Tamil Nadu Electricity Regulatory Commission has rejected Adani’s appeal for a reevaluation of the tariffs it is set to receive for developing the world’s largest solar plant.
Adani were due to receive a tariff of INR7.01/kWh from Tamil Nadu Generation and Distribution Corporation (TANGEDCO) if the project commissioned before 31 March 2016, but due to delayed project this went down to INR5.1/kWh.
Adani Green Energy, completed a 648MW solar PV plant costing INR45.6 billion (US$679 million), however, while 360MW of this were commissioned before the deadline, 288MW were delayed.
This delayed capacity was completed by Adani subsidiaries Kamuthi Solar Power (216MW) and Ramnad Renewable Energy (72MW), but both entities also filed appeals to the Tamil Nadu Electricity Regulatory Commission (TNERC), claiming that a cyclone and heavy, extended rainfall in the region caused significant damages and delayed project execution. All kinds of damage from the same extreme weather were reported widely at the time.
Both companies claimed they had actually completed the projects ahead of the deadline, but the necessary substations had not been provided by TANGEDCO resulting in completion after the deadline.
Nevertheless, the Adani project will now receive the lower tariff after TNERC rejected the appeals.