Wind Power Developers up in Arms with TNERC Over Tariff

Following that, TNERC approved a wind power auction of 1500 MW, in 3 trenches of 500 MW each, proposed by the Tamil Nadu Generation and Distribution Co.

Developers of wind energy in Tamil Nadu are locking horns with the Tamil Nadu Electricity Regulatory Authority (TNERC) over the ceiling tariff approved by the authority which even after the developers complain that the feed in tariff was in itself unrealistically low.

TNERC had in April set a feed in tariff for wind projects with accelerated depreciation at Rs 2.80 and Rs 2.86 without it. Following that, TNERC approved a wind power auction of 1500 MW, in 3 trenches of 500 MW each, proposed by the Tamil Nadu Generation and Distribution Co (TANGEDCO) at a ceiling price of Rs 2.65.

Responding to this, Indian Wind Turbine Manufacturers Association (IWTMA) took the TNERC to Appellate Tribunal for Electricity (APTEL). The petition said that the ceiling price was hurting the wind power developers as the feed in tariff set by the TNERC was in itself too low and had grossly underestimated the various costs incurred in setting up wind projects.

“APTEL disposed of our petition with an oral order saying we should come back if TANGEDCO actually went ahead with its auction at a ceiling price of Rs 2.65 per unit,” said an IWTMA source. “With TANGEDCO giving notice of its first auction of 500 MW with that ceiling tariff, we have accordingly filed our petition again.” TANGEDCO has set a deadline of December 28 for bids.