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Tamil Nadu

This Indian State Plans Taxes, Reduced Tariff For Rooftop Solar Projects

written by saurabh

While the central government and most states in India are looking to promote, even obligate, the use of rooftop solar power projects, one state is looking to reduce tariffs for rooftop solar power systems and even impose tax on revenue generated from sale of the electricity generated.

The power utility of the Indian state of Tamil Nadu has approached the state’s electricity regulators asking it to reduce the tariff offered to rooftop solar power systems for consumers and impose an additional tax on the revenue. According to media reports, Tamil Nadu Generation and Distribution Company (TANGEDCO) has proposed to fix the tariff of electricity generated from rooftop solar power systems at 50% of the lowest tariff offered to utility-scale solar power projects in the state.

Several other conditions have also been proposed by the utility. It proposes that consumers be allowed to install rooftop solar power systems up to only 50% of their contracted demand. Perhaps one of the most shocking proposal is introduction of an additional tax on revenue from the power generated by these systems.

At present, there is no cap on the size of rooftop system that can be installed by a consumer. The electricity generated by the system is subtracted from the electricity consumed from the grid and the consumer pays for the net electricity consumption. By reducing the tariff applicable to electricity generated from rooftop systems, the utility would effectively reduce the generation, thus increasing the power bill for consumers.

The utility plans to fix the tariff of rooftop systems to half of the tariff offered to solar power companies in the states. While the media reports are not clear on the exact figure, the tariff could be lower than Rs 2.00/kWh (3.1¢/kWh) as 1.5 gigawatts capacity was recently auctioned to developers at Rs 3.47/kWh (5.4¢/kWh).

Last month, TANGEDCO received massive response to the tender with project developers willing to set up 2.67 gigawatts capacity against the offered 1.5 gigawatts capacity. The bids submitted by the participating companies varied from Rs 3.47/kWh (5.4¢/kWh) to Rs 4.00/kWh (6.2¢/kWh), the maximum allowed bid.

The main reason behind this move is the poor financial health of the utility. It is know to delay payments to wind and solar power developers despite having long-term power purchase agreements with them. Experts are also baffled by this proposal because TANGEDCO loses 19-25% of the electricity while supplying it to end consumers. Rooftop solar power systems would mean near-zero losses of electricity as the point of generation and consumption is the same.



July 30, 2017 0 comment
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India Coal Company Bags 709 MW Solar In Auction

India Coal Company Bags 709 MW Solar In Auction

written by saurabh

NLC India Limited, a coal mining and power generation company in India, has taken perhaps its largest set towards a greener and sustainable future after successfully participating in one of the largest solar power auctions in the country.

NLC India, formerly Neyveli Lignite Corporation, recently secured rights to develop 709 megawatts of solar power capacity in the Indian state of Tamil Nadu. The company shall receive Rs 3.47/kWh (5.4¢/kWh) as tariff, likely under a long-term power purchase agreement spanning 25 years.

NLC India had offered to build the entire 1.5 gigawatts of solar power capacity offered in the tender by Tamil Nadu Generation and Distribution Corporation (TANGEDCO) at a tariff of Rs 3.97/kWh (6.1¢/kWh). The company agreed to match the lowest tariff offered in the auction and will now develop 709 megawatts.

Participation in the tender is part of NLC’s overall strategy to move towards a sustainable energy future with reduce share of lignite mining and coal-based power generation. The company plans an investment of Rs 17,400 crore ($2.7 billion) to set up 4.2 gigawatts of renewable energy capacity. This includes around 4,000 megawatts of solar power and 200 megawatts of wind energy capacity.

The company plans to set up 995 megawatts solar power capacity each in the states of Tamil Nadu and Uttar Pradesh. Projects in the both the states are expected to be commissioned in 2019.

NLC India has floated a tender to set up 500 megawatts solar power capacity in Tamil Nadu in December 2016. Details of result of this tender are scarce but Gamesa was reported to have had quoted the lowest bid for 100 megawatts capacity.

In August last year, the company announced that it started construction of a 65 megawatt solar power project at Neyveli in Tamil Nadu. The project has long-term power purchase agreement with TANGEDCO.

