind Solar
analysing data to identify with ISO9001 and Hybrid. Technology
turbine suitability, micro siting ISO14001 certification suitable for hybrid
and preparing wind resource to produce 1.5 MW wind installation with Solar,
assessment report. Diesel, Gas, Hydro etc.
electric generators.

12 ReGen Powertech Ltd.

Providing comprehensive turnkey solutions for wind power projects,
covering the full wind value chain, including project development, supply,
erection, commissioning, operations and maintenance services of wind
turbines as well as wind solar hybrid technology

Project Execution Power Evacuation Operation &
Maintenance
Start-to-finish execution Ensuring that generated
including legal (clearances, power is immediately Preventive and routine
documentation), civil (soil evacuated from the WPP maintenance of wind
testing, road preparation), to the grid for distribution. farms. All WECs are
procurement of parts and Involves feasibility SCADA connected to
erection of wind turbine, study, construction and ensure 24X7 surveillance
setting up of internal and engineering engineering monitoring. 267 skilled
external overhead lines, of the Sub-Station. workers to undertake
sub-stations O&M activities.

Annual Report 2016 13

Wind Research & Assessment

Regen's Wind Research Team identifies wind rich
sites and conducts wind study by establishing wind
monitoring stations.

14 ReGen Powertech Ltd.

Regen has a completely dedicated in-house cell for conducting
Wind Resource Assessments using latest scientific techniques
and tools like WAsP, WindPro etc.
After identifying wind-rich sites and setting up wind monitoring
systems, a minimum of one year wind data is analysed to
identify turbine suitability. Thereafter micro siting and wind
resource assessment report is prepared.
Wind resource is primary for wind power development.
ReGen’s wind research team is well experienced on working
with essential wind resource assessment tools to prepare a
comprehensive wind resource assessment reports. The team
is highly equipped and trained on latest modelling tools like
Wind Atlas Analysis & Application Program (WAsP), Windpro
& Computational Fluid Dynamics (CFD) modelling.

66 wind masts are
currently in operation
across the country
with majority in Tamil
Nadu, Maharashtra
and Rajasthan.

Annual Report 2016 15

Manufacturing

Regen has 2 fully integrated, state-of-the-art
manufacturing facilities at Andhra Pradesh and
Rajasthan with ISO9001 and ISO14001 certification to
produce 1.5 MW wind electric generators.

Manufacturing Facility at Andhra Pradesh
The fully integrated, state-of-the-art manufacturing facility at Tada, Andhra
Pradesh was set up in 2008 to produce 1.5 MW wind electric generators,
with a current capacity of 750MW per annum.

16 ReGen Powertech Ltd.

The facility has a very large scale Generator Both facilities are ISO9001, ISO14001
manufacturing facility, an integrated R&D, and OHSAS 18001 certified and
ultra-modern Converter manufacturing facility manufactures wind electric generators
and houses a full-fledged Training Centre. of international quality standards. The
facility is an ultra-clean environment
The facility also manufactures the hub, nacelle, with energy conservation and
generator, convertor system and electrical employees’ safety as primary focus.
systems.

Manufacturing Facility at Rajasthan
The fully integrated, state-of-the-art
manufacturing facility at Udaipur, Rajasthan
was started in 2013 to produce 1.5 MW wind
electric generators, with a current capacity
of 300 MW per annum. It has state-of-the-
art Vacuum Process Impregnation & Baking
Ovens for the manufacturing of wind turbine
generators.

The facility has a very large scale Generator
manufacturing facility, Tower fabrication
facility & Converter manufacturing facility.

Proposed blade manufacturing facilities
ReGen is in the process of setting up a blade
production facility in Tada with annual
capacity of 180 blade sets and another facility
in Udaipur with annual capacity of 300 blade
sets.

Wind solar hybrid system
The wind solar hybrid generates electrical
energy by using a combination of wind
turbines and solar PV modules. The Company
has in-house manufacturing capability for most
components required for the wind solar hybrid
system.

Annual Report 2016 17

Project Execution & Management

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

18 ReGen Powertech Ltd.

ReGen Powertech has vast experience in providing The Company has a Project
total turnkey project solutions in installation & pipeline of 1000 MW under
commissioning of the Wind Farms. A highly qualified execution and 4,000 MW under
and experienced team operates 24/7 at site, taking planning and development
utmost care in the delivery of quality projects to
customers on scheduled time.

The project is managed professionally, right from
preparation of site layout and Geo Technical
Investigation of soil conditions at each of the
Wind Energy Converter locations. Construction of
foundation, Electrical Infrastructure, Installation of
Wind Energy Converter, Commissioning of Wind
Energy Converter, Installation and commissioning
of SCADA and handing over the Wind Farm to
the customers are planned at micro level. All the
activities are quality controlled by an exclusive
and dedicated TQM and Safety team on site, thus
ensuring prompt attention & control of all the
activities.

