TNERC announces new solar power tariff

The Tamil Nadu Electricity Regulatory Commission (TNERC) has passed comprehensive tariff order on Solar Power which comes into force from 1^st April this year.

The tariff works out to Rs.5.10 per unit for Solar PV projects and Rs.11.12 per unit for Solar Thermal projects without AD benefit. The AD benefit component of the tariff is Rs.0.54 per unit for solar PV and Rs.1.17 per unit for Solar Thermal. The tariff for the developers / generators availing AD benefit will be the tariff arrived at after deduction of AD benefit from the tariff. TNERC notes that the order was passed after taking views of the stakeholders and consulting the State Advisory Committee (SAC) on 17/3/2016.

The Government of Tamil Nadu launched the Tamil Nadu Solar Energy Policy 2012 to promote solar energy. The Electricity Act, 2003, mandates the State Electricity Regulatory Commissions to promote generation of electricity from renewable sources of energy. In accordance with the provision of the Electricity Act, 2003, the Electricity Policies issued by Government of India (GoI) and the Commission’s Power Procurement from New and Renewable Sources of Energy Regulations,2008, the Commission issued a “Comprehensive tariff order on solar power” on 12.9.2014, for purchase of solar power by distribution licensees in the State and to deal with other related issues on the matter. The control period of the said order was for one year which was further extended until 31.3.2016 by Commission’s order. The Commission issues this “Comprehensive tariff order on solar power” for the next control period for purchase of solar power by distribution licensee from the solar power generators and to deal with other related issues.

The generating capacity connected to the Tamil Nadu’s grid including the allocation from Central Generating stations is 13883.5 MW as on 29-2-2016 comprising of 4,660 MW from TANGEDCO’s four thermal stations. Generating capacity from privately owned wind farms is 7512 MW as on 29-02- 2016. The installed capacity of cogeneration plants is 659.4 MW and biomass power projects is 230 MW. The solar generation capacity is 581.26 MW.