Overview

Particulars Sub-particulars Sub-particulars Sub-particulars Units Details Source
General State Overview
State Regulatory Commission Tamil Nadu Electricity Regulatory Commission
State Nodal Agency Tamilnadu Energy Development Agency
Installed Capacity (MW) MW 157.98 MNRE (As on 29.09.2015)
Potential Area Clusters (Tehsil) Tirupur, Karur, Dindigul, Coimbatore
Break down of Installed Capacity (as on 31.3.2015) MNRE Projects MW 26 MNRE (As on 29.09.2015)
State Solar Policy MW 18
REC MW 98.16
Rooftop MW 15.82
Policy Overview
Title of Policy Tamil Nadu Solar Energy Policy 2012 Tamil Nadu Solar Energy Policy 2012
Time span of the policy Years Not defined Tamil Nadu Solar Energy Policy 2012
Categories of projects covered in Solar Policy Category 1 Projects set up for sale to DISCOMS by competitive bidding Section 18., pp. 16/21 of Tamil Nadu Solar Energy Policy 2012
Category 2 Captive/Group Captive projects
Category 3 Solar Rooftop Projects – Grid connected and Off-grid
Category 4 Projects set up in solar parks
Category 5 Third party sale with or without REC
Grid Evacuation TEDA will try to facilitate in obtaining the required approvals from the State Transmission Utility. Section 22.6 , pp. 20/21 of Tamil Nadu Solar Energy Policy 2012
Single Window Clearance Guaranteed Single Window Clearance will be provided by TEDA in 30 days so that the plants can be commissioned in less than 12 months. Section 19 , pp. 19/21 of Tamil Nadu Solar Energy Policy 2012
Deemed Conversion to Non-Agricultural Status Deemed conversion to non-agricultural status is not available in Tamil Nadu for solar power developers under any currennt policy or state initiative.
VAT Exemption Refund of 50% of the VAT paid on purchase of capital goods exclusively for captive power generation within the construction period, provided they are manufactured in Tamil Nadu. Section 5.2.2.3, pp. 13 of 42 of Tamil Nadu Industrial Policy 2014
Electricity Duty 100% exemption on electricity generated from solar power plants used for self consumption or sale to utility for 5 years. Section 22.3 , pp. 19/21 of Tamil Nadu Solar Energy Policy 2012
Regulatory Overview
Solar Purchase Obligation 2014-15 % 6.00% Section 13, pp. 13/21 of Tamil Nadu Energy Policy 2012
2015-16 % 6.00%
Wheeling Charges Concessionary charge applicable (calculated on normative OA charges) % 30.00% Section 12.1, pp. 35/82 of TNERC Comprehensive Tariff Order on Solar
2014-15 INR/kWh 0.05661 Table 201, Section 5.43, pp. 265/316 of TNERC Tariff Order for Distribution (9 of 2014)
Transmission Charges Concessionary charge applicable (calculated on normative OA charges) % 30% Section 12.1, pp. 35/82 of TNERC Comprehensive Tariff Order on Solar
2014-15 INR/MW/Day 870.9 Section 5.13, pp. 83-84/ 87 of TNERC Tariff Order for TANTRANSCO (8 of 2014)
Transmission Losses 2014-15 230 kV % 0.76% Table 37, Section 4.2, pp. 64/87 of TNERC Tariff Order for TANTRANSCO (8 of 2014)
110 kV % 1.94%
66 kV % 0%
Electricity Duty INR/kWh 0.1 Electrical Inspectorate, Government of Tamil Nadu
Banking Provisions Provisions Monthly banking is allowed for solar power developers Section 12.5.1, pp. 39/82 of TNERC Comprehensive Tariff Order on Solar
SERC Defined Tariff With AD INR/kWh 6.28 Annexure II A, pp. 46/82 of TNERC Comprehensive Tariff Order on Solar
Without AD INR/kWh 7.01

 

Site Selection

Step Sub-step DESCRIPTION Authority Reference
Details Activities Important factors to consider
SITE IDENTIFICATION AND PROJECT PRE-FEASIBILITY IDENTIFICATION OF SITE The first step in project design and development is the site identification. In Tamil Nadu, the developer has to identify a suitable land for the project. Currently, no land banks are available, however, The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and Tamil Nadu Industrial Development Corporation (TIDCO) are identifying suitable land banks for industrial development including solar parks. The category of the land has to be checked with the Revenue Department of the State. Further, one of the key factor in identification of a suitable site is to obtain the consent of the present owner of that piece of land, to sell. Suitability of a place includes factors such as suitable irradiation, access to site and availability of evacuation infrastructure.  This step is undertaken in conjunction with other analysis such as solar radiation analysis, infrastructure analysis etc. 1. Identify a suitable piece of land
2. Obtain consent from current owners
3. Check the categorization of the land with the Revenue Department
Tamil Nadu Revenue Department Primary Research
SOLAR INSOLATION AND SHADOW ASSESSMENT  TANGEDCO has provided district wise solar irradiance data for Tamil Nadu at the following link – Link.

It is recommended that for ascertaining accuracy of solar irradiation data, dedicated weather stations are erected at the site for local irradiation measurement and a minimum of 12 to 18 months of data is gathered for observation.
There are currently 3 solar radiation resource assessment stations under the National Institute of Wind Energy (NIWE). They are located at Tiruvallur, Chennai, Vellore, Trichy, Erode, Karaikodi, Ramanathapuram, Kayathar and Puducherry. Read more.

