Tamil Nadu’s solar industry is seeing positive developments after years of wait with the state-owned utility TANGEDCO announcing its partnership with solar developers in the state through ‘power purchase agreements’. The process started in February last year with 25 agreements expected to be signed in a month. However, TANGEDCO officials have been less than forthcoming about divulging details of the agreement.
Six of the three companies involved were learned to belong to the company GRT, which was close to completing 15 MW by March having anticipated a PPA signing. It is aiming to avail tax-saving depreciation benefits through the move.
With 30 MW of capacity being signed in the initial phase of the project, TANGEDCO expected a lot more in the pipeline for the future. The draft PPA was approved by TNERC, the state electricity regulatory commission a month before the signing and TANGEDCO had already received initial payment for 2,000 MW by over 70 solar developers.
Source: The Hindu Businessline
It was reported that companies such as Sterling and Wilson (150 MW), Welspun (300 MW) and SunEdison (150 MW) had signed up for large solar capacities and were expected to sign PPAs. However, they were waiting around for the deadline of completion of projects to get extended. TNERC had approved a tariff of INR 7.01 per kWHr to be paid to power producers for projects set to see completion by September 2015, prompting the long wait for extension by the companies.
The developers then approached TNERC for the extension, who then gave them time till March owing to the time taken to approve draft PPAs.
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