This document discusses clean energy access for MSMEs in Tamil Nadu. It notes that Tamil Nadu relies heavily on coal for electricity generation, accounting for 75% in 2020. While the state aims to increase renewable energy, current plans show most new demand will be met by coal. This poses challenges for MSMEs seeking affordable clean energy options. The document analyzes various clean energy procurement options for MSMEs, finding rooftop solar and open access solar captive to have the lowest landed costs compared to grid electricity or the state's green tariff. It recommends Tamil Nadu provide a clear framework for rooftop solar and green open access to help MSMEs decarbonize and remain competitive.
PATHWAYS TO DECARBONISATION – MODELLING TAMIL NADU’S POWER SECTOR DECARBONISA...AurovilleConsulting
Tamil Nadu’s electricity demand is expected to increase year on year, and so are the sector’s absolute carbon dioxide emissions. Considering India’s commitments under the United Nations Framework Climate Change Convention, and the recent announcement of targeting net zero carbon by 2070, Tamil Nadu will require a long-term strategy to reduce its emissions. This may start with establishing sector-specific emission inventories, followed by sector-specific emission target setting.
The power sector is deemed to be one of the sectors easiest to decarbonise. One of the first steps for putting in place a decarbonisation strategy is target setting. This report assumes a net-zero carbon target for the Tamil Nadu power sector by 2050. It applies the Sectoral Decarbonisation Approach (SDA) of the Science Based Target (SBT) model to simulate decarbonisation pathways that are in line with the goals of the Paris agreement – limiting global warming well below 2°C above pre-industrial levels (ETP B2DS) and pursuing efforts to limit warming to 1.5°C (SBT 1.5°C) respectively.
In this paper, we undertake the following steps:
1) Projecting the electricity generation for the upcoming years along with the corresponding emissions.
2) Setting targets for the emissions based on the Science Based Targets (SBT).
3) Comparing various scenario planning models for decarbonising the electricity sector of Tamil Nadu.
Why Electrification of Transport will not save us - India’s EV obsession and ...Asmi976965
The paper explores India's pursuit of electric vehicle (EV) adoption as a solution to mitigate greenhouse gas emissions from the transport sector, within the broader context of global climate change. It outlines India's EV policies since 2019 and emphasizes the significant government support provided through initiatives like the National Mission on Transformative Mobility and Battery Storage and the FAME scheme. Despite ambitious targets, the paper highlights challenges such as insufficient infrastructure, import dependency, and concerns about the sustainability of EVs due to raw material scarcity.
It discusses the potential of the EV industry to create jobs and attract investments while also addressing critiques regarding the effectiveness of electrification in reducing emissions. Concerns about the rebound effect, wherein increased energy efficiency leads to higher energy consumption, are raised, alongside the argument that GDP growth may hinder efforts to decarbonize transportation effectively.
Ultimately, the paper suggests that a shift towards degrowth, challenging the obsession with GDP growth, may be necessary to achieve significant emissions reductions. It proposes policy changes to encourage behavioral shifts towards low-carbon transport modes, promote sufficiency over efficiency, and prioritize public enterprise in infrastructure development.
BRIEFING NOTE: ELECTRIFICATION OF TOP-PERFORMING INDUSTRIES IN TAMIL NADUAurovilleConsulting
Tamil Nadu is one of the most industrialised states in India and accounted for 9.47% of India’s GDP in FY 2020-21. Tamil Nadu aspires to be a leading export state in India at a time when more countries are proposing Carbon Border Adjustment Mechanism (CBAM). CBAM includes the introduction of a carbon price on certain products imported into the European Union (EU). This will put restrictions at the borders of the EU on goods produced with carbon and Greenhouse gas emissions (GHG). As per an assessment of the World Bank, many countries are considering setting a carbon price in the years to come. Tamil Nadu could be exporting its finished goods to a few of those countries in the future. For the exported goods from Tamil Nadu to be regulation-proof, it is important to decarbonise the production. The first step towards decarbonisation is the electrification of the processes in the industries. This briefing note explores the potential for the electrification of some of the processes in the top-performing (in terms of contribution to the State’s GDP) industrial sectors of Tamil Nadu.
The implementation of government subsidies and tax incentives to enhance the ...Fardeen Ahmed
In this research paper (a riview of literature), I illustrated the effect of government subsidies and tax incentives to accelerate the overall sales and production of Electric vehicle (EVs) in Bangladesh. I would like to thank my professor Gamal Atallah, who is an Associate Professor at the Economics department of University of Ottawa, for guiding me throughout the semester to complete this paper.
PATHWAYS TO DECARBONISATION – MODELLING TAMIL NADU’S POWER SECTOR DECARBONISA...AurovilleConsulting
Tamil Nadu’s electricity demand is expected to increase year on year, and so are the sector’s absolute carbon dioxide emissions. Considering India’s commitments under the United Nations Framework Climate Change Convention, and the recent announcement of targeting net zero carbon by 2070, Tamil Nadu will require a long-term strategy to reduce its emissions. This may start with establishing sector-specific emission inventories, followed by sector-specific emission target setting.
The power sector is deemed to be one of the sectors easiest to decarbonise. One of the first steps for putting in place a decarbonisation strategy is target setting. This report assumes a net-zero carbon target for the Tamil Nadu power sector by 2050. It applies the Sectoral Decarbonisation Approach (SDA) of the Science Based Target (SBT) model to simulate decarbonisation pathways that are in line with the goals of the Paris agreement – limiting global warming well below 2°C above pre-industrial levels (ETP B2DS) and pursuing efforts to limit warming to 1.5°C (SBT 1.5°C) respectively.
In this paper, we undertake the following steps:
1) Projecting the electricity generation for the upcoming years along with the corresponding emissions.
2) Setting targets for the emissions based on the Science Based Targets (SBT).
3) Comparing various scenario planning models for decarbonising the electricity sector of Tamil Nadu.
Why Electrification of Transport will not save us - India’s EV obsession and ...Asmi976965
The paper explores India's pursuit of electric vehicle (EV) adoption as a solution to mitigate greenhouse gas emissions from the transport sector, within the broader context of global climate change. It outlines India's EV policies since 2019 and emphasizes the significant government support provided through initiatives like the National Mission on Transformative Mobility and Battery Storage and the FAME scheme. Despite ambitious targets, the paper highlights challenges such as insufficient infrastructure, import dependency, and concerns about the sustainability of EVs due to raw material scarcity.
It discusses the potential of the EV industry to create jobs and attract investments while also addressing critiques regarding the effectiveness of electrification in reducing emissions. Concerns about the rebound effect, wherein increased energy efficiency leads to higher energy consumption, are raised, alongside the argument that GDP growth may hinder efforts to decarbonize transportation effectively.
Ultimately, the paper suggests that a shift towards degrowth, challenging the obsession with GDP growth, may be necessary to achieve significant emissions reductions. It proposes policy changes to encourage behavioral shifts towards low-carbon transport modes, promote sufficiency over efficiency, and prioritize public enterprise in infrastructure development.
BRIEFING NOTE: ELECTRIFICATION OF TOP-PERFORMING INDUSTRIES IN TAMIL NADUAurovilleConsulting
Tamil Nadu is one of the most industrialised states in India and accounted for 9.47% of India’s GDP in FY 2020-21. Tamil Nadu aspires to be a leading export state in India at a time when more countries are proposing Carbon Border Adjustment Mechanism (CBAM). CBAM includes the introduction of a carbon price on certain products imported into the European Union (EU). This will put restrictions at the borders of the EU on goods produced with carbon and Greenhouse gas emissions (GHG). As per an assessment of the World Bank, many countries are considering setting a carbon price in the years to come. Tamil Nadu could be exporting its finished goods to a few of those countries in the future. For the exported goods from Tamil Nadu to be regulation-proof, it is important to decarbonise the production. The first step towards decarbonisation is the electrification of the processes in the industries. This briefing note explores the potential for the electrification of some of the processes in the top-performing (in terms of contribution to the State’s GDP) industrial sectors of Tamil Nadu.
The implementation of government subsidies and tax incentives to enhance the ...Fardeen Ahmed
In this research paper (a riview of literature), I illustrated the effect of government subsidies and tax incentives to accelerate the overall sales and production of Electric vehicle (EVs) in Bangladesh. I would like to thank my professor Gamal Atallah, who is an Associate Professor at the Economics department of University of Ottawa, for guiding me throughout the semester to complete this paper.
The consideration of getting green energy or clean energy upheaval is gaining more amazing headway than expected. Solar and wind power have seen outstanding expense declines, and EVs or electric vehicles are surprising the market.
While there is a slight degree of hybrid between clean energy and environmentally friendly power energy, they are not actually something similar. Clean energy is the energy gotten from inexhaustible, zero-emanation sources that don’t dirty the climate as well as save energy by energy proficiency measures.
Vibrant Gujarat Summit Profile for Energy Spectrum SectorVibrant Gujarat
• Policies at the central government and state government level are the main growth drivers of solar energy sector
• Regulations like Renewable Purchase Obligations (RPOs) inclusion with favourable policies play a major role in growth of the solar sector
• Gujarat was the first state to release the solar policy in year 2009. In 2010 MNRE launched the Jawaharlal Nehru National solar Mission (JNNSM) with the objective to add 20 GW of solar power projects by the year. State wise split of solar power projects (MW) JNNSM Capacity addition target 2022.
India's pursuit of climate targets, including net-zero emissions by 2070, hinges on integrating renewable energy. The power sector's heavy reliance on fossil fuels necessitates a significant shift towards renewables. With a rising demand for electricity, effective demand-side management strategies are vital to ensure grid stability. Time-of-use (ToU) tariffs, recognized globally, play a crucial role in this strategy, offering a more accurate reflection of electricity costs compared to flat rates.
This report focuses on evaluating the impact of various ToU tariff designs on grid management parameters for Tamil Nadu in 2024. The objective is to assess how static ToU tariffs prompt consumers to shift or reduce electricity usage, facilitating greater renewable energy integration. The study considers 27 ToU tariff designs, assuming 17% wind energy and 11% solar energy. Notably, findings are specific to Tamil Nadu's energy demand pattern, peaking in early afternoon hours in April.
Results emphasize the importance of defining peak and off-peak time slots optimally to reduce peak loads and curtailment of renewables. Shifting peak hours from 6:00h-10:00h and 18:00h-22:00h to 5:00h-7:00h and 17:00h-23:00h improves key parameters, including a reduction in peak load instances on the gross and net load. Introducing a tariff rebate during solar energy generation hours (solar sponge) from 10:00h to 16:00h effectively reduces peak load magnitudes and encourages load distribution throughout the day, enhancing grid stability. Adjusting peak hour tariffs and shifting peak hours has a noticeable impact on load distribution and peak load occurrences.
The study indicates that a 25% increase in peak-hour tariffs outperforms a more aggressive 40% increase, which may create new peak load instances. Simulated off-peak rebates of 5% and 10% during late night and early morning hours have negligible effects.
Overall, these findings underscore the potential benefits of implementing ToU tariffs for all consumer categories, including reduced peak loads, load range occurrences, and ramping requirements. Careful consideration of peak hour tariffs and adjustments to peak hours can further optimise load distribution and maximise the efficiency of the power grid. To meet its RPO and its climate change objectives Tamil Nadu will have to accelerate the deployment of renewable energy generation. In order to manage the variable nature of wind and solar energy generation and of demand the grid management will require a higher degree of demand and generation flexibility services.
Auroville Consulting (AVC) published its annual sustainability report for the financial year 2022-23.
This year we intensified this practice along with the digital footprint through network usage and website hosting, understanding the impact of our recently installed HVAC system, and emissions avoided through providing e-bikes to all our team members. We have achieved a net zero emission balance for FY 2022-23. This was made possible through planned interventions and implementation of good practices to reduce gross emissions, followed by investment in long term effective carbon positive projects. Some key highlights:
● 92% of this year’s gross emissions were offset by planting trees and the remaining 8% was offset by excess solar generation, making AVC a carbon net-zero organisation.
