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Challenges in the
Tamil Nadu
Electricity
Sector
Agenda
• Historical Overview
• Current situation in Tamil Nadu
• Challenges in the Electricity Sector
  • Generation
  • Transmission
  • Distribution
• Institutional
The Past –1990’s
1990 - 2003
• 1990’s- State electricity boards in a mess –
  • lack of electricity generation, power cuts, no
    investments in critical areas.
• GoI recognized the seriousness of the situation
& passed the Electricity Act in 2003
• Allowing private sector participation in all areas
  of the electricity sector…
  • It was hoped this would change the situation and
    energize the electricity sector!
Tamil Nadu 2012
Unfortunately…
• Despite the reforms…
• Electricity supply has not kept with Electricity
  Consumption
• Scheduled power cut 1 hour in Chennai
• Unscheduled power cut 8-10 hours in other
  parts of Tamil Nadu
• Agricultural and Industrial production affected
• Affecting daily lives
The Future…?
The Blame Game…
Tamil Nadu Electricity Sector
Tamil Nadu Electricity Sector was
Previously a single entity –
Tamil Nadu Electricity Board (TNEB)
Disaggregated into …




               Transmission    Distribution
Generation
HELPLESS CONSUMERS




  TANGEDCO AND       Regulator -
  TANTRANSCO
                     TNERC
Challenges in the Electricity
          Sector
Electricity
 Generation


•Demand: 12,000 MW
•Supply: 8000 MW
•Shortage: 4000 MW
Environmental Clearance




Udangudi
•



TPS (2 x
800 MW)
Cheyyur
•



project
Land Acquisition


BHEL’s projects in TN
e.g. Vallur Thermal Power
Project
North Chennai Thermal
Power Station
Water linkage



 Tamil Nadu
 naturally
 water deficit
 state
Shortage of coal production - Coal
Fuel linkage
               •



               India Limited (CIL)
               High cost of imported coal
               •



               Getting Right of Way
               •
Delays & Costs overrun


                         • e,g, Cheyyur
                         Power Plant
                         •BHEL
Transmission
Challenges
             •Inadequate
             evacuation facilities
             – no 400 KV
             transmission lines to
             evacuate generated
             capacity

             •Projected T & D
             losses are 18.5%

             •Scope of future
             generation projects
             is therefore
             hampered
Transmission Congestion



                          •Lack of
                          transmission
                          capacity
                          •Limit the quantum
                          of power
                          •E.g. Gujarat Urja
                          Videsh Nigam Ltd.
                          (GVNL)
Grid Stability   •Consumption and overdrawal
                 causes grid instability
                 •Wind, Tangedco
Distribution
Operational Costs

                    •Loss Rs. 200
                    crores everyday
                    •Depends on loans
                    for paying salaries
                    etc.
                    •Loses 95 paisa
                    per unit on 3029
                    MU
Subsidised power


                   1. Agricultural sector
                      subsidy
                   -Rs.250/HP/annum but
                   now it is
                   Rs.1750/HP/annum with
                   a hike of about 589%

                   2. Hut Sector -
                      Unmetered

                   Total Accumulated Loss
                   Rs. 45,000 crores
Theft
Non-Existent Meters for Agricultural
Sector And Huts
•32,83,987 Nos.
•large number of meters non-functional
Institutional
  factors...



•Manpower
Shortage
•Lack quality and
Technical
knowledge
Institutional Contd…
Who will be our Saviours?????
Finally…

Nothing will change unless…
Consumers demand quality service from utility
 providers
By forcing the political setup to improve
 electricity systems
And making Tangedco accountable & Regulator
 independent.

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Electricity measi correction