SUMMER SPLASH
Tangedco to buy 500 MW of solar power to meet RPO targets
CHENNAI: Tamil Nadu Electricity Regulatory Commission (TNERC) has approved Tangedco's proposal to procure 500 MW of solar power from the Solar Energy Corporation of India (SECI) to meet its renewable purchase obligation (RPO).
In the order, TNERC allowed Tangedco to procure solar energy for 25 years at the tariff of Rs 2.72 per unit for 200 MW and Rs 2.73 per unit for 300 MW.
Tangedco had stated that the Ministry of Power had fixed the RPO and Energy Storage Obligation trajectory till 2029-30 in July 2020 along with a separate RPO fixed for the wind and hydro energy and other RPO which is to be met by energy produced from any renewable energy sources other than wind and hydro. As of September 2023, Tangedco has installed a solar power capacity of 7,109 MW. Based on the state's total energy consumption of 1,22,335 million units in 2022-23, considering load growth of five per cent, the solar capacity required in the state to meet the "other RPO" would be from 8867 MW in 2022-23 to 27,107 MW in 2029-30 and the shortfall in the needed solar capacity would be from 2,177 MW in 2022-23 to 12,957 MW in 202930. “Hence, it is necessary for further procurement of solar power to achieve the RPO targets and to avoid the penalty, if any to be levied by the Ministry of Power for noncompliance with RPO,” it said.
It noted that if the power sale agreement for 500 MW is executed after implementing the uniform renewable energy tariff, the allocated quantity of 500 MW will also go to the central pool and the effective tariff will vary monthly. "Tariff for a particular month is calculated based on actual energy supplied by the intermediary procurer to end procurer from the pool like solar power central pool and amount to be payable for such supply of power shall be weighted on an average basis, as per the Ministry of Power notification in, 2022,” it said.