The Tamil Nadu government has announced wind power projects repowering regulations aimed to replace old wind turbines and optimize wind energy potential. The Tamil Nadu Repowering, Refurbishment & Life Extension Policy for Wind Power Projects, 2024, seeks to increase the state’s overall installed wind power capacity and generation and provide a supportive framework for Wind Energy Generators (WEG)

The policy will be valid until March 31, 2030, or until a new repowering policy is announced.

Repowering Projects: These are projects where WEGs replace old wind turbines with newer ones or undertake intercropping in their wind park/cluster area. A repowering project is classified as a Standalone Project and an Aggregation Project. The owner of a wind project or a third party may act as a Wind Repowering Project Aggregator (WRPA) with or without partnership with owners of other projects in the Aggregation Project. The WRPA can be formed as a special purpose vehicle/joint venture/consortium.

Refurbishment Projects: Here, the WEGs carry out suitable modifications in turbine components such as gearbox, blades, generator, controller, hub height, and rotor diameter.

Life Extension Projects: These projects must meet specific requirements to qualify for benefits under this policy. WEGs must apply for life extension within 90 days of completing the design life or 20 years.

To be eligible, WEGs with STU connectivity should have completed their operational life period of 20 years.

Sale of Power

WEGs will be allowed a maximum of 1.5 years for repowering and one year for refurbishment from the approval date.

During this period, WEGs can draw power from the grid to execute the project as per the applicable tariff.

The projects can consume or sell additional generation to Tamil Nadu Power Distribution Corporation (TNPDCL)/any other entity/in power exchanges per the existing laws/rules.

Power Purchase Agreements

For WEGs that have an existing PPA with TNPDCL and opt to undertake repowering/refurbishment/life extension under this policy, the existing generation would continue to be procured as per the terms of the existing PPA. The existing PPA tenure will also be extended by a period taken to complete the repowering/refurbishment work or 1.5 years/1 year, respectively, excluding force majeure events, whichever is lesser.

For WEGs that do not have PPAs with TNPDCL at the time of repowering, refurbishment, or life extension and wish to sell power to TNPDCL, the Corporation can enter into PPAs with such projects. This is to procure wind energy at the latest tariff discovered through competitive bidding conducted by SECI or any other central agency for the remaining life period after repowering, refurbishment, or life extension.

The MNRE’s National Repowering & Life Extension Policy for Wind Power Projects, 2023, states that financial institutions such as PFC, REC, and IREDA will provide loans for repowering on the same terms and conditions as those for new projects. In addition, IREDA will offer an interest rebate of 0.25% on top of the interest rate available to new wind projects. TNGECL will also help WEGs obtain loans to repower or refurbish their projects through these financial institutions.

Banking Arrangements

The existing provision allows annual banking arrangements for WEGs commissioned up to March 31, 2018. However, this policy introduces modified banking arrangements for WEGs that have:

• completed their operational life of 20 years
• not completed their operational life of 20 years but choose to opt for repowering/ refurbishment/life extension under this policy
• commissioned after March 31, 2018, and willing to opt for banking arrangements under this policy

Those commissioned before March 31, 2018, and chosen not to undergo repowering or refurbishment will follow the old banking arrangements until they complete their 20 years of life from the date of commissioning.

Implementation

Repowering, refurbishment, and life extension of State Transmission Utility (STU)-connected projects will be implemented through the state nodal agency (SNA).

Converting Wind Projects Into Wind-Solar Hybrid Projects

Project developers who undertake wind repowering or refurbishment projects under this policy will be permitted to convert their wind projects into wind-solar hybrid projects based on:

• Generation capacity (MW) from wind and solar at any time should not exceed the allotted evacuation capacity (MW)
• Banking for the wind-solar hybrid project will be allowed for the energy generated from the wind energy generator only, and all the provisions of this policy will apply to wind energy only
• Slot-wise monthly solar banking will be provided per existing solar policy and regulations
• Developers will have the option to install solar wind hybrid projects with or without battery storage
• Must run status for solar capacity in wind-solar hybrid project will not be applicable during the wind season (May to September)

Last year, the Ministry of New and Renewable Energy, Wind Energy Division, revised its 2016 policy to repower wind power projects to facilitate the replacement of older turbines.

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