CHENNAI: The State government has approved changes to the State’s wind re-powering policy to address concerns raised by the wind energy industry. The amendments relate to who must re-power old windmills, how additional power generation is assessed, charges payable by developers, power purchase agreements, banking of energy and siting rules.
The original Tamil Nadu Re-powering, Refurbishment and Life Extension Policy for Wind Power Projects, 2024, notified in August 2024, was challenged by wind energy associations in the Madras High Court.
The HC stayed the policy in October 2024. The case, linked to petitions on lifetime extension of windmills, is pending before a Division Bench. During hearings, both sides sought time to find a mutually acceptable solution.
Following this, the TN Green Energy Corporation Limited set up a sub-committee with officials, equipment manufacturers, experts and other stakeholders. Based on its recommendations and inputs from industry bodies, including the Indian Wind Power Association, the government has now approved amendments to key clauses of the policy.
One of the main changes is in eligibility. Windmills commissioned before April 1, 2016, will now be required to opt for re-powering, refurbishment or life extension after completing 20 years of operation. For windmills commissioned on or after that date, the requirement will apply after 25 years. Earlier, participation for newer windmills was largely voluntary.
The rules on additional power generation under re-powering have also been relaxed. Instead of insisting on fixed increases compared to past generations, the revised policy will assess generation gains based on the extra capacity added through re-powering.
The government has also reduced and restructured development charges. For re-powering projects, developers will have to pay Rs 30 lakh per MW only on the additional capacity created, while the existing capacity will attract a lower charge of Rs 5 lakh per MW. For refurbishment and life extension projects, the earlier one-time charge has been replaced with an annual fee of Rs 50,000 per MW.
The amendments clarify that existing power purchase agreements with the power utility will continue until their expiry. After that, generators can either sign a new agreement at competitive tariffs or opt for wheeling, as per regulations. Wind energy banking rules have been simplified in accordance with the TN Electricity Regulatory Commission’s norms. Banked energy can be used within the same financial year, and any unused surplus will be paid for at 75% of the applicable tariff. Earlier, it has put several conditions including restricting on how the banked energy can be utilised like mandatorily consume 50% of the generated energy within wind months of May to September.
The policy also relaxes certain siting norms, subject to turbine size and noise control measures. In addition, wind projects will now be allowed to convert into wind-solar hybrid projects, with must-run status extended to combined generation.
TNGECL has been directed to take further steps on the pending court cases in consultation with government law officers.