CHENNAI: The government’s new wind repowering and life extension policy, introduced on September 4 to modernise aging windmills, has seen limited uptake, with wind energy generators (WEGs) citing high development charges as a deterrent.
According to data from TNGEC accessed by TNIE, the corporation had planned to repower windmills with a combined capacity of 7,386.5 MW. However, to date, windmills with a total capacity of only 30 MW have sought repowering.
The policy divides wind repowering projects into two categories: standalone projects (for individual owners) and aggregation projects (for multiple owners). Windmill owners must pay a development charge of `30 lakh per MW to repower their machines. This high cost has generated widespread opposition from many WEGs.
Official sources revealed that over 5,000 old windmills are nearing the end of their power purchase agreements with the power utility. For these agreements to be extended by TNGEC, the windmills need to be repowered.
V Ganesh, a windmill owner from Tirunelveli, said, “Repowering requires an investment of at least Rs 3-5 crore per MW. In addition, we have to pay Rs 30 lakh as development charges to the power utility. There will also be no income during the repowering period, making it challenging.”
Ganesh further emphasised that the state could offer incentives to support WEGs during this period. “Many WEGs feel pressured to repower their windmills. This could force many small, older windmills out of the market,” he added.
Another windmill owner, who wished to remain anonymous, said Tamil Nadu has significant potential for wind energy, more than its neighbouring states. Since most wind power installations are on privately owned land that is not fully utilised, the government could consider allowing a cooperative model of generation.
“This would reduce the cost for individual players and make better use of the available land. The cost of land would become equity for landowners, and the utility could continue its power purchase agreements with them,” he argued.
A senior TNGEC official said, “We are in discussions with wind energy generators. But, reducing development charges and providing incentives would require a policy decision.” The official expressed hope that WEGs would cooperate.