TN Introduces New Fee to Boost State-Connected Wind Energy Projects
The measure is taken with an intention to promote wind energy projects connected to the State Transmission Utility (STU) and meet Renewable Power Obligations (RPO). This fee is applicable to all new and pending applications for projects seeking CTU connectivity.
August 26, 2024. By News Bureau
The Tamil Nadu Green Energy Corporation Ltd (TNGECL) has introduced a new fee of INR 50 lakh per megawatt (MW) for wind power projects linked with the Central Transmission Utility (CTU).
The measure is taken with an intention to promote wind energy projects connected to the State Transmission Utility (STU) and meet Renewable Power Obligations (RPO). This fee is applicable to all new and pending applications for projects seeking CTU connectivity.
Since the policy's inception in 2018, Tamil Nadu has successfully commissioned approximately 1,700 MW of CTU-connected wind power projects. The energy generated from these projects is primarily used by other states through the 400KV central transmission network to fulfil their respective State RPO Obligations.
The Ministry of Power has set a Wind RPO target of 0.67 percent for the fiscal year 2024-25, increasing to 3.48 percent by 2029-30. Wind power generated from projects commissioned after April 1, 2024, will contribute to these obligations. However, energy from CTU-connected projects does not count towards Tamil Nadu’s Wind-RPO, highlighting the need for more STU-connected projects within the state.
Tamil Nadu, a pioneer in wind energy since 1986, faces challenges in developing new projects due to the scarcity of wind-rich areas and rapid urbanisation. To address this and meet its goal of generating 5,000 MW of wind power by 2030, TNGECL has decided to levy a resource charge on CTU-connected wind projects. This move aims to encourage the development of STU-connected projects, which will directly contribute to the state's RPO requirements.
The new charge was approved by TNGECL's board and is part of broader efforts to optimise Tamil Nadu's wind resources.
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