TNERC moots curbs on banking wind power

Tamil Nadu with wind power capacity of 8,506 MW is the largest producer of wind energy in the country. Of them total wind capacity, over 70 per cent is under captive generation.

The facility of banking excess power generated by the wind energy producers was extended as a promotional measure by the erstwhile TNEB to attract investment in the sector. After achieving the leadership position in the country, Tangedco has been complaining that it incurs losses with the captive wind power generators availing banked energy during the non-windy season when the cost of the power was high in the market. The wind power generators on the other hand had disputed the claim of the financial losses by the Tangedco which always insisted on continuing with the banking for the small and medium enterprise, particularly in textile and knitwear sector, to remain competitive in the export market.

Wind generators say that when 100 units of power is banked with Tangedco during the wind season, they get back 86 units during the non-wind season.

Drawing comparisons with other renewable energy-rich states such as Andhra Pradesh and Gujarat, TNERC, in its consultative paper on wind energy, said that many of the renewable energy rich states have restricted banking of wind power.

TNERC has suggested two option for the wind mills commissioned before March 31, 2018 – the banking period should commence from April 1 to March 31 of the following year.

Option one, the energy generated each month should be adjusted against consumption of the same month while in the second option, the withdrawal of banked energy would not be permitted during evening peak hours. For the months of January to March of the following year, withdrawal of banked energy would not be permitted. It also recommends removal of banking of energy for third party power purchases.

AD Thirumoorthy, member of the State Working Group of Renewable Energy, said the commission’s proposal to do away with the banking for the wind mills that completed 10 years’ life would be detrimental to the captive wind producers. “Banking of wind power did not cause any loss to the Tangedco. The discom is losing money for every unit of the power it sold due to non-revision of the tariff. Instead of revising the power tariff, they are trying to take other measures,” he said.

Indian Wind Power Association had written to Electricity Minister P Thangamani in January that the facilities of wheeling and banking of wind energy have led to a lowering of input costs, thereby enabling these Tamil Nadu-based industries to be cost competitive for winning orders even with the Chinese in the International market.