tn power scenario
TRANSCRIPT
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Power Scenario in Tamil Nadu: A Comparative Analysis
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©2011 Athena Infonomics India Pvt.Ltd.
Power Sector in Tamil Nadu:
A Comparative Analysis
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Power Scenario in Tamil Nadu: A Comparative Analysis
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©2011 Athena Infonomics India Pvt.Ltd.
CONTENTS
CHAPTER I – INTRODUCTION 3
CHAPTER II - POWER SECTOR CHARACTERISTICS –
STATE WISE COMPARISON 5
2.1 - REQUIREMENT VERSUS AVAILABILITY OF POWER 5
2.2 - SOURCES OF POWER SUPPLY 7
2.3 - TRANSMISSION AND DISTRIBUTION 11
2.4 - TARIFF REGIMES 15
CHAPTER III – TAMIL NADU POWER OUTLOOK 2015-16 19
3.1 - DEMAND FOR POWER 19
3.2 - SUPPLY OF POWER 21
3.3 - DEMAND SUPPLY GAP 24
CHAPTER III - CONCLUSION 25
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Power Scenario in Tamil Nadu: A Comparative Analysis
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FIGURES AND TABLES
Fig 2.1 - Requirement vs. Availability of Power (2003-04) 5
Fig 2.2 - Estimated Requirement vs. Availability of Power (2010-11) 6
Fig 2.3 - Power Deficits in Tamil Nadu (2003-03 to 2010-11) 7
Fig 2.4 - Source of Power 8
Fig 2.5 –Growth in Installed Capacity (2007-08 to 2010-11) 9
Fig 2.6 - Sector Wise Installed Capacity in Tamil Nadu - 2007-08 vs 2010-11 10
Fig 2.7 - T&D Network Length vs. Density 11
Fig 2.8 - T&D Losses -2009-10 11
Fig 2.9 - AT&C Losses- 2007-08 12
Fig 2.10 - T&D Losses of SEBs 13
Fig 2.11 - Cost vs. Revenue 17
Fig 2.12 - Consumption and Expected Revenue 17
Fig 2.13 - Per Unit Cost vs. Revenue (Sector-wise) 18
Fig 3.1 – Power Consumption in Tamil Nadu 19
Fig 3.2 – Sector-Wise Projected Energy Demand 20
Fig 3.3 – Sector-Wise Power Consumption 21
Fig 3.4 – Power Plants to be Commissioned by 2015-16 22
Fig 3.5 – Availability of Power through Capacity Additions 22
Fig 3.6 – Sources of Supply 23
Fig 3.7 – Demand Supply Scenario 24
Table 2.1 - Installed Capacity in MW (2007-08 and 2010-11) 9
Table 2.2 - Estimated Average Rate of Electricity as on 31st March 2009 15
Table 4.1 - Capacity Additions by the end of the 12th Plan 25
Table 4.2 - T&D and AT&C Losses – Targets Fixed by TNERC 26
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Power Scenario in Tamil Nadu: A Comparative Analysis
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Chapter I
Introduction
Availability of power is one of the biggest inputs necessary for the sustained growth of any
economy. This becomes even more important for a state like Tamil Nadu, which is one of the
most industrialized and urbanized states in India.
Over the last few years, Tamil Nadu has been facing massive power deficits. According to the
CEA, the state was expected to have a power deficit of around 18% in 2010-11. As a result, the
state is now facing huge power cuts. On an average, 3-4 hours of power cuts are being
experienced by consumers in the state. The impact of this power shortage is being felt mainly by
the industries, leading to a loss in efficiency and production.
Objective of the Paper
Given this situation, this paper attempts to look at the reasons for the growing power deficits in
Tamil Nadu. In particular, the objectives of this paper are twofold:
To analyse the current power situation in Tamil Nadu and identify areas in which Tamil
Nadu can improve. It does this by comparing Tamil Nadu’s power sector with that of
other industrialized states and identifying the key areas of difference between them. and
supply till 2015-16. The states selected for comparison are Maharashtra, Gujarat,
Rajasthan, West Bengal and Andhra Pradesh.
To analyse the future power scenario in the state and estimate the power deficit/surplus in
2015-16. It does this by projecting trends in consumption of power and examining
capacity additions in the state for the next five years.
