Tamil Nadu Introduces ₹50 Lakh 'Resource Charge' for Wind Projects

Tamil Nadu Introduces ₹50 Lakh 'Resource Charge' for Wind Projects

Tamil Nadu has introduced a ₹50 lakh 'resource charge' per megawatt (MW) for wind projects that are linked to the central transmission infrastructure (CTI), which includes projects run by the Power Grid Corporation of India. This move is a part of the state's strategy to optimize the use of its wind resources and meet its renewable purchasing obligation (RPO).

The decision was made because many of the state's wind projects are connected to the central grid, which means they do not immediately help Tamil Nadu achieve its RPO goals. Experts in the field worry that the additional fee would make wind projects in the state less feasible, especially given the high land cost. The government observes the increasing urbanization of the country is making it harder to get land for wind projects.



Tamil Nadu Green Energy Corporation Ltd (TNGECL) says the wind RPO target for 2024–2025 has been set by the Union Ministry of Power at 0.67%. By 2029–2030, it is anticipated to increase to 3.48%. This RPO mandates that TANGEDCO, the state utility, supply a certain percentage of wind energy, with penalties for non-compliance.


TNGECL emphasizes the importance of supporting wind projects connected to the State Transmission Utility (STU) to more efficiently and effectively meet regional energy demands and RPO requirements. From the beginning of 2018, approximately 1,700 MW of wind power projects in Tamil Nadu connected to the central grid have become operational. The power generated is often utilized by other states to fulfill their RPOs.

The new fee of ₹50 lakh per MW is levied on approved and proposed wind projects to incentivize developers to link their projects to the state grid and bolster Tamil Nadu's electricity supply. By 2030, the state hopes to have installed 5,000 MW of wind power. This is an ambitious aim.



Tamil Nadu was once the leader in wind power generation and the pioneer in wind energy in India, earning the title of the "windest" state. Now, Tamil Nadu has been lagging behind Gujarat, which now leads in wind capacity. Between the fiscal years 2019-20 and 2023-24, data shows that Tamil Nadu contributed 1,299 MW of wind energy, while Gujarat and Karnataka added 4,182 MW and 1,228 MW, respectively. Recently, Tamil Nadu carried the second position with a wind capacity of 10,603 MW, slightly behind Gujarat's 11,723 MW. Despite being at the forefront of wind energy since 1986 in Tamil Nadu, increasing urbanization and the depletion of prime wind-rich locations have the difficulties to implement new wind projects due to land availability constraints.