Tamil Nadu Launches 420 MW Solar Project Tender Under PM -KUSUM to Boost Farmer Profits

Tamil Nadu has announced a tender for a whopping 420 MW of solar power projects under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program. This ambitious initiative holds immense potential to empower farmers, promote sustainable energy practices, and contribute to the state's clean energy goals.

The tender, floated by the Tamil Nadu Generation and Distribution Corporation (TANGEDCO), opens up exciting opportunities for a diverse range of participants. Individual farmers, groups of farmers, cooperatives, panchayats, farmer producer organizations, and even water user associations can now establish solar power projects with capacities ranging from 1 MW to 2 MW on their land, becoming active contributors to clean energy generation.

Furthermore, recognizing the need for expertise and support, the tender also welcomes participation from renewable project developers. These developers can partner with farmers or groups, known as Renewable Power Generators (RPGs), to set up and manage the projects on their behalf. This also enables a collaborative approach, enabling farmers to opt for the benefits of solar power without requiring extensive technical knowledge or resources.

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To participate in the bidding process, interested parties must provide a non-refundable processing fee of ₹5,000 (~$60.25)/MW plus applicable GST @18% for the applied capacity. Additionally, an earnest money deposit of ₹100,000 (~$1,205)/MW is required. Independent developers representing farmers or groups must submit a scanned copy of the registered lease document for the project land and a net worth certificate. The net worth should be equal to or exceed ₹10 million (~$120,538)/MW of the proposed project capacity, with the original certificate due by the specified date.

The generated solar power will be procured by TANGEDCO through long-term Power Purchase Agreements (PPAs) with a duration of 25 years. This will not only offer farmers and developers a stable source of income but also ensure a reliable and sustainable source of energy for the state's grid.

To participate in the tender, interested parties must submit their bids by February 26th, 2024. The process is designed to be transparent and accessible, with clear eligibility criteria and documentation requirements outlined. Notably, land availability is crucial, with an approximate requirement of 3.704 acres per MW of project capacity.

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The government is also taking proactive steps to ensure fair competition and prevent potential misuse. For instance, restrictions are placed on the number of projects an RPG can apply for, and safeguards are in place to eliminate duplicate bids. Additionally, independent developers must demonstrate sufficient financial capability through a net worth certificate.

Bidding is open not only to individual farmers and groups but also to companies, limited liability partnership firms, partnership firms, sole proprietors, and consortiums. This tender announcement follows a recent encouraging advancement in the renewable energy sector of Tamil Nadu. The Tamil Nadu Cements Corporation recently invited bids for a detailed project report to install a 20 MW solar power plant at its Alangulam Cement Works.

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