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					</table>Tamil Nadu’s <a href="https://www.tn.gov.in/dept_profile.php?dep_id=Nw==" target="_blank" rel="noopener">Energy Department</a> has amended key provisions of its Repowering, Refurbishment, and Life Extension Policy for Wind Power Projects, which was <a href="https://www.mercomindia.com/tamil-nadu-issues-wind-repowering-and-refurbishment-policy" target="_blank" rel="noopener">issued</a> in 2024.
The revised clauses introduce greater flexibility in eligibility timelines, performance benchmarks, cost structures, certification requirements, and operational norms, with the objective of making repowering and life extension of ageing wind projects more viable in the state.
Eligibility for Repowering and Refurbishment
Under the earlier policy, all wind energy generators (WEGs) connected to the state transmission utility (STU) were eligible, but it was mandatory for turbines that had completed 20 years of operation to opt for repowering, refurbishment, or life extension, regardless of when they were commissioned.
Under the modified clause, WEGs commissioned before April 1, 2016, must opt for repowering, refurbishment, or life extension after 20 years, but those commissioned on or after that date can continue operating up to 25 years before being required to do so. This change recognizes improvements in turbine technology and design life over time, and avoids forcing relatively newer machines into premature intervention.
Earlier, turbines seeking life extension after completing 20 years had to demonstrate that their average generation over the previous three financial years was at least 90% of rated generation. The modified provision relaxes this threshold to 70%, based on certification from the National Institute of Wind Energy or another independent agency. This acknowledges natural performance degradation over time and ensures that technically sound but moderately underperforming turbines are not excluded from life extension options.
Annual Generation Benchmark
Earlier, eligibility for repowering or life extension was tied to strict numerical thresholds—projects had to demonstrate an increase of at least 1.1 times to 1.25 times the average generation of the last three years of the existing WEGs.
The amended clause introduces a pro rata assessment linked to repowered capacity rather than the old installed capacity. The increase in generation now serves as a benchmark for evaluation, providing developers with flexibility, particularly at wind-saturated or low-wind sites, where achieving fixed multipliers was often impractical.
Development Charges 
Previously, developers were required to pay a development charge of ₹3 million (~$32,785)/MW for the entire wind generation capacity, even if only part of it was upgraded. The revised clause applies the ₹3 million (~32,785)/MW charge only to the incremental repowered capacity, while imposing a much lower nominal charge of ₹500,000 (~$546.42)/MW on the existing capacity. This substantially reduces upfront costs and removes a major financial barrier to repowering projects.
Certification 
The earlier policy required turbine assessment and certification by accredited agencies in accordance with UL 4143 or the Bureau of Indian Standards (BIS) benchmarks, along with the issuance of a new or extended type certificate.
The modified clause simplifies this process by allowing structural integrity certification by the original equipment manufacturer (OEM) or a certified chartered engineer (civil), while mandating electrical safety certification from the Chief Electrical Inspector to the Government.
Continuity of Existing PPAs
Previously, WEGs opting for repowering, refurbishment, or life extension could continue supplying power under their existing power purchase agreements (PPAs) until the end of the agreement term.
The amended clause clarifies that this continuation applies only to the existing generation capacity. Once the PPA expires, the generator must either enter into a PPA, sell power through an energy wheeling agreement, or accept a tariff fixed by the state regulator, whichever is lower.
Annual banking arrangements
The earlier framework limited banking to the May–September period, imposing slot-wise caps, minimum utilization conditions, and fixed banking charges in kind.
Annual banking was allowed for the same financial year, subject to the condition that 50% of the generation happened during the wind months (May to September).
The earlier clause stated that slot-wise energy utilization was allowed for the period from October 1 to March 31. Also, the minimum utilization was expected not to exceed 20% of the net banked energy each month from October 1 to December 31. Additionally, the WEGs were to be charged 16% of the banked energy as banking charges in accordance with the revision every year.
