Repowering of Wind Power Projects

Ministry of New & Renewable Energy (MNRE) has released the regulation on the subjected matter on 5th Aug 2016.

1. Introduction:

Major share of renewable power capacity in India is from wind energy. India started harnessing of the wind power prior to 1990. The present installed capacity is over 27 GW which is fourth largest in the world after China, USA and Germany. Most of the wind-turbines installed up to the year 2000 are of capacity below 500 kW and are at sites having high wind energy potential. It is estimated that over 3000 MW capacity installation are from wind turbines of around 500 kW or below. In order to optimally utilise the wind energy resources repowering is required.

2. Objective:

Objective of the Repowering Policy is to promote optimum utilisation of wind energy resources by creating facilitative framework for repowering.

3. Eligibility:

Initially wind turbine generators of capacity 1 MW and below would be eligible for repowering under the policy. Based on the experience, Ministry of New & Renewable Energy (MNRE) can extend the repowering policy to other projects also.

4. Incentive:

i. For repowering projects Indian Renewable Energy Development Agency (IREDA) will provide an additional interest rate rebate of 0.25% over and above the interest rate rebates available to the new wind projects being financed by IREDA.

ii. All fiscal and financial benefits available to the new wind projects will also be available to the repowering project as per applicable conditions.

5. Implementation Arrangements:

The repowering projects would be implemented through the respective State Nodal Agency/Organisation involved in promotion of wind energy in the State.

6. Support to be provided by States:

i. In case augmentation of transmission system from pooling station onwards is required the same will be carried out by the respective State Transmission Utility.

ii. In case of power being procured by State Discoms through PPA, the power generated corresponding to average of last three years’ generation prior to repowering would continue to be procured on the terms of PPA in-force and remaining additional generation would either be purchased by Discoms at Feed-in-Tariff applicable in the State at the time of commissioning of the repowering project and/or allowed for third party sale.

iii. State will facilitate acquiring additional footprint required for higher capacity turbines.

iv. For placing of wind turbines 7D x 5D criteria would be relaxed for micro siting. v. A wind farm/turbine undergoing repowering would be exempted from not honouring the PPA for the non-availability of generation from wind farm/turbine during the period of execution of repowering. Similarly, in case of repowering by captive user they will be allowed to purchase power from grid during the period of execution of repowering, on payment of charges as determined by the regulator.

7. Financial Outlay:

No additional financial liability to be met by the MNRE for implementing the Repowering Policy. The repowering projects may avail Accelerated Depreciation benefit or GBI as per the conditions applicable to new wind power projects.

8. Review:

The Repowering Policy would be reviewed by the Government as and when required.