Tamil Nadu power corp wrong on wind power banking loss

The Tamil Nadu Spinning Mills Association (Tasma) termed as "deceptive" the Tamil Nadu Generation and Distribution Corporation’s (Tangedco) assumption of the loss it suffers offering wind power banking facility to power producers.

The Tasma also urged the state government to lift the ban on power export.

"The assumption that the Tangedco is incurring a loss of Rs.1,200 crore per year, to supply power on account of banking of wind power is deliberately deceptive. Bought-out power is an important source of power for Tangedco. Last fiscal, the bought-out power of Tangedco is 7,718 million units which is around 10 percent of its gross generation," K.Venkatachalam, chief advisor, Tasma, told IANS.

Members of Tasma account for nearly 3,500 MW or around 50 percent of installed wind energy capacity in Tamil Nadu.

Power banking, like banking, sees wind energy producers feed the electricity generated by their wind turbines to the state grid and then draw that power for captive use within a year.

At the public hearing held here for revision of wind power tariff, Tangedco had argued that it is incurring huge loss due to the banking facility given to wind power generators.

"Tangedco has stated that it is incurring a loss of Rs.1,200 crore per year towards wind power banking due to purchase of electricity at Rs.10 per unit which converts to 1,200 million units (MU) for supply to banking account. The fact is that there is no banking of 1,200 MU at any point of time as per Tangedco data," Venkatachalam said.

He said the wind power generation in Tamil Nadu is on the rise every year whereas the generation of Tangedco’s own power stations are decreasing.

"To cover up their insufficient production, Tangedco opted for bought out power at high rate during January-March 2012, and now it is trying to blame the banking account of wind mills for such losses which is not correct," he charged.

Referring to the government order of 2009 banning sale of power outside the state, Venkatachalam said: "Owing to the ban, Tangedco is not able to absorb the power and supply to neighbouring states when windmills start generating power during the wind season. During certain hours of the day, wind power demand will be less than the supply."

He said a petition to this effect was sent to Chief Minister J.Jayalalithaa June 15.

According to the submission if the independent power producers (IPPs) are allowed to export power, the excess power generated by windmills would help to meet out the demand in Tamil Nadu.

"In the absence of the above arrangement, now the WEGs (wind energy generators) are forced to back out for longer periods every day even though wind season is very good during this year," he said.