TN powers on with small hydel projects, hunts for firms to develop 100 kW to 10 MW
As per the EOI document, developers are encouraged to identify suitable locations and propose projects with capacities ranging from 100 kW to 10 MW (with a unit size of 5 MW each).
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CHENNAI: In a move to boost renewable energy generation, the Tamil Nadu Green Energy Corporation Ltd has invited Expressions of Interest (EOI) for the selection of developers to establish Small Hydel Projects (SHPs) across the state to harness the untapped hydroelectric potential in canal systems, rivers, and streams.
As per the EOI document, developers are encouraged to identify suitable locations and propose projects with capacities ranging from 100 kW to 10 MW (with a unit size of 5 MW each). These projects are expected to provide a reliable and sustainable energy source while minimising environmental impact.
The TNGECL, the state-designated nodal agency, is spearheading the project for the TNPDCL. The small hydro projects would be set up as per the state government notified policy for Small Hydel Projects 2024 in August last year.
Developers are required to pay an annual fee of Rs 25,000 per MW of installed capacity and provide 10 pc of the power generated to the state government free of cost. The remaining power can be used for captive consumption, third-party sales within the state, or sold to distribution companies to meet Renewable Purchase Obligations.
According to the small hydel policy, electricity generated and consumed for self-consumption or sale to third parties within the state will be exempt from paying electricity duty per the provisions of the Tamil Nadu Electricity Duty Act, 1958, and its amendments from time to time. Projects commissioned during the operative period (starting August 22, 2024) will enjoy these benefits for 40 years, extendable by an additional 10 years.
Developers of the small hydel projects are prohibited from impounding water and must release it back into the same stream after power generation, ensuring minimal disruption to natural watercourses. They must pay water charges to the Water Resources Department and comply with all statutory clearances from central and state governments.
In cases where DISCOMs purchase power at feed-in-tariff rates, Clean Development Mechanism (CDM) benefits will be shared between the power producer and procurer, starting with 100 pc to the producer in the first year and gradually equalising to a 50:50 split.
