TNEB to sell surplus power

Plans long-term contracts with registered power traders

The Tamil Nadu Electricity Board (TNEB) is planning to enter into long-term contracts with registered power traders to sell surplus power in other states.

Addressing a session on 'Tamil Nadu "� a success story in promoting renewable energy' at the Green Power 2006, an international conference-cum-exposition on renewable energy organised by the Confederation of Indian Industry (CII), Hans Raj Verma, chairman, TNEB, said the board would enter into long-term contracts with power traders to sell the surplus power available between late night and early morning.

While TNEB is procuring power at Rs 2.50 paise per unit, the neighbouring states are purchasing power at Re 1 per unit when the usage level is low. In Tamil Nadu, during the peak hour of around 7 pm, the consumption goes up to about 8,500 Mw, but by midnight, the requirement level comes down to 6,500 Mw, he said, adding that the surplus power beyond 6,500 Mw could be sold.

Arcot N Veerasamy, state minister for electricity and rural industries, said the government would create a policy framework for enabling the sale of power.

He said that by the end of 2006-07, wind farms to the tune of 500 Mw were expected to be commissioned in the private sector. In total, about 3,500 million units are expected to be generated from the grid every year.

He also said that TNEB had been directed to set up a task force to look into the issues and challenges faced by the wind energy sector in the state. The task force, comprising industry leaders, policy-makers and energy experts, would prepare a comprehensive report on the state's wind industry. The report was expected to be submitted in the next three months, he added.

A power capacity addition to the tune of 4,000 Mw has been planned in Tamil Nadu during the 11th Plan period, according to the minister. He said that efforts were being taken to establish three 1,000 Mw mega power projects: one in north Chennai under a joint venture between National Thermal Power Corporation and TNEB, another at Tuticorin under a joint venture between Neyveli Lignite Corporation (NLC) and TNEB, and the third at Jayamkondam by NLC.

Besides, TNEB is also planning to establish additional generating units with a capacity of 500 Mw each, in the existing thermal stations in North Chennai and Mettur.

He also said that a share of 926 Mw would be allotted to Tamil Nadu from the 2,000 Mw Koodankulam atomic power project, once it is commissioned.

Veerasamy also said that, so far 18 co-generation plants with a total capacity of 314.6 Mw, had been commissioned and consent had been given to three sugars mills to the tune of 53 Mw. In about three years, cogeneration projects to the tune of 71 Mw were expected to be added, he said.

Ramesh Kymal, chairman, Renewable Energy Council, CII-Godrej GBC, said the fixation of buy-back tariff for power generated from both the existing and new wind installations should be at least Rs 3.25 per unit, in line with the neighbouring states. He pointed out that the electricity tariff in Karnataka was in the range of Rs 3.50 per unit.

Considering the huge potential available in Tamil Nadu, the government should improve the infrastructure for evacuation by strengthening the grid connectivity and setting up substations at wind farm sites, he said.

Kymal also said that the state government should impose a green cess on all electricity consumers, to create a green development fund, which could be utilised for advancing green power in the state.