Small looms, Tamil Nadu rushes to boost renewable energy

CHENNAI: Tamil Nadu has stepped up efforts to strike deals to achieve its 2024-25 target of 29.91% renewable energy. However, the state-owned power utility may struggle to meet the target set by the union power ministry.

Failure to meet this renewable power purchase obligation (RPO) could cost state-owned power utilities dearly as the ministry has set penalties. A senior official of the Tamil Nadu Generation and Distribution Corporation (Tangedco) told TNIE that the utility faces a fine of Rs 3.72 crore for every unit of shortfall if it fails to meet the target by the end of the current fiscal year (March 31, 2025). “The penalty clause has been introduced for the first time,” sources said.

The RPO imposes on all holders of electricity distribution licenses the obligation to generate or obtain a minimum amount of energy to cover their demand from renewable sources.

To avoid the penalty clause, efforts are being made to procure additional solar power in the state. Tangedco has signed an agreement with Solar Energy Corporation of India to purchase 1,000 MW and is expected to sign another agreement to purchase an additional 1,500 MW.

“We also have 3,750 MW of renewable energy projects in various stages of implementation. This includes 3,100 MW of solar, 350 MW of wind and 300 MW of rooftop solar,” the official said.

However, officials believe it may not be possible to achieve the target of 29.91%.

“In 2023-24, the state consumed 1,28,213 million units (MU) of power and Tangedco procured around 24,000 MU of green power. In the current financial year, Tangedco needs to procure around 39,000 MU of green power. It is not possible to achieve this target,” a senior official said.

TN, known for wind power, has an installed capacity of 10,592 MW of wind. It has produced 13,500 million units in 2023-24, well below potential as most of its wind turbines are over 20 years old.

“We need to increase solar energy by 5-6% in 2024.

As of March 2024, the state also had solar power plants with an installed capacity of 8,146 MW. During 2023-2024, the state harnessed 11,033 million units of solar energy.

“We need to increase solar power by at least 5-6% this year. Therefore, we need to buy or produce additional solar power,” the official said. “As part of the Paris Agreement, the centre has committed to reducing carbon dioxide emissions and increasing the share of non-fossil energy sources to 40% of installed electricity capacity by 2030.

To achieve this goal, all power distribution companies across the country have been directed to promote green energy sources,” another official said.