Tamil Nadu to Tender 3 GW of Renewable Energy Capacity

The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has revealed plans to tender 3 GW of renewable energy capacity soon. The capacity will consist of 1.5 GW of solar projects and 1.5 GW of wind power projects.

Tamil Nadu is already one of the top solar states in India with over 1.7 GW of installed solar capacity, according to Mercom’s India Solar Project Tracker. The planned tenders are poised to further strengthen the state’s strong project development pipeline of approximately 2.4 GW .

TANGEDCO has laid the groundwork for tendering the capacity by seeking approval from the Tamil Nadu Electricity Regulatory Commission (TNERC) for the procurement of 1.5 GW of power from wind projects with a minimum capacity of 25 MW each using the reverse auction process, with ₹2.65/ (~$0.04) kWh set as the upper tariff limit.

TANGEDCO has also asked TNERC to grant permission to float a tender for the procurement of 1.5 GW of solar power from solar project developers also using the reverse bidding process, with ₹3.00 (~$0.046)/kWh set as the upper tariff limit.

TNERC is set to make a decision on the requests on March 13, 2018.

The planned tenders come as TNERC is struggling to meet its Renewable Purchase Obligation (RPO) target of 5 percent for the current financial year.

Mercom reported in December 2017 that the Ministry of New and Renewable Energy (MNRE) had granted in-principle approval to TANGEDCO for the development of a 500 MW solar park in Ramanathapuram. The solar park is also expected to help TANGEDCO move closer to achieving its RPO target.

In June 2017, another state agency called the Tamil Nadu Energy Development Agency (TEDA) also tendered a 500 MW solar park in Tamil Nadu, Mercom reported.

Image credit: By Changyang1230 (Own work) [CC BY-SA 3.0] via Wikimedia Commons