● 100% of electricity demand was supplied by renewable energy through rooftop solar.
● 25.58 kWh of electricity was consumed per square meter of office space, which is 75% lower than the benchmark of Bureau of Energy Efficiency (BEE) for an office building in a warm and humid climate (Benchmark: 101 kWh/sq. m/yr).
● From March 2022 onwards, the organisation has been providing electric two-wheelers to all its full-time team members for their daily commute to and from office and for their own personal use, along with a charging facility supplied by an additional installed capacity of rooftop solar. This initiative resulted in :
o An emission reduction of 2,584 kg CO2e for their daily commute to and from office, which is an 88% decrease in comparison to the previous year, and
o An emission reduction of 6,309 kgCO2e, which was achieved by converting the personal commute of our team members to e-vehicles and charging them through renewable energy. This is a value higher than the total gross emissions of the organisation..
● 98% of the operational expenditure was made in local areas, with 91% inside Auroville; and the remaining 2% in Pondicherry and Tamil Nadu – preventing unnecessary emissions and stimulating the local economy.
More Related Content
Similar to CLEAN ENERGY ACCESS FOR TAMIL NADU’S MSMES
The consideration of getting green energy or clean energy upheaval is gaining more amazing headway than expected. Solar and wind power have seen outstanding expense declines, and EVs or electric vehicles are surprising the market.
While there is a slight degree of hybrid between clean energy and environmentally friendly power energy, they are not actually something similar. Clean energy is the energy gotten from inexhaustible, zero-emanation sources that don’t dirty the climate as well as save energy by energy proficiency measures.
Vibrant Gujarat Summit Profile for Energy Spectrum SectorVibrant Gujarat
• Policies at the central government and state government level are the main growth drivers of solar energy sector
• Regulations like Renewable Purchase Obligations (RPOs) inclusion with favourable policies play a major role in growth of the solar sector
• Gujarat was the first state to release the solar policy in year 2009. In 2010 MNRE launched the Jawaharlal Nehru National solar Mission (JNNSM) with the objective to add 20 GW of solar power projects by the year. State wise split of solar power projects (MW) JNNSM Capacity addition target 2022.
India's pursuit of climate targets, including net-zero emissions by 2070, hinges on integrating renewable energy. The power sector's heavy reliance on fossil fuels necessitates a significant shift towards renewables. With a rising demand for electricity, effective demand-side management strategies are vital to ensure grid stability. Time-of-use (ToU) tariffs, recognized globally, play a crucial role in this strategy, offering a more accurate reflection of electricity costs compared to flat rates.
This report focuses on evaluating the impact of various ToU tariff designs on grid management parameters for Tamil Nadu in 2024. The objective is to assess how static ToU tariffs prompt consumers to shift or reduce electricity usage, facilitating greater renewable energy integration. The study considers 27 ToU tariff designs, assuming 17% wind energy and 11% solar energy. Notably, findings are specific to Tamil Nadu's energy demand pattern, peaking in early afternoon hours in April.
Results emphasize the importance of defining peak and off-peak time slots optimally to reduce peak loads and curtailment of renewables. Shifting peak hours from 6:00h-10:00h and 18:00h-22:00h to 5:00h-7:00h and 17:00h-23:00h improves key parameters, including a reduction in peak load instances on the gross and net load. Introducing a tariff rebate during solar energy generation hours (solar sponge) from 10:00h to 16:00h effectively reduces peak load magnitudes and encourages load distribution throughout the day, enhancing grid stability. Adjusting peak hour tariffs and shifting peak hours has a noticeable impact on load distribution and peak load occurrences.
The study indicates that a 25% increase in peak-hour tariffs outperforms a more aggressive 40% increase, which may create new peak load instances. Simulated off-peak rebates of 5% and 10% during late night and early morning hours have negligible effects.
Overall, these findings underscore the potential benefits of implementing ToU tariffs for all consumer categories, including reduced peak loads, load range occurrences, and ramping requirements. Careful consideration of peak hour tariffs and adjustments to peak hours can further optimise load distribution and maximise the efficiency of the power grid. To meet its RPO and its climate change objectives Tamil Nadu will have to accelerate the deployment of renewable energy generation. In order to manage the variable nature of wind and solar energy generation and of demand the grid management will require a higher degree of demand and generation flexibility services.
Auroville Consulting (AVC) published its annual sustainability report for the financial year 2022-23.
This year we intensified this practice along with the digital footprint through network usage and website hosting, understanding the impact of our recently installed HVAC system, and emissions avoided through providing e-bikes to all our team members. We have achieved a net zero emission balance for FY 2022-23. This was made possible through planned interventions and implementation of good practices to reduce gross emissions, followed by investment in long term effective carbon positive projects. Some key highlights:
● 92% of this year’s gross emissions were offset by planting trees and the remaining 8% was offset by excess solar generation, making AVC a carbon net-zero organisation.
● 100% of electricity demand was supplied by renewable energy through rooftop solar.
● 25.58 kWh of electricity was consumed per square meter of office space, which is 75% lower than the benchmark of Bureau of Energy Efficiency (BEE) for an office building in a warm and humid climate (Benchmark: 101 kWh/sq. m/yr).
● From March 2022 onwards, the organisation has been providing electric two-wheelers to all its full-time team members for their daily commute to and from office and for their own personal use, along with a charging facility supplied by an additional installed capacity of rooftop solar. This initiative resulted in :
o An emission reduction of 2,584 kg CO2e for their daily commute to and from office, which is an 88% decrease in comparison to the previous year, and
o An emission reduction of 6,309 kgCO2e, which was achieved by converting the personal commute of our team members to e-vehicles and charging them through renewable energy. This is a value higher than the total gross emissions of the organisation..
● 98% of the operational expenditure was made in local areas, with 91% inside Auroville; and the remaining 2% in Pondicherry and Tamil Nadu – preventing unnecessary emissions and stimulating the local economy.
Rajapalayam is the taluk headquarters of Rajapalayam Taluk, and an important town in the district of Virudhunagar within the State of Tamil Nadu. Rajapalayam LPA, which includes Rajapalayam town, 15 surrounding revenue villages and 2 reserved forests, has a total population of 2.16 lakh, as per the 2011 Census. In 2023, a master plan was formulated for Rajapalayam LPA, the master plan has a planning period till 2041. The master plan was meant to foster sustainable urban development, responsible land-use and resource efficiency and is expected to propel the town on a pathway towards decarbonization and inclusive growth. Rajapalayam is the first town in Tamil Nadu that has aspired to announce a GHG emission reduction target, it aims at achieving net zero emissions by the year 2041.
It is in this context that an emissions inventory for the town has been developed. The purpose of this GHG emissions inventory is to report on the sources and magnitude of GHG emissions. While this inventory provides us a broad understanding of today’s emissions, consecutive reports on a yearly or bi-yearly basis can help improve the quality of the data and understand the progress of the activities undertaken by the LPA to reduce their impact on the surrounding environment.
ELECTRICITY SUBSIDY AND A JUST ENERGY TRANSITION IN TAMIL NADUAurovilleConsulting
To address climate change, to promote adaptation and resilience, to eliminate energy poverty, and to ensure a just energy transition, countries and states will have to mobilise substantial financial resources. A recent study estimated that India will need to invest a 900 billion USD over the next 30 years to ensure a ‘just energy transition’ (Bushan 2023). While developed countries have pledged to provide climate finance to developing countries, these pledges have not been fulfilled, or are very slow to arrive, or are insufficient. Developing countries will need to find additional and alternative resources to accelerate the decarbonization of its economies and to invest into climate adaptation. The United Nations (2022) has outlined a few interventions that can help in accelerating a just energy transition. These include:
to make renewable energy technologies a public good,
to shift energy subsidies from fossil fuels to renewable energy, and
to triple investments into renewables.
In 2009, G20 members committed to phasing out and rationalizing fossil fuel subsidies in the medium term (Reuters 2009). But as of 2022, fossil fuel subsidies have not been phased out, neither have they been reduced; instead, fossil fuel subsidies exceeded USD 1 trillion globally for the first time. This is largely due to governments’ increased subsidies to cushion consumers from rising energy prices (IISD 2023).
Energy subsidies are found in virtually every country. Justifications for their use range from social welfare protection, job creation, encouragement of renewable energy sources, promotion of economic development, to energy security. However, it may be worth examining some of the current energy subsidy schemes asking if and to what extent these subsidy schemes are contributing to a just energy transition and to what extent these subsidies align with the proposed three interventions by the UN.
Read the full report here: https://www.aurovilleconsulting.com/electricity-subsidy-and-a-just-energy-transition-in-tamil-nadu/
LAND SUITABILITY ASSESSMENT FOR STORMWATER MANAGEMENT, MAYILADUTHURAI DISTRIC...AurovilleConsulting
Land is a finite resource with competing and conflicting use. Unplanned and unscientific use of land can exacerbate climate change, and disasters like drought or floods. Judicious use of land resources is key in meeting the state’s social, economic, and environmental development goals. A comprehensive land suitability assessment can guide responsible and sustainable development practices and land-use policies.
Land and water are closely interlinked, as the availability and flow of freshwater depends on the land characteristics, such as its topography and composition, amongst other factors. Therefore, certain areas of lands naturally act as better sinks for capturing stormwater or surface run-off water from precipitation. Freshwater, on the other hand, is a critical resource, and the stress on freshwater resources is expected to increase with growing population, development, and climate change. According to India’s Composite Water Management Index (Niti Aayog, 2018), 600 million people in the country are suffering from an acute shortage of water. Read more in the report: https://www.aurovilleconsulting.com/land-suitability-assessment-for-stormwater-management-mayiladuthurai-district-tamil-nadu/
MAXIMISING THE BENEFITS OF DISTRIBUTED SOLAR ENERGY: AN EVALUATIONAurovilleConsulting
Tamil Nadu is making significant strides towards a sustainable energy future, supported by announcements of adding 20 GW of solar energy capacity and 10 GW of battery energy storage capacity by 2030. The state’s policy and regulatory frameworks, including the Tamil Nadu Solar Policy and the Generic Tariff Order, are driving the adoption of grid-connected distributed solar energy. As the adoption of distributed generation systems increases, the importance of smart grid integration becomes evident. Studies that provide an avoided cost assessment offer an opportunity to network operators to identify the most appropriate distribution network nodes and distributed renewable energy (DRE) capacities
This report focuses on evaluating the network and societal impacts of introducing distributed solar energy in the Karungalpalayam HT Feeder under the Erode substation. This analysis provides valuable insights into the distribution of active power and voltage, allowing operators to optimize network performance. The report utilized the Solva tool. Solva is a web-based tool with the aim to assist grid operators in assessing the network and societal value of distributed energy resources (VODER). Solva assesses both network benefits and societal benefits. Network benefits encompass the avoided costs associated with energy, distribution capacity, transmission capacity, and generation capacity. Simultaneously, societal benefits factor in the avoided costs of CO2 emissions, SO2 emissions, NO2 emissions, and PM2.5 emissions.
For the selected feeder a 4.50 MW solar energy system interconnected at the tail end of the feeder results in a VODER benefit of INR 12.84 per kWh. These benefit is subdivided into network benefitss and societal benefit. The societal benefits achieved from the integration contribute to 8.84 INR/kWh or 69% of the total benefit. Network benefits are found to be at 4.00 INR/kWh or 31%. With the integration of distributed solar energy, the distribution line losses show a reduction, particularly if interconnected at the middle end or tail end of the HT feeder. When the solar energy system is interconnected at the tail end or at the middle end of Karungalpalayam HT Feeder, a deferral of feeder upgradation is found.In particular to Karungalpalayam HT feeder, interconnecting the distributed solar energy system close to the point of consumption offers the highest benefits.