Image by vectoropenstock.com for Cleantechies



July 17, 2017 0 comment
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Indian State Generates Record Wind Power, Forced To Shut Thermal Power Projects

Indian State Generates Record Wind Power, Forced To Shut Thermal Power Projects

written by saurabh

The monsoon season in India brings with it very high wind speeds, especially in the southern part of country. This year it has enabled record wind power generation in at least one of the states.

Tamil Nadu reported highest-ever wind energy generation in the country. The state experienced more than 5,000 megawatts of wind power for more than 2 hours on 11 July. The highest wind generation was recorded at 7 in the evening as 5,079 megawatts.

The high wind energy generation forced the state utility to shutdown 1,020 megawatts of thermal power capacity and operate several other power plants at half of their capacity.

With a total demand of less than 14,000 megawatts on 11 July evening, wind power fulfilled more than a third of the total demand. The total energy generated from wind energy projects that day was 84.5 million kWh, which translates into 28% of the total electricity consumed in the state. The electricity generation was slightly lower than the all-time record of 99.5 million kWh.

Tamil Nadu has the largest installed wind energy capacity among all Indian states. The state has had several transmission issues, especially during the monsoon season, for absorbing all the wind energy generated. But the situation seems to have improved significantly now as has been demonstrated by the high share of wind energy procurement.

Things may have also improved due to an advisory issued by the Ministry of New and Renewable Energy which termed solar and wind energy projects as ‘must run’. This means that state utilities are obligated to procure electricity from renewable energy projects even if they have to shutdown thermal power plants.



July 15, 2017 0 comment
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Indian State Of Tamil Nadu Allocates 1.5 Gigawatts In Latest Solar Tender

Indian State Of Tamil Nadu Allocates 1.5 Gigawatts In Latest Solar Tender

written by saurabh

The south Indian state of Tamil Nadu has completed one of the largest solar power capacity allocation in the country. The state government recently confirmed that it project developers have agreed to develop a 1.5 gigawatts of solar PV power capacity following a competitive auction.

Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has announced that it awarded solar power projects with cumulative capacity of 1,500 megawatts to 16 developers. All these projects have been awarded at Rs 3.47/kWh (5.4¢/kWh), the lowest tariff bid committed by 25 participating developers.

Last month, TANGEDCO received massive response to the tender with project developers willing to set up 2.67 gigawatts capacity against the offered 1.5 gigawatts capacity. The bids submitted by the participating companies varied from Rs 3.47/kWh (5.4¢/kWh) to Rs 4.00/kWh (6.2¢/kWh), the maximum allowed bid.

A public sector company NLC Limited had offered placed a bid to develop the entire 1.5 gigawatts capacity at Rs 3.97/kWh (6.1¢/kWh) but eventually agreed to do it match the lowest tariff of Rs 3.47/kWh (5.4¢/kWh).

TANGDECO called upon all the developers to match the lowest bid and 16, including NLC, responded positively. Raasi Green Earth Energy, a lesser known developer in India, is believed to the have bagged 100 megawatts; the company has placed the lowest bid. NLC was awarded 700 megawatts capacity likely because some other developers refused to match the lowest bid.

The successful tendering is a major milestone for TANGEDCO which has been really struggling to attract solar project developers when compared to other states like Telangana, Karnataka, Andhra Pradesh and Rajasthan.

TANGEDCO had offered 500 megawatts solar power capacity in February 2016 but received bids for just 177 megawatts. The utility put 500 megawatts capacity on the block again in November 2016 but received bids for 300 megawatts only.

The power utility is known to be facing financial challenges accompanied by non-availability of ample grid infrastructure to support renewable energy projects. Tamil Nadu is already the largest wind energy producing state in India.

While project developers have been given upto 24 months to commission their projects, the longest-ever in Indian history, they have chosen to quote tariffs which are at significant premium to the current lowest solar power tariff in the country. ACME Cleantech Solutions currently holds the record for lowest solar power tariff in India at Rs 2.44/kWh (3.8¢/kWh).



