Introduction
The Tamil Nadu Electricity Regulatory Commission (TNERC) recently issued an order increasing the surcharge for open access consumers to 0.54/kWh, effective from December 12, 2024, until March 31, 2025. This surcharge applies to businesses and individuals who purchase electricity directly from independent power producers, including those utilizing solar energy systems.
Background:
The Tamil Nadu Power Distribution Corporation (TNPDCL) had filed a petition seeking a higher surcharge to address the issue of “stranded power” – electricity generated but not consumed due to decreased demand from open access consumers, including those utilizing solar energy systems.
TNERC’s Decision:
After careful consideration, TNERC approved an additional surcharge of 0.54/kWh. This decision follows an earlier surcharge of 0.34/kWh from April 1, 2024, to August 7, 2024, and 0.29/kWh from August 8, 2024, to September 30, 2024. Notably, no surcharge was applicable from April 1, 2023, to September 30, 2023.
Key Factors Considered by TNERC:
- Stranded Power: The primary factor considered by TNERC was the issue of “stranded power” – electricity generated but not consumed due to decreased demand from open access consumers, including those utilizing solar energy systems.
- Fixed Costs: TNPDCL presented data on fixed costs incurred due to stranded power purchase commitments, including those from the Tamil Nadu Power Generation Corporation and the Tamil Nadu Green Energy Corporation.
- Stakeholder Feedback: TNERC carefully considered feedback from stakeholders, including renewable energy producers and consumers, during the regulatory process.
Impact on Renewable Energy Growth:
This surcharge increase may have implications for the growth of the renewable energy sector in Tamil Nadu, particularly for businesses and individuals utilizing solar energy systems through open access arrangements. Increased surcharges can potentially increase the cost of solar energy for businesses and homeowners, potentially impacting the return on investment and hindering further adoption.
How Novergy Can Help:
Navigating the complexities of open access regulations and surcharges can be challenging.
Novergy can help you:
- Understand the impact of the surcharge increase on your specific situation.
- Explore alternative options to minimize the impact of the surcharge.
- Optimize your solar energy system to maximize cost savings.
- Stay informed about the latest changes in open access regulations and surcharges.
- Assess the financial viability of your solar energy project in light of the increased surcharge.
By partnering with Novergy, you can seamlessly transition to clean energy, and experience the numerous benefits of solar power.
Contact us today!
solar@novergy.net / +91-9116968967