Chennai: Tamil Nadu government’s ambitious plan to add 3,000-mega watt solar power by 2015 seems to be caught in a legal tangle.
Non functioning of Tamil Nadu Electricity Regulatory Commission due to lack of quorum and a court case filed by an industrial body challenging the Solar Purchase Obligation under the State Solar Energy Policy are holding back Tamil Nadu Generation and Distribution Corporation from signing power purchase agreement (PPA) with 52 solar developers who had won bids for installing 708 mw grid connected solar project in the state. The timely commissioning of solar power plants would help the state to overcome the power crisis to an extent.
Tangedco is yet to sign PPA with the developers, as it requires TNERC’s clearance for it, said Pashupathy Gopalan, president, SunEdison, Asia Pacific, GCC and South Africa told DC.
“We will start work on the 35 mw solar power plant once we sign the PPA with Tangedco,” he said. The plant will be set up near Tiruvelveli at a total cost of around Rs 7.82 crore per mega watt.
Anil Jain, managing director of Refex Energy, said his company had signed an engineering, procurement and construction contract to build 86 mw solar plant for three companies in the state but could not take up the work due to legal issues.
“Developers have got everything ready including land and bank guarantee. They also have done the load flow study but non signing of the PPA is preventing take off the projects,” he said.
A senior Tangedco official said that only after the TNERC cleared the draft PPA, they would be able to sign the agreement with developers.
“For the past few months, the regulatory body has become non functional due to lack of quorum which arises out of the vacancies of chairperson and a member post. Now a notification has been issued to amend the regulation to enable the functioning of the commission with one member,” the official said, adding that once it is done, the commission would clear the PPA by February next year.
“We are also hopeful of getting a favourable order in SPO case,” the official said, adding that the solar plants could be commissioned within a short period of six months.
