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Tamil Nadu Solar Tender – Main Points about the Gigwatt solar capacity up for grabs

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The Indian state of Tamil Nadu recently released a solar energy policy which aims to rapidly add solar energy capacity in the state by making it mandatory for industrial and other users to buy up to 6% of their energy requirements from solar energy by 2016. This solar power obligation (SPO) has led to a huge interest by solar developers looking to sell solar power in the state. Even companies with operations in TN like Renault are thinking of investing in commercial rooftop solar systems to meet the SPO. The Government has moved rapidly now to give a tender for 1000 MW of solar power capacity from bidders.

TN intends to add 1000 MW of solar energy capacity each in the next 3 years with the broad breakup amongst utility, rooftop and REC segments given below.

Also read about the problems with TN Solar Energy Policy.

Mechanism to generate 3000 MW by 2015

The 3000 MW of Solar Power will be achieved through Utility Scale Projects, Rooftops and under REC mechanism as follows:

Utility Scale (MW) Solar Roof Tops (MW) REC (MW) Total (MW)
(a) (b) (c) a + b +c
2013 750 100 150 1000
2014 550 125 325 1000
2015 125 125 675 1000
Total 1500 350 1150  3000

In utility scale out of 1500 MW, 1000 MW will be funded through SPO and balance 500 MW through Generation Based Incentive (GBI) provided by the Government.

The main highlights for this gigawatt solar tender are:

1) Capacity should be more than 1 MW

2) Selection will be done based on the price

3) Payments to developers will be secured by an “unconditional, revolving and irrevocable letter of credit” mechanism

4) Power purchase agreement must be signed within 120 days and commissioning of projects should be done within 360 days.

5) Performance guarantee of Rs 30 lakh per MW.

The recent anti dumping investigation launched against imports of solar panels has thrown the calculations of solar developers in disarray because if duties are imposed it will substantially increase the cost of the solar systems and consequently the price of the solar power. There is also no mention in the tender about how allocation will be done in case there are bids for more than 1000 MW.

Read more about Solar Panels in India.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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