ReGen with its dedicated project management
team ensures that all the wind energy projects
commissioned across the country are completed to
the utmost satisfaction of its customers.

Annual Report 2016 19

Power Evacuation

20 ReGen Powertech Ltd.

ReGen with its team of highly experienced professionals
ensures that power generated is immediately evacuated from
the WPP to the grid for distribution.

Power evacuation is a critical function that allows generated power to be
immediately evacuated from the WPP to the grid for distribution.
ReGen conducts overall Power System Studies in the area where wind power
potential exists. Based on findings of wind studies/feasibility report, ReGen’s in-house
team evaluates feasibility of power evacuation from identified sites. This includes
assesment of existing transmission infratsructure from the identified sites, cost benefit
analysis of setting up transmission infrastructure and quantum of power evacuation
that will impact project size at a location. It typically takes 2-3 months to assess
feasibility of power evacuation.
ReGen has the expertise and a deep understanding of the grid network and a proven
track record of constructing new substations at voltage levels ranging from 110 KV to
220 KV. Construction of substation also includes engineering of the Sub-Station. The
state of the art Sub-Stations are fully functional across many states in India.

Annual Report 2016 21

Operations & Maintenance

ReGen provides comprehensive operations and maintenance
services that increase turbine reliability and in turn revenues.

ReGen offers consistently world-class O&M services delivered by well-trained,
motivated professionals who implement proven, site-specific programs designed
to maximize owner value through operational risk mitigation.
22 ReGen Powertech Ltd.

ReGen Powertech provides comprehensive Our machine availability is more
operations and maintenance services that increase than 98%, the highest in the
turbine reliability and in turn revenues. country.

The O&M team comprises 332 trained skilled
manpower backed by fully equipped infrastructure,
a Central Team in Chennai and strong presence in
our site across India and Sri Lanka.

All WECs are SCADA connected to ensure
24x7x365 surveillance monitoring, which is
provided at each site, Customer Premises & Central
Monitoring Station (CMS) at Chennai.

Preventive and routine maintenance of wind farms
are done on an ongoing basis.

We partner with wind project owners, aligning our
goals with theirs to maximize profits and ensure
success over the full project life span of 20 years.

SCADA
ReGen SCADA (Supervisory Control and Data
Acquisition) is developed for real time supervisory
controlling, monitoring of each wind turbine and
the wind farm. It also collects historical data logged
and performs analysis for each wind turbine and for
the entire wind farm.

All turbines are SCADA connected to ensure 24X7
surveillance monitoring provided at Site, Customer
premises, Control Room in Chennai.

Annual Report 2016 23

Best PoiseWd ifnodr-Solar Hybrid
True Hybrid

ReGen's 'Wind Solar Hybrid' that produces a single
electricity output more efficiently. This product will reduce
cost of solar project by >15% per MW, and will enable
Company to retrofit up to 500 MW solar projects with its
existing 2 GW wind farms.

Wind Solar Hybrid generates electrical energy by using an optimum
combination of WECs and solar PVs with an efficiently shared infrastructure
allowing for greater utilization of all resources.
24 ReGen Powertech Ltd.

The product allows stable power production, utilizing Wind Solar Hybrid
complementary nature of wind and solar power generation, reduced results in significant
cost of land and other shared infrastructure, higher utilization cost savings due
with more power generated per square meter, higher efficiency of to better energy
inverter, greater grid stability and lower transmission losses. output compared to
standalone WECs and
ReGen’s solar credentials solar PVs and benefits
We recently launched central solar inverters in capacities starting from shared resources.
750 KW to 2.0 MW in single housing with water-cooled design
suitable for harsh Indian ambient conditions. This product is
suitable for Indian
Synergy with wind technology market where most
The frequency controller in our gearless wind turbine is very similar locations have high
in design to our solar converter. This strength is unique to ReGen’s solar intensity during
power conversion technology and can be suitably harnessed for daytime and high wind
hybrid power solutions. speeds at night.

In-house manufacturing of hybrid power converter
Benefits due to similar parts used in wind and solar power
converters, lean in-house manufacturing facilities with greater
quality control and economies of scale.

Operations & Maintenance capability
Our very experienced and strong service network across the country
has the ability to service the hybrid power converter along with
other required maintenance of solar modules and structures.

The Company has commissioned India’s first wind-solar hybrid demonstration
project at Vagarai, Tamil Nadu on July 5, 2015.

