Seakinetics Corporation, a publicly traded company, positioned itself to become a major company in the renewable energy generation of power using wind technology, solar technology and wave technology.

Globally, wind power has been established as one of the most important power generation sources. Specifically in India, the target of 5000 MW of wind power planned for the period 2002 – 2012, was achieved by 2007 and currently the total installed capacity is greater than 10,000 MW. A renewable power capacity addition of 14000 MW has been projected for the Government of India’s tenth ‘Five Year Plan’ which commenced in year 2007.
A renewable capacity of 24000 MW is projected and is being supported by a wind power promotion policy, as declared by various states and the India central government. In India, as required under the ‘Electricity Act 2003’, at least 12 states have initiated ‘Renewable Power Source (RPS) orders up to 10 %.
In India, investments in the wind energy sector have soared with a rapidly growing generating capacity; as well as, the manufacturing capability of related components.

Resulting from these supportive conditions, large projects are being planned or are under construction by major Public Sector Undertakings such as: Oil and Natural Gas Corporation Limited (ONGC), Hindustan
Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL).
India Energy Sector investments have been rising rapidly and new financing trends are emerging through investment banking, venture capital, private equity and carbon financing and trading. To date, a total investment of more than USD 11 billion has taken place in the Wind Sector in India and is growing at an annual rate of about USD $2.5 billion.

  • India is a $193 Billion USD wind energy market which is 45,000 MW of identified as Class 6 to Class 1 range wind capacities to be developed as a target of the Indian government.

  • Tamil Nadu State wind industry now generates over $1.336 billion USD in revenues annually.

  • In Tamil Nadu, we have a competitive price per Kilowatt Hour (KWH) for a Class 1 site – i.e. high wind capacity combined with a competitive unit price in India.

  • The Company has negotiated land acquisition to develop the first three phases of its Tamil Nadu region wind power development.

  • A captive and energy deficient market in India. Collectively, all of the existing competition cannot fulfill the existing and growing demand.

  • Environmentally friendly in development and operation, and accepted by the people regionally.

  • An established proven technology with several equipment suppliers available.

  • The wind generation process is automated and requires only periodic limited maintenance.

  • The main resource used in the production process is WIND, which is abundant in the region and is present due to the nature of the geography of the area.

  • The advantage of our project being located in Tamil Nadu is the availability of the power grid for “off-take” of our generated power.

  • Presently, India is the seventh largest economy in the world and with an annual growth rate of 9.5% GDP. India will be one of the top three largest economies within 10-15 years. This rate of growth will require 20,000 MW per year of “NEW” energy production according to the Indian government mandate.

  • It is expected that by the year 2012 all of the major economies will be actively participating in Carbon reduction and CER ‘Carbon Emission Reduction’ Credits trading, including China and USA, who have not ratified the current Kyoto Protocol.

  • Regional acceptance of the project is high as our project does not have any negative environmental, infrastructural, or economic impact on the existing agricultural lands.

Key factors driving the rapid development of wind energy

The key factors driving the growth of renewable energy and wind energy in particular are:

  • Global electricity demand and growth
  • Vast improvement in wind economics
  • Competitive energy sources facing rising fossil fuel prices
  • Environmental protection requirements by Kyoto Protocol
  • Government led fiscal and legislative incentives
  • Worldwide concerns over global warming / climate change
  • Heightened general concerns over environmental issues

Kyoto Protocol & the Certified Emission Reductions (CER) Trading Scheme

In order to tackle the problems associated with greenhouse gases, on a global scale, the Kyoto Protocol came into force on 16 February 2005. Some 141 countries, including India, accounting for 55% of the world’s greenhouse gas emissions, have ratified the treaty. Under the Kyoto Protocol, participants pledge by 2012 to cut greenhouse gas emissions; from the industrialized world as a whole by 5.2% (from the level of emissions in 1990). The key strategies of the Kyoto Protocol include three market-based methods, known as the “Kyoto Mechanisms”, which allow countries to earn or buy credits, even outside their borders:

  • The ‘Clean Development Mechanism’ (CDM) contemplates credits being earned by investing in emission reduction projects in developing countries.

  • Joint implementation envisions ‘Certified Emission Reduction’ (CER) ‘Credits’ being earned by investing in emission reduction projects in developed countries that have adopted a Kyoto target.

  • International Emissions Trading, to permit developed countries that have adopted a Kyoto target to buy and sell ‘Emission Reduction Units’ (ERU) amongst themselves.

One example of an emission-trading scheme, based on the principles behind the Kyoto Mechanisms, is the European Union (EU) – ‘Emission Trading Scheme’, which was created by the EU on 1 January 2005.

Under the EU Emission Trading Scheme, renewable energy projects, such as wind farms located in countries participating in the Kyoto Protocol are classified as emission reduction projects and will earn ‘Certified Emission Reduction’ (CER) credits or ‘Emission Reduction Units’ (ERU) equivalents, which can be sold through the EU Emission Trading Scheme. The scheme has continued to progress to implementation. Details of how the scheme interacts and aligns with the established national incentive systems, in the EU, are currently being determined.