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TNERC Approves TANGEDCO Proposal Of Procurement Of 500 MW Solar Power


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TNERC, Tamil Nadu Electricity Regulatory Commission, has sanctioned the Tamil Nadu Generation and Distribution Corporation’s (TANGEDCO) submission to procure 500 MW of solar power.

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TANGEDCO can procure power from projects ranging in capacity from 1 MW to 2 MW under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) programme. The maximum tariff is set at Rs 3/unit.

According to the Commission, if the capacity under Component A exceeds the 2 MW limit, clearance from the Ministry of New and Renewable Energy (MNRE) shall be requested.

Despite the fact that MNRE allows for capacities ranging from 500 KW to 2 MW, TNERC has chosen a capacity range of 1 MW to 2 MW.

The government intends to build 10,000 MW of grid-connected solar power projects with individual undertaking sizes of up to 2 MW under Component A of the PM-KUSUM programme.

Instead of launching a single tender for the whole quantity of 1,500 MW, the Commission instructed TANGEDCO in 2018 to acquire solar electricity in three stages of 500 MW each with a ceiling price of Rs 3/unit. TANGEDCO then issued a tender but cancelled it due to a lack of response.

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As a result, TANGEDCO imparted using 500 MW of the 1,500 MW capacity approved by the Commission under Component A of the PM-KUSUM scheme to satisfy renewable procurement obligation requirements.

TANGEDCO requested specific deviations this time, via both new and existing transmission lines, believing that these will contribute to a successful tender.

The Commission stated that, while the developer was required to follow the laws of the Central and State Electricity Regulatory Commissions, the precise location of the metering point should be made explicit. The deviation was approved by the Commission.

The discom issued a tender in February of this year to establish 500 MW of solar plants under Component-A of the PM-KUSUM initiative.

Other modifications permitted by the state regulator include a 1% late payment cost instead of the 1.5% required by MNRE, a waiver of the payment security letter of the credit system, and payment schedules for monthly payments.

MNRE has previously extended the deadline for PM-KUSUM Component A project allocation to March 31, 2022. On December 29, Maharashtra also pressed for a 500 MW tender.

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