Tamil Nadu tops in wind energy generation in the country: CII report

The Confederation of Indian Industry (CII) southern region in its report said that if Tamil Nadu has to retain its leadership position, it must allow third party sale to avoid diversion of investments to other states like Maharashtra where third party sale is allowed.

The key findings of the CII report 'Success in Harnessing Wind Energy "� Tamil Nadu' said that Tamil Nadu has emerged as a role model state and a leader in wind energy generation in the country with an installed capacity of 1,664 MW, which is 53 per cent of the total installed capacity in the country.

Of the 3,050 MW estimated potential, the state has successfully captured 55 per cent and poised for a capacity addition of 500 MW during the current year.

The other key issues that the state government will need to look into are wheeling to be permitted in all categories of high tension tariff, retaining the wheeling and banking charges by 5 per cent, continued participation of ERC for transparency in power purchase pricing, and non compatibility of wind project investment under Technology Upgradation Fund (TUF).

According to the CII report, the success of Tamil Nadu in harnessing wind energy is mainly due to the positive perception created by the state among investors in setting up wind farms. The initiatives include maintaining a consistent wind energy policy, lower wheeling and banking charges at 5 per cent.

The other factors will be making captive use economical, inherent geographical advantage such as good wind regime due to major mountain pass, multiple use of wind farm area for cultivating cash crops, high concentration of captive consumers in the state, robust grid infrastructure and the reasonable power purchase price by Tamil Nadu Electricity Board (TNEB) at Rs.2.70 per unit.

The report also highlights the socio-economic and environmental benefits through wind energy projects. Indirect and direct employment of around 80 people for a 1 MW plant is envisaged. Local economies can derive immense benefit from wind projects.

In his address, R Viswanathan, minister for transport and electricity, Government of Tamil Nadu, said that the state government is very keen on encouraging the wind energy production in view of the greener technology and the environment- friendly system, and also the employment potential it offers.

Tamil Nadu has been able to attract and retain the private sector investments in wind energy due to its consistent and transparent wind power policy, he said.

K Skandan, chairman, TNEB, said that a multi-pronged approach by the state government to develop wind energy, along with regular payment by the electricity board to the generators have enthused private operators, who were attracted by a consistent policy of the state, he said.

Of the 11,900 million units (MUs) of wind energy generated so far, 2119 MUs were generated in the last year till Feb 2005. Out of this 2119 MUs, 1,400 MUs have been adjusted to the industry while the purchased by the TNEB, stated Skandan.

K Allaudin, chairman and managing director of Tamil Nadu Energy Development Agency (Teda), said that so far 67 sites have identified in the state out of which 41 have been declared as potential sites for wind generation. Allaudin further added that indigenisation of technology is one of the key factors for growth of this sector.