July 8, 2017 0 comment
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India’s Tamil Nadu Plans 1.5 Gigawatts Solar Power Tender

India’s Tamil Nadu Plans 1.5 Gigawatts Solar Power Tender

written by saurabh

The power utility of India’s Tamil Nadu state will yet again try its luck at auctioning large-scale solar power projects after it failed to draw interest miserably in the last two auctions.

Tamil Nadu Generation and Distribution Corporation (TANGEDCO) it set to auction 1.5 gigawatts solar power capacity. Prospective projects developers can bid for project sizes of one to 500 megawatts.

The maximum tariff bid allowed will be Rs 4.00/kWh. This threshold tariff is 64% higher than the current lowest solar power tariff in India of Rs 2.44/kWh.

The latest auction is not expected to breach this lowest tariff price. TANGEDCO is not among the best buyers of renewable energy and has been known to default on monthly payments to projects developers. Additionally, project developers in Tamil Nadu face frequent issues of non-availability of transmission infrastructure and are thus forced to shutdown their projects which leads to revenue loss.

TANGEDCO had offered 500 megawatts solar power capacity in February 2016 but received bids for just 177 megawatts. The utility put 500 megawatts capacity on the block again in November 2016 but received bids for 300 megawatts only.

Now, TANGEDCO is taking extra measures to ensure bidders are attracted towards the latest tender. The utility is offering 24 months to project developers to commission projects of size exceeding 50 megawatts; this is the longest time ever given to commission solar PV power projects in India. Project developers will also be compensated in case of unavailability of transmission infrastructure.

Tamil Nadu has very ambitious solar power targets but infrastructure support remains an issue.

According to government estimates, an installed capacity base of 2.5 GW will be required to meet the 5% solar RPO target in 2017-18. TANGEDCO, however, expects that only 1.6 GW solar power capacity would be operational by that time, thus leaving a shortfall of 900 MW.

Image by vectoropenstock.com for Cleantechies



May 24, 2017 0 comment
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500 Megawatts Solar Tender In India’s Tamil Nadu Undersubscribed Yet Again

500 Megawatts Solar Tender In India’s Tamil Nadu Undersubscribed Yet Again

written by saurabh

The latest solar power tender issued in the state of Tamil Nadu is in stark contrast to the one issued for the Newa solar power park. The former has, once again, received a poor response from the project developers.

The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had floated a tender for 500 megawatts solar PV power capacity. The tender received bids by 22 project developers willing to set up 300 megawatts capacity. The poor response is poles apart from the 10 times oversubscription for the 750 megawatts Rewa solar power park.

The poor response it ironically still better than that received for the 500 megawatts tender previously issued by TANGEDCO. In November 2016, the tender attracted 20 bids of just 122 megawatts. The utility had no choice but to scrap the tender. Project developers were unable to purchase land for their projects due to lack of funds owning to the demonetisation drive of the Indian government.

The improved funding situation seems to have been the only reason for the relative increased interest of the developers. Lack of adequate transmission infrastructure and poor financial health of the utility remain the major concerns of bidders. The threshold tariff for this tender was also reduced by 14.7%, from Rs 5.10/kWh (7.6¢/kWh) to Rs 4.35/kWh (6.5¢/kWh), although developers have 12 months to commission the projects, an increase from 10 months.

According to government estimates, an installed capacity base of 2.5 GW will be required to meet the 5% solar RPO target in 2017-18. TANGEDCO, however, expects that only 1.6 GW solar power capacity would be operational by that time, thus leaving a shortfall of 900 MW.



February 22, 2017 0 comment
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Demonetisation Hits One Of India’s Largest Solar Power Tenders

Demonetisation Hits One Of India’s Largest Solar Power Tenders

written by saurabh

It seems that the state of Tamil Nadu will have wait a bit longer to have the adequate solar power capacity operational to achieve the renewable purchase obligation.

Demonetisation drive implemented by the Indian government on 8 November has crushed the hopes of the state utility for an bumper solar power auction. State-owned power utility Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had issued a tender for setting up 500 MW of solar PV power projects last month.

