The Tamil Nadu Electricity Regulatory Commission (TNERC) has rejected Tamil Nadu Generation and Distribution Corporation’s (TANGEDCO’s) plea to allot wind energy capacity of over 500 MW to NLC India Limited.
In June 2017, TANGEDCO had issued a tender to procure 500 MW of wind energy through competitive bidding process. In the auction, Regen Power Tech Limited, Leap Green Energy Limited, NLC Limited had submitted bids to develop 200 MW, 250 MW and 500 MW, respectively.
Regen Power Tech had emerged as the lowest bidder by quoting a tariff of Rs 3.42 per kWh and TANGEDCO had asked the remaining bidders to match the lowest bid. While, Leap Green Energy had agreed to match the bid tariffs for 250 MW of capacity, NLC had agreed to match the price provided it was allotted the entire 500 MW capacity, instead of the remaining 50 MW.
Following this, TANGEDCO finalised the bids for total capacity of 450 MW from Regen and Leap Green at Rs 3.42 per unit which was approved by TNERC and sought approval for the allotment of additional 175 MW capacity (including the 50 MW remaining in the tender) or 25 per cent over and above the tendered capacity as per norms. However, the proposal has been rejected by TNERC as wind tariffs dropped to Rs 2.44/kWh over the past year and TANGEDCO has been advised to issue a new tender in which NLC can participate.