Annual Report 2016 25

Turbine Testing Facility

ReGen is the only WEC manufacturer in India to have its
own turbine testing facility at Vagarai site near Coimbatore,
Tamil Nadu

The State of the Art testing facility is equipped with latest testing and measuring
equipments. The testing was completed for Vensys 82 and Vensys 87
26 ReGen Powertech Ltd.

Certifications The turbine testing facility was
established in cooperation with
• Design compliance certificate from TUV Nord Windtest Grevenbroich Gmbh
• Type Approval by TUV Nord
• ISO 9001 – received in June 2008 from TUV Nord
• ISO 14001 - received in November 2008 from GL
• ISO 18001 - received in November 2008 from GL
• Accredited by CWET
• Manufacturing Evaluation Certification in Feb

2009 by TUV Nord, Germany

Acoustic noise measurement

Annual Report 2016 27

Global Industry Overview

In 2014, total investment in the global wind sector reached
a record US$ 99.5bn during the year, which represents a
24% increase year on year.

28 ReGen Powertech Ltd.

The global wind industry has recovered in recent years,
with aggregate installations reaching 49 GW in 2014, an
increase of 44% year on year and bringing cumulative
global wind installations to 370 GW. This represents
cumulative market growth of more than 16%.

According to the Global Wind Energy Council (GWEC)
Outlook 2014 report, cumulative wind capacity installation
is expected to reach 712 GW in 2020 and 1,480 GW in
2030, with exponential growth expected in the developing
regions of Brazil, Africa, India and China.

China remained the largest overall market for wind, a spot
it has held since 2009. Installations in Asia again led global
markets, with Europe reliably in the second spot, and North
America a distant third.

By the end of 2014 six countries had more than 10.0 GW
of aggregate installed capacity including China (114 GW),
USA (66 GW), Germany (39 GW), Spain (23 GW), India
(22 GW) and the UK (12 GW).

In 2014, total investment in the global wind sector reached
a record US$ 99.5bn during the year, which represents a
24% increase year on year. Increase in investment is driven
by a strong European offshore market and an increase in
favorable regulatory regimes in developing nations such as
Brazil, India and Turkey.

Wind manufacturing is expanding in China and India
to keep up with the increased wind demand. China’s
manufacturing capacity in 2015 increased to 25.1 GW as
companies expanded their production lines in preparation
for the rush to complete projects at end of 2014.

Overcapacity still remains in the market but tier one wind
turbine manufacturers continue to operate at very high
utilization levels.

Annual Report 2016 29

Key policy incentives
to promote wind
energy

1

Accelerated Depreciation (AD)
Total 100% accelerated depreciation in the
first year: 80% accelerated depreciation and
20% additional depreciation for infrastructure
projects including wind power.
Benefit: Provide tax savings for wind energy
developers in the initial years of installations,
particularly favorable for small investors and
captive users.

2

Generation Based Incentives (GBI)
Incentive of INR 0.50 per kWh for a period of
4 to 10 years, albeit with a cap of INR 10mn
per MW.
Benefit: Incentivize actual generation rather
than mere establishment of capacity, thus
attracting large IPPs and FDI in the wind
market

30 ReGen Powertech Ltd.

3 4

Feed in Tariffs Renewable Purchase Obligations
Developers can additionally receive a (RPO)
preferential tariff from state distribution Mandate requiring electricity
companies to which they are selling distribution companies to buy a
electricity. fixed percentage of electricity from
Several states have increased wind renewables (15% by 2020), through
power tariffs to attract investments direct purchases or nd Renewable
Tariffs range from INR 3.51 (Tamil Energy Certificates (REC).
Nadu) to INR 5.92 per kWh for Madhya Benefit: RECs are being traded as a
Pradesh currency in the wind energy market
Benefit: A shift in development of wind whereby states that cannot directly
power projects from wind rich states like purchase electricity from local wind
Tamil Nadu and Gujarat to low wind developers can purchase RECs at
density states like Rajasthan, Madhya market rates to meet the RPO quota.
Pradesh and Maharashtra This removes the geographical barrier.

5 6

Renewable Energy Certificates (REC) Other Policies
Issued by Central Agency to renewable To attract investment , the government
energy generators. has proposed various policies such
Can be exchanged only in Power as 10-year tax holiday, 100% foreign
Exchanges approved by the Central direct investment, tax-free income
Electricity Regulatory Commission (CERC) from sale of power for 10 years, excise
Benefit: One REC is equivalent to 1 MWh duty exemption, concessional customs
of energy generated from renewable duty for renewable energy equipment
sources. Helps entities meet the RPO set import, VAT at reduced rates, sector
by different states financing, tax concessions, electricity
duty exemptions and concessional levy.

Annual Report 2016 31