The Tamil Nadu Electricity Regulatory Commission (TNERC) has rejected the plea by Neyveli Lignite Corporation India Limited (NLCIL) to extend the tariff of ₹4.41 per unit for its 500 MW solar projects till September 2018, citing force majeure clauses.
NLCIL has been building 500 MW of solar power projects across the State and had entered an agreement with the Tamil Nadu Generation and Distribution Corporation (Tangedco). In its petition, the company said it could complete only 100 MW of the projects till March 2018, up to which the tariff of ₹4.41 per unit was applicable. The remaining capacity could not be commissioned on time due to issues regarding land registration, agitation of local people, rain, the Ockhi cyclone and a High Court Order staying works on the projects among others, NLCIL’s statement said. It also stated that it could complete 200 MW of the projects only in May 2018.
The company sought extension of the tariff due to unforeseen events and said any reduction in the solar tariff would have adverse impact on its proposal of implementing such green energy projects. In its response, Tangedco argued that the Ockhi cyclone only affected the coastal districts of Kanniyakumari and Tuticorin and not Virudhunagar, Ramnad and Tirunelveli districts where the projects are supposed to be established.
The State utility said except for the 100 MW which was commissioned during 2017-18 and eligible for a tariff of ₹4.41 per unit, the remaining 400 MW fell under the tariff of ₹3.05 per unit applicable for the control period of 2018-19 approved by the regulator.
TNERC also said if NLCIL’s plea was allowed, every other generator would follow suit and consequently, it would incurthe additional financial burden of paying higher tariff over the entire 25-year agreement.