The Tamil Nadu Electricity Regulatory Commission (TNERC) said it would decide on the issue of wind energy bank in its next tariff order, after considering the views of stakeholders and based on its consultative paper.
The banking facility allowed captive wind power generators to sell their surplus to distribution companies. This policy was adopted by the State government long ago to promote clean energy.
Bone of contention
The Tamil Nadu Generation and Distribution Corporation (Tangedco) had filed a petition with the TNERC, seeking removal of the facility and change of banking period to the calendar year from the financial year. In a recent consultative paper, the TNERC said wind energy banking had remained a bone of contention between Tangedco and power producers. With the State becoming energy surplus, the Tangedco says it was recording losses because of the additional cost incurred on banking while wind energy generators, on the other hand, cited concerns about the investments made factoring in the banking provision, it added.
According to the consultative paper, of the 7,900 MW of wind energy capacity in Tamil Nadu, largest in the country, captive generation accounted for nearly 70% or 5,500 MW.
Based on Tangedco’s submission and views of all the stakeholders, the TNERC would decide on the new norms for wind energy banking in the next tariff order.
The consultative paper suggested a slew of restrictions on the banking facility. “The rise in captive installation is a cause for concern with respect to the facility of banking of energy,” the TNERC said in its paper.
Restrictions proposed
The commission has proposed that the captive wind power generators should restrict the installed capacity in such a way that the generation did not exceed the annual average demand after taking into account the figures for the previous two or three years.
The commission has suggested other options, including scrapping banking, but with deemed purchase of surplus power or banking facility with a restriction on timing from one month to 12 months, with various riders and charges.
It recommends removal of banking of energy for third party power purchases.
The TNERC pointed out that other States rich in renewable energy such as Andhra Pradesh, Gujarat, Maharashtra, Rajasthan and Karnataka had imposed more restrictions on banking of wind energy when compared to Tamil Nadu.
