Indian State Of Tamil Nadu Gets Approval To Float 500 MW Solar Power Tender
One of India’s leading states in terms of installed solar power capacity, Tamil Nadu, will soon float a huge solar power tender with an intention to meet solar power purchase obligation.
The Tamil Nadu Electricity Regulatory Commission (TNERC) recently granted approvalto a proposal by the state’s power utility to float a 500 MW solar power tender. Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had approached the commission to let it auction this capacity as it would not be in a possible to meet the assigned target to acquire 5% of electricity from solar power projects for financial year 2017-18.
According to government estimates, an installed capacity base of 2.5 GW will be required to meet the 5% solar RPO target in 2017-18. TANGEDCO, however, expects that only 1.6 GW solar power capacity would be operational by that time, thus leaving a shortfall of 900 MW.
While the commission agreed to the utility’s proposal to auction 500 MW capacity neither clarified about the shortfall of 400 MW that would still remain. TANGEDCO may look to acquire Renewable Energy Certificates or RECs generated by solar power projects across India that are available for trading every month.