Tangedco to act against firms not meeting Solar Purchase Obligations (SPOs)

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In a move that comes as a relief to solar power developers in Tamil Nadu, the state’s electricity regulator has empowered the state electricity distribution company, Tangedco, to administer the ‘solar purchase obligation’ mandated by the State Government’s solar policy.

“The SPO will be administered by Tangedco,” Tamil Nadu Electricity Regulatory Commission (TNERC), said in its recent order.

The implication of this is that the decks have been cleared for the state Government to crack the whip on ‘obligated consumers’ who do not meet the SPO (which they can do either by putting up their own solar plant or buying solar power from either Tangedco or others.)

The formal empowerment of the state distribution company, is significant against the backdrop of poor compliance with the Central renewable purchase obligation. TNERC’s order states that if any ‘obligated consumer’ has not complied with the obligation, Tangedco will issue ‘solar renewable energy certificates’ from the market and collect the money from the defaulting obligated consumers. Further, Tangedco will buy the solar RECs at the ‘forbearance price’, which is the highest price allowed under the REC mechanism. The ‘forbearance price’ for the 2012-17 period is approx Rs 13.40 a unit.

Er. Sheelam Khare..

Source: Business Line

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