Power Surge Stalled: TNERC’s Order Jolts TN’s Solar Ambitions
In the vibrant solar landscape of South India, Tamil Nadu shines as a beacon of power demand. However, a recent ruling by the Tamil Nadu Electricity Regulatory Commission (TNERC) has thrown a spanner in the works of Tamil Nadu Green Energy Corporation Ltd.’s (TNGECL) ambitious plans for power procurement.
TNGECL’s plea to secure approval for power purchases under the PM-Kusum Scheme’s Component A hit a roadblock when TNERC deemed its request non-compliant. The regulator lamented TNGECL’s tender’s lack of an upper ceiling tariff, a violation of its own earlier directives and the Union Ministry of New and Renewable Energy (MNRE) guidelines.
To ensure competitive tariffs and broader participation, TNERC has directed TNGECL to issue a revised tender adhering to MNRE guidelines. Under Component-A of the scheme, farmers can harness their land for decentralized, renewable energy-based power plants. This energy is then purchased by power distribution companies at predetermined rates.
In a bid to clinch more competitive tariffs, TNGECL opted to float a tender without an upper ceiling tariff. However, this move was met with resistance from TNERC, which highlighted that the practice contravenes both MNRE guidelines and a previous order from the commission.
Meanwhile, solar power rates continue their downward trajectory, calling into question the competitiveness of the unit rate of ₹3.28 quoted by bidders in TNGECL’s tender. Regulatory commissions in other states like Uttar Pradesh and Odisha have approved lower tariffs under the PM-Kusum scheme.
TNERC further noted that Tamil Nadu’s favorable solar irradiation potential should warrant even lower tariffs. The commission also expressed concern over the tender’s meager turnout, with only four bidders qualifying for 5 MW out of an approved capacity of 420 MW. This, TNERC concluded, stems from TNGECL’s disregard for MNRE guidelines.
As Tamil Nadu’s pursuit of renewable energy faces this regulatory hurdle, the state’s efforts to meet its soaring power demand remain in flux. The outcome of TNGECL’s revised tender will be closely watched, as it holds the key to unlocking the state’s solar potential and delivering affordable, reliable energy to its citizens.
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