The utility has sought regulatory approval for solar power procurement at Rs 2.61 per unit, including SECI’s Rs 0.07 per unit trader’s margin.
In its petition, the Tangedco said that as per the target set by the Ministry of New and Renewable Energy, approximately 9,400 MW of solar power was required for 2021-22. “Based on the State’s total consumption of 1,06,566 million units in 2020-21, considering the load growth of six per cent and taking into account of renewable purchase obligation (RPO) of 10.50 per cent as per MNRE target for solar, the approximate requirement of solar power is 7,126 MW. As of date, about 4,268 MW solar power plants have been commissioned in the State and about 2,856 MW solar power is required by March 2022 as per the RPO,” it said.
The utility noted that considering all the ongoing solar projects, there was still a shortfall of about 1,850 MW to fulfil the non-solar RPO. Pointing to the commission’s approval for procurement of 1,500 MW solar power from SECI, it said that it had signed an agreement to procure 500 MW at the rate of Rs 2.781 per unit in May last year. It added that to meet the obligation, it was necessary to procure 1,000 MW solar power from SECI under the manufacturing linked ISTS scheme.
In its order, TNERC said it had issued an order on trading margin under TNERC Licensing Regulation, 2005, fixing trader margin as four paise per unit where the sale price is less than or equal to Rs 3 per unit. It directed Tangedco to negotiate with SECI to reduce the trade margin of Rs 0.07 per unit and report the outcome of the negotiation.
“However, since the quantum approval has been issued and the price is competitive, market aligned due to the payment securities issued by SECI, the petitioner may sign the power sale agreement following the outcome of the negotiation and furnish a copy to the commission,” it said.