Rays Power signs pact with Tangedco to sell solar power at Rs 3.47 per unit

Rays Power Infra, a solar energy company started by professors and students of the Indian Institute of Technology (IIT) Roorkee, has signed a power-purchase agreement (PPA) with Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco) to sell 100 Mw of solar power at Rs 3.47 per unit.

This is part of the 15,000-Mw, Rs 11,369-crore inter-state power corridor in Tamil Nadu promoted by the Centre and expected to be ready by May 2019. The project will be connected to a 400 kV substation to ensure there are no grid outages.

Rays Power Infra Chief Executive Officer Ketan Mehta said Tamil Nadu is an increasingly important market for the company, especially given the level of interest and support for renewable energy projects in the region.

The Tamil Nadu government has decided to procure 1,500 Mw of solar power from 16 companies that have invested around Rs 9,000 crore in the state. The price fixed is Rs 3.47 per unit, far below the price in February this year.

Industry sources say the rate of Rs 3.47 is well above the lowest solar bid in the country so far – of Rs 2.44 per unit, made at an auction at the Bhadla Solar Park in Rajasthan in May. They also note that it is a substantial drop from the winning bid of Rs 4.40 per unit in the state when compared with February.

Tamil Nadu has 1,786.48 Mw of solar power capacity generating 800-1,200 Mw.

Chief Minister Edapaddi K Palaniswami on Monday said Tamil Nadu ranked at the top in the nation in the renewable energy space. He said the total installed solar power generation capacity in the state was 1,786.48 Mw, of which 78.44 Mw was roof-top solar power. Up to 1,200 Mw of solar power was generated in the state, he added.

Tamil Nadu has set a target of generating 5,000 Mw by 2021. This includes the 1,500 Mw solar power for which MoUs have been signed.