Renewable Energy Sector


Seven districts have been identified which have wind power density of 700 watts per square meter which is very conducive for wind power generation.


Tamil Nadu enjoys solar incidence of 5.5 – 6 kWh/sq.m/day and has been untapped with a cumulative capacity of 97 MW.


Tamil Nadu has a potential of 500 MW of biomass power. Out of this, the capacity to the extent of 211 MW has already been exploited. This is about 40% exploitation of existing potential. However, there is still an opportunity for investment in about 290 MW.




The state has an outlay of USD 9170 million for solar energy sector alone.


Mandatory 6% solar power consumption for all high Tension customers including SEZs, Industries which have committed access to 24×7 power, IT Parks, Telecom Towers, Colleges and schools, buildings with a built up area of 20,000 sq.ft / sq.m or more.


As per the State’s Industrial Policy, several initiatives promoting the renewable energy sector have been rolled out. Some of the key initiatives are:

  • Investments made in power plants to be included for the purpose of structures packages.
  • Refund of 50% of the VAT component on capital goods (if these are manufactured in Tamil Nadu) exclusively for captive power generation.
  • Electricity tax exemption for sale to utility & captive sales for 5 years.
  • A total capacity of 1500MW to promote development of solar capacity (of varied capacities ranging from 1MW to over 10MW). Parks with capacity of 50MW will be setup in 24 districts out of the 32 districts of the state.
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Sept 2015

Global Investors

Chennai Trade Centre, Chennai, Tamil Nadu, India
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10 Reasons to Choose Tamil Nadu

  • An economic powerhouse on a high growth trajectory
  • A global industrial and manufacturing hub
  • Robust physical infrastructure
  • Renewable energy capital of India
  • Innovation and Knowledge hub of India
  • Robust urban and social infrastructure with world class civic amenities
  • Strong tourism footprint
  • Path breaking policy initiatives and investor facilitation framework
  • New paradigm for industrial growth
  • Vision 2023 for inclusive growth and Development