At a time when wind energy producers in the State are struggling to make ends meet, the Tamil Nadu Electricity Regulatory Commission has approved Tangedco’s proposal to procure 440 MW of wind power through Solar Energy Corporation of India (SECI) for 25 years at a rate of Rs.2.91 per unit, which is the lowest tariff in the state.
Power Capacity
Chennai:
After its wind power reverse auction bid with a maximum ceiling of Rs 2.65 per unit failed to evoke any response in 2018, Tangedco handed over the task of procuring wind and solar energy to the SECI to attract better prices. With the Centre fixing an ambitious target of 1.75 lakh MW renewable power by 2022, including 60,000 MW of wind power, TN has to install 3,500 MW wind power capacity in the next two years.
Commenting on the development, a wind power producer said that many a times, the companies bidding for lower tariff through reverse auctioning have found it difficult to execute the project. “Wind tariff is already at rock bottom. It will become untenable for the investors to make new investment,” he said. Tangedco had failed to pay wind power producers for the past two years. The outstanding amount runs up to over Rs 2,000 crore. In this backdrop, this move is likely to deter further investment in the sector.
This will help meet the utility’s non-solar renewable purchase obligation (RPO) requirement from the year 2021-22.
After its wind power reverse auction bid with a maximum ceiling of Rs 2.65 per unit failed to evoke any response in 2018, Tangedco handed over the task of procuring wind and solar energy to the SECI to attract better prices. With the Centre fixing an ambitious target of 1.75 lakh MW renewable power by 2022, including 60,000 MW of wind power, TN has to install 3,500 MW wind power capacity in the next two years.
Commenting on the development, a wind power producer said that many a times, the companies bidding for lower tariff through reverse auctioning have found it difficult to execute the project. “Wind tariff is already at rock bottom. It will become untenable for the investors to make new investment,” he said. Tangedco had failed to pay wind power producers for the past two years. The outstanding amount runs up to over Rs 2,000 crore. In this backdrop, this move is likely to deter further investment in the sector.