The revised clause aligns banking with the financial year (April to March), allowing slot-to-slot utilization, including the use of peak energy during off-peak hours, and linking accounting and charges to the Tamil Nadu Electricity Regulatory Commission’s (<a href="https://tnerc.tn.gov.in/Contactus.aspx" target="_blank" rel="noopener">TNERC</a>) regulations. As per the modified clause, any surplus unutilized banked energy would be paid at 75% of the tariff fixed by TNERC.
Fall Distance Norms 
The fall distance refers to the safety setback distance from structures, calculated to prevent damage from wind turbine collapse.
Earlier, wind projects were required to maintain a fixed setback distance of 500 metres from dwellings, with limited scope for relaxation.
The amended clause introduces a formula-based approach—hub height plus half the rotor diameter plus 5 metres—subject to implementation of adequate noise mitigation measures. However, this relaxation does not apply to projects seeking simple life extension or refurbishment without changes in hub height or rotor diameter.
Must-run Status
Under the original policy, conversion of wind projects into wind–solar hybrids was permitted, but solar generation did not have must-run status during the wind season (May to September).
The modified clause allows developers undertaking repowering, refurbishment, or life extension to convert to wind–solar hybrid projects. It extends must-run status to combined wind–solar generation up to the approved evacuation capacity, even during the wind season (May to September).
India <a href="https://www.mercomindia.com/india-records-highest-ever-wind-capacity-additions-at-6-3-gw-in-2025" target="_blank" rel="noopener">added</a> 6.3 GW of wind power capacity in 2025, an 85.2% YoY increase from 3.4 GW in 2024, according to Mercom India Research. The additions marked the highest annual wind installations recorded in the country. India’s wind power market improved in 2025, supported by higher tender activity, stronger bidder participation, and more competitive tariffs. While land acquisition and grid connectivity remain challenges, developers are addressing these issues, helping keep projects on track for commissioning.

Tamil Nadu Tweaks Wind Policy to Ease Repowering and Life Extension Norms

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					</table>The <a href="https://www.tn.gov.in/" target="_blank" rel="noopener">Tamil Nadu government</a> has announced wind power projects repowering regulations aimed to replace old wind turbines and optimize wind energy potential. The Tamil Nadu Repowering, Refurbishment &amp; Life Extension Policy for Wind Power Projects, 2024, seeks to increase the state’s overall installed wind power capacity and generation and provide a supportive framework for Wind Energy Generators (WEG)
The policy will be valid until March 31, 2030, or until a new repowering policy is announced.
Repowering Projects: These are projects where WEGs replace old wind turbines with newer ones or undertake intercropping in their wind park/cluster area. A repowering project is classified as a Standalone Project and an Aggregation Project. The owner of a wind project or a third party may act as a Wind Repowering Project Aggregator (WRPA) with or without partnership with owners of other projects in the Aggregation Project. The WRPA can be formed as a special purpose vehicle/joint venture/consortium.
Refurbishment Projects: Here, the WEGs carry out suitable modifications in turbine components such as gearbox, blades, generator, controller, hub height, and rotor diameter.
Life Extension Projects: These projects must meet specific requirements to qualify for benefits under this policy. WEGs must apply for life extension within 90 days of completing the design life or 20 years.
To be eligible, WEGs with STU connectivity should have completed their operational life period of 20 years.
Sale of Power
WEGs will be allowed a maximum of 1.5 years for repowering and one year for refurbishment from the approval date.
During this period, WEGs can draw power from the grid to execute the project as per the applicable tariff.
The projects can consume or sell additional generation to Tamil Nadu Power Distribution Corporation (TNPDCL)/any other entity/in power exchanges per the existing laws/rules.
Power Purchase Agreements
For WEGs that have an existing PPA with TNPDCL and opt to undertake repowering/refurbishment/life extension under this policy, the existing generation would continue to be procured as per the terms of the existing PPA. The existing PPA tenure will also be extended by a period taken to complete the repowering/refurbishment work or 1.5 years/1 year, respectively, excluding force majeure events, whichever is lesser.
For WEGs that do not have PPAs with TNPDCL at the time of repowering, refurbishment, or life extension and wish to sell power to TNPDCL, the Corporation can enter into PPAs with such projects. This is to procure wind energy at the latest tariff discovered through competitive bidding conducted by SECI or any other central agency for the remaining life period after repowering, refurbishment, or life extension.
