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Web Exclusive | January 2013

Solar firms not comfortable with TN's purchase pact

Tamil Nadu’s electricity distribution utility Tangedco’s tender calls upon developers to put up solar power projects in the state, at locations of their choice, and sell power to the utility at tariffs that would be arrived at through the competitive bidding process.

The tender wants to buy power from up to 1,000 mw of solar projects. However, several niggling issues in the power purchase agreement are worrying prospective bidders. Days before the last date for submission of bids, letters were sent by prospective developers to Tangedco seeking clarifications.

Apparently, the pre-bid meeting that was held on December 19, has not put all their doubts to rest. It has been pointed out that the Tangedco’s clarification note says that the State-owned utility company in-charge of transmission, TANTRANSCO, would be responsible for setting up transmission system and maintaining it.

TANTRANSCO is not a party to the contract and if it fails to maintain the substation and the grid fails, it is attributable to force majeure.

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17 Oct 2016
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20 Jun 2016
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