Tamil Nadu to Add 3 Gigawatts of Solar Power Capacity in Three Years

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Researched by Industrial Info Resources India (New Delhi, India)--As India gears up to realize its goal to add 20 gigawatts (GW) of solar power capacity by 2022, the southern state of Tamil Nadu has set an ambitious target to develop solar power plants with a total capacity of 3,000 megawatts (MW) within the next three years. The state, which has an installed capacity of 18 GW, presently generates a little more than 15 MW from solar sources.

The state recently released a solar power policy that aims to add 1,000 MW of solar capacity each year until 2015. According to the policy, titled "Tamil Nadu Solar Energy Policy," capacity additions of 1,500 MW will be achieved through utility-scale projects, 350 MW from solar roof-top applications, and the remaining 1,150 MW through a renewable energy certificate (REC) mechanism.

The 1,000 MW of utility-scale projects will be funded through solar purchase obligations (SPO), and the balance will be funded through a generation-based incentive (GBI) provided by the government. The Solar Energy Policy mandates a 6% SPO for commercial consumers.

To encourage developers to establish solar power plants with capacities of 1 MW and above, Tamil Nadu Generation and Distribution Company (TANGEDCO) (Chennai, Tamil Nadu) has proposed facilitating the investors by procuring the energy generated from these upcoming solar units via a long-term power purchase agreement, up to a total capacity of 1,000 MW. The state-owned utility soon will be calling for bids from solar power generators to enter into long-term power purchase agreements. The developers will be selected through the competitive bidding process.

Tamil Nadu is a leading producer of renewable energy in India. The state has been a pioneer in wind power generation, setting up windmills in mid-1980s. The state now has an installed wind power generation capacity of about 7,000 MW and seeks to add another 6,000 MW during the ongoing 12th Five Year Plan period (2012-17).

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