The Tamil Nadu Electricity Regulatory Commission (TNERC) has granted time till 1 April 2016, for solar developers to set up projects in the state and avail the tariff of Rs 7.01 a kWhr.

This comes as a big relief for solar power developers like SunEdison, which have expressed  interest in setting up projects in the state. The earlier ‘control period’ was upto 12 September, 2015.

On 12 September 2014, the TNERC had come out with its ‘tariff order’ which said that solar power project developers who could put up their projects and also sign a power purchase agreement (PPA) with TANGEDCO by 12 September 2015, may sell their power to TANGEDCO for Rs 7.01 a kWhr.

The order received a good response from the industry, and many companies sent in their letters along with the prescribed commitment fee, for capacities totalling over 1,500 MW. However, the draft power purchase agreement (PPA) had to be approved by TNERC, which was done only on 27 January, 2015. Thus, developers had less time to complete the whole process, which involves tying of finances, buying land and signing the PPA with TANGEDCO.

So far, PPAs have been signed for projects totalling only about 220 MW. There was therefore a clamour for extension of the time for the applicability of the tariff, which has  been granted now.