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Tamil Nadu unlikely to reach solar policy goals under current mechanisms: Bridge to India

According to reports, Bridge to India Energy Pvt. Ltd. (New Delhi, India) reported that the Indian federal state Tamil Nadu is unlikely to reach its Solar Energy Policy 2012 goals under the current mechanism.

The policy, which was announced earlier in October 2012, has an ambitious target of 3 gigawatts (GW) of solar installations by 2015.

The Tamil Nadu solar policy plans to reach 1,150 megawatts (MW) through allocation of projects under the Renewable Energy Certificate (REC) mechanism. However, it does not provide any specific push to the REC mechanism through incentives, stringent penalties towards Renewable Purchase Obligation (RPO) enforcements, or tax rebates, according to Bridge to India.

Tamil Nadu has not taken concrete steps such as tax exemptions and removal of transmission and wheeling charges to achieve its target for REC based projects. Setting a target for REC projects without added incentives will make achieving such a target unlikely for Tamil Nadu, Bridge to India explains.

The Tamil Nadu solar policy does not have any incentive even though it has set the most ambitious target for the installations of REC projects in the country. There are no discounts on wheeling or transmission charges, let alone a complete exemption from them. In addition, there are no other incentives for REC projects in the form of tax rebates or additional financial assistance of any form.

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