In 2022 a GHG emission baseline for Auroville was established. The inventory highlighted the overall emissions from the community. This report now intends to assess the sequestration capabilities of Auroville land under tree cover for a five-year period from February 2017 to February 2022. The tree cover in Auroville is a prime contributor to the community’s long-term vision of sustainable development. The overall tree cover includes the residential zones, industrial zones, parks, public spaces and the designated green belt area of Auroville developed and maintained by the Forest Group of Auroville.
The cumulative carbon stock for Auroville’s land under tree cover of 920 hectares for the time period from February 2017 to February 2022 was estimated at 34,778 tCO2e. This equals an average carbon stock addition of 6,956 tCO2e per year. The average carbon stock per hectare of forest land in Tamil Nadu was estimated at 87.26 tCO2e/year. The average carbon stock per hectare over five years for the Auroville forest was found to be 99.96 tCO2e/year which is 14.55% above the average.
As per the Auroville Greenhouse Gas Accounting Report, Auroville produced 8,298.54 tCO2e in FY 2018- 2019, this excludes emissions from agriculture, forestry and other land use (AFLOU) and industrial production and product use (IPPU). Auroville’s green cover sequestered 84% of its total emission or 6,956 tCO2e per year. The surplus CO2e emitted for FY 2018-19 therefore is 1,343 tCO2e or 16%. To offset this carbon an additional 19.82 hectare of land would need to be converted from moderately dense forest to very dense forest. This could also be achieved by installing a 1.19 MW solar energy capacity or by transitioning all units to low or zero emission transport solutions.
Consistent studies either on a yearly or bi-yearly basis can help improve accuracy of emissions tracking and sequestration numbers of the community and help set targets. This would lead to additional financing opportunities and access to voluntary mechanisms such as carbon financing to support existing forestry activities.
During the last COP events (COP 26 and COP 27) India stepped up its climate ambitions and announced a goal of reaching net-zero by the year 2070. More specifically its Nationally Determined Contributions (NDCs) includes to achieve about 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
In December 2022 Tamil Nadu launched its own Climate Change Mission. Its goals include the development of strategies to cut emissions by using green and renewable energy. This complements an earlier announcement by the State Government, that it aims to add an additional 20 GW of solar energy by the year 2030.
More recently, in March 2023, the Tamil Nadu Governments announced that it will target that 50% of all energy will be sourced from renewable energy sources. If the state where to meet this target it would firmly establish itself as a climate leader on the national and international stage. Further, Tamil Nadu aspires to be a leading export state and as there is increasing international supply chain pressures for industries to reduce their carbon emissions accelerating the transition towards a renewable energy can help its industries to stay competitive in a decarbonizing world. An accelerated energy transition will also promote Tamil Nadu as an attractive location for industries.
In FY 2021-22 the total energy generated was 1,17,553 million units (MU). Renewable energy, this is solar, wind, bioenergy, and hydro, accounted for a 22% of the total energy generation in FY 2021-22. Coal power with a share of 70% is the single largest energy sources. This total energy generation can be subdivided into two parts, (i) energy procured by TANGEDCO and (ii) energy under Open Access. TANGEDCO accounted for 83% or 97,297 MU of energy in FY 2021-22. Whereas the remaining 17% of 20,266 MU are on account of Open Access.
Interestingly TANGEDO procured only 16% of its energy from renewables. Whereas 52% of all energy under Open Access is RE. 51% of all energy procured by TANGEDCO came from either TANGEDCO owned or Centra owned coal power plants. The actual share of coal power may be higher as there is 24% of energy that was sourced under the category ‘Short term and others’ and this may primarily be coal power.
To meet the 2030 RE target an additional 60,637 MU of RE will need to be generated in 2030. This represents approximately an addition of 28 GW of wind energy capacity or a 32 GW of solar energy capacity and means that in the next six years starting with FY 2023-24 approximately 4.80– 5.50 GW of renewable energy capacity needs to go on-grid. The average annual RE capacity addition in Tamil Nadu from 2018 to 2023 was 1.21 GW.
Meeting the 50% RE target will require a concerted effort by all major power sector institutions and players including the distribution licensee, the Electricity Regulatory Commission, the Energy Department, Independent Power producers and the consumers/prosumers.
LAND SUITABILITY ASSESSMENT FOR DISTRIBUTED SOLAR ENERGY, VILLUPURAM DISTRICTAurovilleConsulting
Land is a finite resource with competing and conflicting use. Unplanned and unscientific use of land can exacerbate climate change, and disasters like drought or floods. Judicious use of land resources is key in meeting the state’s social, economic, and environmental development goals. A comprehensive land suitability assessment can guide responsible and sustainable development practices and land-use policies.
As per its intended Nationally Determined Contribution under the United Nations Framework Convention on Climate Change, India is targeting 50% of its cumulative power generation capacity from non-fossil fuel-based energy resources by 2030. Tamil Nadu has announced that it aims at adding an additional 20 GW of solar energy capacity by the year 2030. This capacity addition is envisioned to be primarily achieved by distributed solar energy generation.
One of the key challenges in developing solar energy project is the identification of suitable lands and land acquisition. The complex land acquisition process can lead to project delays or even cancelation of proposed projects. Unused or fallow lands can be of particular interest for solar energy development. This method avoids the uptake of land under productive agricultural use. Local authorities can proactively facilitate solar energy development in the district by identifying unused lands and by undertaking a solar suitability assessment of these lands. This geospatial information if provided to solar developers and electricity distribution companies has the potential to spur local economic development and to create green jobs.
The objective of this report is to identify unused lands in Villupuram district and to evaluate to what extent these unused lands can be utilized to meet the state’s solar energy capacity addition target of 20 GW by the year 2030. Deploying 20 GW of ground mounted solar energy will require approximately 80,000 acres of land, this represents 0.25% of Tamil Nadu’s total geographical area (TGA).
Villupuram, district has a total geographical area of 3,907 km2 of which 1,092 km2 or 28% has been classified as unused or fallow lands. The district’s solar energy target has been set as a proportional share of the state’s solar energy capacity addition target of 20 GW by 2030. The district’s target is to add 0.62 GW of solar energy by 2030. This requires a land area of 2,465 acres. The land suitability analysis revealed that 92,149 acres of unused land have a technical potential for ground mounted solar energy development. These lands are distributed over 3,084 plots. The suitable lands identified can accommodate up to 23.04 GW of solar capacity, this would help achieving a whooping 3,738% of (or 37 times) the district’s solar capacity addition target.
THE SOLAR ENERGY-LAND NEXUS SUSTAINABLE LAND USE STRATEGY FOR SOLAR ENERGY IN...AurovilleConsulting
Energy generation can have intensive or extensive land use requirements, causing habitat and biodiversity loss in sensitive and diverse ecosystems globally or competing with other land use such as agriculture.
As a direct consequence of the Paris Climate Agreement, which requires global decarbonization, renewable energy sources will continue to expand, in particular solar and wind. The increasing land use for renewable energy generation systems and related infrastructure will become more relevant in the future. The extent to which the overall land use balance will be more favourable than for non-renewable sources depends on the mix of renewables, their siting and centralized or decentralized mode of deployment (UNEP, 2016). Innovative deployment of renewables can reduce land use pressures, as well as avoid landscape disturbances caused by fossil fuels and nuclear energy (Lovins, 2011).
While the use of fossil fuels is limited by the size of the resource (including future cost and the carbon dioxide (CO2 ) budget), renewable energy and in particular solar energy, is mostly restricted by land use allocation and by the availability or solar irradiation or adequate windspeeds.
Land or sea occupancy is one of the most visible impacts for any energy development. The relatively large land requirement for solar energy highlights the importance of good mitigation practices to help facilitate the transition into a renewable energy future. Fortunately, the abundance of solar energy means that, unlike other energy sources, there is often flexibility in project siting, allowing the integration of solar energy systems with buildings and infrastructure assets or the co-location of solar energy systems with agricultural practices or the use of wastelands.
Tamil Nadu has set a target of adding a 20 GW of solar energy by 2030. If this target is to be primarily met by ground-mounted solar plants a 405 km2 land area will be required. Considering the projected annual electrical energy demand of 4,89,395 MU by 2050 (Auroville Consulting 2022) the need to decarbonize the state’s power sector and the fact that solar is among the most cost -efficient energy sources today, the potential land-impact of solar is substantial. Meeting 50% of the projected electricity demand for 2050 would require 133 GW of solar capacity, and 2,691 km2 of land resources, which equals the total geographical area of Chengalpattu District or 2.07% of the state’s geographical area.
There are competing and often conflicting demands for land for economic, ecological, and social needs in the development sector. It will be critical to limit the conversion of agricultural lands for solar energy development.
https://www.aurovilleconsulting.com/
LAND SUITABILITY ASSESSMENT FOR FORESTATION, MAYILADUTHURAI DISTRICT, TAMIL NADUAurovilleConsulting
Land is a finite resource with competing and conflicting use. Unplanned and unscientific use of land can exacerbate climate change, and disasters like drought or floods. Judicious use of land resources is key in meeting the state’s social, economic and environmental development goals. A comprehensive land suitability assessment can guide responsible and sustainable development practices and land-use policies.
As per its intended Nationally Determined Contribution under the United Nations Framework Convention on Climate Change, India is targeting the creation of an additional carbon sink of 2.5 to 4 billion tonnes of CO2 by 2030 – through additional forest and tree cover of 25-30 million hectares. In this context, the State Government of Tamil Nadu has set a target to increase its percentage of tree cover from 23% to 33% by the year 2030.
A forestation land suitability assessment for the Mayiladuthurai district in Tamil Nadu, India was carried out using a geospatial digital tool LiLa (LifeLands). LiLa uses satellite imagery, AI & GIS mapping to create critical data-based insights and visualization that supports decision-making by providing detailed information. This includes geo-spatial and socio-economic data-layers to address the core aspects of sustainable land-use management. It identifies and evaluates unused lands for its potential in terms of solar energy, forestation and water management.
The objective of this report is to identify unused lands in Mayiladuthurai district and evaluate its potential for forestation initiatives that can contribute meeting the state’s tree-cover target of 33% by the year 2030.
Identified unused lands were evaluated based on multiple-criteria methodology including parameters pertaining to terrain suitability, existing road, rail and electrical transmission and distribution infrastructure, elevation, water potential and potential to create forest corridors. The lands are also further assessed based on their potential for competing climate action, such as areas that are suitable for water harvesting and solar energy generation.
The land use mapping indicates that 8% of the district’s geographical area is under tree cover. Agriculture land use is by far the most dominating land use category accounting for 63%. Identified unused lands account for an area of 118 km2 or 10% of the total geographical area. Out of the total identified unused lands 56% or 16,237 acres have been found to be suitable for forestation. If all the unused lands suitable for forestation were put under tree cover Mayiladuthurai district would increase its share of lands under tree cover from 8% to 13.5% creating a carbon stock of 0.55 million tonnes of carbon.
LAND SUITABILITY ASSESSMENT FOR DISTRIBUTED SOLAR ENERGY MAYILADUTHURAI DISTR...AurovilleConsulting
A land assessment for the Mayiladuthurai district in Tamil Nadu, India was carried out using a geospatial digital tool LiLa (LifeLands) developed in-house. LiLa uses satellite imagery, AI & GIS Mapping to create critical data-based insights and visualization that supports decision-making by providing detailed information. This includes geo-spatial and socio-economic data-layers to address the core aspects of sustainable land-use management. It identifies and evaluates unused lands for its potential in terms of solar energy, reforestation and water management.
The objective of this report is to identify unused lands for this district and evaluate to what extent these unused lands can be utilized to meet the state’s solar energy target of 20 GW by the year 2030. The lands were evaluated based on multiple levels of criteria that accounted for plot size, and their distance from evacuation infrastructure, roads, railways and waterbodies. The lands are also further assessed based on their potential for climate action, such as areas that are suitable for forestation and water harvesting.
