TNERC gives approval for TANGEDCO’s upcoming solar and wind tenders

The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved the two petitions filed by the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) requesting permission for releasing solar and wind power tenders for 1,500 MW capacity of grid-connected projects each.

For the solar projects, TNERC has given the approval for an upper tariff upper tariff ceiling of Rs 3 per kWh. In addition, it has directed the TANGEDCO to issue three separate tenders of 500 MW in three subsequent phases. For wind projects, the upper tariff ceiling has been set as Rs 2.65 per kWh. Similar to the solar tenders, TNERC has requested TANGEDCO to bid out the 1,500 MW worth of projects in separate tenders of 500 MW in three phases. Reportedly, the phased tendering was decided by TNERC to increase the competition in the bidding process, thereby assisting TANGEDCO in discovering low prices in the reverse bidding process.

The 3 GW of capacity addition likely to come up after the tender will assist the state in meeting its RPO targets. As per Mercom India, Tamil Nadu has over 1.7 GW of installed solar capacity, as on March 2018, one of the highest in the country. Therefore, the planned tenders are expected to strengthen the state’s strong project development pipeline of approximately 2.4 GW. Moreover, to fulfil the state’s solar renewable purchase obligation (RPO) requirement of 4,553 MW for the year 2018-19, Tamil Nadu requires an additional 743 MW of capacity. In addition, to fulfil the solar RPO requirement of 6,223 MW for 2019-20, 2,413 MW of solar capacity will be required.Tamil Nadu also needs to install wind projects of about 1,679 MW of capacity to fulfil its non-solar RPO requirement of 10.25 percent for 2018-19.

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