Tamil Nadu's wind repowering policy runs into rough weather with developers
The policy provides for the repowering or refurbishment of old windmills. Under the repowering project, wind energy generators can replace old wind turbines with new ones.
CHENNAI: The release of the Tamil Nadu Repowering, Refurbishment and Life Extension Policy for Wind Power Projects-2024, which aims to increase overall installed capacity and wind energy generation in the State, has only managed to leave wind developers upset over the conditions on availing wind banking, a key incentive.
As of June 30, 2024, the State has a total renewable energy generation capacity of 22,754 MW, with the wind energy accounting for 10,790 MW.
The policy provides for the repowering or refurbishment of old windmills. Under the repowering project, wind energy generators can replace old wind turbines with new ones.
Under the refurbishment project, the generators may carry out suitable modifications in the turbine components, such as gearbox, blades, generator, and controller.
Tamil Nadu, which is a pioneer in wind energy, commenced generation in 1986 with machine capacities ranging from 55 kW to 600 kW. Though these machines have completed their full life cycle, most of them are still in operation. Even though the Ministry of New and Renewable Energy’s wind repowering policy was in force for several years, repowering did not take off in Tamil Nadu, as the wind banking was not extended.
The State government's 2024 policy has extended wind banking for repowering and refurbishment of old windmills and life extension projects but with several conditions.
"In the old wind banking procedure, there was no limit on the consumption of wind energy. But, in the new policy, the wind developers have to consume 50 per cent of energy generated during the wind months of May to September, 20 per cent of the banked units from October to December, and 15 per cent from January to March.
As per the condition, unutilised energy would be considered as lapsed. Banking charges have been increased to 16 per cent from 14 per cent, which is subject to revision every year,” an industry source said.
Various other clauses in the policy have irked the wind energy generators, as they have made repowering/refurbishment/life extension mandatory for all the windmills operational beyond 20 years.
"Irrespective of whether the generator opts for repowering or life extension, they should pay Rs 30 lakh per megawatt as development charges, which is unacceptable," said K Venkatachalam, chief advisor to Tamil Nadu Spinning Mill Owners Association (TASMA).
He noted that wind energy generators have already paid development charges for the evacuation infrastructure and operation and maintenance charges every year.
"So, demanding development charges again for repowering will discourage generators from replacing their windmills," he said, adding that rather than incentivising the renewable energy generators, the government policy was disincentivising them to move out to other states.
