Adani signs PPA for 648-MW solar park with TN power agency
04 Jul 2015
The Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco) today signed an agreement with the Adani Group to purchase the entire output from its proposed 648-MW solar power project to be set up in the state.
Tangedco will purchase the entire power generated at the project at Rs7.01 a unit for the next 25 years.
The Gautam Adani-led infrastructure group had signed a memorandum of understanding (MoU) with the Tamil Nadu government for setting up a solar power project in the state, at an investment of Rs4,536 crore.
The Tamil Nadu government, meanwhile, decided to buy 2,000 MW of solar power by the end of the current calendar year under a revised clean energy target.
The solar power project is planned to be set up in Ramanathapuram district of the state.
Construction is expected to commence in August and the unit is scheduled to be operational before March next year, according to Adani.
Adani has sought approval from the Department of Industrial Policy and Promotion (DIPP) for three different companies, including Ramnad Renewable Energy, Kamuthi Solar Power, and Ramnad Solar Power.
Adani hopes to meet about 70 per cent of the investment through internal accruals, while the balance will be funded through debt and from institutional investors.
Tamil Nadu government had, in 2012, launched its solar energy policy which called for the development of 1,000 MW of utility-scale, rooftop and renewable energy certificate (REC) projects annually through 2015.
Tamil Nadu is now expected to buy 1,000 MW solar power, including Adani's 700 MW to be produced in Tamil Nadu.
Recently, Natham R Viswanathan, minister of electricity, non-conventional energy development, prohibition and excise, said that the state has set a target to buy around 1,000 MW every year.
"This was delayed due to some court issues, which are cleared now and we will go ahead with our plan," the minister said.
He said by July-end the state will buy 1,000 MW and by end of this year the state would sign up for 2,000 MW of power.
To give a boost to solar power generation, the Tamil Nadu government had approached the renewable energy ministry for a hike in capital subsidy for off-grid and grid solar PV system from 100 KW to 500 KW.