In its tariff order for the current financial year (April 2018 - March 2019), the Tamil Nadu Electricity Regulatory Commission (TNERC) has decided to allow the continuation of the banking of wind energy for existing projects, much to the relief of the industry.
The banking facility allowed captive wind power generators to sell surplus power to distribution companies. Through the facility, wind power producers feed the electricity generated by their wind mills into the State grid and draw the power for captive use within the banking period (from April 1 - March 31).
The Tamil Nadu Generation and Distribution Corporation (Tangedco) had sought the removal of the banking facility, saying it was causing huge losses to the power utility.
But the wind power producers had called for the continuation of the facility, pointing out that their investments were at stake.
Tangedco said that if the provision of the banking facility were to be extended, it should only be offered to existing wind power producers with conditions.
Further, the State power utility stated that the loss incurred on resupplying the banked energy at subsidised rates, which could have otherwise been sold at higher industrial and commercial tariffs, was estimated at ₹1,429 crore. The regulator, however, said that a few associations had furnished claims to prove that rather than causing a loss, the present form of banking offered gains for the power utility. They had come up with calculations showing a gain of ₹2.18 per unit and a profit in the range of ₹436 crore - ₹487 crore due to the banking mechanism. The TNERC noted that the captive wind power producers and Tangedco had taken extreme positions.
‘No robust data’
“There is also a difference in the data furnished by the wind energy producers and the State power utility. In the absence of robust data, the commission is unable to verify the correctness or otherwise of the claims and counter claims made by them,” it added. As a result, the TNERC said it had decided to permit the continuation of the present banking period of 12 months (April 2018 - March 2019) for wind power projects commissioned on or before March 31, 2018.
However, it has hiked the banking charges to 14% from 12%. For new projects commissioned on or after April 1, the TNERC has allowed a banking period of only one month, with no banking charges. “It is a welcome relief for the captive wind power producers. There was huge fear that the banking facility would be done away with and we made a number of representations on the issue,” K. Kasturirangan, chairman of the Indian Wind Power Association, told The Hindu .
Meanwhile, Tangedco is mulling legal options against the TNERC move, according to government sources.