Description of the Paper
The rest of the paper is structured as follows: Chapter two compares characteristics of Tamil
Nadu’s power sector with other states. It analyses requirement and availability of power in each
state, the source of power, the efficiency and coverage of the transmission and distribution
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Power Scenario in Tamil Nadu: A Comparative Analysis
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systems and tariff regimes. Having looked at the present status of Tamil Nadu’s power sector,
Chapter three presents the future outlook for power in the state. It analyses demand and supply
for power in the state for the next five years. Chapter four summarizes the key findings and
concludes.
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Chapter II
Power Sector Characteristics – State Wise
ComparisonThis chapter analyses the power sector in Tamil Nadu over the last few years and compares it
with select states. The analysis is done under four main headings:
Requirement versus availability of power
Sources of power supply
Transmission and distribution system
Tariff regimes
2.1. Requirement versus Availability of Power
The first step is to analyse the requirement and availability of power in the different states and
identify the extent of power deficits.
Fig 2.1 and 2.2 demonstrates how the gap between requirement and availability of power in
Tamil Nadu has altered significantly in comparison with other industrialized states between
2003-04 and 2010-11. Fig 2.1
0
20000
40000
60000
80000
100000
120000
Tamil Nadu Andhra
Pradesh
Maharashtra Gujarat Rajasthan West Bengal
M U
Requirement vs. Availability of Power (2003-04)
Requirement Availability
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Fig 2.2
Source: CEA
As mentioned in the introduction, in 2010-11, Tamil Nadu is expected to have a deficit of around
18%, which was the highest among all the States considered. Maharashtra and Andhra Pradesh
are also expected to have a high deficit of 11% followed by Gujarat with an 8% deficit.
Rajasthan and West Bengal on the contrary are expected to perform well with Rajasthan
displaying a perfect balance and West Bengal having a large surplus of 16%.
Comparing this with the situation in 2003-04, it can be seen that the status of deficits in most of
the states was the same, except in Tamil Nadu and Andhra Pradesh. Tamil Nadu, in particular,
only had a deficit of around 1% in 2003-04. This deficit has been increasing rapidly, especially
in the last five years as can be seen from Fig 2.3 below:
0
20,000
40,000
60,000
80,000
1,00,000
1,20,000
Tamil Nadu Andhra
Pradesh
Maharashtra Gujarat Rajasthan West Bengal
M U
Estimated Requirement vs. Availability of Power (2010-11)
Requirement Availability
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6.0
1.4 0.6 0.61.7 2.8
7.8
6.2
18.4
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11*
P e r c e n t a g e %
Year
Power Deficits in Tamil Nadu (2003-03 to 2010-11)
Fig 2.3
The reason for the huge deficits in Tamil Nadu is due to the lack of power availability.
Anticipating a huge increase in demand, driven by economic growth, states such as Maharashtra,
Gujarat and Andhra Pradesh put in added efforts to increase the availability of power. This was
done both by increasing own capacity and by encouraging private investment in power generation. On the contrary, such a long term vision to increase availability of power was absent
in Tamil Nadu. This is analysed in detail in the following section.
2.2. Sources of Power Supply
This section looks at the sources of power supply for the various states and examines capacity
additions in these states over the last three years.
There are five main sources of power in a state – own generation, central allocation, power
purchased from IPPs, short term power from the exchange and other sources (including wind
mills). The sources of power for the various states under study are given in the figure 2.4 below:
*Expected Source: CEA
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Fig 2.4
Source: Tariff Orders
As can be seen from the above graph, among all the states, Tamil Nadu is the most dependent on
outside sources. Own generation of the Tamil Nadu Electricity Board is among the lowest of all
the states considered.
A large portion of power supply in the State (around 30%) is allocated to it from Central
Generating Stations (CGSs). Another significant portion of power (15%) comes from other
sources, which includes wind power generation. Dependence on wind power generation, which
is highly seasonal in nature, is another reason for the massive power deficits in Tamil Nadu.
Further, with 6% of its power coming from the power exchanges, Tamil Nadu has the highest
dependence on short term power sources among the states considered.
