The Tamil Nadu electricity sector faces major challenges including a shortage of 4000 MW of generation capacity due to delays in projects obtaining clearances and facing land acquisition and fuel issues. Transmission is inadequate with 18.5% projected transmission and distribution losses. Distribution faces high operational costs due to subsidies, theft, and a large number of non-functional meters. Institutional factors like manpower shortages and a lack of technical knowledge also hamper the sector. Ultimately, significant changes may only occur if consumers demand better service and the political system improves accountability of utilities and independence of the regulator.