Tamil Nadu imposes INR 50 lakh per MW fee on central grid wind projects to boost local energy goals
Notable because
Tamil Nadu has been a frontrunner for wind energy advancements, boasting 10.9 GW of installed wind capacity (July 2024). ~87% of TN’s wind capacity is connected to the STU, and ~70% of the generated electricity goes towards captive purposes. Given that most of TN’s prime wind sites are already occupied and much of the older STU-connected captive capacity is equipped with lower-rated turbines, repowering older wind turbines will be crucial for increasing TN’s wind generation.
What to look out for in the months ahead
Following the national wind repowering policy in December 2023, TN has been one of the first states to announce its own wind repowering policy. Will the state announce further investments and incentives to repower its older wind turbines?
How will the additional cost for CTU-connected projects impact the tariffs discovered under the REIA bidding trajectory? Could this impact the MNRE’s planned annual bidding for 10 GW of wind capacity?