The ongoing legal case between
Adani Green Energy and the Tamil Nadu Electricity Regulatory Commission
(TNERC), which will decide the final tariff rate for Adani’s solar project in the
state, took another turn with the regulatory commission asking the company to
file their plea as a Dispute Resolution Petition. Adani completed a 648 MW
solar project in Tamil Nadu at a cost of $679 million (~Rs.45.6 billion) earlier
this year. Mercom has reported that 360 MW of the 648 MW had been commissioned in March of
2016 while the remaining 288 MW was delayed due to evacuation issues.
Adani completed the final 288 MW through
two of its subsidiaries, Kamuthi
Solar Power and Ramnad
Renewable Energy, which commissioned 216 MW and
72 MW respectively. These companies filed pleas with TNERC, stating that the cyclone
and extensive rainfall in the region caused considerable damage resulting in
delays to project construction. According to the company, the 216 MW project
was completed by March 15, 2016 and the 72 MW project was completed by March
22, 2016. However, the sub-stations required for power evacuation from Tamil
Nadu Generation and Distribution Corporation (TANGEDCO) were not provided,
which further delayed their commissioning beyond March 31, 2016.
Solar projects in Tami Nadu which
were commissioned before March 31, 2016, were to receive a tariff
of Rs.7.01 (~$0.1045)/kWh. TANGEDCO reduced the tariffs for solar projects
commissioned beyond this deadline to Rs.5.1 (~$0.076)/unit.
According to Mercom’s
sources at Adani, due to this delay caused by TANGEDCO, the company will not
get the Rs.7.01 (~$0.1045)/kWh tariff. Adani invested a total of Rs.18.08 billion (~$265.07 million) in
these projects expecting a higher tariff, but had to settle for the state
directed rate of Rs.5.1 (~$0.076)/unit, which drastically reduced their returns.
The Adani source stated that
TNERC has rejected Adani’s initial legal case and confirmed that Kamuthi Solar
Power and Ramnad Renewable Energy have filed pleas as a Dispute Resolution
Petition. The case now rests at the tribunal.
Mercom has reported on curtailment issues affecting solar power in India,
especially in the states of Tamil Nadu and Rajasthan, which has created a tough
situation for developers.