Tamil Nadu imposes ₹50 lakh per MW fee on central grid wind projects to boost local energy goals

• Published 2 months ago
• By SuperAdmin

The power generated from these projects is primarily utilized by other states through the 400KV central transmission network to fulfill their respective State RPO Obligations.

New Delhi: In a strategic move to promote wind energy projects connected to the State Transmission Utility (STU) and meet Renewable Power Obligations (RPO), the Tamil Nadu Green Energy Corporation Ltd (TNGECL) has introduced a new fee of ₹50 lakh per megawatt (MW) for wind power projects linked with the Central Transmission Utility (CTU). This fee applies to all new and pending applications for projects aiming for CTU connectivity.

Since the commencement of the policy in 2018, approximately 1700MW of CTU-connected wind power projects have been successfully commissioned in Tamil Nadu.

The power generated from these projects is primarily utilized by other states through the 400KV central transmission network to fulfill their respective State RPO Obligations.

The ministry of power has set a Wind RPO target of 0.67% for the fiscal year 2024-25, scaling up to 3.48% by 2029-30. Under this mandate, power generated from windmills commissioned from April 1, 2024, will contribute towards meeting these obligations. However, the energy produced from CTU connectivity projects does not count towards Tamil Nadu’s Wind-RPO, necessitating the development of more wind power projects with STU connectivity within the state.

Tamil Nadu has been a pioneer in wind energy since 1986, but the potential for new projects has diminished due to the exhaustion of wind-rich areas and rapid urbanization. This has made the identification of suitable land for new wind projects increasingly challenging.

To address this and ensure the state meets its ambitious target of generating 5000 MW of wind power by 2030, TNGECL has decided to levy a resource charge on CTU-connected wind projects. This measure aims to incentivize the development of STU-connected projects, which can directly contribute to the state's RPO requirements.

The new charge was approved after careful consideration by the board of TNGECL and is part of broader efforts to optimize the use of Tamil Nadu's wind resources. This amendment to the existing procedures for commissioning wind projects connected to the CTU was officially implemented with immediate effect from the date of the announcement on August 6, 2024.