The Tamil Nadu Green Energy Corporation (TNGECL) has imposed a resource charge of ₹5 million (~$59,594)/MW on all Central Transmission Utility (CTU)-connected wind power projects that are awaiting in-principle or location clearance approvals.

The levy aims to encourage the development of State Transmission Utility (STU)-connected wind projects, which will contribute to Tamil Nadu’s Renewable Power Obligations (RPO).

A note by TNGECL said that from 2018, around 1,700 MW of CTU-connected wind power projects have been commissioned in Tamil Nadu. The power generated from these CTU projects are transmitted through 400 kv Central Transmission network is being utilized in other states to meet out their RPO. The energy generated from CTU-connected projects is utilized by other states, thus not contributing to Tamil Nadu’s RPO.

While Tamil Nadu has been a pioneer in promoting wind energy since 1986, the state faces challenges in identifying new land parcels for wind projects due to urbanization and the exhaustion of wind-rich areas.

TNGECL said there is a pressing need to promote STU-connected wind power projects to meet the state’s RPO.

The amendment to the procedure for commissioning wind projects connected to the CTU comes into immediate effect, and ensures that all future CTU-connected projects comply with the new resource charge requirements.

The Ministry of Power has set a wind RPO of 0.67% for the fiscal year 2024-25, rising to 3.48% by 2029-30. Tamil Nadu aims to achieve 5,000 MW of wind power capacity by 2030 to meet these targets.

The Tamil Nadu Electricity Regulatory Commission (TNERC) recently unveiled the Forecasting, Scheduling, and Deviation Settlement and related matters for Wind and Solar Generation Regulations in 2024. These regulations will be implemented starting April 1, 2024.

India added 770 MW of wind energy capacity in Q2 2024, down 32% YoY from 1,139.9 MW in Q2 2023. The capacity additions fell 33% quarter-over-quarter, according to Mercom India Research.

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