Tangedco told to file new plea to ban ‘power banks’

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Tamil Nadu Electricity Regulatory Commission (TNERC) has asked the Tamil Nadu Generation and Distribution Corpo­ration Ltd (Tangedco) to file a fresh petition to abolish the system of ‘banking’ of electricity by wind power producers.

The banking system allows wind power producers to put power into the grid and draw the power back for consumption within a year. This is particularly useful for wind power producers who also own other industries that may need electricity to run.

The Tangedco, in its petition in February 2012, sought to dispense with the banking provision to wind energy generation for existing and future wind projects. The contention of the corporation was that banking was hurting the organisation because wind power producers put electricity into the grid when there is enough power but redraw it when there is a scarcity of power. Since the Tangedco is supposed to supply them the power, it has to purchase power at high rates from the market resulting in heavy losses.

In its order recently, TNERC said that it had issued the tariff order for wind energy on July 31 with certain changes to the banking provisions to wind energy have been incorporated.

“The Tangedco was directed to implead other necessary parties, namely, government of Tamil Nadu, TEDA and TANTRANSCO. This is not done so far. In view of non-prosecution of the petition and also in view of the changes to banking provisions in the latest tariff order for wind energy, this petition is not admitted.,” the order said, adding that if the Tangedco wants to pursue it, it may file a fresh petition.

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