Tamil Nadu proposes rise in wind tariff, industry not happy though

Tamil Nadu wind energy is likely to cost more as the Tamil Nadu Electricity Regulatory Commission (TNERC) has proposed to increase power tariff for wind energy in the state by about eight paise, according to a report from Business Standard.

The proposed move, however, is not likely to address the challenges the wind power industry faces in the state. Industry representatives are doubtful whether this could have an impact on the profitability of the market players.  The industry has also opposed the monthly adjustment of energy banking.

TNERC has asked feedback from the industry by October 27.  The commission also published consultative paper in which it has pegged wind energy tariff at Rs 3.59 a unit against the prevailing tariff of Rs 3.51 a unit for wind mills commissioned on or after a previous order dated July 31, 2012.

wind-turbine

However, according to industry representative, the tariff in the Tamil Nadu is the lowest even though the plant load factor (PLF) is better than other states. The average PLF in Tamil Nadu is 30-32 percent, while in Andhra Pradesh the tariff is at 4.70 with average PLF of 26-28 percent. Madhya Pradesh’s tariff is Rs 5.92 per unit and the average PLF is around 20-22 percent, according to Business Standard.

Also read: India to get the first offshore wind power project in Gujarat  

Tamil Nadu accounts for 37 percent of the country’s installed wind energy capacity. Of the total capacity, around 60 percent is captive, while the balance goes to the state distribution company.

The wind energy sector in Tamil Nadu has been responding slowly over the past few years. In 2012-13, the state added a record 1083 MW, while it was dropped to 107 MW in 2013-14. Estimates say the capacity addition in FY-2015 will be about 250 MW.

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