Tuesday, September 17, 2013: Tamil Nadu, which is considered a leader in wind energy is all set to sign power purchase agreements for 698MW. It is also set to attain No. 2 rank among all Indian states (Gujarat being the No.1). Post meeting of the Tamil Nadu Generation and Distribution Company (Tangedco) with 53 developers on last Thursday, the hopes are high regarding early signing of PPAs with solar power project developers.
The developers have acquired the right to set up solar plants and sell electricity to Tangedco for Rs 6.48 per kWhr (with 5 per cent annual escalation for a period of ten years). This tariff was reached after a bidding process held earlier this year.
Tangedco officials has urged developers to expedite matters like acquiring land, submission of ‘bank guarantee,’ if these are fulfilled, they will sign the PPA the following day.
Increase in project costs has become a cause of concern for solar developers. Prices of solar module has shot up in previous few months and is supposed to increase capital costs by almost Rs 12 lakh per MW. The overall scene is that the cost of projects have shot up by seven to eight per cent, whereas tariffs have been low.
