HT Consumer through SPO (Solar Purchase Obligation) Tamil Nadu has introduced a new SPO mechanism. Under this, certain power consumers have to purchase a set quota of solar power. The SPO has been fixed at 3% till December 31st 2013 and 6% from January 1st 2014 onwards. The obligated entities to which the SPO applies are different from those specified by the national Renewable Purchase Obligation (RPO). SPO obligated entities include HT consumers, who receive power from the grid at a constantly maintained high voltage level, of more than 11kV, transmitted though high tension lines. These include special economic zones (SEZs), railway traction, registered factories7, textile factories, tea estates, government educational institutions, government hospitals, places of worship, consumers paying commercial electricity tariffs, cinemas and theaters, lift irrigation8 cooperative societies, industries guaranteed with 24/7 power supply, IT parks, telecom towers, all colleges and residential schools and all buildings with a built up space of 20,000 square meters or above. To fulfill their SPOs, obligated entities can produce their own solar power, purchase power from a solar plant, purchase RECs on any of the national power exchanges or purchase power from TANGEDCO at the prevalent solar tariff. The solar projects set up under the SPO mechanism will not receive financial assistance from the government in the form of FiTs, Generation Based Incentives (GBI), Viability Gap Funding (VGF), or capital subsidies. However, there is a possibility that these projects will be allowed to get RECs as SPO requirements are supposedly not conflicting with the RPO mechanism. If allowed, this can have a significant upside to such projects. More clarity is needed on the subject. Also, accelerated depreciation (AD) benefits will apply
Posted on: Mon, 22 Dec 2014 17:23:19 +0000
Trending Topics
Recently Viewed Topics
© 2015