Fine looms, TN rushes to shore up renewable power

TAMIL NADU has stepped up its efforts to sew up deals to meet the 2024-25 target of 29.91% of power to be derived from renewable energy sources.

- S GURUVANMIKANATHAN

The state power utility, however, may find it difficult to meet the target set by the union power ministry.

Failure to achieve this renewable purchase obligation (RPO) may cost state power utilities dearly as the ministry has fixed penalties. A senior official of Tamil Nadu Generation and Distribution Corporation (Tangedco) told TNIE that the utility faces a fine of 3.72 for every unit of shortfall if it fails to meet the target by the end of this fiscal (March 31 of 2025).

"The penalty clause has been introduced for the first time," sources said.

The RPO mandates all electricity distribution licensees to produce or procure a minimum quantity of their energy requirement from renewable sources.