Thus as mentioned before, the reason for the low generation by the state sector is the absence of
investments by the state in stable internal sources. This can be seen from the following table
which shows capacity additions in the states over the past three years:
0%
20%
40%
60%
80%
100%
Gujarat Rajasthan West Bengal Tamil Nadu Andhra
Pradesh
Maharashtra
P e r c e n t a g e
Source of Power
Own Center IPPs Short Term PP Others
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Table 2.1
Installed Capacity in MW (2007-08 and 2010-11)
Installed Capacity 2007-08 Installed Capacity 2010-11 %
Change
State Private Centre Total State Private Centre Total
Tamil Nadu 5604.8 4488.3 2991.6 13084.7 5700.95 6294.8 2778.31 14774.06 12.9
Andhra
Pradesh
7090.3 1927.4 2530.5 11548.2 8478.86 3445.96 2591.66 14516.48 25.7
Maharashtra 10438.6 3614.7 4208.2 18261.5 11109.57 5713.15 5452.12 22274.84 22.0
Gujarat 5721.4 2459.2 2125.3 10305.9 6151.9 7028.84 2612.48 15793.22 53.2
Rajasthan 3788.1 457 1695.8 5940.9 5077.01 1402.2 2048.55 8527.76 43.5
West Bengal 3517.6 1081.6 938.7 5537.9 6012.46 1358.67 774.26 8145.39 47.1
Source: CEA
Fig 2.5
Installed capacity in Tamil Nadu increased from around 13,000 MW at the end of the 10th
plan to
around 14,700 MW in 2010-11, representing an increase of around 12%. As shown in the graph
this represents the least capacity addition among all the states in this period. Other power deficit
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Tamil Nadu Andhra
Pradesh
Maharashtra Gujarat Rajasthan West Bengal
12.9
25.7 22.0
53.243.5 47.1
P e r c e n t a g e G r o w t h
Source: CEA
Growth in Installed Capacity (2007-08 to 2010-11)
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Power Scenario in Tamil Nadu: A Comparative Analysis
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2.3. Transmission and Distribution
Having analysed the problems in availability of power in different states and sources of power
supply, this section looks at the transmission and distribution (T&D) systems of the various
states. Comparison of the T&D systems is done based on the following parameters – Density of
the transmission and distribution lines, T&D losses and Aggregate Technical and Commercial
(AT&C) losses. These parameters are presented below in tables and graphs:
Fig 2.7
Fig 2.8
Source: Planning Commission, CEA, Athena Infonomics
0.00
1.00
2.00
3.00
4.00
5.00
6.00
0
100000
200000
300000
400000
500000
600000
700000800000
900000
Rajasthan Gujarat Maharashtra Andhra
Pradesh
Tamil Nadu West Bengal
Km Ckt.km/sqkm
T&D Network Length vs. Density
Ctk.Km Density (Ckt.km/sqkm)
18
24 23
30
18
24
0
5
10
15
20
25
30
35
Andhra Pradesh Gujarat Maharashtra Rajasthan Tamil Nadu West Bengal
P e r c e n t a g e %
T&D Losses -2009-10
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0 5 10 15 20 25 30 35 40
Rajasthan
Gujarat
Maharashtra
Andhra Pradesh
Tamil Nadu
West Bengal
Percentage
AT&C Losses- 2007-08
Fig 2.9
Source: Planning Commission, CEA
Among all the states, Tamil Nadu scores the highest with respect to all three parameters. Its
transmission and distribution line density of 5.35 Ctk.Km/sqKm is much higher than the other
states. In fact only since 2008, Tamil Nadu has further added 1509 Ctk. Km of High Tension
Lines to its T&D network.
Tamil Nadu also has relatively low T&D and AT&C losses of 18% and 19.5% respectively.
Even though these values are relatively low, they have remained at these levels for the past ten
years. The absence of improvement in the T&D and AT&C losses is an area of criticism. This is
evident from the following graph which shows the movement of T&D losses in the different
states since 2002-03. Tamil Nadu is the only state which has not reduced its T&D losses and
improved the system over the years.
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Agriculture 10HP (2000 KWh/
Month)
0 147 21.88 55 90 74.55
Small Industry 10KW (1500
KWh/ Month)
458.85 379.78 415.4 438.62 348.42 421.28
Medium Industry 50KW
(7500KWh/ Month)
486.57 470.78 414.33 468.36 583.56 459.68
Large Industry 1000KW 60%L.F.