The assessment indicated that a target of 0.29 GW of solar installation is achievable with lands that meet the technical criteria. Lands ranked medium can achieve a cumulative capacity of 0.46 GW with a total area of 1,860 acres. Lands ranked high with a total area 698 acres can achieve a capacity of 0.17 GW.
The prevalence of offshore wind is growing globally. According to the Global Wind Energy Council, the total installed capacity worldwide climbed to 57.2 GW at the end of 2021. Offshore wind technology has key advantages such as eliminating the need for large areas of land and harnessing energy from better wind conditions than onshore. Currently, India does not have any installed capacity. However, there has been a recent build-up in momentum. Tamil Nadu has been identified as one of the highest potential states for harnessing offshore wind energy in India. But the State faces technical, social, and financial barriers for phasing-in this new technology. In this regard, the Tamil Nadu Government can play a key role in unlocking this significant source of energy by (i) providing the overall infrastructure required, (ii) engaging with local stakeholders, and (iii) facilitating the clearance process for offshore wind projects, among others.
BATTERY ENERGY STORAGE SYSTEMS AS AN ALTERNATIVE TO DIESEL GENERATORS – A COM...AurovilleConsulting
Power demand across the country is growing, and meeting peak demand is becoming more challenging. In Tamil Nadu, frequent power outages are observed, especially during summer months. To reduce economic impacts of unreliable power supply, commercial and industrial (C&I) entities, undertake investments in power backup systems. The most commonly used systems are diesel generator sets (DG sets) and battery energy storage systems (BESS), also known as an uninterrupted power supply (UPS).
DG sets have been a convenient power backup option due to an established market, their reliability, affordability, and modularity. But they have a high environmental footprint, cause noise pollution and negatively impact human health. On the other hand, BESSs could operate on zero emissions, if charged from renewable energy sources, and with minimal noise pollution. And with no exhaust emissions, they are particularly helpful in urban areas.
The cost of batteries, especially those of lithium-ion (Li-ion) battery packs, have been observing a dramatic drop – of 89% over the years 2010-2020. And, apart from performing their primary function as a power backup, BESSs can also provide grid services such as load shifting, load following, peak load management, voltage, and frequency support and facilitate higher levels of renewable energy integration. Thus, BESSs contest DG sets economically and technically as an alternative type of back-up system.
This report compares the economic and environmental performance of a Li-ion-based BESS with a conventional DG set, as power backup solutions. The analysis indicated that the levelized cost of battery storage (LCOS) is dictated by the battery pack costs in the market, while the levelized cost of energy (LCOE) of the DG is sensitive to diesel prices. The cost analysis was carried over a range of hours of back-up required, and the results favour the Li-ion BESS as a back-up option, in terms of economic and environmental performance, especially when charged at solar tariff solar tariff.
We hope that this report will assist C&I entities in Tamil Nadu to make the most economic and environmentally sound investment in their power backup systems.
The second phase of the Auroville Smart Mini Grid is also complete. Driven and conceived by Auroville Consulting it compromises 108 kW of distributed rooftop solar energy systems. The solar PV systems reduces Auroville’s electricity consumption from the TANGEDCO grid by an average of 1,57,680 kWh per year and reduces it’s dependency on TANGEDCO. This is another step forward towards self reliance and sustainability. The project includes an energy storage system with a capacity of 10 kWh, 20 smart energy meters with a remote reading facility and additions to the Auroville internal electricity distribution system. Further we were able to upgrade our internal HT and LT distribution infrastructure and started piloting an active demand response program for domestic air conditioners and for municipal water pumps. The project was lead by Auroville Consulting. Other Auroville units include Auroville Electrical Service, Sunlit Future & Aurinoco.
Inspired by the method of Environmental, Social, and Governance (ESG) reporting, this report attempts to consolidate data on the performance of Tamil Nadu Generation and Distribution Company (TANGEDCO). The aim of this work is to initiate and develop holistic benchmarks. These key performance indicators would help TANGEDCO to track its own performance. Apart from the KPIs, this report also highlights the importance of sharing data in a public domain for the civil society to access.
LEVELISED COST OF BTM STORAGE IN INDIA 2021 – A STATUS REPORTAurovilleConsulting
This status report aims to present a snapshot of the current cost of energy storage in India for behind-the-meter (BtM) applications, and project them over the next 10 years to analyse when energy storage will start seeing significant adoption. Based on a detailed cost model for solar PV and energy storage with 50+ parameters & data on battery energy storage systems (BESS) gathered from several vendors in India, we evaluate the levelized cost of solar plus energy storage and standalone energy storage.
Even though as of today, BtM energy storage is not feasible in a lot of cases, we find that this will change fast this decade. By 2025, it will be possible for non-residential consumers to integrate large amounts of battery storage to generate and consume their own energy, enabling a distributed energy future. Along with it, the utilities face an inevitable transition from their traditional roles to distribution system operators.
2021 SOLAR PLUS ENERGY STORAGE: FEASIBILITY OF BEHIND-THE-METER SYSTEMS FOR H...AurovilleConsulting
Unreliable grid supply drives consumers towards deploying power back-up solutions such as uninterrupted power systems and diesel generators. Solar plus energy storage becomes an increasingly attractive alternative as it can provide a degree of energy security and independence to the consumer. It is cheaper, quieter, takes up less space, avoids emissions and has a shorter response time compared to diesel generators.
In 2019-20 India imported batteries worth USD 1.2 billion making this sector heavily dependent on foreign manufacturing capacities. To reduce the dependence on imports and develop the local market, Niti Aayog, a Government of India think tank proposed setting up Giga capacity battery factories aggregating a capacity of 50 GWh over the next ten years at a projected cost of USD 5 billion. The Indian Government has proposed to offer subsidies to the tune of INR 700 Crore a year and also provide incentives such as the benefit of entire depreciation in one go and zero import duty on lithium, iron and cobalt to battery manufacturing industries.
Consumers, in India particularly, are highly cost sensitive. The recent decrease in the cost of both solar PV and Li-ion battery storage and an increasing commitment by a larger share of the population to shift towards sustainable solutions is expected to result in an increased uptake of BtM solar and energy storage systems.
This report compares the cost of supply from the grid, partial supply from solar and partial supply from solar plus energy storage (lithium-ion) on the consumer side of the service connection (behind-the-meter) for selected HT consumer types in Tamil Nadu.
BRIEFING NOTE: RECOVERY OF TANGEDCO’S FIXED COSTS FOR GENERATION, DISTRIBUTIO...AurovilleConsulting
This briefing note analyses the recovery of fixed costs through demand/fixed charges, compares the average fixed costs incurred with the fixed charges levied for select consumer categories, and finally compares the increase in the monthly billing rate of select consumer categories upon an increase in the fixed charges.
In none of the years from FY 2011-12 up until FY 2018-19 was TANGEDCO able to recover its Aggregate Revenue Requirement (ARR). One of the reasons is the under-recovery of fixed costs through fixed/demand charges levied.
TANGEDCO was unable to recover its fixed costs through demand/fixed charges since FY 2011-2012 since the demand/fixed charges component in the tariff schedule does not represent the actual fixed costs incurred. Since the fixed costs are under-recovered, there is a shortfall in meeting the ARR.
A rationalisation of the demand/fixed charges levied across all consumer categories would ensure the complete recovery of all fixed costs incurred and equal distribution4 of these costs. This entails an increase in demand/fixed charges for all LT consumers. Whereas the demand charges for all HT consumers would be lowered. Such a rationalisation of the demand/fixed charges would result in completely recovering the net ARR.
The benefits of recovering fixed costs through demand/fixed charges include the following:
• Reducing the need for tariff cross-subsidies;
• Reduction in TANGEDCO’s revenue gap and higher recovery of the net ARR;
• Reduce the migration of HT consumers to other states with more attractive tariff schedules;
• De-risking of energy demand changes that result in lower energy off-take from sources with fixed capacity booking costs.
BRIEFING NOTE: IMPACT OF ROOFTOP SOLAR BY C&I CONSUMERS ON TANGEDCO’S FINANCESAurovilleConsulting
The Tamil Nadu Solar Energy Policy 2019 excludes HT consumers from availing the net feed-in metering mechanism. This discourages a large segment of industrial, commercial, and institutional consumers from installing consumer category solar PV plants.
The only option available for these HT consumers for generating solar energy on their premises is to operate the plant under paralleling, in which any excess generation has to be either curtailed or stored. One key driver for excluding HT consumers from the net feed-in mechanism was a perceived revenue loss in the case of HT consumers installing rooftop solar energy systems. Under the existing cross-subsidy scheme higher tariff paying consumers are cross-subsidizing lower tariff paying consumers.
The Tamil Nadu Solar Energy Policy sets a consumer category solar energy target of 3,600 MW by 2023. As of December 2020, 6.87% of this target has been achieved. If the target of 3,600 MW is achieved by 2023 the solar energy from consumer category solar energy will represent an approximate 4% of the total electricity consumption in Tamil Nadu only.
If the solar net feed-in mechanism with the current net feed-in tariff of 2.28 INR/kWh were made available for all C&I consumers including the HT consumer categories, then TANGEDCO will benefit from consumer category solar energy systems installed on the premises of C&I consumers by reducing its Average Cost of Supply and by increasing its net billing revenue.
Under the current schedule of tariffs, the adaptation of consumer category solar energy systems by C&I consumers presents an opportunity rather than a threat to TANGEDCO to reduce its cost of supply and improve its billing revenue.
Prevalence of Toxoplasma gondii infection in domestic animals in District Ban...Open Access Research Paper
Toxoplasma gondii is an intracellular zoonotic protozoan parasite, infect both humans and animals population worldwide. It can also cause abortion and inborn disease in humans and livestock population. In the present study total of 313 domestic animals were screened for Toxoplasma gondii infection. Of which 45 cows, 55 buffalos, 68 goats, 60 sheep and 85 shaver chicken were tested. Among these 40 (88.88%) cows were negative and 05 (11.12%) were positive. Similarly 55 (92.72%) buffalos were negative and 04 (07.28%) were positive. In goats 68 (98.52%) were negative and 01 (01.48%) was recorded positive. In sheep and shaver chicken the infection were not recorded.
UNDERSTANDING WHAT GREEN WASHING IS!.pdfJulietMogola
Many companies today use green washing to lure the public into thinking they are conserving the environment but in real sense they are doing more harm. There have been such several cases from very big companies here in Kenya and also globally. This ranges from various sectors from manufacturing and goes to consumer products. Educating people on greenwashing will enable people to make better choices based on their analysis and not on what they see on marketing sites.
Artificial Reefs by Kuddle Life Foundation - May 2024punit537210
Situated in Pondicherry, India, Kuddle Life Foundation is a charitable, non-profit and non-governmental organization (NGO) dedicated to improving the living standards of coastal communities and simultaneously placing a strong emphasis on the protection of marine ecosystems.
One of the key areas we work in is Artificial Reefs. This presentation captures our journey so far and our learnings. We hope you get as excited about marine conservation and artificial reefs as we are.
Please visit our website: https://kuddlelife.org
Our Instagram channel:
@kuddlelifefoundation
Our Linkedin Page:
https://www.linkedin.com/company/kuddlelifefoundation/
and write to us if you have any questions:
info@kuddlelife.org
"Understanding the Carbon Cycle: Processes, Human Impacts, and Strategies for...MMariSelvam4
The carbon cycle is a critical component of Earth's environmental system, governing the movement and transformation of carbon through various reservoirs, including the atmosphere, oceans, soil, and living organisms. This complex cycle involves several key processes such as photosynthesis, respiration, decomposition, and carbon sequestration, each contributing to the regulation of carbon levels on the planet.
