Tamil Nadu releases Repowering, Refurbishment & Life Extension Policy for Wind Power Projects

Tamil Nadu is one of the leading States in India’s renewable energy sector, having a substantial renewable energy generation capacity of 22,754 MW as on 30 June, 2024

Updated - September 05, 2024 11:08 am IST - CHENNAI

The Tamil Nadu Repowering, Refurbishment & Life Extension Policy for Wind Power Projects – 2024 has been released to encourage developers to replace old wind turbines and promote optimum utilisation of wind energy resources.

Tamil Nadu is one of the leading States in India’s renewable energy sector, having a substantial renewable energy generation capacity of 22,754 MW as on 30 June, 2024. At 10,790 MW, wind energy accounts for a major share of renewable energy in the State, as per the policy shared with industry players.

Wind energy generation in Tamil Nadu commenced in 1986 with machine capacities ranging from 55 kW to 600 kW. Though these machines have completed their life cycle, they are still in operation, the policy noted.

“With the advancement in technology over the last three decades, it is observed that there is a potential opportunity to replace these older, lower capacity turbines with new models that have higher capacity,” it added.

By replacing the old wind turbines, optimisation of the wind energy potential at each specific site can be explored, which will help in increasing overall installed capacity and wind energy generation in Tamil Nadu, the policy said.

Under the repowering project, a Wind Energy Generator (WEG) replaces the old wind turbines with new ones, while under the refurbishment project, the WEG carries out suitable modifications in the turbine components such as gearbox, blades, generator, controller, hub height, and rotor diameter.

Under the life extension policy, the WEG undertakes the extension of the operational life period of wind turbines beyond their original design life or 20 years, whichever is earlier.

It is mandatory for all WEGs that have completed their operational life period of 20 years to opt for any one of the activities mentioned in the policy. For others, participation is voluntary. The policy shall be valid from the date of the issuance up to 31 March, 2030, or till the time a new repowering policy is announced, whichever is earlier.

A project will be considered under the repowering policy provided it leads to an increase in the annual energy generation by at least 1.25 times the existing generation of the old WEGs (average generation of last three years), while a project under the refurbishment policy will be considered provided it leads to an increase in the annual energy generation by at least 1.1 times the existing generation of the old WEGs (average generation of last three years).

Under the life extension policy, WEGs which have completed their life period of 20 years, and whose average generation of the last three financial years is not less than 90% of their rated generation, are eligible.

WEGs shall have to pay the development charge at the rate of Rs. 30 lakh/MW for the entire wind generation capacity for the various options in the policy.

The Tamil Nadu Green Energy Corporation Limited (TNGECL) shall act as the State Nodal Agency for implementation of the project.

Annual banking arrangements, permission to convert wind projects into wind solar hybrid projects, support for availing loans from financial institutions like PFC/REC/IREDA, exemption from paying open access charges from the date of approval to the date of commissioning or 1.5 years, whichever is lower, are among the incentives announced in the policy.

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