Don’t scrap wind power banking: Manufacturers tell Tamil Nadu

June 28th, 2012 - 12:46 am ICT by IANS  

Chennai, June 27 (IANS) The Indian Wind Turbine Manufacturers Association (IWTMA) has asked the Tamil Nadu government to call a meeting of stake-holders in wind energy sector in the state to decide on the issues of wind power banking instead of totally scrapping it.

In a letter to Chief Minister J. Jayalalithaa June 22, the copies of which were released to the media here Wednesday, IWTMA said: “We humbly request the chief minister to give directions not to remove the banking facility as an ‘open and shut case’ and call for a stake-holders’ meeting and take a matured judicious decision that will be acceptable to all the stake-holders.”

The IWTMA wants the stake-holders’ meeting to discuss and decide on the issues relating to banking charges, amendment in the banking period in a calendar year, and possible creation of block period (period during which wind power generators cannot draw the banked power).

Power banking is like cash banking whereby wind power producers feed in the electricity generated by their wind mills to the state grid and then draw that power for captive use within a year.

State power utility Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco) complained of loss of Rs.1,200 crore due to the banking facility.

According to Tangedco, wind mills generate power when the demand for electricity is low and the state utility has to buy power from the market to meet its contractual obligation to wind power generators.

In its letter to Jayalalithaa, IWTMA has said that the removal of wind power banking facility will result in flight of capital from Tamil Nadu to other states.

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