Human activities, particularly fossil fuel combustion and deforestation, have significantly altered the natural carbon cycle, leading to increased atmospheric carbon dioxide concentrations and driving climate change. Understanding the intricacies of the carbon cycle is essential for assessing the impacts of these changes and developing effective mitigation strategies.
By studying the carbon cycle, scientists can identify carbon sources and sinks, measure carbon fluxes, and predict future trends. This knowledge is crucial for crafting policies aimed at reducing carbon emissions, enhancing carbon storage, and promoting sustainable practices. The carbon cycle's interplay with climate systems, ecosystems, and human activities underscores its importance in maintaining a stable and healthy planet.
In-depth exploration of the carbon cycle reveals the delicate balance required to sustain life and the urgent need to address anthropogenic influences. Through research, education, and policy, we can work towards restoring equilibrium in the carbon cycle and ensuring a sustainable future for generations to come.
Characterization and the Kinetics of drying at the drying oven and with micro...Open Access Research Paper
The objective of this work is to contribute to valorization de Nephelium lappaceum by the characterization of kinetics of drying of seeds of Nephelium lappaceum. The seeds were dehydrated until a constant mass respectively in a drying oven and a microwawe oven. The temperatures and the powers of drying are respectively: 50, 60 and 70°C and 140, 280 and 420 W. The results show that the curves of drying of seeds of Nephelium lappaceum do not present a phase of constant kinetics. The coefficients of diffusion vary between 2.09.10-8 to 2.98. 10-8m-2/s in the interval of 50°C at 70°C and between 4.83×10-07 at 9.04×10-07 m-8/s for the powers going of 140 W with 420 W the relation between Arrhenius and a value of energy of activation of 16.49 kJ. mol-1 expressed the effect of the temperature on effective diffusivity.
WRI’s brand new “Food Service Playbook for Promoting Sustainable Food Choices” gives food service operators the very latest strategies for creating dining environments that empower consumers to choose sustainable, plant-rich dishes. This research builds off our first guide for food service, now with industry experience and insights from nearly 350 academic trials.
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business Venturesgreendigital
Willie Nelson is a name that resonates within the world of music and entertainment. Known for his unique voice, and masterful guitar skills. and an extraordinary career spanning several decades. Nelson has become a legend in the country music scene. But, his influence extends far beyond the realm of music. with ventures in acting, writing, activism, and business. This comprehensive article delves into Willie Nelson net worth. exploring the various facets of his career that have contributed to his large fortune.
Follow us on: Pinterest
Introduction
Willie Nelson net worth is a testament to his enduring influence and success in many fields. Born on April 29, 1933, in Abbott, Texas. Nelson's journey from a humble beginning to becoming one of the most iconic figures in American music is nothing short of inspirational. His net worth, which estimated to be around $25 million as of 2024. reflects a career that is as diverse as it is prolific.
Early Life and Musical Beginnings
Humble Origins
Willie Hugh Nelson was born during the Great Depression. a time of significant economic hardship in the United States. Raised by his grandparents. Nelson found solace and inspiration in music from an early age. His grandmother taught him to play the guitar. setting the stage for what would become an illustrious career.
First Steps in Music
Nelson's initial foray into the music industry was fraught with challenges. He moved to Nashville, Tennessee, to pursue his dreams, but success did not come . Working as a songwriter, Nelson penned hits for other artists. which helped him gain a foothold in the competitive music scene. His songwriting skills contributed to his early earnings. laying the foundation for his net worth.
Rise to Stardom
Breakthrough Albums
The 1970s marked a turning point in Willie Nelson's career. His albums "Shotgun Willie" (1973), "Red Headed Stranger" (1975). and "Stardust" (1978) received critical acclaim and commercial success. These albums not only solidified his position in the country music genre. but also introduced his music to a broader audience. The success of these albums played a crucial role in boosting Willie Nelson net worth.
Iconic Songs
Willie Nelson net worth is also attributed to his extensive catalog of hit songs. Tracks like "Blue Eyes Crying in the Rain," "On the Road Again," and "Always on My Mind" have become timeless classics. These songs have not only earned Nelson large royalties but have also ensured his continued relevance in the music industry.
Acting and Film Career
Hollywood Ventures
In addition to his music career, Willie Nelson has also made a mark in Hollywood. His distinctive personality and on-screen presence have landed him roles in several films and television shows. Notable appearances include roles in "The Electric Horseman" (1979), "Honeysuckle Rose" (1980), and "Barbarosa" (1982). These acting gigs have added a significant amount to Willie Nelson net worth.
Television Appearances
Nelson's char
Climate Change All over the World .pptxsairaanwer024
Climate change refers to significant and lasting changes in the average weather patterns over periods ranging from decades to millions of years. It encompasses both global warming driven by human emissions of greenhouse gases and the resulting large-scale shifts in weather patterns. While climate change is a natural phenomenon, human activities, particularly since the Industrial Revolution, have accelerated its pace and intensity
1. 1 Clean Energy Access for Tamil Nadu’s MSMEs
Using our expertise in ecological and
socially responsible development, we
work for a prosperous eco-system
that supports all life on this planet. Our
approach is multi-faceted: We collaborate
with academic, private and public sector
partners both in India and Internationally,
helping to develop sustainable urban and
industrial development policies, ecologically
friendly technologies – and the minds of
future leaders. Founded in 2010, Auroville
Consulting is a unit of the non-profit
organization Auroville Foundation.
Web: www.aurovilleconsulting.com
SET aims to facilitate higher clean energy
deployment in the State by working with
stakeholders in order to find sustainable and
equitable solutions. SET is a collaborative
initiative by Auroville Consulting (AVC),
Citizen Consumer and civic Action Group
(CAG), the World Resources Institute
India (WRI).
Web:https://settn.energy
Authors: Martin Scherer
Reviewer: Frano D’Silva,
Auroville Consulting
Designer: Thiagarajan Rajendiran,
Auroville Consulting
Suggested Citation: Auroville Consulting
(2023). Clean Energy Access for Tamil
Nadu’s MSMEs. Sustainable Energy
Transformation Series.
Available at:
https://www.aurovilleconsulting.com/clean-
energy-access-for-tamil-nadus-msmes/
Auroville Consulting Clean Energy Access
for Tamil Nadu’s MSMEs
Date: 13th April 2023
Author: Martin Scherer
Email: martin@aurovilleconsulting.com
Purpose
This paper highlights the importance of clean energy access for
Tamil Nadu’s MSME sector and lists some regulatory interventions
that are required.
Key messages
(i)
Energy accounted for 92% of Tamil Nadu’s CO2
emissions in 2018.
(ii)
Public electricity generation is responsible for 56% or
energy related emissions.
(iii)
In 2020, 75% of the state’s electricity demand was
sourced from coal.
(iv)
The industrial sector accounts for ~ 34% of the state’s
electricity demand.
(v)
As per TNERC tariff order (Order No.8 of 2021) 85%
of electricity in FY 2026-27 is expected to come from
thermal power.
(vi)
Electricity demand will increase by 20%, of which 88%
will be sourced from thermal generation, mostly from
TANGEDO-owned coal plants.
Sustainable Energy
Transformation
Tamil Nadu (SET)
2. 2
Clean Energy Access for Tamil Nadu’s MSMEs
(vii) MSMEs, especially export-oriented
enterprises, will have to find alternative
electricity sourcing options that are cost
effective and carbon neutral to stay
competitive.
(viii)
This will require a clear, fair and predictable
regulatory framework for rooftop solar and
Green Open Access.
Background
Global: In the face of the global climate crisis there
is an increasing commitment to decarbonise the
global economy. This is highlighted by a shift towards
renewable energy sources, the energy transition.
Energy transition is the process of reducing reliance
on fossil fuel across the economy and moving toward
greater use of cleaner energy sources such as
renewables.
Today, about 20 percent of the energy consumed by
industries is electricity (McKinsey 2020). As the prices
of renewable energy, in particular wind and solar, are
the least cost energy available , industries will benefit
from cost-savings and GHG-emission-reduction
by sourcing their electrical energy demand from
renewable energy. The financial and environmental
benefits of using clean electricity instead of fossil
fuels for commercial and industrial enterprises are
increasing. In parallel, countries, including those in the
European Union, are introducing legislative measures
to accelerate the decarbonisation of its economies.
In January 2021, the European Union (EU) introduced
a Carbon Border Adjustment Mechanism (CBAM).
CBAM is part of the EU’s efforts to reduce greenhouse
gas emissions and achieve climate neutrality by
2050. It will put restrictions at the borders on goods
produced with carbon and Greenhouse gas emissions
(GHG) (CBAM 2021). CBAM is a policy that imposes a
carbon price on imported goods from countries without
equivalent carbon pricing or emissions reduction
policies. The goal of this mechanism is to level the
playing field for domestic producers within the EU, who
would otherwise be at a competitive disadvantage to
foreign producers who are not subject to similar carbon
costs.
While the carbon price will be levied from 2026
onwards, the reporting of emissions on imported goods
has stated in January 2023. CBAM is initially focusing
on some key sectors only, but is expected to expand
over time. Sectors for which CBAM applies include:
• Iron and steel
• Cement
• Chemicals
• Aluminium
• Paper
• Glass
• Fertilizers
• Pulp and paper
• Textiles
• Ceramics
• Basic metals (CBAM 2021)
Other countries or regions that consider introducing
similar mechanisms include: Canada, United Kingdom,
United States, Japan and South Korea.
India: India stepped up its climate ambitions with
the more recent Nationally Determined Contributions
(NDCs) declared at the COP26 and COP27 events.
This includes the goal of reaching net-zero by the
year 2070. More specifically as per Ministry of
Environment Forest and Climate Change (2022) the
new commitments include, but are not limited to:
• Reduce Emissions Intensity of its GDP by 45 percent
by 2030, from the 2005 level;
•
Achieve about 50 percent cumulative electric
power installed capacity from non-fossil fuel-based
energy resources by 2030, with the help of transfer
of technology and low-cost international finance
including from Green Climate Fund (GCF).
•
Create an additional carbon sink of 2.5 to 3 billion
tonnes of CO2 equivalent through additional forest
and tree cover by 2030.
•
Build capacities, create a domestic framework
and international architecture for quick diffusion of
cutting-edge climate technology in India and for joint
collaborative RD for such future technologies.
The EU is a key export market for India, it is India’s
third largest trading partner. India’s exports to the EU
were worth EUR 46.20 billion in 2021 (Eurostat 2021).
Compliance of Indian companies with the EU CBAM
will require monitoring, calculating and disclosure of
the GHG emissions embedded in the products covered
under CBAM.
Of particular importance to India are the exports of
aluminium, iron, and steel. The total exports from India
to the European Union of base metals and minerals,
including iron, steel and aluminium, accounted for
approximately 10.4 percent of all exports in 2020
(European Commission 2022). The United Nations
Conference on Trade and Development forecasts that
India will lose USD 1-1.7 billion in exports of energy-
intensive products such as steel and aluminium
(UNCTAD 2021).
Tamil Nadu: Tamil Nadu has the second largest state
economy in India. The Tamil Nadu Government has
set a goal of becoming a USD 1 trillion economy by
2030. The state has a diversified manufacturing sector
and features among the leaders in several industries
like automobiles and auto components, engineering,
pharmaceuticals, garments, textiles, leather, chemicals,
plastics, etc. It ranks first among the states in terms
of the number of factories and industrial workers. In
FY2021-22 manufacturing contributed 33% of the
Gross State Domestic Product (GSDP) (PRS 2022).
3. 3 Clean Energy Access for Tamil Nadu’s MSMEs
The role of Micro, Small and Medium enterprises
(MSMEs) in the economic and social development of
the country is well established. Tamil Nadu has the third-
largest number of MSMEs in the country with a share of
8% or about five million enterprises (MSME Department
2022). MSMEs form an important and growing segment
of the state’s industrial sector, contributing 12.09% to
the GSDP. However the growth of the state’s MSME
sector has been severely impacted by Covid and has
been stagnant (Financial Express 2022).
