CHENNAI: The Tamil Nadu Electricity Regulation Commission (TNERC) has given its approval to Tangedco to float solar and wind power tenders for the current financial year. TNERC has set the minimum tariff for solar at Rs 3 per unit and Rs 2.65 per unit for wind.
The tenders are likely to be floated in December and the companies taking part in the bid will be given a year to commission their projects. The tariff is one of the lowest in the country.
“Tangedco presented its application in April but the Centre wanted to change some guidelines, which it did later. Tangedco wanted to present a new application with the latest guidelines and we have given fresh approvals now,” said a senior TNERC official. The discom filed two separate petitions for two different technologies and both of which have been approved by TNERC.
According to the regulator’s decision, the discom will be able to launch three separate consecutive tenders for solar power capacity of 500MW each that will be connected to the grid.
The regulator has also given permission to float 1,500MW wind power tenders, splitting it into three phases of 500MW. The minimum capacity per project has to be at least 25MW. The wind power tariff is also falling like solar. Last year, the lowest wind power bid was Rs 3 per unit, but this year it will be Rs 2.65 per unit.
The base tariff for solar and wind power was set by the Solar Energy Corporation of India (SECI), based on which Tangedco has sought the TNREC nod to float the tenders.
“Wind power tariff has been falling below the base tariff of thermal units. Tangedco and other discoms will be happy to evacuate wind power at a tariff less than Rs 3 per unit instead of burning coal in their own units,” said Indian Wind Turbine Manufacturers Association secretary general D V Giri.
Tamil Nadu has a wind capacity of 7,858MW and 1,000MW more has been in the pipeline after tenders were finalised last year. Solar power capacity is around 1,800MW and more than 1,000MW is in the pipeline.
More wind power companies are showing interest in investing in Tamil Nadu, which ranks 9th among countries for wind power generation.