(438000 KWh/month)
452.11 470.81 380.3 495 519.62 463.83
Heavy Industry 10000KW
60%L.F. (4380000 KWh/ Month)
462.61 470.81 418.6 534.7 519.62 463.83
Heavy Industry (33KV) 20000KW
60%L.F. (8760000 KWh/ Month)
452.11 447.14 407.68 534.5 - 460.65
Railway Traction 12500KW
(25000000 KWh/ Month)
526.47 453.79 410.03 549.12 465.3 451
Source: CEA
A quick perusal of the above table reveals that the tariffs charged to the domestic and agriculture
categories are much lower than in the other states. The agriculture category is in fact charged
only a fixed charge and carries a zero energy charge. However, the charges levied on the
commercial and industrial category of consumers are as high or even more than the other states.
This is clearly indicative of a distorted cross-subsidy regime, where industries are made to bear a
dual cost consisting of both the cost of subsidizing the agricultural and residential communities
and the cost incurred to cushion TNEB’s inefficiencies.
The next step is to examine the revenue gap per unit of power sold as a result of the above tariff
structure. The following figure compares the average cost per unit of electricity sold with the
expected per unit revenue in Tamil Nadu, Maharashtra and Gujarat:
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Power Scenario in Tamil Nadu: A Comparative Analysis
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Fig 2.11
Source: Tariff Orders
The above analysis shows that the per unit revenue gap is much higher for Tamil Nadu ascompared to the other states. Tamil Nadu faces a revenue gap of Rs. 1.50 as compared to Rs.
0.70 and Rs. 0.40 for Maharashtra and Gujarat respectively.
A further analysis of the tariff structure of Tamil Nadu is presented in the graphs below. These
figures compare the consumption of power by each category with their contribution to revenue
and show the extent of cross subsidy in Tamil Nadu:
Fig 2.12
4.93 5.01 4.66
3.43
4.28 4.22
0.00
2.00
4.00
6.00
Tamil Nadu Maharashtra Gujarat
Rs
Cost vs Revenue
Cost per Unit Expected Revenue per Unit
36.0
28.6
19.2
0.2
12.3
3.8
50.6
19.8
1.3 0.2
23.9
4.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Industry Domestic Agriculture Traction Commercial Others
P
e r c e n t a g e %
Consumption and Expected Revenue
Consumption (%) Expected Revenue (%)
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Fig 2.13
Source: Tariff Orders
It can be observed that while the domestic and agriculture categories consume around 50% of the
power, they contribute only to around 20% of the revenues. The industrial and commercial
sectors contribute much more to revenues than they consume.
The extent of subsidy given to the agriculture and domestic sectors can be seen from figure 2.13.
While per unit revenue from industrial consumers is almost equal to the cost, the revenue from
the commercial sector is much more than the cost. This indicates that it is mainly the commercialsector that cross subsidies the consumption of domestic and agriculture consumers.
0.24
6.64
2.37
4.83
3.79
4.81
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00
Agriculture
Commercial
Domestic
Industry
Others
Traction
Rs/Unit
Per Unit Cost vs Revenue (Sector-wise)
Per Unit Cost
Average Unit
Cost of Supply
= Rs 4.90
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Power Scenario in Tamil Nadu: A Comparative Analysis
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Chapter III
Tamil Nadu Power Outlook – 2015-16
The previous chapter presented the current status of the power sector in Tamil Nadu as compared
with other select states. It was shown that Tamil Nadu had among the highest power deficits,
owing mainly to low own generation of TNEB and high dependence on wind power generation.
This chapter looks at the future power situation in Tamil Nadu. It forecasts demand and supply
for power till 2015-16 and estimates the demand-supply gap.
3.1. Demand for Power
Figures 3.1 and 3.2 show projected power demand in Tamil Nadu till 2015-16. Sector-wise
demand projections are also shown:
Fig 3.1
Source: Athena Infonomics, TNEB Tariff Order 2010, CEA
39240 4128644516
4993452953 53065
5669862082
6630471240
7581681122
86796
6075065610
71527
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
MU
Power Consumption in Tamil Nadu (MU)
Athena Projections TNEB Projections
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Fig 3.2
Source: Athena Infonomics
*Demand is calculated at the consumer level (end use) and does not include T&D losses
The demand forecasts presented above were calculated using a regression analysis, where
sectoral power consumption was forecasted based on the movement of relevant variables such as
number of consumers, Gross State Domestic Product (GSDP), etc. Fig 3.1 also shows a
comparison of these figures with TNEB’s own demand projections for the years 2010-11, 2011-
12 and 2012-13. As can be seen, the two values were found to be almost the same.
