MNRE Issues Draft National Repowering Policy for Wind Power Projects 2022

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MNRE Issues Draft National Repowering Policy for Wind Power Projects 2022

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On October 17, 2022 the Ministry of New and Renewable Energy (MNRE), issued the revised draft of its National Repowering Policy for Wind Power Projects. This ministry issued the Policy for Repowering Wind Power Projects on August 5, 2016. The ministry received feedback from stakeholders about the revised policy.

The Repowering Policy aims to maximize the use of Wind energy resources by maximising energy (kWh) yield per square kilometer of project area, and using the most up-to-date onshore Wind turbine technologies.

It is requested that any feedback on the draft can be sent to the ministry within 15 days, or at the very latest by November 01, 2022, by email at rishikesh.mnre@gov.in

India’s wind capacity increased from 21 GW in 2014, to 40 GW by 2022. However, the sector has experienced stagnation and numerous site-level challenges. Many good sites are now being occupied by lower rating turbines. Once approved, this policy can be a catalyst for the sector, a well-known industry expert said.

Repowering has been identified on 25 GW of wind capacity across 8 states.

The policy lays out conditions for developers to go for repowering of their old Wind turbines. The following Wind turbines are eligible for repowering under the policy:

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i. All Wind turbines as identified in accordance with the quality control order issued by this ministry under the relevant BIS Act ;
ii. The Wind turbines of rated capacity below 2 MW;
iii. Wind turbines which have completed their design life; and
iv. A set of existing Wind turbines over an area shall also be eligible for Repowering provided:
 Project area is a geographically contiguous land area
 All turbines considered for repowering are connected to a single Polling Sub Station (PSS)
 More than 90% of total capacity of the project should have completed its design life.

Within one month of announcement of this policy, MNRE shall appoint a monitoring and advisory committee (named as “Wind Repowering Committee (WRC)”) in accordance with the provisions of this policy to assist MNRE in implementation of the Repowering Policy.

For repowering projects Indian Renewable Energy Development Agency (IREDA) will provide an additional interest rate rebate of 0.25% over and above the interest rate
available to the new Wind projects being financed by IREDA.

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The power generated corresponding to average of last three years’ generation prior to repowering would continue to be procured as per the terms of PPA in-force till the PPA tenure. In the case the PPA tenure is less than the standard PPA tenure i.e. 25 Years, the concerned DISCOM shall make arrangements to extend the tenure of the PPA for a period of 25 Years from the date of COD of the original project & continue to procure the quantum of power generated (average of last three years generation) for the remaining tenure of the PPA

The project developer shall be at liberty to sell additional Wind power capacity (MW)/ generation to the incumbent DISCOMs or to any other entity through Open Access subject to refusal of concerned DISCOM. The power off take by concerned DISCOM shall be at the discovered tariff of the project.

The Central/ State Govt might consider a scheme that provides additional financial incentives to repowering projects

The Wind RPO compliance of concerned states in which the repowering project is situated shall be exempted for the remaining period till the commissioning of repowered project. (For the purpose of calculations PLF from such projects shall be the average PLF’s over the last three years before which the project was taken for Repowering).

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An enhanced RPO multiplier shall be provided to the repowered project for remaining period of PPA

Developers and aggregators who are facing revenue loss and decommissioning costs will be compensated by a Repowering Site preparation fee, which will include the terminal and decommissioning costs. You can sell scrap materials to offset a portion of these costs.

View the revised policy document here:

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