Investing in renewable energy may not be an attractive option for industries in the State if the tariff revision proposed by Tamil Nadu Generation and Distribution Corporation (Tangedco) is implemented.
For wind and solar captive users, transmission charges will increase from 31.67 paise a unit to 56.20 paise a unit and wheeling charges will go from 10.53 paise a unit to 141 paise a unit. Overall charges for captive consumption of wind or solar energy will jump from 59.86 paise a unit to 215.43 paise a unit.
N. Pradeep, vice-president of the South India Spinners’ Association, said the repayment period for those investing in solar and wind energy for captive use is eight to nine years, and it will go up to nearly 20 years. Apart from the proposed revision, high-tension (HT) consumers who have rooftop solar installations are paying 83 paise a unit in networking charges and the Association was contesting this legally, he said.
According to energy consultant AD Thirumoorthy, the benefit that HT consumers get from investing in renewable energy for own use is almost ₹2 a unit and it will be reduced now. This will increase the break-even period.
He said all rooftop solar energy installations were paying networking charges now. It is 83 paise a unit for HT consumers, ₹1.27 a unit for low-tension consumers, and 25% of ₹1.27 for domestic consumers. These charges are based on the State’s solar energy policy. Though the tariff revision proposal of Tangedco does not have any change in these charges, it indicates a probably increase to ₹2.40 a unit in the future.
Industry sources point out that investments in renewable energy — wind and solar and rooftop solar panels — help reduce the load for Tangedco and hence should be encouraged.
