For solar and wind power projects, TNERC gives approval to TANGEDCO
Posted on: 22/Nov/2018 10:29:25 AM
In the year 1999 was incorporated TNERC or Tamil Nadu Electricity Regulatory Commission with its headquarters in Chennai. This TNERC comes under the Department of Energy (Tamil Nadu) is known. TANGEDCO or Tamil Nadu Generation and Distribution Corporation Ltd were founded in 2010 and it is an electricity power generation and distribution public sector undertaking owned by Tamil Nadu government. This TANGEDCO is a subsidiary of TNEB Ltd. To float solar and wind power tenders for the current financial year, TNERC has given its approval to Tangedco now. Minimum tariff has been set by TNERC and it is Rs 3 per unit for solar power and Rs 2.65 per unit for wind power. It is now said that the tenders are likely to be floated in December month and the companies taking part in the bid would be given one year to commission their projects. One important point is this tariff is one of the lowest in India.
In the month of April, TANGEDCO presented its application but the centre wanted to bring some changes in the guidelines. The centre changed some guidelines later. A senior official belonging to TANGEDCO expressed his views. The official said Tangedco wanted to present a new application with the latest guidelines and hence fresh approvals have been given now. It is worthy to mention that the discom filed two separate petitions for two different technologies and both were approved by TNERC. The discom would be able to launch 3 separate consecutive tenders for solar power capacity of 500 MW each and that would be connected to the grid. This was according to the regulators decision. Permission to float 1500 MW wind power tenders was also issued by the regulator and splitting it to 3 phases of 500 MW. It must be taken into account that the minimum capacity per project has to be atleast 25 MW. Like solar power the wind power tariff is also falling down now. In the year 2017 the lowest wind power bid was Rs3 per unit and in 2018 the lowest bid would be Rs 2.65 per unit. Solar Energy Corporation of India or SECI was responsible for setting of base tariff for both solar as well as wind power. It is on this basis that Tangedco has sought the TNERC nod to float the tenders.
According to Mr. D. V. Giri, secretary general of Indian Wind Turbine Manufacturers Association, wind power tariffs are falling below the base tariffs of thermal units. Instead of burning coal in their units, TANGEDCO and other discoms would be happy to evacuate wind power at a tariff less than Rs 3 per unit. It is superb to mention here that TN has got wind power capacity of 7858 MW and after the tenders have been finalised in 2017, 1000 MW more has been in the pipeline. Similarly solar power capacity is around 1800 MW and more than 1000 MW are in the pipeline. The state of Tamil Nadu ranks 9th among the countries for wind power generation and more wind power companies are showing interest to invest in TN now.
