Sun Feb 16 22:00:37 UTC 2025: ## Tamil Nadu’s Green Energy Plan Rejected for High Solar Power Costs
**Chennai, February 17, 2025** – The Tamil Nadu Electricity Regulatory Commission (TNERC) has rejected a proposal by the Tamil Nadu Green Energy Corporation Ltd. (TNGECL) to purchase solar power under the PM-KUSUM scheme. The rejection stems from TNGECL’s tender, which lacked an upper ceiling tariff, violating both TNERC’s previous orders and guidelines from the Union Ministry of New and Renewable Energy (MNRE).
The TNGECL’s plan involved a 25-year power purchase agreement with four farmers for a 5 MW solar plant at ₹3.28 per unit. TNERC deemed this rate excessively high, noting that solar power prices are decreasing and that other states, including Uttar Pradesh (₹3.10/unit) and Odisha (₹3.08/unit), have secured lower tariffs under the same scheme. TNERC highlighted that despite Tamil Nadu’s higher solar irradiation potential, the proposed rate was above the competitive bidding price of less than ₹3 per unit.
The tender’s poor response – only four bidders qualified for a 5 MW project despite approval for 420 MW – further underscored the concerns. TNERC attributed this to the non-compliance with MNRE guidelines. TNGECL has been instructed to reissue the tender, incorporating an upper ceiling tariff and adhering to MNRE regulations to ensure a more competitive bidding process. The PM-KUSUM scheme aims to enable farmers to set up solar power plants and sell the generated electricity to power distribution companies.
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