The Tamil Nadu Electricity Regulatory Commission (TNERC) has
set Rs.4.50 (~$0.066)/kWh as the new benchmark tariff for solar PV projects and
Rs.10.19 (~$0.157)/kWh for solar thermal projects without accelerated
depreciation (AD). The AD component of the tariff has been fixed at Rs.0.09
(~$0.0014)/kWh for solar PV and Rs.0.21 (~$0.0032)/kWh for solar thermal.
tariff without AD is 12 percent less than the previous benchmark tariff of Rs.5.10
(~$0.079)/kWh. The new order is in effect from April 1, 2017.
The TNERC has calculated the capital cost at Rs.47 million
(~$0.73 million)/MW for Solar PV power projects, compared to Rs.50 million (~$0.774
million)/MW last year.
Karnataka Electricity Regulatory Commission (KERC) last week
set a benchmark
tariff of Rs.4.36 (~$0.064)/kWh grid-connected large-scale solar projects
for financial year (FY) 2017-18.
Benchmark tariff is set by central and state regulatory
commissions yearly. These tariffs act as the upper limit for reverse auctions
conducted by central and state agencies. The benchmark tariff mostly acts as a
guideline, as actual winning bids are typically much lower. However, Tamil Nadu
is generally considered the riskiest state for solar projects due to
late-payment and curtailment issues.
reported, the TNERC issued a draft solar tariff order
inviting comments and suggestions. According to Mercom’s India Solar Project Tracker, Tamil Nadu has 1.6 GW of installed
solar capacity and over 500 MW of development pipeline.