New capacity could provide relief from power shortage in TN soon

Over 3,000 MW of power generation capacity will be added in Tamil Nadu over the next six months, which would alleviate the power shortage in the State, according to K. Venugopal, Member, Tamil Nadu Electricity Regulatory Commission.

Power consumption in the State has been increasing by about 9 per cent annually but additions to power generation capacity have not matched the growth in demand. Of the 58 billion units of electricity supplied annually, over 11-12 billion units is being supplied to high tension, primarily industrial consumers. But over the last four years, restriction and control measures have been adopted to tide over the electricity shortage. This has hit all segments of consumers.

The Regulatory Commission has said that for every 400 MW of additional power generation capacity, there should be a 10 per cent reduction in restrictions in supply. With the proposed additions, the restriction and control measures may be expected to be lifted in stages, he said.

Addressing an awareness programme on ‘Renewable Energy Purchase Obligation & Renewable Energy Certificate’ organised by the Confederation of Indian Industry (CII), he said, the additions in power generation capacity would come from North Chennai, Vallur and Mettur power projects.

With nearly 7,000 MW of wind generation capacity, Tamil Nadu is setting up dedicated transmission lines from Tirunelvelli to Kayataru and to Dharmapuri and Hosur connecting various parts of the State. These projects would be the backbone of the State in harnessing renewable energy, said Mr Venugopal.

Wind energy contributed to over 4,000 MW of the 11,250 MW generated in July. Renewable Energy Certificates (REC), a market-based mechanism will support investors and enable utilities meet renewable purchase obligations – meeting the prescribed portion of their power needs from renewable sources.

Rajesh Vaidyula, Head, REConnect Energy Solution, said regulatory provisions needed to be strengthened to fully implement the Renewable Energy Certificates. The financial condition of State electricity utilities prevented them from purchasing these certificates to meet their obligations. With nearly 4,000 MW of renewable energy projects registered under this programme, about six lakh certificates were being generated every month. But there is a demand for just about three lakh RECs.

Regulatory provisions need to be strengthened to encourage the renewable energy sector as the RECs were the only available incentives with other support such as accelerated depreciation being phased out.

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