The Tamil Nadu Electricity Regulatory Commission (TNERC) has put up a draft consultative paper proposing to increase the state´s share of solar power under the renewable purchase obligation (RPO) from 0.25 per cent to 2 per cent. This means that the state electricity utility will have to buy more solar power than earlier. All states in India have to adhere to RPO norms, which say that a part of the electricity utility´s power should come from renewable sources.
TNERC´s announcement recreates demand for solar power. Going by the tariff order given by TNERC, the state electricity utility Tangedco is allowed to buy about 75,300 million units of electricity and 2 per cent of this would mean 1,507 million units of solar power or around 1,005 MW.