The Tamil Nadu Electricity Regulatory Commission (TNERC) has announced new tariff for solar power producers who put up plants in the state. They would be paid Rs 7.01 per unit of power generated from a solar photovoltaic plant, and Rs 11.03 for a solar thermal power plant.
“The tariff isn’t great, but we will go ahead with the project since we have land, funding,” said M Umapathi chairman and managing director of Voltech Group, which is planning a 10MW plant near Tuticorin. “The tariff is at least better than the one of Rs 6.48 that was proposed in the draft plan,” he said.
Since the announcement of the TN Solar policy in 2012, solar activity in the state had virtually come to a standstill. Sections of the policy were caught in legal tussles and tariffs on projects were undecided. Now, with the new tariff package, solar power generation is expected to pick up.
“The tariff of Rs 7.01 is a general tariff for any solar power plant that is set up in the state. A decision on projects under the solar policy will be out very soon,” an official source said.
Preparing for an increase in solar power generation, the TNERC is also expected to increase the solar component of the Renewable Power Obligation (RPO) from 0.25% to 2% since the state electricity utility would need to create demand to sell the solar power that is generated. The RPO mandates all companies and certain other entities to procure a certain portion of their power needs from renewable sources. “An order regarding this will come soon,” a source said.
Tariffs (per unit) in states which have announced a solar policy:
Rajasthan – Rs 6.45 Andhra Pradesh – Rs 6.49 Punjab – Rs 7.2 Uttar Pradesh – Rs 8.1 Normative, generic tariff given by Central Electricity Regulatory Commission – Rs 6.99