Adani plans 1,000MW solar power plant at Ramanathapuram

CHENNAI: Tamil Nadu’s solar power sector is set to get a shot in the arm with Adani Group, an infrastructure company with presence in diverse sectors including logistics, agriculture and power, planning to set up a 1,000MW solar plant in Ramanathapuram.
Highly placed sources, while confirming the deliberations between the company officials and the state government, said the preliminary talks took place a week ago. “The deliberation was about setting up a 1,000MW solar park at Kamuthi in Ramanathapuram,” said a source privy to the discussion. Industrial estimate is that production of one megawatt of solar power requires five acres of land, which makes it 5,000 acres for the proposed plant. The capital cost of solar photovoltaic plant is estimated at Rs 7 crore per MW.

Ramanathapuram, one of the backward and dry districts with poor rainfall and sizzling temperatures, along with neighboring Tuticorin and Tirunelveli are considered hot spots for setting up solar plants in the state.

“We are neither confirming nor denying the developments,” a senior official in Adani Group told TOI. Terming TN’s solar policy as the best, which can be emulated by other states, the official said it was a win-win situation for everyone. In February, Adani Enterprises signed a deal with the Rajasthan government to set up the country’s largest solar park with a capacity to generate 10,000MW for a period of ten years, with an investment of Rs 40,000 crore.

Tamil Nadu unveiled its solar policy in 2012 with a view to generate 3,000MW of solar power by 2015, and increase the capacity by 1,000MW every following year. After months of legal hurdles, Tamil Nadu Electricity Regulatory Commission (TNERC) in September announced that TNEB would purchase solar power at Rs 7.01 per unit. “The state has signed up 12 power purchase agreements (PPA) for 145MW till last week. About 60 applications for 1,550MW have been cleared by the power utility. But the parties should pay security deposit and sign PPAs,” an official said.

As the TNERC, in its comprehensive tariff order in September, proposed a one-year control period (i.e. tariff is valid till September 2015) due to volatile capital cost of solar modules, industry sources said the applicants were awaiting extension of the control period. “It is impossible to set up a mega photovoltaic project in six months, given the poor land bank with the applicants,” said a spokesperson of an American power major. Tangedco has moved the commission for extension of tariff period till March next year, considering the fact that the developers will not be able to inject power before September.