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Tamil Nadu goes out of favour with wind energy investors

According to reports, despite the state desperately needing alternative sources of energy, wind energy producers are no longer keen on setting up new mills in the state.

A huge backlog in paying arrears and a low price for the energy produced by windmills are forcing investors to look at other states like Gujarat and Rajasthan.

The Tamil Nadu Electricity Board owes 1,500 crore to the wind energy producers. The dues have accumulated over the past 14 months, said K Kasturirangan, chairman, Indian Wind Power Association.

A senior TNEB official, while admitting that there was a huge backlog, said, “We are facing funds constraints. Efforts are being taken to clear the backlog.”

Availability of huge wind corridors with good wind velocity has been attracting investors to Tamil Nadu for more than a decade. The state, with an installed capacity of 7,000 MW, has the highest number of windmills in the country. “But of late, there is a slow down in investments in the wind energy sector in Tamil Nadu,” he said.

Last year, 1,000 MW of windmills were installed in the state. This year, however, Tamil Nadu has been able to attract only 84 MW capacity till now. It is far below the expected 400 MW for the first five months.

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