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TNERC issues consultative paper on comprehensive tariff order on solar

According to reports, with more solar power developers line up to set up their projects in the state, Tamil Nadu Elec­tricity Regulatory Com­mission (TNERC) issued a consultative paper on comprehensive tariff order on solar power proposing tariffs ranging from Rs8.34 per unit to Rs 5.78 per unit across categories.

The consultative paper has proposed a separate tariff structure for solar thermal projects, solar photovoltaic (SPV) and kilowatt scale rooftop solar power projects for the control period of one year from date of issue of order. The commission has invited comments and suggestions before August 31 from stakeholders on the paper.
Under the commission’s tariff proposal, for solar thermal projects, tariff of Rs 8.34 per unit has been proposed. It has proposed a tariff of Rs 5.78 per unit for SPV while the proposed tariff is Rs 8.15 per unit for the domestic solar projects. The commission has proposed the tariff for a period of 25 years.
The commission came out with a proposed tariff structure to provide guidance to those opting for solar power in line with the TN Solar power policy 2012 which envisages setting up of 3000-megawatt (MW) solar plants by 2015.
Fixing of solar power tariff would make easier the proposal to set up power projects in the state as the project developers need not go through tendering proc­ess, said a senior Tan­gedco official.
However, he said that the tariff proposed for domestic solar projects seems to be on higher side and they would seek its reduction.
Stating that the capital costs of Solar generators are consistently falling down, TNERC has proposed to adopt a capital cost of Rs 7 crore per mega watt for SPV and Rs 11.50 crore per MW for solar thermal projects.

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