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Web Exclusive | August 2013

TN offers tariff to solar power industry

As per the draft tariffs set by the Tamil Nadu Electricity Regulatory Commission (TNERC), solar power producers in the state will be paid Rs 5.78 per unit. The power tariff is said to be among the lowest in the country. To help in fixing final tariffs for solar power producers TNERC has sought public comments before August 31.

Industry leaders like Rohit Rabindernath, Group MD and CEO, Zynergy said that the price is disappointing and the calculation is awry. Some producers said the assumption of capital cost falling was not correct.

The TNERC said that the tariff has been fixed after taking into considerations the cost of capital, maintenance , depreciation etc.

Since a long time Tamil Nadu is reeling under power crisis and is hoping to tap renewable sources to bridge the 2,000 mw deficit. The state, with abundant sunshine, is well positioned to draw on solar power.

But its offer may not enthuse investors. TNERC’s paper, released recently, said the draft tariffs were fixed based on the assumption that cost of setting up solar power plants were falling and therefore a 1-mw power plant could be set up at as low as 7 crore.

These draft guidelines are separate from the state’s plan to purchase 1,000 mw of solar power at Rs 6.48 per unit under a separate tender process. The Rs 6.48 per unit offer had met with little success.

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