TNERC issues order under section 108 of Electricity Act 2003 on TN Solar Policy 2013

Tamil Nadu Electricity Regulatory Commission under section 108 of the Electricity Act 2003 has issued an order on issues related to Tamil Nadu Solar Policy 2013. The commission has stated that consumers who have Solar Purchase Obligations (SPOs) may generate captive solar power, buy solar power from third party or purchase power from TANGEDCO at solar tariff or purchase RECs equivalent to or more than their SPO. The SPO will be calculated on the total consumption of non-solar power of the consumer irrespective of the sources.

If the obligated consumers do not comply with SPOs, they will have to pay an amount equivalent to the forbearance price of the solar REC. If the obligated consumer buys power from TANGEDCO at solar tariff, TANGEDCO will purchase equivalent amount of solar power. Although this remains to be seen whether TANGEDCO can buy solar power as it has been incurring heavy losses. 

Asim Sharma, Consultant, FGC


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