The Tamil Nadu Electricity Regulatory Commission (TNERC) has made a strong pitch to hike the tariff rate of wind energy from the current level of Rs 2.90 a unit to Rs 3.40. per unit. The move may help attract big ticket investment in the wind energy generation sector.
Wind power firms were clamouring for a hike in the tariff rate of power produced from the wind turbines for the past few years. Unattractive tariff has been cited as one of the reasons for the slowdown in investments in wind energy generation in the state that has 43 % of the installed wind power capacity in the country.
The commission has made the proposal in a consultative paper on ?power purchase from wind energy generators?, posted on its website recently. It has invited suggestions and comments before December 28. Various stakeholders, including the Tamil Nadu Electricity Board, the wind power producers, the wind turbine manufacturers and the general public are expected to give their suggestions and comments based on which TNERC would take a decision latest by January next.
The new rate would be applicable only to the wind energy generators (WEGs) to be installed after the date of the new tariff order or a date to be fixed by the regulator. The new tariff rate to be announced next month would be valid for 20 years. The tariff review or control period is three years. Thus TNERC may propose a higher rate for wind energy to be installed after 2012.
About the tariff revision for the existing WEGs, the consultative paper said, ?As regards to revision of rates for Group I WEGs, ( those installed before May 15, 2006) and group II WEGs (those installed after May 2006), the commission retains the rates for the present and has decided to collect exhaustive data on decline of efficiencies of old WEGs, derating the capacity utilisation factor (CUF) of old WEGs etc from wind mills association as well as TNEB and then take a view.?
The Indian Wind Power Association (IWPA), an association of wind power producers, however, is not happy with this tariff system based on the date of installation of WEGs. K Kasturirangan vice-chairman of IWPA told FE, ?This discriminatory policy for the wind energy alone is not acceptable. Thermal or hydel power tariff revision is not based on the date of commissioning of the power plant. The old WEGs are producing the same quality power as the new WEGs or hydel or thermal plants. The unequal treatment of equals is unconstitutional and we are going to take up the matter with TNERC??.
Indian Wind Turbine Manufacturers Association, (IWTMA) welcomed the TNERC proposal. ?We have been anxiously waiting for such a move from the Commission??, IWTMA spokesperson told FE. The tariff revision is expected to attract investment from domestic and international players to Tamil Nadu.