Tamil Nadu’s 2024 Wind Energy Policy

Empowering Wind Energy: Tamil Nadu’s Progressive 2024 Policy

Tamil Nadu has long held a leadership position in India’s renewable energy sector, with wind energy forming the backbone of its green energy capacity. As of June 30, 2024, the state boasts a renewable energy capacity of 22,754 MW, of which wind energy contributes an impressive 10,790 MW. However, many of the wind turbines currently in operation were installed as early as 1986, with capacities ranging between 55 kW and 600 kW. Despite reaching or exceeding their designed life spans, these older machines continue to operate, albeit inefficiently compared to modern technology. Recognizing the urgent need to enhance energy output and optimize land use, the Government of Tamil Nadu has introduced the Repowering, Refurbishment & Life Extension Policy for Wind Power Projects – 2024.

The objective of the policy is to promote the optimal use of wind energy resources by supporting project developers in replacing or upgrading old turbines and extending their operational life. It applies to three types of projects: repowering, where old turbines are replaced or new ones added (including intercropping), refurbishment, which involves component upgrades like blades or gearboxes, and life extension projects, which prolong turbine operation beyond their original design life. The policy mandates that all wind energy generators (WEGs) that have completed 20 years of operation must opt for one of these options, while others may participate voluntarily.

Eligibility under this policy is tied to performance improvement: repowered projects must increase generation by at least 1.25 times, refurbished ones by 1.1 times, and life-extended turbines must maintain 90% of their rated generation. Certification from authorized bodies like NIWE is essential for ensuring safety and compliance, while development charges of ?30 lakh per MW apply across all project types.

Implementation of these projects will be overseen by the Tamil Nadu Green Energy Corporation Limited (TNGECL), acting as the State Nodal Agency. All approvals, documentation, and progress reporting will be managed through an online portal. Developers must prepare detailed project reports, secure grid connectivity, and shoulder the costs of dismantling, land acquisition, and infrastructure upgrades.

Significantly, the policy offers attractive incentives and support mechanisms. It allows flexibility in micro-siting norms, enabling higher efficiency within existing wind farms. A modernized banking arrangement permits annual energy banking within specific seasonal limits and consumption guidelines. WEGs will also benefit from relaxed fall distance rules and permissions to convert wind-only setups into wind-solar hybrid projects, provided capacity limits and grid constraints are respected.

Furthermore, the policy opens access to financing through institutions like IREDA, which will offer interest rebates, and waives open access charges during project execution. Projects will retain their existing PPAs with TNPDCL where applicable, with provisions for continuity, tenure extension, and the sale of additional generation at competitive tariffs.

Overall, Tamil Nadu’s 2024 policy represents a forward-thinking, inclusive, and performance-based approach to revitalizing its wind energy landscape. By encouraging modernization and sustainable practices, it sets the stage for a more robust, efficient, and greener energy future.

 

Article by 
Mrs. Suganya,

eClouds Eyarthi Pvt, Ltd.,

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