The following has to be checked :        #Global Horizontal Solar Radiation
#Diffused Horizontal Solar Radiation
#Direct Normal Solar Radiation
#Wind Speed/Direction
#Rain Accumulation
#Air Temperature
#Atmospheric Pressure (SLP) and
#Relative Humidity.
Technical advice is suggested for this level. NA Primary Research
POWER EVACUATION FEASIBILITY AND SITE ACCESSIBILITY The developer can ascertain the nearest and most optimal substation for power evacuation by referring to a district wise substation list available at this link. The developer has to then approach TANGEDCO/TANTRANSCO for grid feasibility approval. TANGEDCO/TANTRANSCO Primary Research
PROJECT REGISTRATION The project has to be registered with TANTRANSCO/TANGEDCO upon payment of INR 10,000 as registration fees TANGEDCO/TANTRANSCO Primary Research
BAY ALLOCATION The bay allocation is done based on the power evacuation pre-feasibility study conducted by TANGEDCO/TANTRANSCO NA TANGEDCO/TANTRANSCO Primary Research

Project Development

Step Sub-step DESCRIPTION Authority Reference
Details Activities Important factors to consider
LAND/SITE ACQUISITION LAND ACQUISITION The process of land acquisition involves identifying a piece of revenue land and obtaining a government lease for the same through the following process:
##After identification of land, submit an application to the district collector.
##District collector provides recommendation letter which shall be forwarded to the the Panchayat (talati)  via the additional district collector
##the Panchayat (talati) examines records to ascertain the availability and applicability of the land.
##The Panchayat (talati)  then demarcates land in front of the developer and some villagers.
##Consent from thePanchayat (talati)  is routed through the  additional district collector and the district collector to the state revenue department and revenue minister.
##Revenue minister approves the recommendation for lease of land which is then executed in the form of a lease deed by the District Collector.
If the land is forest land then that is taken on lease from the forest department. Private land is purchased from a private individual or corporation
Signing of land agreement and demarkation of land #Complex procedure of conversion in case of revenue land, application needs to be routed through various state nodal agencies. Need to hire agents and liaison officer to facilitate and understand the process
# Lack of ownership data, land demarcation records, maps and various local claims over the land. Clarity on land classification is also a concern
District Collector; Local Village Body; State Revenue Department Primary Research
LAND CATEGORY CONVERSION PROCEDURE FOR LAND CONVERSION
Tahasildar/Revenue Inspectors will visit the spot and confirm whether proper approach road is available to the land and also verify the Land Tribunal’s Original records and other documents submitted by the applicant. Again the verification will be done at each stage in Deputy Commissioner’s office as per rules. On successful verification, the land conversion application will be approved and the notice will be issued to the party to remit the conversion fees and other fees, if any, to the Government, following which the conversion order will be issued to the party.
District Collector; Local Village Body; State Revenue Department Primary Research
CONNECTIVITY AGREEMENT AND FEES In Tamil Nadu, the developer has to approach TANTRANSCO/TANGEDCO depending upon the interconnection substation voltage levels and file an application for load flow study and bay allocation along with a fees of INR 10,000. The documents to be submitted along with the application include project details and land registration details. The costs of load flow study are INR 2 Lakh plus taxes for solar projects with capacity up to 15 MW and INR 5 Lakhs plus taxes for solar projects with capacity above 15 MW. 50% of security amounts have to be deposited with the application which are as follows:

1. INR 10 Lakhs per MW for project capacity up to 10 MW
2. INR 7.5 Lakhs per MW for project capacity above 10 MW and up to 25 MW
3. INR 4 Lakhs per MW for project capacity above 25 MW

Another 50% of the above mentioned security deposit is to be submitted after completion of load flow study. Upon completion of this, a connectivity approval is given to the developer. 100% of the security deposit is returned to the developer after commissioning of the solar power plant.

#Construction of Transmission Line
#Payment of facilitation charges to TSTRANSCO
TANTRANSCO Primary Research
CLEARANCES AND APPROVALS CONSENT TO ESTABLISH Consent to Establish is required to be taken before starting construction work for the solar plant. Tamil Nadu offers a single window clearance mechanism and this clearance can be facilitated through TEDA. Else, the Tamil Nadu Pollution Control Board has an online portal which can be employed to register for and obtain Consent to Establish -http://tnocmms.nic.in/OCMMS/ TNPCB Primary Research
CEIG DRAWING CLEARANCES Drawing approvals need to be taken with the details of the drawing and accompanying enclosures mentioned as follows:

1) Topographical map showing location of the power plant/unit.

2) Single line schematic of entire project

3) Sectional plan and elevations

4) Earthing scheme

Documents required to be submitted along with the drawing are,

1) Govt. order for having obtained permission for setting up of power plant.

2) Power purchase agreement copy.

3) Scheme of grid synchronization.

4) Power Evacuation infrastructure details including sending and receiving end equipment’s.

Tamil Nadu Electrical Inspectorate Indian Electricity Rules 1956  (Section 47 a):

Support Schemes

Incentive Details Activities
important factors to be considered
Authority Name Regulatory/Policy Reference
TAX EXEMPTIONS – Tax or similar exemptions available to developers 100% VAT/Entry Tax exemption on equipments purchased for solar power plant for 5 years from CoD provided power is supplied to state utilities Tamil Nadu Revenue Department Section 5.2.2.3, pp. 13 of 42 of Tamil Nadu Industrial Policy 2014
Open Access will be granted for the tenure of the project. In case of no response from Nodal Agency in response to application within 21 days, deemed Open Access will be granted. Concessionary rate of 30% of normative Open Access Charges TANTRANSCO, TANGEDCO Section 12.1, pp. 35/82 of TNERC Comprehensive Tariff Order on Solar
100% exemption on electricity generated from solar power plants used for self consumption or sale to utility for 5 years. Tamil Nadu Electrical Inspector Section 22.3 , pp. 19/21 of Tamil Nadu Solar Energy Policy 2012