CHENNAI: The state government has released its first repowering policy for wind energy projects, named Repowering, Refurbishment and Life Extension Policy 2024, thereby becoming the first state in India to bring such a policy.
This policy aims to use wind energy resources better by supporting wind energy generators (WEGs). The need for such a policy has been stressed since 2016. The government released the draft policy earlier this year, following which the finalised policy has been issued now after recent approval by the Cabinet.
The policy will be in effect from the date of issue until March 31, 2030, or until a new repowering policy is announced. Tamil Nadu Green Energy Corporation was appointed as the state nodal agency (SNA) for the implementation of the policy.
According to the policy, participation in wind repowering and refurbishment of life extension is mandatory for all WEGs that have completed their operational life of 20 years, while for others, it is voluntary.
Those WEGs participating in repowering projects must pay a development charge of Rs 30 lakh per Megawatt. The operational life of repowered turbines should nt exceed 25 years from the date of commissioning after repowering.
Under the policy, for those opting for life extension, extension will be granted for the next five years if the windmills achieve 90% of their average power generation in the past three years. WEGs must apply for life extension within 90 days of completing their design life or 20 years of operation.
The new policy provides the option for banking 50% of generated power within the same financial areas, subject to conditions. Under the present scenario, annual banking arrangements is provided for windmills commissioned up to March 31, 2018.
In the new policy, banking arrangements will be eligible for those who have completed 20 years of operation, but only if they opt for repowering, refurbishment, or life extension.
For the first time, Tamil Nadu has also allowed the conversion of wind projects into wind-solar hybrid projects.
S Nagalsamy, a former member of the Tamil Nadu Electricity Regulatory Commission, noted that the state has wind energy sources with a combined capacity of 10,790 MW. He said, “Through this policy, the state government can increase capacity up to 15,000 MW in the coming years.
Though this is a positive move, developers have to pay both development charges (Rs 30 lakh per MW) and infrastructure charges. While the nodal agency collects infrastructure charges, it is unnecessary to impose development charges. The state government should reconsider these charges.”
E Natarajan, state general secretary of the Bharathiya Electricity Engineers Association, raised concern over the loss during the period when WEGs are implementing the repowering projects and are unable to supply power to the Tamil Nadu Power Distribution Corporation as per their agreement. This would lead to the corporation buying power from the open market at higher rates.