Tamil Nadu is back on a tender mode for solar power projects, reports the Economic Times. Though the price per unit of solar power has been falling across the country, Tamil Nadu was among the few states which signed power purchase agreements at Rs 7.10 per unit until recently.
Now, the Tamil Nadu Electricity Regulatory Commission (TNERC) has granted approval to state power utility Tamil Nadu Generation and Distribution Company (TANGEDCO) to float tenders for solar power projects this year, says the report.
As per the TNERC order, 500MW of solar power projects can be set up by floating tenders. But the maximum price per unit cannot exceed Rs 5.10, the preferential rate fixed by TNERC for projects to be signed this year.
According to the news item, energy critics were of the view that Tamil Nadu was “not taking advantage” of falling solar power project prices across the world by following a power purchase agreement mode. In 2015, the price of solar power fell to less than Rs 4 per unit.
The TNERC order states, “The approval sought by TANGEDCO for procuring solar power is to meet the solar renewable purchase obligation. The bidding process with a ceiling price at the preferential tariff rate of Rs 5.10 per unit would fetch power at optimum prices and is a better option for the licensee.”