Tamil Nadu Green Energy Corporation has instructed supervisory engineers in the non-conventional power wing not to grant approvals or sign documents related to connecting wind and solar power plants to substations.
Tamil Nadu is considered favourable for renewable energy projects, and private firms have been setting up wind and solar plants. Typically, developers select a site and apply to the power utility’s green energy wing to assess feasibility for linking the project to a nearby substation.
After a plant is built, officials from the Chief Electrical Inspectorate verify electrical works and issue clearance. The final step is approval from the power utility to connect the generation facility to the substation and begin supplying power.
Investors said the latest instruction has severely affected projects that have already been set up with significant capital outlay. They claimed that, on average, a 1 MW solar project costs about Rs 4 crore and a 1 MW wind project about Rs 7 crore, and alleged that Rs 25 lakh per MW was paid at the application stage to secure approvals.
They also pointed out that the order comes when solar irradiation is high and the wind season is beginning. According to them, approvals are pending to connect 736.50 MW of solar capacity across 226 companies and 400 MW of wind capacity across four companies, raising concerns about the impact on future investments.
