The Tamil Nadu Solar Energy Policy
2012 was announced in October 2012.from day one it is popular by one of the
most ambitious state solar policy in India. With The operative period of the
policy is from 2012 to 2015, during which it targets to add 3 GW of solar
power. State which is known by its high installed capacity of wind energy is
also on the voyage to be a solar state.
Under the “Tamil
Nadu solar energy policy 2012” 1500MW will be added through utility scale
purpose from which 1000MW will be saleable to the TANGEDCO and remaining 500
will be driven by private power purchase agreements.
|
Utility scale (MW) (A)
|
Solar Roof Top (MW) (B)
|
REC (MW)
(C)
|
Total (MW)
(A)+(B)+(C)
|
2013
|
750
|
100
|
150
|
1000
|
2014
|
550
|
125
|
325
|
1000
|
2015
|
200
|
125
|
675
|
1000
|
Total
|
1500
|
350
|
1150
|
3000
|
Solar
Purchase Obligations
This policy
came up with revised term SPO in which H.T consumers and L.T commercial will be
off taker for the solar energy. most interesting fact in this policy is that, Instead
of implying RPO on DISCOMS it is directly imposed on end users (HT Consumers
(HT Tariff I to V) & LT Commercial (LT Tariff V)), this arrangement may
relief State DISCOM From additional tariff burden.
“Obligated
entities” for SPO under this policy
·
HT Consumers (HT Tariff I to V)
This
category will cover all HT consumers including:
1. Special
Economic Zones (SEZs)
2.
Industries guaranteed with 24/7 power supply
3. IT Parks,
Telecom Towers
4. All
Colleges & Residential Schools
5. Buildings
with a built up area of 20,000 sq.m. Or more
·
LT Commercial (LT Tariff V)
|
Up to DEC 2013
|
From JAN 2014
|
SPO Percentages
|
3%
|
6%
|
The SPO will be administered by TANGEDCO. Whereas Tamil
Nadu Electricity Development Authority (TEDA) will be stated as a nodal agency
The above obligated consumers may fulfill their SPO by:
·
Generating captive Solar Power in Tamil Nadu
equivalent to or more than their SPO (due to this big industries will have to
invest in solar power by establishing captive power plant)
·
Buying equivalent to or more than their SPO from
other third party developers of Solar Power projects in Tamil Nadu (this will
promote IPPA with third party power producer)
·
Buying RECs generated by Solar Power projects in
Tamil Nadu equivalent to or more than their SPO. (This will nurture REC
projects within Tamil Nadu)
·
Purchasing power from TANGEDCO at Solar Tariff
(Additional income from this tariff price can be utilized to invest in another
solar policy)
Consumers
desirous of availing SPO exemption by captive solar generation shall
necessarily install separate meters to measure captive generation.
Enforcement strategy
·
If any of the obligated consumers has not
complied with the SPO they should pay an
amount equivalent to the “Forbearance Price “of the Solar REC to the
administrator and in turn the administrator shall purchase REC for the amount
collected from the obligated consumers.
·
For the purchases made by the obligated
consumers from the TANGEDCO in order to meet their Solar Purchase Obligation,
the TANGEDCO shall make equivalent purchases of solar power as prescribed in
the Tamil Nadu Solar Energy Policy 2012.
·
In case an obligated consumer has multiple
service connections, the SPO can be met in total for his/her electricity
consumption in the area of the distribution licensee.
·
The SPO will be fixed on the total consumption
of non-solar power of the consumer irrespective of the sources.
·
For those consumers who are purchasing solar
power only from the distribution licensee for the fulfillment of their SPO the
compliance period may be specified as that of the billing cycle. For others who
are purchasing from other solar generators or consuming from their own solar
generators the period may be fixed for the Calendar year as prescribed in the
Policy.
Unsolved issues
·
NAPCC had set the target of 5% renewable energy
purchase for FY 2009-10, and also envisaged that such target will increase by
1% for next 10 years. It targets a minimum of 5% RE in the supply mix of the
entire country by 2010, 15% by 2015 and 20% by 2020. On this guideline CERC had
set RPO structure for each state which could make its target reachable within permitted
timing. But now it seems that states are ignoring national regulations.
·
“Obligated
entity” is defined differently in the Solar Policy 2012 and in Clause 2 (g) of
the TNERC Renewable Energy Purchase Obligation Regulations 2010.
·
Connected load by the obligated entities*(as per
TNSEP 2012) is approximately 6000MW. It means to fulfill 3% SPO before December
2013 would require 180MW of solar power from around installed capacity of 900MW
(by considering 20% capacity factor) which is practically impossible. Also that
amount of REC.
·
There is already an obligation to a level of
8.95% from non solar sources with an additional 0.05% from solar sources as RPO
as per the TNERC RPO Regulations 2010. Hence the total obligation under RPO is
9% only. However, when the SPO is specified separately, the impact of the
present RPO fixed at 9% in total should also be considered for modification.
Accordingly, it should specifically exempt to that extent the RPO in suitable
manner.
·
SPO are implemented on end users instead of
DISCOMS which is contradictory with the policies of other states. Tough it will
relief the tariff burden of DISCOMS it will badly affect on industrial
consumers who are already purchasing wind energy at higher tariff.
·
National solar mission policy already concludes
SPO in its Renewable purchase obligation which is also approved by TNERC. Then
there is no need to such kind of SPO which is only doubling the obligations.
·
Under the option for fulfillment of SPO, (c)
policy stated that obligated entities are mandatory to buy REC those are generated
only in the state of Tamil Nadu. Whereas REC market is a national market and
not restricted to the certain states. To do so TNERC has to establish their own
REC market, as there is no any such kind of identification available on the certificate
to recognize from which state it is generated.
Conclusion
TNERC has to come up with comprehensive outlook on its
SPO structure. Also it needs to communicate with industrial consumers on
enforcement procedure and percentage proportions after all they are contributing
roughly 46% electricity demand.