en.Wedoany.com Reported - The Tamil Nadu Electricity Regulatory Commission (TNERC) has officially approved the tariff for 12 MW of solar projects under Component 'A' of the PM-KUSUM scheme, a move that will accelerate the deployment of decentralized solar power generation in the state. The approval stems from a joint petition filed by Tamil Nadu Green Energy Corporation Limited (TNGECL) and Tamil Nadu Power Distribution Corporation Limited (TNPDCL), entities newly formed following the restructuring of the erstwhile Tamil Nadu Generation and Distribution Corporation (TANGEDCO).
The approved projects fall under the central government's Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, which aims to encourage farmers, cooperatives, and Farmer Producer Organizations to participate in solar power generation through a competitive reverse e-bidding mechanism. Although the Ministry of New and Renewable Energy reduced Tamil Nadu's quota under this component from 424 MW to 14 MW, the state utility proactively issued a larger tender for 420 MW to promote decentralized solar generation and help augment farmers' income.
According to the commission's directive, 16 techno-commercial bids were received and opened in December 2025. During the technical evaluation stage, 9 bidders were disqualified for non-compliance with tender conditions, such as failure to submit original bank guarantees, non-payment of processing fees, or incomplete land documentation, leaving 7 bidders qualified. Following negotiations and tariff matching, 4 bidders agreed to supply power at ₹3.02 per kWh, while the remaining 3 finalized a tariff of ₹3.09 per kWh. TNERC confirmed that all approved tariffs are within the ceiling of ₹3.10 per kWh set in November 2025.
The approved developers include S. Karthikeyan, K. Chellamuthu, Keesswin Chand Haris V, N. Mallika, R. Girivasan, S. Janane, and A. Chitra, with project capacities ranging from 1 MW to 2 MW, to be connected to various substations across the state. The commission permitted TNGECL to issue Letters of Award and approved TNPDCL to sign 25-year long-term Power Purchase Agreements with the developers. However, TNERC rejected the utilities' request for payment based on gross generation, reiterating that payment will only be made for net energy delivered after deducting line losses.
TNERC also mandated that all solar modules for the projects must comply with the Approved List of Models and Manufacturers (ALMM) issued by the Ministry of New and Renewable Energy, and the power generated will be used to meet the state distribution utility's Renewable Purchase Obligation targets. Furthermore, the commission directed both utilities to conduct awareness and education campaigns among farmers and establish a digital portal displaying details of substation capacities to streamline future project connections.
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