TNGECL Introduces ₹50 Lakhs/MW Charges to Support 5,000 MW STU-Connected Wind Projects in Tamil Nadu

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The proceedings under reference No.(1) approved a procedure for commissioning wind power projects by developers connected to the Central Transmission Utility (CTU) or Power Grid Corporation of India Ltd (PGCIL). This procedure was designed to maintain land ownership requirements, boundary distances, and micro-siting spacing criteria (5DX7D) as followed by TNGECL. The intent was to protect the interests of both new and existing wind developers with State Transmission Utility (STU) connectivity in Tamil Nadu and to avoid legal disputes between adjacent wind mill owners.

Since 2018, about 1,700 MW of CTU-connected wind power projects have been commissioned in Tamil Nadu under this approved procedure, adhering to all statutory requirements. The wind power generated from these projects is transmitted through the 400KV Central Transmission network and utilized in other states to fulfill their Renewable Purchase Obligation (RPO) commitments.

Recently, the Ministry of Power, Government of India, set the Wind Renewable Power Obligations (RPO) at 0.67% for the fiscal year 2024-25, increasing to 3.48% by 2029-30. The wind power generated from projects commissioned after April 1, 2024, will count towards this obligation, and non-compliance will result in penal charges for state discoms. However, the energy generated from CTU-connected projects cannot be counted towards Tamil Nadu’s Wind-RPO. Therefore, it is necessary to encourage new wind power projects with STU connectivity to generate more wind power and meet Tamil Nadu’s RPO.

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Tamil Nadu has been promoting wind energy generation since 1986. However, most wind-rich areas have been exhausted, and urbanization has made it challenging to find land for new wind power projects. Given the limited available wind resources, it is important to promote STU-connected wind power projects to meet the state’s power needs and RPO requirements.

To facilitate this, and to help achieve the target of 5,000 MW of wind power in Tamil Nadu by 2030 as announced in the assembly, the collection of resource charges for CTU-connected wind projects was proposed. The Board of TNGECL, after careful consideration, approved the collection of resource charges at a rate of ₹50 Lakhs per MW for all future projects and pending applications with CTU connectivity. This amendment to the procedure for commissioning CTU-connected wind power projects has been officially approved, ensuring a structured approach to promoting wind power development in Tamil Nadu.

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