Tangedco may fix solar tariff cap at Rs. 3/unit

Tamil Nadu Generation and Distribution Corporation (Tangedco) is likely to fix a maximum price of Rs. 3 per unit for its next tender for procurement of solar power. The move follows the new norms for solar power bidding issued by the Ministry of New and Renewable Energy (MNRE), which provides for compensation in case of back down (unplugging of solar power from the State grid) instructions.

The MNRE recently issued guidelines for procurement of grid-connected solar power through competitive bidding (a process in which the lowest price bidder is selected).

As per the guidelines, a compensation of 50% of the tariff in the power purchase agreement would be provided to the developer in case of back-down (unplugging of solar power from the state grid) instructions by the state utility.

The norms also provide for compensation in case of grid unavailability.

The guidelines come on the backdrop of solar developers facing trouble with the back-down instructions issued by States, including Tamil Nadu and Rajasthan.

The National Solar Federation of India has moved the Tamil Nadu Electricity Regulatory Commission (TNERC) against Tangedco’s back down instructions.

“The new norms are for future tenders and not for the existing ones, which have already happened. The existing contracts don’t have those provisions,” said a Tangedco official.



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