Two large renewable energy-rich states in India have announced plans to export surplus renewable energy to other states.
The southern Indian states of Andhra Pradesh and Tamil Nadu have expressed an intent to export solar and wind power to other states. Both are among the leading renewable energy generating states in the country.
The Andhra Pradesh government has issued a policy to incentivize the development of solar and wind energy projects and export the resulting power to other states. As a policy, the government will lease out land to private project developers to set up large-scale power projects.
The government also made it clear that its own power distribution companies shall be under no obligation to procure any power produced by these states. These companies have often claimed that they have procured sufficient renewable power and already pay high tariffs for this power. Their stand has resulted in multiple cases and petitions with various regulatory bodies.
Project developers who plan to invest in setting up solar power equipment manufacturing facilities will be given preference to set up power generation projects. The government has also announced some incentives for project developers.
According to media reports, Tamil Nadu also announced plans to export surplus wind power to other states. The state will use a new high-capacity transmission line to export power to western states.
Tamil Nadu has the highest wind power capacity among all states in India. The state often reports surplus wind power during the monsoon season.
In 2017 we reported that wind power generation in the state hit a record high of 5 gigawatts, forcing the state to shut down several thermal power plants. Later that year, the state earned revenue of US$1 million by selling surplus wind power at power exchanges.
Moving forward, other states may also look to implement similar policies to attract investment in new renewable energy projects and look to export electricity generated from them to other states.