As Tamil Nadu aspires to be a leading export state in
India at a time when more countries are proposing
Carbon Border Adjustment Mechanism (CBAM)
decarbonisation will become an imperative for export-
oriented industries to stay completive. For the exported
goods from Tamil Nadu to be compliant with regulations
(Economic Laws and Practice 2022), it is important
to decarbonise the production. The decarbonization
will also be paramount for the MSME sector, which
forms the backbone of the state’s industry. Creating
an enabling environment for the MSME sector to
decarbonise will require, amongst other things access
to affordable and clean energy.
In December 2022 Tamil Nadu launched its own
Climate Change Mission. Its goals include the
development of strategies to cut emissions by using
green and renewable energy. This complements an
earlier announcement by the State Government, that
it aims to add an additional 20 GW of solar energy by
the year 2030.
Tamil Nadu’s Power Sector
In 2020, fossil fuels, with a 75% share, account for
most of Tamil Nadu’s primary energy sources (refer to
Figure 2). In 2020 the total energy demand of Tamil
Nadu was 290 TWh (TNSEC 2020). The transport and
industry sectors combined accounted for 60% of the
demand (refer to Figure 3).
Of the total electricity generation in Tamil Nadu,
renewable energy constitutes 22% while coal power
plants constitute the lion’s share with 75% (refer to
Figure 4). Concerning the electricity demand, the
industry and domestic sector combined account for
70% of the demand (refer to Figure 1). The electricity
sector alone accounts for 66.37% of the total coal
requirement in the state (see Figure 1). Relying on
coal and petroleum products not only contributes to
deteriorating air quality and greenhouse gas emissions,
but it creates a dependence on imports to meet the
State’s energy needs.
As much as 30% of the total coal requirement of Tamil
Nadu comes from imports (Energy Department of
Tamil Nadu 2022 2023). Therefore, decarbonising
the power sector can reduce the state’s dependency
on coal considerably. To address the triple concerns
of human health, global warming, and energy supply
security a transition to renewable sources of energy
is required.
Figure 1 Tamil Nadu Energy Stats 2020
Table 1 TANGEDCO’s power procurement plan
(FY 2022-23 to FY 2026-27)
Note: Excludes short term and others (Open Access, Power
Exchange)
Source: TNERC 2022
Source: TNSEC (2020) TANGEDCO (2022, Indian GHG Platform (2018)
Tamil Nadu’s Power Sector -
Contradicting long-term trajectory
There are contradicting announcements about the
state’s long-term trajectory in regards increasing the
share of renewables. The State Government’s target
of 20 GW of solar, or the recent RPO announcement
by the Ministry of Power of achieving a renewable
energy share of 43% by 2029 are not reflected in the
2022 electricity tariff order (TNERC 2022). As per this
tariff order, TANGEDCO’s energy procurement plan
indicates that 88% of the increase in energy demand
will be met from thermal power, a majority of which is
expected to be sourced from TANGEDCO’s own coal
power plants. This clearly indicates that MSME’s that
have a need to reduce their carbon footprint cannot
achieve this if they rely on electricity sourced from
the public grid without a clear and predictable carbon
reduction trajectory.
Tamil Nadu CO2e 2018 India Energy Related
Emissions by Sector 2020
Energy
88%
Agriculture,
Forestry and
Other Land Use
3%
Waste
3%
Fugitive
9%
Other
Sectors
17%
Natural Gas
4%
Renewables
12%
Industrial Processes
and Product Use
6%
Other Sectors
18%
Others
7%
Public
Electriicty
Generationy
56%
Electricity Generation 2020 Electricity Demand by Sector
Coal
and Oil
71%
Bioenergy
13%
Commercial
9%
Agriculture
15%
Domestic
35%
Industry
34%
Source
FY 2022-
23 (MU)
FY 2026-
27 (MU)
Share
FY
2026-27
Change
in MU
Change
in %
Renewables 15,720 18,322 15% 2,602 12%
Thermal 83,706 1,03,216 85% 19,510 88%
Total 99,426 1,21,538 100% 22,112 100%
4. 4
Clean Energy Access for Tamil Nadu’s MSMEs
Location attractiveness
The cost of energy can be considered as an important
element for the location attractiveness of a state.
Access to affordable energy is essential for MSMEs
to compete on national and international markets.
Increasingly so, access to clean and affordable energy
is required for a state to be an attractive location for
industries. The table below indicates the average billing
rate (ABR) and the energy and demand charges levied
on industrial HT consumers in selected states of India.
The states of Gujarat and Andhra Pradesh offer more
competing tariff rates than Tamil Nadu. What may be
noted is that Tamil Nadu levies the highest demand
charges. Demand charges are meant to cover the fixed
cost of the DISCOM and can be considered as grid
access and availability charges.
Clean energy procurement options
for MSMEs
MSME’s in Tamil Nadu have several procurement
options for clean electricity. These are:
•
Green tariff electricity
•
Behind-the-meter renewable energy (RE) (e.g.
rooftop solar)
•
Open Access (OA)
•
Green Open Access (GOA)
A comparison of the landed cost of these clean energy
procurement options indicates that Open Access Solar
Captive and Rooftop Solar are the most cost-attractive
options for MSMEs in Tamil Nadu (refer to Figure 2).
Table 2 Comparison of HT power costs by selected states
Figure 2 Comparison of average landed cost of HT Industry
(INR/kWh)
Figure 3 Comparison of Green Tariffs for HT Industry of selected
states
*ABR- Average billing rate was not available
Note: Landed cost of rooftop solar includes network charges and
18% GST levied on the network charges.
State
ABR *(INR/
kWh)
Energy charges
(INR/kWh)
Fixed Charges
(INR/kVa)
Gujarat * 4.30 475
Tamil Nadu 8.96 6.75 550
Rajasthan 9.11 6.30 270
Andhra 9.43 7.00 475
Maharashtra 9.46 6.89 454
Karnataka 10.18 8.9 315
Green Tariff: The 2022 electricity tariff order
introduced an option whereby consumers can procure
green energy from TANGEDCO (TNERC 2022).
However, this green tariff option is available only to HT
consumers. A premium of 10% of the regular tariff is
levied. The exact registration administration, issuance
or renewable energy certificates process has yet to be
defined by TANGEDCO.
Presently five states – Andhra Pradesh, Gujarat,
Karnataka, Maharashtra, Tamil Nadu and Uttar
Pradesh – have introduced Green Tariffs. With the
exception of Andhra Pradesh all states levy a premium
on the respective consumer tariffs. Andhra Pradesh
introduced a new consumer category ‘ Green Power
Tariff’. Under this category, consumers pay energy
charges of 12.25 INR/kWh and no fixed charges are
levied. Gujarat offers the lowest cost Green Tariff for
HT industry consumers of 4.80 INR/kWh.
7.43
6.75
6.33
5.48
5.08
0 2 4 6 8
Green Tariff
Grid
OA Solar Third Party
Rooftop Solar
OA Solar Captive
Summary: The current design of the Green Tariff in
Tamil Nadu is unlikely to find much demand as the
per unit cost is higher compared to other clean energy
procurement options (rooftop solar and Open Access).
The Green Tariff is restricted to HT consumers only.
The tariff does not provide a viable clean energy
procurement option for MSMEs.
Behind the meter RE/Rooftop solar: The Generic
Tariff Order for Grid Interactive PV Solar Energy
Generating Systems (TNERC 2021) permits solar net
feed-in for all consumer categories. Rooftop solar is
therefore a clean energy procurement option for all
MSME’s regardless of their sanctioned load or the
supply voltage.
Additionally, the order introduced network charges on
the gross generation of solar energy with the argument
that this will help DISCOM to better recover its fixed
costs. The prosumer pays a certain amount for every
unit of solar energy generated, irrespective of whether
this energy is self-consumed or exported to the grid.
The network charges as of January 2023 for various
categories of solar PV systems are shown below.
0.50
0.54 0.68 0.67
0.50
0
Gujarat
Uttar
Pradesh
Tamil
Nadu
Maharashtra
Karnataka
Andhar
Pradesh
Additional Green Tariff charges (INR/kWh)
Energy charges (INR/kWh)
4.3 6.8 6.75 6.89 8.9 12.25
5. 5 Clean Energy Access for Tamil Nadu’s MSMEs
Table 3 Solar feed-in tariff and network charges
Table 4 Installed Rooftop Solar Capacity in Tamil Nadu (MW)
Figure 4 Comparison of Open Access charges by selected states
(INR/kWh)
Source: IEX landed cost calculator
Category
Solar feed-in
tariff (INR/kWh)
Network
charges
(INR/kWh)
Non-domestic, 1-10 kW 3.61 1.27
Non – domestic 11- 150 kW 3.37 1.27
Non – domestic 151 - 999 kW 3.10 0.83
Date Rooftop Solar (MW)
Mar-20 156
Sep-20 247
Mar-21 325
Dec-22 368
It can be argued that network costs are already
recovered from the prosumers in the form of fixed or
demand charges. Additionally, the network charges, a
new cost component, where introduced after fixation of
the feed-in tariffs. This new cost component increases
the cost of solar energy generation, which is not
reflected in the net feed-in tariff. As of December 2022,
Tamil Nadu had a cumulative rooftop solar energy
capacity of 369 MW (MNRE 2022). This represents
10% of the rooftop solar energy target as per Tamil
Nadu Solar Energy Policy 2019. While there was 108%
growth in installed rooftop solar capacity from March
2020 to March 2021 there was only 13% growth from
March 2021 to December 2022. It is quite likely that
the network charges that were introduced at the end
of 2021 are responsible for the dramatic slow-down of
rooftop solar capacity addition in the state.
Source: TNERC 2022
Note: TANGEDCO collects 18% GST on the network charges
Sources: MNRE 2020, MNRE 202
Comparing the estimated landed cost per unit of
electricity we find that rooftop solar, captive generation
and third party open-access are lower than the Green
Tariff offered by TANGEDCO and even the regular HT
tariff II (industries).
However, it can be expected that MSMEs that have
customer pressures to decarbonize their manufacturing
processes will not have sufficient rooftop or land area
available to produce all its electricity demand from
solar energy only. Open access is available only for HT
consumers with a minimum connected load of 1MW.
Therefore a good number of MSME’s are left only with
the option to procure electricity from the utility under
the green tariff at a higher cost or purchase carbon
credits in the market. Both options will affect the price
competitiveness of these MSMEs.
This clearly indicates that MSME’s that have a need
to reduce their carbon footprint will not be able to do
so in the present regulatory environment when they
cannot generate their own solar energy under fair
conditions or purchase renewable energy through the
open access facility.
Summary: While rooftop solar is one of the most
attractive clean energy procurement option for MSMEs
in Tamil Nadu, network charges levied on the solar
energy gross generation substantially reduce the
attractiveness of this clean energy procurement option.
Withdrawal of the network charges and permitting all
MSMEs irrespective of connected load and voltage
level of their grid connection the Open Access route
will provide a much needed clean energy procurement
option.
Open Access (Third party, group captive, and
captive): As of February 2023, Open Access is
available only to HT consumers with a sanctioned load
greater than 1MW. Open Access allows an entity to
procure power from the open market. Generally, a buyer
and seller enter into a power purchase agreement,
facilitated by a trader for a margin. Large consumers
may also purchase electricity from power exchanges
that facilitate trading of electricity, or choose the option
ofcaptivegeneration.TocompensatetheDiscomforthe
use of the network and for deemed revenue reduction,
open access charges are levied. These include point
of connection (PoC) charges, transmission charges,
wheeling charges, cross subsidy charges, State Load
Dispatch Centre (SLDC) charges, banking charges etc.
