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TN wind power producers upset over tariff cut

Our Bureau

CHENNAI, Feb. 21

WIND power producers in Tamil Nadu are upset over the Tamil Nadu Electricity Board's decision to reduce the tariff to be paid to new projects.

TNEB has informed prospective wind power producers that they would have to sell power to the board at Rs 2.25 per unit for the energy generated during peak hours (6 a.m. and 9 a.m., and 6 p.m. and 9 p.m.). The energy generated during off-peak hours will be paid 70 per cent of that.

There will also be no annual increase in the tariff. However, TNEB is likely to do away with the differentiation between peak and off-peak period tariffs. The tariff being paid now is Rs 2.76 per unit.

TNEB has also asked wind power developers to install time-of-day meters to measure energy (both active and reactive) during peak and off-peak hours. The reactive power units drawn by the wind mills will be subtracted from the active power generated by th em and payment will be made only to the net power generated. Wheeling and banking of power from wind mills will not be allowed for industries.

While the wind power producers say the tariff reduction would discourage any fresh investment in the sector in the State, TNEB contends that it took the decision because of the undependable nature of wind power.

According to the power developers, Tamil Nadu has the highest installed capacity of wind power at 800 MW and the wind mills generate 300 MW during the summer months. At least Rs 150 crore of investment is in the pipeline and this will get diverted to oth er States if TNEB implements its policy.

The developers have made a representation to both the State Government.

Wind power, according to TNEB, is seasonal with the May-October period being the peak season. Moreover, it has daily, weekly and monthly variations because of which, TNEB says it cannot plan to meet any additional demand for power. The board has informed a working group set up by the Union Ministry of Non-Conventional Energy Sources that the variation is quite sharp even during the peak period.

According to TNEB, wind energy can be charged only at a much lesser rate because it is not a dependable source of power. A rate of Rs 2.76 per unit will work out to a levelised tariff of Rs 3.58 per unit at 5.5 per cent discounting.

TNEB also told the working group that it could purchase power from private projects at a levelised tariff of Rs 3-3.20 per unit. Moreover, these projects assure 80-85 per cent availability of power, with which the TNEB will be better placed to meet addit ional loads.

The thrust of TNEB's argument is that while renewable energy sources, such as wind power, need to be encouraged, the burden should not fall on the State electricity boards.

According to the board, the solution lies in the Ministry giving proper subsidies to wind power projects rather than asking electricity boards to bear the subsidies by way of higher tariffs.