October 23, 2012 1:19 PM

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Tamil Nadu solar energy policy unveiled

The Tamil Nadu Chief Minister Ms.J.Jayalalithaa has unveiled Tamil Nadu solar energy policy. The policy envisages energy security establishing 3000 MW of solar power generation.The proposed addition to generation capacity will be over the next three years with 1000 MW being added each year.The Policy offers incentives and mandates exploitation of solar energy in industrial, commercial and residential buildings.According to the policy the State Government will mandate 6 percent solar purchase obligation from January 2014, initially till December next year it will be 3 percent. The power consumers including SEZs, industries guaranteed uninterrupted power, IT parks, telecom towers, colleges and residential schools and buildings of more than 20,000 sq m will have to meet the mandated power requirement from solar power.They can meet the obligation through captive generation, purchase from third parties, through renewable energy certificates or buying power from the power utility at solar tariff.The policy also provides for generation based incentives for domestic solar power production through roof top installations. The target will be to set up 50 MW of generation through the scheme.Utility scale solar power parks of 1-10 MW each will be encouraged to bring in over 1,500 MW of solar power generation capacity. Developers will be selected through the competitive and reverse bidding routes. Preference will be given for investors in solar power equipment production; they will also be given preference for land allocation in industrial estates and will be provided tax incentives Net metering will also be introduced in residences and commercial establishments to offset the solar power generated from the electricity consumption that is billed. The policy also provides for a range of tax incentives in line with the industrial policy.

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