Additionally transmission and distribution losses will be
accounted for. Renewables attract certain discounted
rates on some of the Open Access Charges (wheeling
charges, cross subsidy charges). Gujarat, Rajasthan
and Karnataka are among the states with the lowest
cumulative Open Access charges for solar energy in
the country (refer to Figure 4).
2.96
2.17
3.28 3.29
3.59
5.10
1.03
1.20
1.03
2.04
1.83
3.40
INR/kWh
OA solar third party OA solar captive
Gujarat
Rajasthan
Karnataka
Tamil
Nadu
Andhar
Pradesh
Maharashtra
Cross-subsidy surcharges is a fee added to the
electricity bill of certain customers categories to cover
the cost of providing electricity at a discounted or
subsidizedcosttootherconsumercategories(domestic,
agriculture etc.). The cross-subsidy surcharges levied
on open access electricity in FY 2022-23 stood at
1.79 INR/kWh for industrial consumers and 2.33
INR/kWh for commercial consumers. For consumers
6. 6
Clean Energy Access for Tamil Nadu’s MSMEs
under the captive open access category no cross-
subsidy surcharges are levied. Discounts on cross-
subsidy surcharges are offered for the procurement of
renewable energy (30% discount for solar and 40% for
wind). There is however a declining trend in discounts
offered to RE and this trend is expected to continue in
the near future.
The Electricity Act (MoP 2003) and the National Tariff
Policy (MoP 2006) call for a gradual reduction of cross
subsidy surcharges.
Electricity Act 2003, Section 38: “Provided further
that such surcharge and cross subsidies shall be
progressively reduced [***] in the manner as may be
specified by the Central Commission”.
National Tariff Policy 2006: “For achieving the objective
that the tariff progressively reflects the cost of supply
of electricity, the SERC would notify roadmap within
six months with a target that latest by the end of year
2010-2011 tariffs are within ± 20 % of the average cost
of supply. The road map would also have intermediate
milestones, based on the approach of a gradual
reduction in cross subsidy”.
As per the 2022 Tariff Order (TNERC 2022) no
reduction in cross-subsidy surcharges is being
envisioned in the near future (refer to figure 3). In the
absence of a mind- or long-term strategy of reducing
and phasing out cross-subsidy surcharges on third
party open access while simultaneously phasing out
the discounts for renewables the procurement cost of
clean energy via the open access route is expected to
increase for MSMEs in Tamil Nadu.
Table 5 Cross subsidy surcharges(CSS) FY 2022-23
Figure 6 Approved Cross Subsidy Surcharges
Source: TNERC 2022
Table 6 Comparison of cross subsidy surcharge of selected states
Table 7 Comparison of OA solar wheeling charges of selected states
Source: TNERC 2022, IEX landed cost calculator
Source: TNERC 2022, IEX landed cost calculator
Source: TNERC 2022
Consumer
category
OA
conventional
OA captive/
group captive
OA third party
OA solar OA wind
HT Industrial
(INR/kWh)
1.79 0.00 1.25 1.07
HT
Commercial
(INR/kWh)
2.33 0.00 1.63 1.40
2022-23 2023-24 2024-25 2025-26 2026-27
CSS HT Industrial (INR/kWh)
CSS HT Commercial (INR/kWh)
1.79 1.86 1.92 1.99 2.06
2.33 2.41 2.49 2.57
2.66
Cross Subsidy Surcharge
Industrial Consumers
OA Third Party
Solar
OA Captive
Solar
Rajasthan 0.00 0.00
Tamil Nadu 1.25 0.00
Gujarat 1.50 0.00
Maharashtra 1.70 0.00
Andhra Pradesh 1.76 0.00
Karnataka 1.95 0.00
OA Solar wheeling charges
Wheeling
charges (INR/
kWh
% of
conventional OA
Karnataka 0.14 50%
Madhya Pradesh 0.17 100%
Gujarat 0.18 100%
Rajasthan 0.23 50%
Tamil Nadu 0.48 50%
Maharashtra 0.55 100%
Andhra Pradesh 0.81 100%
Wheeling charges
Wheeling charges refer to the fees that are charged
by DISCOMS to Open Access consumers for using
the distribution grid for the transport (wheeling) of
electricity. These charges are intended to recover the
costs associated with maintaining and operating the
distribution network.
The wheeling charges of conventional energy Open
Access are 0.96 INR/kWh (TNERC 2022). For Open
Access solar energy 50% of the conventional wheeling
charges are levied. Some states do not provide
any discount on wheeling charges for renewables.
Compared with the wheeling charges on solar of other
states, Tamil Nadu’s wheeling charges are on the
higher end (refer to Table 7).
The Tamil Nadu Solar Energy Policy 2019 states that
“Wheeling of energy will be permitted only, during the
generation of electricity and will be adjusted slot/block
to slot/block and excess energy fed into grid shall be
treated as infirm power under sale to DISCOM category
only. The excess energy will be paid at the rate as
determined by TNERC from time to time.” However
this policy provision has not yet been implemented as
of today.
In it’s Order on procurement of solar power and
related Issues (Order No. 9 of 2020 dated 16-10-2020
), TNERC decided not to amend the existing energy
accounting procedure (TNERC 2020). If however
wheeling of energy on the proposed slot/block-to-slot/
block basis would get implemented in the future, there
would be significant increase in the energy that needs
to be banked for future use, thereby increasing the
cost of open access solar energy.
7. 7 Clean Energy Access for Tamil Nadu’s MSMEs
Table 8 Comparison of OA banking charges by state
Table 9 Key features of Green Open Access Rules
Source: MOP 2022
Source: CEEW 2022
OA Solar Banking charges
Gujarat 1.5 INR/kWh
Tamil Nadu 15%
Andhra Pradesh no
Karnataka no
Rajasthan 10%
Maharashtra 2%
Key Feature Description
Eligibility criteria Consumers with a load of 100 kW and above.
Energy sources Wind, solar, biomass, waste to energy, hydro,
energy storage etc.
Banking period Banking of unutilized electricity up to 10% of
total consumption from renewable projects to
be allowed and settlement to happen monthly.
Capacity limitation No capacity limit for the installation of power
plants for captive use.
Approvals and
nodal agency
A single window clearance mechanism
with a central nodal agency is proposed. All
applications for green open access to be
approved within 15 days.
Open access
charges
Transmission, wheeling, cross subsidy
surcharge (CSS) and standby charges (if
applicable) shall be the only charges that
will be levied on green energy open access
consumers.
The rules stipulate limiting the cross-subsidy
surcharge (CSS). Additional Surcharge (AS)
will not be applicable for green energy open
access consumers, if fixed charges are paid
by consumer.
CSS and AS shall not be applicable if (i)
power produced from a waste-to-energy plant
is supplied to the OA consumer and/or (ii)
green energy is utilized for production of green
hydrogen and green ammonia
Banking
Electricity banking was introduced by the state of
Tamil Nadu in 1986 (Appellate Tribunal for Electricity,
2021). This was done primarily to promote captive
wind energy generation through wheeling in the state.
When over a specific time interval the energy produced
is higher than the energy that can be consumed, the
surplus energy can be supplied to or banked with the
Discom. The units of energy banked with the Discom
can be withdrawn at a later time when the consumer
has need for the same. The Discom in turn levies
banking charges on the units of electricity banked.
As of February 2023 banking charges are 15% for solar
energy and 14% for wind energy. Banking charges were
2% in 1986, escalated to 5% in 2001, and remained
at 5% till 2009 (Prayas 2022). The banking settlement
period in Tamil Nadu is based on the financial year and
is from April to March. The unutilized energy (at the
end of the banking settlement period) can be encashed
at 75% of the applicable wind and solar energy tariffs.
Banking has become a contentious topic in the recent
past. TANGEDCO has consistently requested that the
banking facility for wind and solar power be withdrawn,
citing that they have to bear losses because of the
energy banking facilities. In 2018 TNERC attempted
to stop the banking facility for wind energy entirely.
However the order was quashed by the Appellate
Tribunal for Electricity. Some states in India have a
monthly banking period, or do not allow the withdrawal
of banked energy during peak demand hours.
Summary: In the absence of an affordable Green Tariff
for MSMEs rooftop solar energy and renewable energy
procurement via the Open Access route are the two
most viable clean energy sourcing strategies. However,
with the need of having a sanctioned load of 1 MW
or greater, the Open Access route is only available
for a small segment of the MSMEs. The competing
interests of TANGEDCO and the open access
consumers, the differential treatment across energy
generation technologies and consumer categories,
have contributed to policy uncertainty that may have
impacted investment in the open access market.
With the potential challenges of having sufficient
rooftop or land space, the high cost of clean energy
under the Green Tariff, the lack of a decarbonization
trajectory for grid power and the restrictions on the
open access facility, MSME’s in Tamil Nadu have
very limited options to develop a mid- or long-term
decarbonisation strategy. This is where the recent
notification by the Ministry of Power on ‘Green Open
Access’ becomes a potential game changer.
Green Open Access: The Green Open Access
Rules, 2022 were notified by the Ministry of Power
in June 2022. The Rules represent an attempt to
bring uniformity in the open access regulations . The
objective is to promote generation, purchase and
consumption of green energy including the energy
from waste-to-energy plants through Open Access.
While the purchase of power via the Open Access
route was already available previously the Green Open
Access Rules reduced the minimum load requirement
for consumer to be eligible for open access from 1 MW
to 100 kW. This allows now MSME’s to avail the Green
Open Access option. While the Tamil Nadu Electricity
Regulatory Commission has not yet introduces Green
Open Access Regulations for Tamil Nadu, this is
expected soon. Some of the key features of the Green
Open Access Rules are listed in the table below:
Summary: Open Access as introduced by the
Electricity Act, 2003 was meant to promote competition
in the market by providing a choice of suppliers to
the consumers. By introducing provisions to limit the
increase of cross-subsidy surcharge as well as the
removal of additional surcharge, the Green Open
Access Rules incentivise consumers to procure clean
energy while attempting to address the issues that
have hindered the growth of open access in India
8. 8
Clean Energy Access for Tamil Nadu’s MSMEs
previously. While it reduces the eligibility criteria from
1MW to 100 kW of sanctioned load, many of the micro
and small industries will still not be eligible under the
Green Open Access Rules.
Conclusions Recommendations:
Recommended policy and regulatory changes that are
expected to foster a sustainable development of the
MSME sector in Tamil Nadu are listed below:
Green Tariff
The current design of the Green Tariff does not reflect
the variable nature and the cost of renewable energy.
Instead of charging a premium for the Green Tariff, the
Green Energy Tariff could be designed facilitate grid
integration of renewable energy.
Recommendation: Design Green Tariffs to facilitate
grid integration of renewables
Instead of charging a premium on top and over the
regular tariffs to arrive at green tariffs, green tariff
structures may be designed to incentivise consumers
to shift loads to peak renewable energy generation
hours. For example a ‘Green Solar Tariff’ maybe
offered from 10:00 am to 3:00 pm at a cost, which is
lower than the standard. Considering that the state
has plans to add 20 GW of distributed solar energy
by 2030, an increasingly high volume of low-cost solar
energy will be available during sunshine hours.
This should be reflected in lower energy tariffs during
the hours when there is ample solar energy injected
in the grid. Such an approach would (i) create a solar
energy sponge that shifts loads and reduces the need
for grid balancing services such as energy storage,
and (ii) it would makes the Green Tariff a viable clean
energy procurement option for MSMEs. (iii) Further
this will allow the large number of micro enterprises
that are so vital for the state’s economy to procure
affordable and clean power.
Rooftop Solar
Rooftop solar in Tamil Nadu has seen a series of
regulatory changes in the recent past and this may have
contributed to investor uncertainty. The introduction of
network charges on the solar gross generation maybe
a major contributor to the fact that the state has seen
hardly any rooftop solar capacity addition during the
year 2022.
