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The Tamil Nadu Energy Department has received multiple proposals for repowering projects in the wind energy sector and anticipates more submissions in the near future
The Tamil Nadu government has recently introduced its Repowering, Refurbishment, and Life Extension Policy for Wind Power Projects – 2024. This initiative aims to encourage developers to replace ageing wind turbines and enhance the optimal use of wind energy resources.
“We have received 4-5 proposals so far, and we anticipate additional submissions. We are currently analysing these proposals. There are considerations for life extension and some regulatory requirements to address, as well as the technical infrastructure.”
“Overall, our potential capacity for repowering over the next few years is approximately 7.5 GW, with 1.4 GW expected in the immediate term,” Aneesh Sekhar, Managing Director of Tamil Nadu Green Energy Corporation Ltd, told BusinessLine on the sidelines of the Windergy India 2024 meet.
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Regarding the financial restructuring following the unbundling of the State Power Distribution Utility, Sekhar noted that the burden on the balance sheet of the green energy entity will be less than that of the other two companies.
“We aim to start with a clean balance sheet to facilitate progress. Proportionately, the assets we hold—such as hydro assets and fourth-generation plants—will have their associated loans transferred to us. Therefore, only the loans linked to these specific assets will appear on our balance sheet,” he explained.
When asked about funding for future capacity additions in the renewable sector, he stated that the chosen approach will determine the implementation of the plan.
“There are various methods available, and specific decisions will be made within our programme. For instance, SECI (Solar Energy Corporation of India) operates by focusing on procurement rather than direct investment, allowing it to leverage private sector capabilities for better value. While we are considering a similar approach, it has not been finalized yet,” he added.
On the topic of offshore wind projects, Sekhar mentioned that these initiatives fall under the purview of the Government of India.
The government has already issued a tender for seabed leasing, which is still in progress. The first tender in Gujarat is utilizing the VGF (Viability Gap Funding) model, and a similar tender in Tamil Nadu is expected in about eight months.
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