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Tamil Nadu introduces Rs 5 million per MW charge for wind projects

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Tamil Nadu has implemented a Rs 5 million per MW resource charge for wind projects connected to central transmission infrastructure, such as those by the Power Grid Corporation of India (PGCIL). This measure aims to meet the state’s renewable purchase obligation (RPO) and improve local wind resource management.

The charge targets wind projects linked to the central grid, which do not directly contribute to Tamil Nadu’s RPO. This could impact project feasibility due to high land costs and urbanization. The Tamil Nadu Green Energy Corporation Ltd (TNGECL) states that the wind RPO will increase from 0.67% in 2024-25 to 3.48% by 2029-30, necessitating more local wind power.

Since 2018, around 1,700 MW of wind power projects connected to central utilities in Tamil Nadu have primarily served other states’ RPOs. The new charge aims to encourage developers to link projects to the state grid, supporting Tamil Nadu’s target of 5,000 MW of wind capacity by 2030.

Despite being a leading wind energy state, Tamil Nadu is falling behind Gujarat and Karnataka in capacity growth. Currently, Tamil Nadu ranks second in wind capacity with 10,603 MW, behind Gujarat’s 11,723 MW.

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