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Tamil Nadu has introduced its first policy focused on repowering wind energy projects, known as the Repowering, Refurbishment, and Life Extension Policy 2024. This makes Tamil Nadu the first state in India to implement such a policy, aiming to improve the efficiency of wind energy resources. The need for this policy has been highlighted since 2016, and after releasing a draft earlier this year, the government has now finalized it following Cabinet approval.
The policy will be effective immediately and will remain in place until March 31, 2030, or until a new policy is issued. Tamil Nadu Green Energy Corporation has been appointed as the nodal agency responsible for its implementation.
Participation in the repowering process is mandatory for wind energy generators (WEGs) that have completed 20 years of operation, while it remains voluntary for others. WEGs taking part in repowering projects are required to pay a development charge of ₹30 lakh per Megawatt, and the repowered turbines should not operate for more than 25 years from the date of commissioning.
For those seeking to extend the operational life of their windmills, a five-year extension will be granted if they have achieved 90% of their average power generation over the past three years. WEGs must apply for this extension within 90 days of completing their design life or 20 years of operation.
The policy also introduces a banking option, allowing wind energy producers to bank 50% of generated power under certain conditions. This banking arrangement is available to windmills commissioned before March 31, 2018, and those that opt for repowering or life extension.
Additionally, for the first time, Tamil Nadu has allowed the conversion of wind projects into wind-solar hybrid projects, offering more flexibility and support for renewable energy development in the state.
Please view the document below for more details.
