Renewable energy firms urged the State government to address delays in payments and other policy-related issues in order to maintain Tamil Nadu’s leading position in the sector.
“Tamil Nadu has a wind energy potential of 2 lakh MW, of which only 8,500 MW has been reached. The State has become a leader in wind energy due to investor-friendly policies,” Ramesh Kymal, Chairman and Managing Director, Siemens Gamesa India, said at a session on investment opportunities in renewable energy at the Tamil Nadu Global Investors Meet 2019.
However, he pointed out that in recent years, the State had been losing out due to a lack of policy initiatives.
“Tamil Nadu accounted for 52% of wind energy installations in the country, but that share has been coming down in recent years,” Mr. Kymal said.
Banking facility
He pointed out that the State had withdrawn the banking facility for captive power producers.
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.
For new wind power projects, the banking period is allowed only for one month.
Earlier, the facility was extended up to one year.
“The textile industry has mainly set up captive wind energy units. Most of them are MSME units. Withdrawal of banking facility has put this industry under threat. The government should bring back the banking facility of one year,” Mr. Kymal said.
He pointed out that Siemens Gamesa had invested ₹3,000 crore in the State and if the captive power units were in trouble, they would have to export turbines to other States which would add to the logistics cost.
Mr. Kymal also referred to the delayed payments to wind energy producers by Tangedco.
Power surplus
“The State has been power surplus mainly due to the contribution of wind power, especially during the peak summer season and we look forward for prompt payments,” he added.
Jayant Parimal, CEO, Adani Green Energy, also agreed that payment delays was one of the key issues across many States, including Tamil Nadu.
Curtailment of solar power energy from the grid had been one of the challenges in the State. However, the situation had been improving in the last one year, he added.
