Tamil Nadu Eases Wind Re-Powering Norms After Industry Pushback
The Tamil Nadu government has approved key amendments to its wind re-powering policy to address concerns raised by the wind energy sector. The changes which cover eligibility criteria, additional power assessment, development charges, power purchase agreements, banking rules and siting norms follow industry pushback against the original Tamil Nadu Re-powering, Refurbishment and Life Extension Policy for Wind Power Projects, 2024 that was notified in August 2024.
Wind energy associations had challenged the policy in the Madras High Court, which stayed its implementation in October 2024. With the petitions now before a Division Bench, both sides sought time during hearings to arrive at a mutually acceptable framework. In response, TN Green Energy Corporation Limited (TNGECL) formed a sub-committee comprising officials, manufacturers, experts and industry bodies such as the Indian Wind Power Association, whose recommendations informed the latest amendments.
A major revision relates to eligibility timelines. Windmills commissioned before April 1, 2016 must now undergo re-powering, refurbishment or life extension after 20 years of operation, while those commissioned on or after that date will be required to do so after 25 years. The original policy had made compliance largely voluntary for newer projects.
Rules for assessing additional power generation have also been eased. Instead of mandating fixed percentage increases over past output, the amended policy will now evaluate gains based on incremental capacity added through re-powering. Development charges have been rationalized as well Rs 30 lakh per MW will apply only to the additional re-powered capacity, with existing capacity attracting a lower Rs 5 lakh per MW charge. For refurbishment and life extension, the one-time fee has been replaced by an annual levy of Rs 50,000 per MW.
The government has clarified that all existing power purchase agreements will remain valid until their expiry. Post-expiry, generators may sign new agreements at competitive tariffs or choose wheeling as per regulations. Banking norms have been aligned with TN Electricity Regulatory Commission guidelines, allowing banked energy to be consumed within the same financial year and compensating any surplus at 75% of the applicable tariff. Earlier restrictions including mandatory consumption during specific wind months, have been removed.
Additional relaxations cover siting rules, subject to turbine size and noise limits. The policy also permits conversion of standalone wind projects into hybrid wind-solar plants, with must-run status extended to combined output. TNGECL has been asked to take necessary steps in pending court matters in consultation with government legal officers.
