Only 3 MW of solar photovoltaic plants installed under PM-Kusum scheme

Slow progress in solar installations under PM-Kusum Scheme in Tamil Nadu, with TNERC rejecting non-compliant tender.

Only 3 MW of solar photovoltaic plants have been installed so far under the PM-Kusum Scheme far behind the 424 MW sanctioned by the Union Ministry of New and Renewable Energy.

This is as per record notes of discussions of a meeting held by Tamil Nadu Electricity and Regulatory Commission (TNERC) last month, regarding the status of ongoing and upcoming generation projects in Tamil Nadu.

In February, TNERC rejected the plea of the Tamil Nadu Green Energy Corporation Ltd. (TNGECL) seeking nod to power purchase under the PM-Kusum Scheme-Component A.

Under the PM-Kusum Scheme-Component A, farmers can set up decentralised ground/stilt mounted grid connected solar or other renewable energy-based power plants on their land.

The renewable power generated from these plants is purchased by power distribution companies at a pre-fixed levelized tariff. The company is eligible to get a performance-based incentive of ₹0.40 per unit or ₹6.6 lakh per MW of capacity installed, whichever is less, for five years from the commercial operation date.

TNERC had said TNGECL  floated the tender without an upper ceiling tariff, and contrary to its earlier order and the Union Ministry of New and Renewable Energy (MNRE) guidelines. 

The TNGECL shall issue a revised tender, adhering to the MNRE guidelines and the Commission’s directions to ensure competitive tariffs and better participation, it said.