TNERC Rejects TNGECL’s 5 MW Solar Power Procurement Petition

28 Feb 2025 CW Team

The Tamil Nadu Electricity Regulatory Commission (TNERC) has dismissed Tamil Nadu Green Energy Corporation’s (TNGECL) petition to procure 5 MW of solar power under the PM-KUSUM program’s Component A, citing procedural lapses, non-compliance with guidelines, and insufficient bidder response. TNERC found that TNGECL’s tender process violated the Commission’s previous directives and the Ministry of New and Renewable Energy’s (MNRE) guidelines by omitting an upper ceiling tariff, leading to non-competitive pricing. The quoted tariff of Rs 3.28/kWh was deemed higher than rates in other states like Madhya Pradesh and Uttar Pradesh. Despite TNERC’s approval for 420 MW under the PM-KUSUM program, only 5 MW was awarded due to issues like the absence of published land lists and lack of direct lease rent payment provisions. The Commission suggested reissuing the tender in compliance with MNRE guidelines and mandated TNGECL to seek prior concurrence from Tamil Nadu Power Distribution Corporation (TNPDCL) before initiating future tenders. TNERC also instructed TNGECL to develop an online portal for land leasing, advertise tenders widely in Tamil and English, and include provisions for reducing project capacity if commissioning delays exceed six months. Future tenders should consider a 15% battery storage component to enhance grid stability. Additionally, TNGECL was advised to explore agricultural feeder solarisation under Component C of the PM-KUSUM program to access central financial assistance and ensure compliance with procurement-based incentives for DISCOMs. (Mercom)

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