We're not responsible for your losses, TN wind industry tells Tangedco

M. Ramesh Chennai | Updated on June 20, 2012 Published on June 20, 2012

Wind power producers in Tamil Nadu have strongly denied that the state-owned power utility, Tamil Nadu Generation and Distribution Company, is losing around Rs 1,200 crore because of the wind power sector in the State.

In its response to Tangedco’s view, the Tamilnadu Spinning Mills Association (TASMA) — whose members have over 3,000 MW of wind power capacity — has told the Tamil Nadu Electricity Regulatory Commission (TNERC), that the wind power producers are not responsible for Tangedco’s losses.

Tangedco had said – both to TNERC and to Business Line – that the ‘banking facility’ allowed to captive wind power producers caused a huge loss to the state utility.

‘Banking’ enables a wind power producer to put in electricity into the grid and draw it back at a time of his choice within the end of that financial year. Tangedco believes that due to the difference in price they pay the producers and the price at which they have to procure from the market to supply back to them, it sustains a huge financial loss.

Wind power producers disagree. In a written counter submitted to the regulator, TASMA has noted that during high wind seasons, Tangedco actually makes a profit on trading in wind power.

TASMA reasons that even assuming that Tangedco purchased power from the market – for the purpose of supplying to the captive wind power companies that had ‘banked’ their power – even at a high price of Rs 10 a unit, the utility should have bought 1,200 million units to have made a loss of Rs 1,200 crore. In no year have the wind power producers banked as much as 1,200 million units, TASMA says, backing its stand with data.

Hence, it has to be taken that “the purchase made at Rs 10 a unit was to offer power to all consumers and not to wind power producers alone,” says TASMA.

The wind power producers (and the biomass power producers) are unhappy with Tangedco that the utility collects ‘infrastructure development charges’ on the one hand, and does not make the grid available all the time.

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Published on June 20, 2012
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