CHENNAI: TANGEDCO has signed a Memorandum of Understanding (MoU) with the Indian Renewable Energy Development Agency (IREDA), a Government of India enterprise, for its advisory services in the renewable energy sector. The pact was inked in presence of Chief Minister MK Stalin on Monday.
As per the agreement, IREDA will provide necessary advisory assistance to TANGEDCO for five years, said a statement from TANGEDCO. High power purchase costs account for almost half of the company’s annual expenditure. The move aims to bring this down and to become self-sufficient, by focussing more on solar power plants. Half of TANGEDCO’s thermal plants are over 25 years old and need to be replaced. In such a situation, it needs to augment its own generation capacity to 25,000 MW in the next 10 years, the statement added. The MoU can be extended after five years upon mutual consent.