CHENNAI: The state government is likely to take a decision on providing annual banking facilities for windmills soon. This comes following Industries Minister TRB Rajaa pushing for continuation of annual banking facility for captive windmills.
Power banking is like cash banking whereby wind power producers feed in the electricity generated by their windmills to the state grid and then draw that power for captive use within a year. Tamil Nadu Electricity Regulatory Commission from 2018 stopped yearly banking facility for windmills. This has put many of the manufacturers in distress.
Windmills, especially those installed by wind energy generators for captive power consumption, were told in May 2021 that they would not be allowed to bank the excess energy generated as Tangedco felt it is losing crores annually because of the the facility. Banking has been a challenge for discoms, particularly because of the costs incurred to supply back during high demand.
Pradeep Natarjan of Tamil Nadu Electricity Consumers Association said they had approached the minister stating that if the annual banking facility for windmills is not provided, it will result in loss in competitiveness of Tamil Nadu industries.
“We do not have raw materials as well as labour. Both are coming from other states. Manufacturers in the state have captive power facilities with the support of the state government which reduces the manufacturing cost by 10% to 15%, “ Natarajan said.
If the manufacturers are investing in windmills, at least 30% to 40% of the total energy consumption would be from a windmill and this will result in a cut in the production cost and make the industry more competitive, he said.