Tamil Nadu Regulator Clears 270 MW Long-Term Green Power Deal for TNPDCL

Chennai, India – The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved the Tamil Nadu Power Distribution Corporation Limited’s (TNPDCL) plan to buy 270 megawatts (MW) of firm and dispatchable renewable energy from the Solar Energy Corporation of India (SECI) under a long-term arrangement lasting 25 years. The order allows TNPDCL to procure the clean power through the Inter-State Transmission System (ISTS)-connected Round-the-Clock (RTC) Tranche-IV scheme, at tariffs determined by competitive bidding, and includes a small trading fee payable to SECI.

Under the regulatory directive, the commission has also asked TNPDCL to provide a detailed status report within four weeks on how the procurement process is progressing, ensuring transparency and accountability in the implementation of this renewable energy purchase.

According to the commission’s order, SECI had conducted the bidding on October 30, 2024, aiming to secure renewable energy projects capable of delivering 1,200 MW of RTC power on a build-own-operate basis. Out of this, TNPDCL’s share amounts to 120 MW at a tariff of ₹5.06 per unit and 150 MW at ₹5.07 per unit, reflecting current market prices for such power supplies.

The regulator noted that the tariffs offered in SECI’s bidding process are neither excessively high nor arbitrary, and they meet fair market benchmarks while providing reliable, assured delivery of power throughout the year. This type of firm and dispatchable renewable energy (FDRE) ensures that electricity is available even during periods when solar generation might traditionally dip, helping to support grid stability.

This purchase plan aligns with broader energy policies aimed at increasing the share of renewable energy in Tamil Nadu’s power mix and reducing dependence on fossil fuel–based generation. By locking in long-term contracts with competitive tariffs, TNPDCL seeks to balance the state’s growing demand for electricity with sustainability goals, while providing predictable pricing and supply security for consumers.

SECI, a central public sector undertaking tasked with promoting and facilitating renewable energy deployment across India, will act as an intermediary between power producers and TNPDCL, ensuring contracted power is delivered under the terms of the long-term agreement.

The approval is seen as a significant step towards strengthening the energy grid in Tamil Nadu and meeting future electricity needs with cleaner, more dependable sources.