TNERC rules in favour of Adani Group firm, sets aside Tangedco’s communication

Tangedco sought segregation of the firm’s project into two and payment of different tariff rates. TNERC fixes a uniform tariff of ₹7.01 per unit 

Published - July 22, 2023 11:44 pm IST - CHENNAI

The Tamil Nadu Electricity Regulatory Commission (TNERC) has ruled in favour of Kamuthi Renewable Energy Ltd., an Adani Group firm, and set aside Tangedco’s communication, dated September 2016, which sought segregation of the firm’s 72 MW-solar project into two and payment of different tariff rates, “as illegal and without jurisdiction”.

In 2015, Kamuthi Renewable Energy Ltd. entered a power purchase agreement with Tangedco for the establishment of a 72 MW-solar power project at Kamuthi taluk in Ramanathapuram district. On September 12, 2014, the TNERC had issued a comprehensive tariff order for solar power and fixed a tariff of ₹7.01 per unit for Solar PV plants. It had extended the applicability of the tariff till March 31, 2016. The firm had to complete their projects by this date to be eligible for the tariff.

In its petition, the company said that though its solar plant stood commissioned on March 31, 2016, the Tamil Nadu Transmission Corporation Limited had requested it to inject only up to 25 MW of the generated power (72 MW) owing to upstream evacuation constraint and until a permanent connectivity was provided. Thus, the firm was injecting only upto 25 MW into the grid.

Later, the superintending engineer, Non-Conventional Energy Sources, Tangedco, Tirunelveli, issued a letter, dated September 30, 2016, agreeing to grant permanent connectivity. Based on a communication from Tangedco on September 20, 2016, the letter had informed Kamuthi to install two separate meters — for 25 MW and 47 MW. It said that 25 MW power would be purchased at ₹7.01 per unit and 47 MW power at ₹5.01 per unit (the tariff applicable after March 31, 2016, based on the TNERC’s order).

In its order dated July 20, the TNERC ruled that the entire 72 MW-solar power plant was commissioned on March 31, 2016, based on the issuance of Commissioning Certificate by the Superintending Engineer, Ramanathapuram. It also referred to the ruling by Appellate Tribunal for Electricity in this regard.

Hence, Kamuthi Renewable Energy Ltd.’s 72 MW-project is entitled for the tariff of ₹7.01 per unit, it said.

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