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The Tamil Nadu Electricity Regulatory Commission (TNERC) approved a tariff rate of Rs.2.91 /kWh for acquiring about 441 MW of wind power through SECI (Solar Energy Corporation of India) for 25 years. The tariff includes a trading margin of Rs.0.07 /kWh.

The order followed a petition from TANGEDCO (The Tamil Nadu Generation and Distribution Corporation) which requested the Commission to sanction the tariff to acquire power through SECI’s tender (Tranche-VIII) so that it could reach its renewable purchase obligation (RPO) targets. The Commission approved the DISCOM’s proposal to help it meet its non-solar RPO targets for the year 2021-2022.

TANGEDCO cited the Ministry of Power’s (MoP) target of 175 GW of renewable energy power by 2022, of which wind power is to constitute 60 GW. TANGEDCO is anticipated to contribute 3.5 GW.

It stated that by 2021-2022 it expects to attain about 2.1 GW of this target.it has already floated a tender to procure 500 MW of wind power at a tariff of Rs.3.46/kWh, of which 450 MW has been finalized, with PPA( Power Purchase Agreements) signed.

TANGEDCO explained that it had complications with this project as one of the bidders has only commissioned 49.5 MW of its promised 200 MW while the other successful bidder has not started work on its project. Both bidders have requested a timeline extension from the state commission. According to the PPA, the projects had to be commissioned by March 2019.

The DISCOM also stated that as per the Commission’s previous order, it had to acquire 1.5 GW of wind energy in 3 stages of 500 MW, each with a ceiling tariff of Rs.2.65/kWh. Due to poor response on this tender, it appealed to the appellate tribunal (APTEL) to remove the ceiling tariff. The board members approved a proposal to procure 440.64 MW of wind power through SECI’s tender for Rs.2.91 /kWh [Rs.2.84 + Rs.0.07 (trading margin)] due to these circumstances, DISCOM explained. It also explained that the tariff is much lower than Rs.3.42 /kWh set formerly through competitive bidding, and as compared to the present feed-in-tariff of Rs.2.86 /kWh.