Solar power has expanded rapidly across Tamil Nadu. “The state’s solar capacity has grown from around 4-5 GW in 2021 to nearly 13-14 GW today,” points out NGR Kartheek, Senior Program Manager – Industrial Decarbonisation, WRI India. Meanwhile, wind capacity has increased from around 8-9 GW to about 12 GW during the same period. The slower pace of wind growth reflects the realities of a mature market. “Most of the high-potential wind zones developed during the early stages are currently ageing,” highlights Harish Palani, Senior Research Specialist at WRI India. While efforts are underway to identify new locations, rising land prices make new projects increasingly challenging.
The Repowering Remedy
This has shifted focus towards repowering that involves replacing older turbines with modern, high-capacity machines capable of generating significantly more electricity from the same location. Tamil Nadu introduced a wind repowering, refurbishment and life-extension policy in 2024 to support this transition. After facing legal challenges and concerns from parts of the industry, the framework was revised in January 2026 following consultations with developers, consumers, think tanks and equipment manufacturers. Industry experts believe the revised policy could unlock additional capacity from existing wind farms and improve the productivity of existing wind assets. “ If wind repowering happens at scale, it can significantly enhance Tamil Nadu’s wind capacity and unlock additional renewable generation from existing wind corridors. With over 70 per cent of India’s sub-500 kW wind assets located in the state and an estimated repowering potential of more than 7 GW, Tamil Nadu has a unique opportunity to improve productivity, optimise land use and extract greater value from its proven wind sites,” says Harish.
Switching to Green Power
The economics of renewable energy are also encouraging wider adoption. Larger consumers are procuring through captive and group captive arrangements, while open-access mechanisms have enabled industries to source green power directly from generators. Third-party open access has become less attractive because of rising cross-subsidy charges and additional surcharge burdens. While captive and group captive models continue to remain viable.
As companies begin replacing those fossil-fuel-based processes through electrification and other cleaner alternatives, demand is expected to rise substantially. “Sectors such as steel, cement, textiles, automotive and chemicals are major opportunities for renewable energy growth,” points out Kartheek. These industries face increasing pressure to reduce emissions and improve sustainability. Kartheek stresses that industrial decarbonisation and electrification could become important drivers of wind and renewable energy consumption over the coming decade.
The next frontiers
One of the long-standing challenges associated with renewable energy is intermittency. As renewable energy penetration increases, the ability to store power and provide grid flexibility will become increasingly important. Tamil Nadu has already begun addressing this issue. The state regulator has released draft regulations for battery energy storage systems and industry stakeholders are watching the evolution of the framework closely.
“Another emerging area is small wind turbines (SWTs), which can enable distributed renewable generation for suitable industrial and commercial locations. Research estimates indicate that Tamil Nadu has nearly 4 GW of SWT potential, highlighting an additional opportunity to diversify renewable energy deployment beyond large-scale projects,” says Harish. While still in an early stage, they represent another avenue through which industries could participate in renewable energy generation. Industry stakeholders anticipate that Tamil Nadu would introduce an overarching renewable energy policy covering solar, wind, storage and emerging technologies, providing a framework for the state’s energy transition.