Chennai: After the controversy over the purchase of large quantity of solar power at very high cost, Tamil Nadu Generation and Distribution Corporation has decided to procure 500 mw of solar power from private developers through reverse bidding route.
The Tangedco has decided to procure solar power under Rs 5.10 per unit through the “reverse auction” route to ensure an “extremely competitive” rate to benefit consumers. “This will open a new avenue of procuring power at competitive rates from renewable sources. The whole processes is ultimately going to help consumers in getting cleaner energy at competitive rates and keep the retail tariffs low,” said a senior Tangedco official.
According to the official, the utility has decided to opt for reverse bidding route instead of the preferential tariff route as per the ministry of new and renewable energy guidelines. “We have decided to procure 500 mw of solar power through bidding route to meet future requirement under the solar renewable purchase obligation (SRPO) targets set by the TNERC,” the official said, adding that a petition has been filed with the commission seeking its permission to float bids.
The TNERC has fixed a solar renewable purchase obligation target of 2.5 per cent and 5 per cent for 2016-17 and 2017-18 in consonance with MNRE’s projected solar power growth trajectory. The utility would be requiring a solar installed capacity of 1,200 mw to achieve the 2.5 per cent SRPO target for the 2016-17 whereas its present installed capacity is 1,142 mw. To meet the 5 per cent SRPO target for next fiscal, the utility would require about 2,500 mw solar power installation considering average five to six per cent growth in energy sales.
The Tangedco’s decision to sign power purchase agreement with private solar developers through preferential tariff route raised many an eyebrow when several states including Rajasthan and Maharashtra opted for competitive bidding route.
While the Tangedco signed PPA with over 50 solar companies to procure 1484 mw at a cost of '7.10 per unit, the states that opted for bidding route started discovering lower tariff with Rajasthan achieving the lowest ever-Indian tariff of Rs 4.34 per unit in January this year. The commission has fixed a solar tariff of Rs 5.10 per unit from April 1 this year.
