Tamil Nadu Seeks To Boost Wind Power With New Repowering Policy

Tamil Nadu Seeks To Boost Wind Power With New Repowering Policy

Tamil Nadu, which already has around 10 GW of installed capacity of wind energy is now aiming to given an impetus to its wind sector. With an aim to spur the growth of wind energy in the southern state, the Tamil Nadu Green Energy Corporation Limited has now notified its Wind Repowering Policy. As per the latest data, Tamil Nadu has a total of 10.93 GW of wind energy capacity. Tamil Nadu, is among the selected eight Indian states which have wind energy projects due to the favourable weather conditions. 

The latest wind repowering policy of the state covers repowering, refurbishment, and life extension for wind power projects. The policy aims to provide a supportive framework for wind energy generators (WEGs). The policy is valid till 2030 or until a new repowering policy is announced, the norms said. The new policy has made repowering mandatory for the wind turbines which are older than 20 years or have completed their conventional life period. 

At the national level, Tamil Nadu is the second largest producer of wind energy in the country after Gujarat. As per the policy document, the state commenced wind energy generation in 1986 with machine capacities ranging from 55 kW to 600 kW. The new policy seeks to boost the production of wind energy from the same patch of land with an increased capacity by phasing out the older inefficient wind turbines, refurbishing or or extend its life span through minor manipulations.

This policy supports wind energy generators (WEGs) in repowering standalone and aggregate wind energy projects. Standalone wind energy projects are single or a group of wind turbines owned by a single owner, whereas aggregate wind energy projects involve wind turbines owned by multiple owners with shared common infrastructure. The norms said that repowering aggregate wind energy projects will require consent from all project owners. To complete aggregate projects, the policy encourages the existing owner of any wind energy project or a third party to act as a WRPA, with or without partnership from other project owners.

During the refurbishment of wind energy projects, wind energy generators can carry out modifications to turbine components, such as the gearbox, blades, generators, controllers, hub height, rotor diameter, etc. The policy seeks to extend the life of wind turbine projects beyond their original design life of 20 years. To undertake the life extension, WEGs must apply for life extension within 90 days of completing the original design life.

Repowering Requirements

Tamil Nadu has identified WEGs that have completed 20 years of operational life as eligible to participate in the policy. The new policy also encourages wind energy generators to participate on a voluntary basis. This policy is valid until March 31, 2030, or until a new repowering policy is announced, whichever is earlier.

Conditions For Repowering Of Project

Based on the eligibility criteria laid down by the Tamil Nadu State Nodal Agency (SNA) and Tamil Nadu Green Energy Corporation, any project that can generate at least 1.25 times the existing energy generation of the old WEG (based on the average generation of the last 3 years) after adjusting for wind variation factors is eligible. Independent agencies like NICE can assess the generation.

The guidelines set a 25-year operational life from the date of commissioning after repowering. Additionally, the project can receive a one-time extension for another 25 years after repowering, with approval from the SNAs. WEGs must pay development charges of Rs. 30 lakh/MW for the entire wind energy generation.

Condition for Refurbishment of the project

Under the latest guidelines, those projects which as per the eligibility criterion, can lead to an increase in annual energy generation of at least 1.1 times of existing generation of old WEGs based on the average generation of three years. This assessment is done after adjusting for variation due to wind factors, which can be assessed on the basis of assessment from wind energy agencies.

The guidelines set 20 years from the date of refurbishment as the operational life period for refurbished project. After initial approval this project can be further extended for another 10 years after refurbishment, by the SNAs which can be further extended after periodic review.
For refurbishment of the wind energy projects, the guideline also laid down certain development charges of Rs. 30 Lakh/MW for each approval for the wind generation capacity.

Life Extension Project

WEGs that have completed 20 years and whose wind energy generation has not fallen below 90% of their rated generation in the last year qualify for life extension. The policy allows for life extensions of up to 20 years from the date of life extension approval.

Additionally, the policy encourages a 5-year extension after receiving life extension approval from the SNAs, with the option for further renewal after periodic review.

Role Of Developers

According to the guidelines, SNAs are responsible for overseeing the repowering, refurbishment, or life extension of projects. Developers must submit a Detailed Project Report (DPR), which helps with land acquisition and site development for repowering or refurbishment.

Sale Of Additional Generation On Account Of Repowering

The guidelines allow WEGs to use or sell additional energy generated from repowered or refurbished projects to TNPDCL, power exchanges, or other entities. WEGs have the option to:

1. Continue with the existing power purchase agreement (PPA),
2. Be exempt from supplying power to TNPDCL during the repowering period,
3. Extend the PPA for the new operational life, and
4. Procure additional generation.

The latest provision also offers benefits under the additional banking arrangement to:

1. WEGs that have completed 20 years of operational life.
2. WEGs that have not completed their 20-year operational life but choose to opt for repowering, refurbishment, or life extension.
3. WEGs commissioned after March 31, 2018, that want to avail themselves of the banking arrangement under this policy.