Tamil Nadu releases solar policy 2012; focus on commercial consumers consuming 6% of solar

A 6 per cent ‘solar purchase obligation’ and a tapering generation-based incentive (GBI) are the cornerstones of Tamil Nadu government’s solar policy, unveiled on 20th October 2012.

In pushing investors towards the target of 3,000 MW in three years, the government makes it mandatory for large power consumers to buy six per cent of their consumption from solar energy producers or from the state generation and distribution utility at higher prices, or by buying solar renewable energy certificates.

It is mandatory for high tension power consumers like special economic zones (SEZ), industries, IT parks, telecom towers, colleges and residential schools and buildings with built up area of 20,000 square metre or more to purchase six per cent solar power from Jan 2014.

It also provides a generation-based incentive (GBI) of Rs 2 unit for the first two years, Re 1 for the next two years and 50 paise for the subsequent two years. This GBI will be available for all solar or solar-wind hybrid rooftop systems installed before March 2014.

Installation of solar water heating systems will be mandatory for industries having hot water boiler/steam boiler using fossil fuel.

Power consumers falling under domestic, agricultural, power looms, low tension industries, cottage and small-scale industries categories are exempted from solar power purchase obligation.

Solar power projects would be developed through competitive bidding. Investments though joint ventures by state undertakings will also encouraged through competitive bidding.

Appropriate incentives will be provided to attract investors to this sector so as to make the state a regional hub for the solar power industry.

The Tamil Nadu Energy Development Agency will act as the single window clearance agency for solar power projects in the State.

Source: Business Line

Policy Note by TN

About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
This entry was posted in PV, Renewables, Solar, Solar Thermal, Tamil Nadu and tagged , , , , , , , , , . Bookmark the permalink.