TNERC approves Tangedco's plan to buy 500 MW solar power

Chennai

Tamil Nadu has a total renewable power capacity of 15,673 MW. As per the Ministry of New and Renewable Energy (MNRE) target, approximately 9000 MW of solar power is required for the year 2021-22 to meet Tamil Nadu's Solar Purchase Obligation. As on January 31 this year, around 3975 MW of solar power plants has been commissioned in the State. As per the MNRE target, 5000 MW of solar power is required within the next two years.

Tangedco, in its petition, said that considering the on-going projects, approximately 250 MW capacity could be added through phase-3 tender for the year 2019-20. The proposed solar projects like 500 MW Kadaladi solar park and 250 MW floating solar plant are expected to be commissioned only during 2021-22.

After failing to get any response for the tender floated by Tangedco through the reverse bidding process, the utility in February last year decided to authorise SECI to float tender for procurement of 1500 MW of solar power from developers establishing solar power plants in the state. Even the tender floated by the SECI on behalf of the Tangedco for 1000 MW grid-connected solar project at Solar developers attribute the lack of response for the Tangedco’s reverse bidding to the poor track record of the utility in making timely payment to the power generators. “The private companies will not make an investment if their payments are going to be delayed,” said a city-based solar developer.

TNERC order said that in the meantime, SECI asked the Tangedco to confirm the solar power requirement to the state under 1200 MW ISTS connected scheme with an applicable tariff of Rs 2.781 per unit. “In order to meet the RPO compliance fixed to the state, it is necessary to procure 500 MW of solar power from the SECI. It has offered a tariff of Rs 2.781 per unit which very competitive,” it said.