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Tamil Nadu assures timely installation of evacuation infra facilities for solar producers

According to reports, Tamil Nadu’s state-owned electricity generation and distribution utility, TANGEDCO, has told the solar power developers who want to put up projects in the state not to worry about evacuation infrastructure to wheel away the solar power.

“TANGEDCO will carry out the work in time,” the utility has assured the developers against the concerns raised by them.

The possibility of delay in TANGEDCO putting up evacuation infrastructure facilities seems to be the main concern of prospective solar power developers who wish to participate in the recent tender floated by TANGEDCO, for projects up to a total of 1,000 MW.

This concern is evident in the summary of the pre-bid meeting that took place on December 19, which has been put out on TANGEDCO’s website.

For instance, Snelect Energy System asks: “If the commissioning and Tie-up is delayed due to the delay in arranging and completing bay extension work or improvement thereof by TNEB what is the advise to the developer?” TANGEDCO replies: “The work under the scope of TANGEDCO will be completed within time.”

Among the notable participants in the pre-bid meeting were L&T, Welspun, SunEdison, BGR Energy, GMR Energy, Aditya Birla Management and IL&FS Tamil Nadu Power Company.

TANGECO has also clarified that solar power will not be subject to merit order dispatch, which means that the utility will buy the power even if cheaper power is available. Therefore, solar power plants will operate on “must run” basis. TANGEDCO has practically guaranteed offtake. In response to a question about grid availability, the answer was:” load shedding will not be there.”

It has however rejected a common demand for “deemed generation” provision, in case the developer is not able to sell power because the grid is not available to him.

Another common concern has been over the validity of the draft PPA, put up on the TANGEDCO website. “Will be got approved by TNERC,” is TANGEDCO’s refrain. Incidentally, the last day for submission of bids is January 4.

For instance, SunEdison asked: Clause 5 of the tender document also mentions that the bid can be cancelled or rejected without stating any reasons thereof. This is a risk factor for us. Can the conditions under which such cancellation be done clearly specified?”

TANGEDCO’s reply: “As per specifications.”

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