Recommendation: Remove network charges
If network charges are levied on the ground that the
grid provides voltage and frequency support to solar
PV systems, it would need to be applicable to all grid-
connected solar PV systems (or all grid-connected
generation systems). In this case operators of gross
feed-in systems (including the bigger systems) would
also need to pay network charges and the network
charges will need to be included in the LCOE (levelized
cost of energy) calculation by which feed-in tariffs are
fixed. This will result in an increase in solar energy
(net)-feed-in tariffs.
If network charges are levied on the ground of providing
grid access, then the proposed network charges
represent a ‘double network charge’. The current tariff
payable by consumers in Tamil Nadu consists of fixed
(INR/per service connection) or a demand charge (INR
per kW / KVA), and energy charges (INR per kWh).
Energy charges are meant to cover TANGEDCO’s
variable costs of procurement and delivery of energy.
Fixed charges are meant to cover fixed costs including
costs relating to the operation and maintenance of the
distribution and transmission network. Fixed network
costs will have to be covered by fixed network charges
and the point being raised here is that this is already
being done through the fixed charges payable by
consumers.
Network charges on consumer solar energy seems to
be a discriminatory practice and is probably the main
cause of the state not meeting its’ rooftop solar energy
target of 3,600 MW by 2023.
Green Open Access
Green Open Access presents a potential game changer
in the ability of MSMEs in Tamil Nadu to access
affordable, clean energy. Access to affordable and
clean energy ensures the state’s MSMEs sector stays
competitive at both the national and the international
level. Clear, forward looking and fair Green Open
Access rules will need to be formulated. Tamil Nadu
has seen its share of litigation related to its Open
Access regulations in the recent past. Particularly
the energy banking and the wheeling charges have
been a point of contention. Therefore the enactment
of Green Open Access regulations for Tamil Nadu
will need to find a balance between the guidelines
provided by the Ministry of Power through the Green
Open Access rules, the state’s wider socio-economic
and environmental ambitions and the financial health
of TANGEDCO.
Recommendation: Aling Open Access and Green
Open Access Regulations
There will be a need to introduce a higher degree of
uniformity between the Open Access and Green Open
Access regulations pertaining to duration of open
access, application process, open access charges and
energy banking.
Recommendation: Rationalize Open Access
charges
Currently there are various open access charges being
levied. The formulation of the Green Open Access and/
or Open Access regulations provides an opportunity to
the review the current charges and possibly rationalise
and simplify the same. This will it make the Green
Open Access option more accessible to MSMEs.
For example, the wheeling charges and additional
charges could be combined into a single charge that
reflects the actual cost of the services provided by the
grid operator and should factor in the already levied
demand charges.
9. 9 Clean Energy Access for Tamil Nadu’s MSMEs
Recommendation: Phase out cross-subsidy
surcharges
A 5-year strategy of phasing out cross-subsidy
surcharges as well as discounts offered for renewables
on wheeling and other open access charges maybe
developed.
Recommendation: Permit banking on a monthly
basis
As per the Green Open Access Rules 2022, energy
banking is proposed to be permitted on a monthly
basis. Banking charges should be cost reflective and
could be determined on the basis of the merit dispatch
order during the time of withdrawal. Such an approach
with implicitly need to include a ToD (time-of-the-day)
component and could eventually incentivise energy
storage.
Recommendation: Introduce dedicated wheeling
charges for distributed renewable energy
generation
Wheeling charges for distributed renewable energy
generators that are interconnected at the distribution
network maybe introduced. Such wheeling charges
will need to be lower and shall value the avoided
distribution and transmission losses and capacity cost.
Such an approach will promote smaller distributed
renewable energy generators that are more aligned
with the power demand of MSMEs.
References
1) Appellate Tribunal for Electricity. 2021. APPEAL NO.
191 OF 2018. Available at: https://aptel.gov.in/sites/default/
files/Jud2021/A.Nos.%20191,%20195,%20265%20of%20
2018%20%20406%20of%2019_28.01.21.pdf (accessed on
23rd January 2023).
2) Auroville Consulting (2022). Pathways to Decarbonisation.
Modelling Tamil Nadu’s Power Sector Decarbonization.
Sustainable Energy Transformation Series. Available
at: https://www.aurovilleconsulting.com/pathways-to-
decarbonisation-modelling-tamil-nadus-power-sector-
decarbonisation/ (accessed on 16th January 2023)
3) CBAM (2021). Carbon Border Adjustment Mechanism.
Available at: https://ec.europa.eu/taxation_customs/green-
taxation-0/carbon-border-adjustment-mechanism_en
(accessed on: 15th January 2023)
4) CEEW. 2022. Waivers on open access charges for solar/
wind. Available at: https://www.ceew.in/cef/shared/CEEW-
CEF-RE-Open-Access-waivers.pdf (accessed on 29th
January 2023).
5) Economic Laws and Practice (2022). The EU Carbon
Border Adjustment Mechanism – Implications for India.
Available at: https://www.mondaq.com/india/international-
trade-investment/1166146/the-eu-carbon-border-adjustment-
mechanism-implications-for-india (accessed on: 15th
January 2023).
6) Energy Balance (2019). India Energy Dashboards of
NITI Aayog. Available at: https://niti.gov.in/edm/#balance
(accessed on: 15th January 2023).
7) Energy Department of Tamil Nadu (2021). Demand
No.14, Policy Note 2020-21. Available at: https://cms.tn.gov.
in/sites/default/files/documents/energy_e_pn_2020_2021.pdf
(accessed on 16th January 2023)
8) Energy Department of Tamil Nadu (2022). Demand
No.14, Policy Note 2021-22. Available at: http://cms.tn.gov.
in/sites/default/files/documents/energy_e_pn_2021_22.pdf
(accessed on 16th January 2023)
9) Energy Department of Tamil Nadu (2023). Demand
No.14, Policy Note 2022-23. Available at: http://cms.tn.gov.
in/sites/default/files/documents/energy_e_pn_2022_23_0.pdf
(accessed on 16th January 2023)
10) European Commission. 2022. European Union, Trade
in Goods with India. Available at: https://webgate.ec.europa.
eu/isdb_results/factsheets/country/details_india_en.pdf
(accessed on 23rd January 2023).
11) Eurostat. 2021. India-EU trade in goods: €0.9 billion
deficit in 2020. Available at: https://ec.europa.eu/eurostat/
web/products-eurostat-news/-/edn-20210508-1 (accessed on
23rd January 2023).
12) Financial Express. 2022. Tamil Nadu’s MSMEs’ Share
in GSDP witnessed maximum decline, sector wise growth
stagnant: RBI. Available at: https://www.financialexpress.
com/industry/sme/msme-eodb-tamil-nadu-msmes-share-
in-gsdp-witnessed-maximum-decline-sector-wise-growth-
stagnant-rbi-data/2688535/ (accessed on 23rd January
2034)
13) Industries Department (2022). Demand No. 27. Major
Industries- Tamil Nadu. Available at: https://cms.tn.gov.in/
sites/default/files/documents/ind_major_e_pn_2022_23. pdf
(accessed on: 15th January 2023).
14) Ministry of Power (MoP). 2003. Electricity Act. Available
at: https://cercind.gov.in/Act-with-amendment.pdf (accessed
on 22nd January 2023).
15) Ministry of Power (MoP). 2006. Tariff Policy. Available at:
https://cea.nic.in/wp-content/uploads/legal_affairs/2020/09/
Tariff%20policy.pdf (accessed on 21st January 2023).
16) Ministry of Power (MoP). 2022. Green Open Access
Rules. Available at: https://greenopenaccess.in/assets/files/
Green%20Energy%20Open%20Access_rules.pdf (accessed
on: 15th January 2023).
17) MNRE. 2020. State-wise installed capacity of grid
Interactive renewable power as on 30.09.2020. Available at:
https://mnre.gov.in/the-ministry/physical-progress (accessed
on 29 January 2023).
18) MNRE. 2022. State-wise installed capacity of
grid Interactive renewable power as on 31.12.20222.
Available at: https://mnre.gov.in/img/documents/uploads/
file_s-1673341299172.pdf (accessed on 29 January 2023.
19) Ministry of Environment, Forest and Climate Change
(MoEFCC). 2022 India’s Long-Term Low-Carbon
Development Strategy available at: https://unfccc.int/sites/
default/files/resource/India_LTLEDS.pdf (accessed on 20th
January 2023)
20) McKinsey. 2020. Plugging in. What electrification can
do for industries. Available at: https://www.mckinsey.com/
industries/electric-power-and-natural-gas/our-insights/
plugging-in-what-electrification-can-do-for-industry.
(accessed on: 15th January 2023).
10. 10
Clean Energy Access for Tamil Nadu’s MSMEs
21) MSME Department. 2022. Honourable Minister’s
Message. Available at: https://www.msmetamilnadu.tn.gov.
in/ (accessed on 23rd January 2023)
22) Prayas Energy Group. 2022. Caught in a whirlwind:
A commentary on competing interests and regulatory
lacunae in the provision of wind energy banking in Tamil
Nadu. Available at: https://energy.prayaspune.org/power-
perspectives/caught-in-a-whirlwind-a-commentary-on-
competing-interests-and-regulatory-lacunae-in-the-provision-
of-wind-energy-banking-in-tamil-nadu (accessed on 21st
January 2023)
23) PV-Magazine (2020). Solar Costs have fallen. Available
at: https://www.pv-magazine.com/2020/06/03/solar-costs-
have-fallen-82-since-2010 (accessed on: 15th January
2023).
24) TERI (2021). Potential for Electrifying Indian MSME’s.
Available at: https://www.teriin.org/sites/default/files/2021-07/
potential-for-electrifying-Indian-msme.pdf (accessed on: 15th
January 2023).
25) TNERC. 2022. Approval of True Up for the period
from FY 2016-17 to FY 2020-21 and Annual Performance
Review for the FY 2021-22; Approval of Aggregate Revenue
Requirement for the period from FY 2022-23 to FY 2026-27
of TANGEDCO and Determination of Tariff for generation
and distribution for FY 2022-23 to FY 2026-27. Order No.07
of 2022 in T.P. No.1 of 2022 dated 09-09-2022. Available
at: https://www.tangedco.gov.in/linkpdf/TO-Order%20
No0100920220422.pdf (accessed on 17th January 2023)
26) TANGEDCO (2022). Statistics Book of TANGEDCO.
Available at: Database drive of Auroville Consulting
(accessed on 16th January 2023)
27) TANGEDCO (2022 a). Petition for Tariff Revision.
Available at: https://www.tangedco.gov.in/linkpdf/
tpno1tariffcell19072022.pdf (accessed on 16th January
2023)
28) TNERC. 2021. Generic Tariff Order for Grid Interactive
PV Solar Energy Generating Systems (GISS). Order No.8 of
2021. Available at http://www.tnerc.gov.in/Orders/files/TO-
Order%20No%20 251020211341.pdf. (accessed on: 17th
January 2023)
29) TNERC.2020. Order on procurement of Solar power
and Related Issues. Order No. 9 of 2020 dated 16-10-
2020 Available at: https://www.eqmagpro.com/wp-content/
uploads/2020/10/Solar-Order-16-10-2020_compressed.pdf
(Accessed on 24th January 2023)
30) TNSEC (2020). Primary Energy Chart.
Available at: https://tnsec2050.tangedco.
org/ pathways/2220222222222222
022222222202022220222222221 1202220222022222/
primary_energy_chart (accessed on 16th January 2023)
31) PRS 2022. Tamil Nadu Budget Analysis 2022-23.
Available at: https://prsindia.org/files/budget/budget_
state/tamil-nadu/2022/Tamil%20Nadu%20Budget%20
Analysis%202022-23.pdf (accessed on 15th January 2023)
(32) UNCTAD. 2021. EU should consider trade impacts of
new climate change mechanism. Available at: https://unctad.
org/news/eu-should-consider-trade-impacts-new-climate-
change-mechanism (accessed on 23rd January 2023)