Wednesday, December 31, 2025

Lack of efforts to implement new power projects may affect TN’s energy security

 State likely to witness energy deficit for 10 years till FY2034-35: Central Electricity Authority

Tamil Nadu is likely to witness energy deficit throughout 2024-25 to 2034-35, as per report on Resource Adequacy Plan for the State released by Central Electricity Authority, under Union Ministry of Power.

The report takes into account the existing, planned capacity, including the capacity required to meet Renewable Purchase Obligations (RPO). As per the study, the total unserved energy in the year 2034-35 is likely to be around 45,587 million unit, which is primarily observed in the February and March.

As per the Resource Adequacy Guidelines by the Union Ministry of Power, each State power distribution utility shall undertake a Resource Adequacy Plan for a 10-year horizon to meet their own peak and electrical energy requirement. The plan shall be vetted/validated by Central Electricity Authority.

Resource adequacy is generally defined as a mechanism to ensure that there is an adequate supply of generation resources to serve expected demand reliably at the least cost. A key aspect of resource adequacy planning is to ensure that adequate generation capacities are available round-the-clock to reliably serve demand under various scenarios, the study said.

In the fiscal year 2023-24, Tamil Nadu’s peak power demand of 19,045 MW was met without any gap, while energy required was 1,26,163 million units (MU), against energy supplied of 1,26,151 MU. As of March 2024, the total contracted capacity for Tamil Nadu is 36,593 MW. Out of the total contracted capacity (CC), the share of non-fossil fuel-based CC is 61%, as per the study.

Tamil Nadu recorded an all time high peak power demand of 20,830 MW on May 2, 2024 and the record high daily consumption of 454.320 million units on April 30, 2024. The State is expected to surpass this record in 2025 summer period.

As per the study, an analysis of hourly demand pattern of 2023-24 showed that the peak demand for Tamil Nadu occurs in the months of March and April. Demand Pattern of Tamil Nadu indicates that the State has a higher Day peak in comparison to its Night Peak, with the daily peak mostly occurring during the 11:00 Hrs to 15:00 Hrs, it said.

The demand estimation made by the 20th Electric Power Survey was found to be lower than the projection made by the State. Therefore, the study has been carried out using the projections received from Tamil Nadu. Tamil Nadu has projected its peak demand to reach 35,507 MW and energy requirement to touch 2,49,580 MU respectively by 2034-2035. The study was carried out considering existing capacity and planned capacity only while meeting the annual renewable energy purchase obligations.

As per the Resource Adequacy studies, the total projected contracted Capacity for the year 2034-35 is 98,140 MW. This consists of 22,497 MW from Coal, 408 MW from Gas, 2,828 MW from Nuclear, 966 MW from Biomass, 1884 MW from Hydro, 31,796 MW from Solar, 24015 MW from Wind and 13,744 MW from distributed renewable energy.

To meet the projected demand reliably, an additional 7,000 MW from Coal, 5,500 MW from Solar, 5,500 MW from Wind and 11,680 MW from Storage may be required with a planning reserve margin of 19%, the study said. Further, it suggested year-wise short-term/medium-term/bilateral requirements to meet the demand optimally. The share of non-fossil fuel-based capacity in the generation mix is projected to increase to around 77% by 2034-35 from 64% in 2024-25.

Lack of efforts to implement new power projects may affect TN’s energy security

https://www.newindianexpress.com/states/tamil-nadu/2023/May/03/lack-of-efforts-to-implement-new-powerprojects-may-affect-tns-energy-security-2571832.html   However, the lack of serious efforts to implement new power generation projects in the state is raising curious eyebrows.
Power station at Ambattur Industrial Estate in Chennai | FILE PICTURE
Power station at Ambattur Industrial Estate in Chennai | FILE PICTURE
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3 min read

HENNAI: When the electricity demand in Tamil Nadu broke a new record on April 20 with a whopping requirement of 19,387 mega-watt, there was unease in the air. But surprisingly, there was absolutely no glitch. The power supply did not falter like in previous years, and there was no usual power cut in rural areas. The state-run Tangedco managed the show astutely.

However, the lack of serious efforts to implement new power generation projects in the state is raising curious eyebrows. Many fear it could affect energy security in the coming years as the state aims to grow faster.

The last major power generation project commissioned was in 2014 - the North Chennai stage-II thermal power plant. And two other projects have been under construction for over a decade now. These are the thermal power plants at Uppoor in Ramanathapuram and Udangudi in Thoothukudi.

S Nagalsamy, a former member of the Tamil Nadu Electricity Regulatory Commission, points out that the delay of a decade is not acceptable. “The main reason is the delay in announcing the tenders. Tangedco is also quoting a very high cost for constructions,” he said, adding that the public utility should focus on contract management and cost reduction.

According to Tangedco, the power demand is expected to reach 24,000 MW in the next ten years. If the power generation is not increased by launching new power projects, the state may not be able to meet its demand.

“The state is currently generating only 30% of its power and the rest is being procured from private sources. This is leading to a huge loss,” said E Natarajan, state general secretary of BMS union (engineers’ wing) of Tangedco.

Electricity minister V Senthil Balaji is however optimistic. “We had planned to commission the North Chennai thermal power plant stage-III with a capacity of 800 MW in December 2022. Due to some technical error, including the water-cooling unit issue, we postponed it. Nearly 95% of the work is over. Within a couple of months, the power plant is likely to be commissioned commercially.” 

He put the blame squarely on the previous AIADMK government for not initiating any power projects for the last 10 years since 2011. According to him, the DMK government has planned to set up solar parks with a combined capacity of 6,000 MW. In the first phase, a total of 4,000 acres of poramboke land in six districts have been identified and the detailed project report completed. “We are waiting for the Tangedco board’s approval. The first solar park would be set up in Tiruvarur district,” said the minister.

The minister assured that a total of 6,220 MW of power would be added to the grid in the next four years. A senior Tangedco official told TNIE that the union government is not providing any financial support for new power generation projects. The delay in setting up new projects primarily stems from the fact that the loss-making Tangedco is compelled to spend the entire money from its own pocket.

Tangedco needs to enhance renewable energy purchase

As per the Ministry of New and Renewable Energy guidelines, the revised Renewable Purchase Obligation (RPO) through various renewable energy sources is 43.33%, which should be achieved by 2029-30. As of now, Tangedco’s RPO stands at 22%. Minister V Senthil Balaji said they would get more green energy sources than the target. RPO is the obligation to purchase the minimum level of renewable energy out of the total consumption.

The last major power generation project commissioned in the state was in 2014 - the North Chennai stage-II thermal power plant - while two other thermal power plants at Uppoor in Ramanathapuram and Udangudi in Thoothukudi districts have been under construction for over a decade now

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