The state power distribution company Tamil Nadu Generation & Distribution Corporation Ltd (TANGEDCO) has signed a memorandum of understanding with Indian Renewable Energy Development Agency Ltd. (IREDA), a financing arm of Ministry of New and Renewable Energy for funding renewable and energy efficiency projects, for advisory services and providing its technical expertise to former in developing renewable energy projects and fund raising.
The MoU was signed by Pradip Kumar Das, Chairman & Managing Director (CMD), IREDA and Rajesh Lakhoni, CMD, TANGEDCO in the presence of MK Stalin, Chief Minister of Tamil Nadu, V Senthil Balaji, Minister for Electricity, Prohibition and Excise and other officials on Monday.
Under the MoU, IREDA will extend its technical expertise to TANGEDCO for renewable energy project development, bid process management, and implementation support. IREDA will also assist TANGEDCO in debt raising through developing financial models, assistance in the understanding market instrument, underwriting services for the proposed debt requirement, and conducting pre-market surveys, road shows to generate interest amongst prospective investors, according to a statement.
Tamil Nadu plans to add 25,000 MW of new capacity in the next 10 years to bring down power purchase cost and achieve self-sufficiency in meeting energy needs of the State.
Of the total capacity, TANGEDCO is planning for 20,000 MW of solar power projects, with adequate battery storage, 3,000 MW of pumped storage hydroelectric projects, and 2,000 MW of gas-based power plants for efficient renewable integration. The loan required for the above projects is estimated at about ₹1,32,500 crore.
“This is a transformational opportunity for IREDA and TANGEDCO to achieve perfect synergy between the two organisations. It will facilitate knowledge sharing and provide consultancy services, which will contribute to driving sustainable development of the country,” said Pradip Kumar Das, CMD of IREDA.