Green Energy Corporation seeks licence for power trade within Tamil Nadu
CHENNAI: The Tamil Nadu Green Energy Corporation Limited (TNGECL) has applied for a trading licence for intra-state trading of electricity under ‘G’ category from the Tamil Nadu Electricity Regulatory Commission (TNERC) to be able to act as an intermediary between renewable power developers and the state’s electricity distribution company, TNPDCL (erstwhile Tangedco). The licence will allow TNGECL to sell over 500 million renewable energy units every year.
Until now, TNPDCL has been purchasing power by signing agreements directly with private companies or central sector units. With the new licence, TNGECL will act as an intermediary, procuring green power from renewable power developers from within the state and sell it to the discom on a commission basis called Trade Margin.
For instance, the state-owned discom currently buys solar power from the Union government’s Solar Energy Corporation of India (SECI) at the agreed tariff along with an additional trading margin of 7 paise per unit. If the licence is granted, TNGECL intends to sell green power at a fixed tariff with a lower trading margin of up to 5 paise per unit, officials told TNIE.
According to TNGECL’s application to the regulator accessed by TNIE, the company’s board gave the green signal for entering into the power trading business during its sixth meeting on March 5 this year.
Speaking to TNIE, TNGECL Director (Finance) B Rajeswari said, “TNERC has directed the TNGECL to publish and seek public/stakeholder comments on the application for an intra-state trading licence under category ‘G’. The next TNERC hearing is on May 29. Before that, the affidavit should have to be filed containing comments and replies. If there are no objections, the commission may pass an order after hearing all sides.”
She added that with the development, TNGECL aims to ensure faster payments to renewable power developers which will reduce the burden of payment delays for discom and lower the chances of payment defaults. “We expect the traded units to grow at a compound annual growth rate (CAGR) of 18.92%,” Rajeswari said.
