The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved the adoption of tariffs for 12 MW of solar power projects under Component “A” of the PM-KUSUM scheme, providing a boost to decentralized solar power generation in the state. The approval came after a joint petition was submitted by Tamil Nadu Green Energy Corporation Limited and Tamil Nadu Power Distribution Corporation Limited, two entities that were recently formed following the restructuring of TANGEDCO. The move is aimed at strengthening renewable energy development and improving power distribution management across Tamil Nadu.
The approved projects are part of the central government’s Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) programme, which encourages farmers and rural stakeholders to participate in solar energy generation. The tender process was specifically designed for individual farmers, cooperatives, and farmer producer organizations through a competitive reverse e-tendering mechanism.
Although the Ministry of New and Renewable Energy had reduced Tamil Nadu’s allocation under this component from 424 MW to only 14 MW, the state utilities decided to float a much larger tender for 420 MW. The decision reflected the state’s intention to aggressively promote decentralized solar generation and support additional income opportunities for farmers.
According to the commission order, sixteen techno-commercial bids were received and opened in December 2025. During the technical scrutiny stage, nine bidders were disqualified due to non-compliance with tender conditions. The reasons included failure to submit original bank guarantees, non-payment of processing charges, and insufficient land-related documentation. After the evaluation process, seven bidders qualified successfully.
The commission stated that after negotiations and tariff matching exercises, four bidders agreed to supply power at ₹3.02 per unit, while the remaining three finalized tariffs at ₹3.09 per unit. TNERC observed that all approved tariffs remain within the previously determined ceiling tariff of ₹3.10 per unit fixed in November 2025.
The approved developers include S. Karthikeyan, K. Chellamuthu, Keesswin Chand Haris V, N. Mallika, R. Girivasan, S. Janane, and A. Chitra. Their solar projects, ranging from 1 MW to 2 MW, will be connected to different substations across the state.
The commission has now allowed TNGECL to issue Letters of Award and permitted TNPDCL to sign long-term Power Purchase Agreements for 25 years with the selected developers. However, TNERC rejected the utilities’ request to make payments based on gross generation. Instead, the regulator reaffirmed its earlier ruling that payments should be made only for net energy delivered after deducting applicable line losses.
TNERC also directed that all solar modules used in the projects must comply with the Ministry of New and Renewable Energy’s Approved List of Models and Manufacturers (ALMM). The generated solar power will contribute toward fulfilling the Renewable Purchase Obligation targets of the state distribution utility. In addition, the commission instructed both utilities to conduct awareness campaigns among farmers and develop a digital portal with substation-wise capacity details to simplify future project integration.
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