Demand for power is expected to steadily increase over the next five years. However, thesectoral composition of demand is expected to remain almost the same, as depicted in Fig 3.3
below:
62082
66304
71240
7581681122 86796
-3000
7000
17000
27000
37000
47000
57000
67000
77000
87000
0
5000
10000
15000
20000
25000
30000
35000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
MU
Sector-Wise Projected Energy DemandDomestic Commercial Industry Traction
Agriculture Public Utility Others Total
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Domestic
25%
Commercial
14%
Industry
36%
Traction1%
Agriculture
20%Public Utility
1%
Others
3%
Sector -Wise PowerConsumption (2015-16)
Fig 3.3
Source: Athena Infonomics
3.2. Supply of Power
Supply of power in Tamil Nadu for the next five years has been forecasted in this section by
analyzing the likely capacity additions in the Central, State and Private sectors.
Total capacity that will be added in the state from 2011-12 to 2015-16 is 7310 MW, out of which1860 MW will come from the state sector, 4250 MW from the central sector and 1200 MW from
the private sector. The plants coming up in the state in the next five years are shown in Fig 3.4.
The total amount of power that will be made available to Tamil Nadu through these capacity
additions is also presented below (Fig 3.5):
Domestic
24%
Commercial
12%
Industry
40%
Traction1%
Agriculture
20%
Public Utility
2%
Others
1%
Sector-Wise Power Consumption(2010-11)
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Fig 3.4
Source: CEA, TNEB Tariff Order 2010
Fig 3.5
Source: CEA, TNEB Tariff Order 2010
0
200
400
600
800
1000
1200
1400
2011-12 2011-12 2011-12 2011-12 2011-12 2011-12 2012-13 2012-14 2013-14
BHAWANI
BARRAGE(UNIT
II, III) TNEB
VALLUR
(ENNORE) JV
NTPC
NEYVELI - II LIG
NLC
METTUR EXT
(UNIT I) TNEB
NORTH
CHENNAI EXT
(UNITI, II)TNEB
KUDANKULAM
(UNIT I) NPC
VALLUR (UNIT
III)
NTPC
TUTICORIN TPS
(UNIT I, II)
NLC
COASTAL
ENERGEN TPP,
TUTICORINCOASTAL
ENERGEN PVT
LTD
MW Power Plants to be Commissioned by 2015-16
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Private 1791
Central Outside State 1093
TNEB 6384 2770
Central Within State 1147 4059
Existing Supply 65248 65462 88478 91248 93039 93039
30000
40000
50000
60000
70000
80000
90000
100000
MU
Availability of Power Through Capacity Addition
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0
20000
40000
60000
80000
100000
2010-11 2011-12 2012-13
MUSources of Supply
TNEB Central Wind IPP Biomass Captive
As is shown, most plants are to be commissioned by 2011-12, implying that power availability
will show a huge increase in that year. This is in line with the objective of the Government of
Tamil Nadu to achieve self sufficiency in the power sector by 2012.
The total power made available through capacity additions in the year 2011-12 is expected to be
11,536 MU out of which 6384 MU is generated from TNEB’s own capacity additions, while
4059 MU is allocated from capacity additions of Central Generating Stations (CGSs) within the
state. Further, a capacity of 1093 MU will be allocated from CGSs outside the state (namely,
NTPC’s Simhadri power plant in Andhra Pradesh and Kaiga APS in Karnataka).
In 2012-13, an additional 2770 MU of power is expected to be made available due to further
capacity additions by NTPC in the state. Fig 3.5 also shows an increase in existing capacity from
65420 MU to 88478 MU. This increase is mainly due to higher generation through increased
utilization of the plants commissioned in the previous year.
In 2013-14, only one plant is likely to be commissioned. This is the 1200 MW thermal power
plant, Coastal Energen, Tuticourin. Of this, it has been assumed that 25% will be allocated to
Tamil Nadu, resulting in an addition of 1791 MU to the power supply.
