TANGEDCO To Procure 1000 MW Solar Power from SECI


Tamil Nadu Electricity Regulatory Commission has allowed Tangedco to go ahead with its proposal to procure 1,000 MW solar power from the SECI for Rs 2.54 per unit to meet its renewable purchase obligation. The regulator directed TANGEDCO to negotiate the trading margin with SECI


TANGEDCO will procure the power at Rs 2.61 per unit, including SECI’s Rs 0.07 per unit trader’s margin.

TANGEDCO had filed a petition to procure 1,000 MW of solar power from SECI at 2.61/kWh, including the trading margin of ₹0.07 (~$0.0009)/kWh to meet its renewable purchase obligation (RPO) target.


As per the petition, TANGEDCO, stated that approximately 9,400 MW of solar power was required for the year 2021-22 to meet Tamil Nadu’s solar RPO target. Further, based on the state’s total consumption of 106,566 MU for the year 2020-21 and taking into account the RPO target of 10.50%, the approximate solar power requirement was 7,126 MW. As of date, about 4,268 MW solar power plants have been commissioned in the State and about 2,856 MW solar power is required by March 2022 as per the RPO,” it said.

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The tender floated for procurement of 500 MW solar power under Component A of KUSUM scheme has attracted bids for 3 MW. A MoU has been signed between TANGEDCO and SECI for establishment of multiple distributed solar projects of cumulative capacity of 50 MW in Villupuram Region. There is still a shortage of contracted capacity to the extent of 1850 MW in solar to meet the solar RPO.

TNERC said it had issued an order on trading margin under TNERC Licensing Regulation, 2005, fixing trader margin as four paise per unit where the sale price is less than or equal to Rs 3 per unit. It directed Tangedco to negotiate with SECI to reduce the trade margin of Rs 0.07 per unit and report the outcome of the negotiation.

The Commission directed the petitioner to negotiate with SECI to reduce the trading margin and report the outcome. It said that TANGEDCO could sign the PSA according to the negotiation outcome and furnish a copy to the Commission.

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