TN Budget 2025: Despite delay, integrated green power policy welcome move: Energy developers

CHENNAI: Renewable energy developers have welcomed the State government's announcement that it would develop an integrated renewable energy policy to promote non-conventional sources.

Presenting the Budget 2025-26, Finance Minister Thangam Thennarasu said that the government will release an integrated renewable energy policy to consolidate and streamline the different existing policies for the promotion of renewables in the State.

Tamil Nadu was a leading state in the installed renewable power capacity in the country until 2017 but has been pushed to third position behind Rajasthan and Gujarat as of December 31, 2024, with the RE generators pointing to the lack of separate policies to promote the solar and wind power generation in Tamil Nadu.

Renewable Energy Producers Association CEO Dr K Venkatachalam said that he welcomes the State government's decision to formulate an integrated policy but noted that several other states did so years ago. "At present, the State has neither a wind nor solar energy policy. Now the TN government has come forward to formulate an integrated policy. Our request would be that the proposed policy should be prepared and finalised after a due consultative process with all the stakeholders. It will help in implementation without any hassle," he said.

Tamil Nadu Solar Energy Developers Association president P Ashok Kumar said that the integrated policy should include norms on how to meet the peak energy requirement. "The Central Electricity Authority has recommended that future solar projects should incorporate at least a two-hour co-located battery energy storage system with a capacity equivalent to 10 per cent of the installed solar generation to help alleviate grid fluctuations, ensure power availability during peak hours, and improve energy efficiency. Rajasthan has already made it mandatory to incorporate a minimum of 10 per cent capacity. Kerala government has decided to install rooftop solar in all the government buildings mandatory with battery back-up," he said, adding that the TN government should come out with an incentive for the consumers incorporating BESS.

KEY POINTS:

1,100 MW Vellimalai and 1,800 MW Aliyar pumped storage projects will be developed through public-private partnership mode, with a total investment of Rs 11,721 crore

4,000 MWh Battery Energy Storage System will be developed in 2025-26 to store energy generated by solar plants during the peak hours