TANGEDCO on Monday signed an MoU with Indian Renewable Energy Development Agency Ltd. (IREDA) to set up solar projects with a capacity of 20,000 MW in the next 10 years.
The MoU also mentioned that projects having capacities up to 3400MW of hydro power, and 2000MW of gas based thermal power, will be set up in the state. The total cost of all these projects will be ₹1.32 lakh crore.
Tamil Nadu’s total solar capacity is 4600MW, while states like Karnataka, with a capacity of 7100MW and Telangana with a capacity of 5000MW, are way ahead of Tamil Nadu. The advantage of purchasing solar power for TANGEDCO is the cost of generating solar power, which is declining, and in December last year, the tariff came down to ₹1.99 per unit in Gujarat.
It will be a win-win situation for Tamil Nadu to increase solar power capacity because many of the thermal projects are far away from being commissioned, and coal supply is short.
“The MoU highlights IREDA’s continuous efforts for development of the renewable energy sector. It will facilitate knowledge sharing and provide consultancy services, which will contribute to drive sustainable development of the country,” said an IREDA official.
Tamil Nadu leads all states with regard to wind power with a total capacity of 8000MW, and solar power capacity is only half of wind power capacity.
“The estimated loan required for the above projects is about ₹1.32 lakh crore. Being the largest lender of the renewable energy sector, IREDA is committed to play an important role in the fulfilment of the financial requirements for renewal power projects,” said the official.
The official said that under the MoU, IREDA will extend its technical expertise to TANGEDCO for renewable energy project development, bid process management, and implementation support. “We will also assist TANGEDCO in debt raising through developing financial models, assistance in understanding the market instrument, underwriting services for the proposed debt requirement and conducting pre-market surveys, road shows to generate interest amongst prospective investors,” he said.
“The future solar power projects will come only with batteries; therefore, renewable power will be available round-the-clock. Solar power is available from 6am to 4pm, and the peak is around 1pm to 2pm. Batteries will store excess power generated during the day and can be used in the evening when the power demand peaks,” said the official.
Tamil Nadu’s maximum solar power capacity of 640MW is in Kamudhi in Ramanathapuram district. Setup by Adani group, power supply from this project started in 2017, and since then it has been supplying power to TANGEDCO. Similarly, there are other private companies in Tamil Nadu which have set up solar power projects.