“The bidding process conducted by TANGDCO for the purchase of 708 MW of solar power from 52 developers has no legal sanctity”. This is the gist of a landmark order passed by the Tamil Nadu Electricity Regulatory Commission(TNERC) on 15 September 2014, according to “The Hindu”.
The report by The Hindu says that TNERC ruled that “The petitions by Tangedco(to approve its proposal to purchase 708 MW of solar power from 52 generators within the state for 20 years) suffer from the prerequisite of transparent bidding process in accordance with the guidelines issued by the Central government” under Section 63 of Electricity Act(EA), 2003. The article notes that TANGEDCO committed a blunder by seeking approval under the Section 63 of EA, 2003, whereas Punjab got approval for its bidding process by filing its petitions under Sections 86(1)(b) and 86(1)(e). (The Electricity Act of 2003 can be accessed here).
Tangedco now has two options.
a. Appeal before Appellete Tribunal for Electricity within 45 days of the order or
b. Go for a fresh bidding process.
Either way, the lack of clarity regarding the policy has ended, and hopefully, this will be the end to the “curious case of Tamil Nadu Solar“, and the RESET button can be pressed.
The articles from “The Hindu” are available here and here.