The MNRE&#8217;s National Repowering &amp; Life Extension Policy for Wind Power Projects, 2023, states that financial institutions such as PFC, REC, and IREDA will provide loans for repowering on the same terms and conditions as those for new projects. In addition, IREDA will offer an interest rebate of 0.25% on top of the interest rate available to new wind projects. TNGECL will also help WEGs obtain loans to repower or refurbish their projects through these financial institutions.
Banking Arrangements
The existing provision allows annual banking arrangements for WEGs commissioned up to March 31, 2018. However, this policy introduces modified banking arrangements for WEGs that have:
<ul>
<li>completed their operational life of 20 years</li>
<li>not completed their operational life of 20 years but choose to opt for repowering/ refurbishment/life extension under this policy</li>
<li>commissioned after March 31, 2018, and willing to opt for banking arrangements under this policy</li>
</ul>
Those commissioned before March 31, 2018, and chosen not to undergo repowering or refurbishment will follow the old banking arrangements until they complete their 20 years of life from the date of commissioning.
Implementation
Repowering, refurbishment, and life extension of State Transmission Utility (STU)-connected projects will be implemented through the state nodal agency (SNA).
<ol>
<li>Project repowering, refurbishment, or life extension should be done after obtaining approval from the SNA.</li>
<li>The project developer should prepare a Detailed Project Report for land acquisition and site development for the repowering/refurbishment project and submit it to the SNA for verification.</li>
<li>For repowering/refurbishment projects, the developer shall assess the pre-feasibility of evacuation of anticipated energy after repowering/refurbishment through STU.</li>
<li>The project developer will obtain approval from the competent authority for grid connectivity, open access, and wheeling for additional wind generation capacity, as approved by the Tamil Nadu Electricity Regulatory Commission.</li>
<li>The SNA will approve the application to Tamil Nadu Power Distribution Corporation (TNPDCL) or Tamil Nadu Transmission Corporation (TANTRANSCO). TNPDCL or TANTRANSCO will approve and estimate the cost for infrastructure augmentation, if required, within 60 days.</li>
<li>Upon receiving the cost estimation from TNPDCL or TANTRANSCO, the SNA will inform the developer about the cost of infrastructure augmentation and development charges to be paid. 
The developer will pay the said charges within 30 days of getting the intimation from the SNA, who will then approve within 30 days of receiving the payment from the developer.</li>
<li>The project developer will be responsible for the cost, risk, and responsibility of dismantling and decommissioning existing WEGs, acquiring land, augmenting the evacuation system, renewing leases, and obtaining approvals.</li>
<li>After completion of repowering/refurbishment/life extension projects, the project developer must inform the SNA to get certification for repowering/ refurbishment/life extension. The date certified by the SNA will be considered the date of repowering/refurbishment/life extension.</li>
<li>Fresh power sale agreements for WEGs must be executed after repowering or refurbishment as per regulations.</li>
</ol>
Converting Wind Projects Into Wind-Solar Hybrid Projects
Project developers who undertake wind repowering or refurbishment projects under this policy will be permitted to convert their wind projects into wind-solar hybrid projects based on:
<ul>
<li>Generation capacity (MW) from wind and solar at any time should not exceed the allotted evacuation capacity (MW)</li>
<li>Banking for the wind-solar hybrid project will be allowed for the energy generated from the wind energy generator only, and all the provisions of this policy will apply to wind energy only</li>
<li>Slot-wise monthly solar banking will be provided per existing solar policy and regulations</li>
<li>Developers will have the option to install solar wind hybrid projects with or without battery storage</li>
<li>Must run status for solar capacity in wind-solar hybrid project will not be applicable during the wind season (May to September)</li>
</ul>
Last year, the Ministry of New and Renewable Energy, Wind Energy Division, <a href="https://www.mercomindia.com/mnre-unveils-revised-wind-power-projects" target="_blank" rel="noopener">revised</a> its 2016 policy to repower wind power projects to facilitate the replacement of older turbines.
Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable sector.

Tamil Nadu Issues Wind Repowering and Refurbishment Policy

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