No further plants are expected to be commissioned for the remainder of the 12th
plan period (till
2016-17). Hence, it is assumed that the existing capacity will remain constant after 2013-14.
In spite of these capacity additions, Tamil Nadu is still highly dependent on wind power
generation. As shown in the graph below, around 15% of power availability is still expected to
be supplied by this sector, which as mentioned before, is highly seasonal and unpredictable.
Fig 3.6
Source: TNEB Tariff Order
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3.3. Demand – Supply Gap
The demand and supply projections presented in the previous sections have been compared in
Fig 3.7 in order to estimate power deficits/surplus in the state in the next five year:
Fig 3.7
Source: Athena Infonomics, TNEB Tariff Order 2010, CEA
*Inclusive of an 18% T&D loss
The above figure shows a deficit of around 13% in the year 2010-11, which is lower than the
18% deficit estimated by the CEA. As is expected, supply of power increases after 2011-12 and
levels off after 2013-14. Due to the capacity additions in 2011-12, the state is expected to
become power surplus in 2012-13. However, as can be seen from the figure, the lack of capacity
additions after 2013-14, again lead to power deficits. In 2015-16, it is estimated that Tamil Nadu
will have a power deficit of around 11%.
66395
76998
9124894407
9440794407
7571080858
86878
92459
98929105849
40000
50000
60000
70000
80000
90000
100000
110000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
MU
Demand Supply Scenario
Supply Demand*
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Power Scenario in Tamil Nadu: A Comparative Analysis
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Chapter IV
Conclusion
The analysis presented in this paper shows that TNEB is among the best State Electricity Boards
in India with respect to management of the power sector. This is evident from the low T&D and
AT&C losses in the State. However, the main problems faced by the state were found to be as
follows:
Lack of capacity additions and overdependence on wind generation
Lack of efforts to improve T&D systems beyond their current state
Low pricing of electricity consumption for agriculture and domestic categories
Capacity Additions
Likely additions to Tamil Nadu’s installed capacity were examined in Chapter 3. This is
compared with capacity additions in the other states in Table 4.1 given below:
Table 4.1
Capacity Additions by the end of the 12th
Plan
State Private Centre Total
Tamil Nadu 1860 1200 4250 7310
Andhra Pradesh 2750 5200 1710 9660
Maharashtra 4230 2970 500 7700
Gujarat 1692 7260 0 8952
Rajasthan 1860 810 700 3370
West Bengal 0 250 3362 3612
Source: CEA
The above table shows that total capacity additions in Tamil Nadu in the next five years are
lower than most other states. It was seen in Chapter 3 that most of these additions are expected to
take place in 2011-12, leading to a situation of power surplus in the state for the next two years.
However, no capacity additions are expected to be commissioned after 2013, leading again to
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power deficits in the state. Further, it has also been noted that the state will remain to be highly
dependent on wind generation.
There is a need to improve this situation. Alternative energy sources such as tidal power,
biomass, solar power, photovoltaic installations etc., need to be actively pursued and
implemented in the state to meet to the growing demand and alleviate the short supply scenario.
Investments in conventional sources of energy must also be strengthened.
Efforts to Improve T&D systems
As was shown in the earlier section, although Tamil Nadu has one of the lowest T&D and AT&C
losses in the country, these have remained the same over the years. In the latest Tariff order, the
Tamil Nadu Electricity Regulatory Commission (TNERC) has set out targets for the reduction of
both T&D and AT&C losses to be achieved by 2011-12 (Table 3.2).
Serious steps to achieve these targets must be taken to prevent the power scene in Tamil Nadu
from further deteriorating.
Table 4.2
T&D and AT&C Losses – Targets Fixed by TNERC
2009-10 2010-11 2011-12
AT&C Losses 18.9 18.5 18.1
T&D Losses 18 17.6 17.2
Source: Tariff Order
Tariff Regime
A perusal of TNEB’s tariff order for 2010 reveals that the tariff structure for 2010-11 has not
changed much. Electricity consumption by the agriculture and domestic categories continue to be
priced low.
Again, there is a need to make tariffs more competitive. Another option is to adopt a Zero Load
Shedding Model, such as in Maharashtra. Under this model, consumers are given the option to
pay a higher tariff, called a reliability charge, to avoid facing power cuts.
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