With an aim to create a transparent framework to determine renewable energy projects tariffs in the state, the Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a draft notification for Non-Conventional Energy Generation Sources Regulations, 2026.
TNERC has invited comments and suggestions from stakeholders and the public. The submissions will be accepted until June 16 for the proposed regulations released on June 1. The regulations will be effective after the Tamil Nadu Government Gazette is published. It will remain applicable during a five-year control period from April 1, 2027 to March 31, 2032.
The framework will be applicable to all new grid-connected renewable energy projects commissioned during this period. It will include technologies such as solar power, onshore wind energy, small hydro projects, biomass-based generation, biogas plants, and municipal solid waste-based power projects.
As per the draft, competitive bidding will normally be used for renewable energy procurement. However, the commission may determine tariffs through a cost-plus mechanism in cases where bidding is not feasible or market conditions are unsuitable. This provision is likely to be relevant for projects such as bagasse-based cogeneration units linked to sugar mills.
