A petition filed by Tamil Nadu Green Energy Corporation Ltd (TNGECL) to restrict the use of solar power during night hours, if approved, could discourage future investments in solar power projects in the state, according to industry representatives. While limiting solar power usage at night may deter investors from pursuing new projects, industry experts have also contested TNGECL’s claims of financial losses, attributing the losses to other causes.

TNGECL submitted its petition to the Tamil Nadu Electricity Regulatory Commission (TNERC), citing financial strain and requesting changes to energy slot timings and the provision to allow solar energy generation to be adjusted against consumption during peak hours.

In its petition, TNGECL said currently, evening peak demand extends up to midnight due to increased use of air-conditioners, changing lifestyles and changing work patterns among IT professionals. The power purchase cost between 10 p.m. and midnight remains consistent. A previous TNERC order dated October 10, 2020, allowed solar energy generation to be adjusted during the night hours, from 10 p.m. to 5 a.m. TNGECL claims that this provision is causing financial losses, and a change in energy slot timings and solar energy adjustment rules is necessary.

However, K Venkatachalam, Advisor to the Tamil Nadu Spinning Mills’ Association, rejected this reasoning, stating, “Allowing solar power adjustment at night does not cause losses, as the ‘Peak Hour Charges’ collected from industrial consumers, based on the Commission’s Tariff Orders, covers any shortfall.”

He explained that the real reason behind TANGEDCO’s losses stems from unmetered power supplied to millions of users in violation of Section 55 of the Electricity Act 2003. The absence of metered power supply has prevented TANGEDCO from accurately tracking the amount of “free power” supplied, hindering its ability to collect the appropriate subsidies from the state government.

An industry representative argued that as a newly established company focused on promoting green energy, TNGECL lacks the legal authority to seek these changes. They view its effort to revise slot timings as an attempt to rewrite the tariff order to , prioritise its own interests over those of industrial consumers.

Such a move is legally invalid unless TNERC amends or issues an errata to the Tariff Order passed on 09.09.2022, which has been upheld by subsequent tariff orders dated 30.06.2023 and 15.07.2024. Without these legal steps, any attempt to revise key concepts such as morning peak hours, evening peak hours, normal hours, and night hours would be a significant overreach and misuse of authority, Venkatachalam said.

With the state’s vast untapped potential in solar and wind energy, restricting the use of solar power at night would further discourage investment in renewable energy projects, he added. At a time when global efforts are focussed on promoting clean energy, the petition is seen as a regressive step, creating obstacles to green energy development. Ironically, TNGECL’s actions contradict the very mission of its incorporation — to promote clean energy, he added.

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