According to media reports, the utility has received only 20 bids with cumulative capacity of 116 MW. The reason for such poor showing is the inability of project developer to acquire land. Several developers reported that they were unable to pay cash to acquire land after currency notes of denomination Rs 500 and Rs 1000 were declared illegal for transactions starting 9 November 2016.

This auction for critical for TANGEDCO to increase the installed solar power capacity to a level which is closer to what it needs to meet the solar power purchase obligation.

Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had approached the commission to let it auction this capacity as it would not be in a possible to meet the assigned target to acquire 5% of electricity from solar power projects for financial year 2017-18.

According to government estimates, an installed capacity base of 2.5 GW will be required to meet the 5% solar RPO target in 2017-18. TANGEDCO, however, expects that only 1.6 GW solar power capacity would be operational by that time, thus leaving a shortfall of 900 MW.

A tariff bid ceiling of Rs 5.10/kWh has been set for the purpose of competitive auction. TANGEDCO expects that the winning bids would be much lower, possibly closer to the national record low of Rs 4.35/kWh (US¢6.50/kWh).



November 30, 2016 0 comment
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Indian State Of Tamil Nadu Issues 500 MW Solar Power Tender

Indian State Of Tamil Nadu Issues 500 MW Solar Power Tender

written by saurabh

One of the leading Indian states in terms of installed solar power capacity, Tamil Nadu, has announced another large tender.

State-owned power utility Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has issued a tender for setting up 500 MW of solar PV power projects. The tender was floated just weeks after the Tamil Nadu Electricity Regulatory Commission had given an approval for the same.

Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had approached the commission to let it auction this capacity as it would not be in a possible to meet the assigned target to acquire 5% of electricity from solar power projects for financial year 2017-18.

According to government estimates, an installed capacity base of 2.5 GW will be required to meet the 5% solar RPO target in 2017-18. TANGEDCO, however, expects that only 1.6 GW solar power capacity would be operational by that time, thus leaving a shortfall of 900 MW.

A tariff bid ceiling of Rs 5.10/kWh has been set for the purpose of competitive auction. TANGEDCO expects that the winning bids would be much lower, possibly closer to the national record low of Rs 4.35/kWh (US¢6.50/kWh).

However, participating developers may be apprehensive about the utilities record on procurement of solar power. Developers of some operational renewable energy projects had complained to the Ministry of New & Renewable Energy that the state utility had asked them to curtail generation due to lack of sufficient transmission capacity.



October 24, 2016 0 comment
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India’s Largest Solar Power Park (360 MW) Starts Feeding To The Grid

India’s Largest Solar Power Park (360 MW) Starts Feeding To The Grid

written by saurabh

A part of India’s largest solar power park is now operational in the southern state of Tamil Nadu.

ABB India has announced that it commissioned 5 substations to connect 648 MW solar power park to the national grid. The park is being developed by Adani Group. Of the total 648 MW capacity, 360 MW has now been connected to the grid.

Even with this partial commissioning the park has become the largest solar power park in India. India’s first solar power park, which includes smaller projects from various project developers, is located in Charanka district, Gujarat. The current capacity of Charanka power plant stands at 345 MW.

The Kamuthi solar power park in Tamil Nadu will be spread across 5 different solar power projects. Power generated from park will be sold to Tamil Nadu Generation and Distribution Corporation through a long-term power purchase agreement with duration of 25 years. Adani Group had signed a memorandum of understanding with the government of Tamil Nadu to set up the solar power park in 2015.

The power is expected to be sold at Rs 7.01/kWh (US¢10.0/kWh) which represents a huge premium to the tariffs discovered in the recently concluded solar power auctions. Bids by Indian project developers seem to have stabilised around Rs 4.70/kWh (US$7.00/kWh).

Adani Group has announced very ambitious plans to set up large solar power projects. The company entered into an agreement with the state government of Rajasthan to set up a 10 GW solar power park, with the entire capacity expected to be based on photovoltaic technology. Adani Green Energy also confirmed interest in acquiring SunEdison India’s projects.



June 22, 2016 0 comment
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