RE capacity addition to reach 72% of peak demand in Tamil Nadu

The renewable energy capacity addition is likely to reach 72 per cent of its peak demand by 2022 in Tamil Nadu, says a report.
"Tamil Nadu has done a tremendous development when it comes to adding capacity of renewable energy (RE), which is projected to reach even 72 per cent of its peak demand by 2022," according to a joint Assocham-EY paper.
At present, the state has an installed capacity of over 8,300 MW of non-conventional energy which is about 40 per cent of the total capacity installed, including the conventional sources of thermal and hydro.
However, the problem remains about a huge gap between the installed RE capacity and its actual generation.

Against the 40 per cent ratio of the installed capacity, the RE sources supply just about 14 per cent of the state's peak demand, thanks to inadequate infrastructure to evacuate the power to the grid and the natural limitations.
All the same, the Assocham-EY paper pointed out that against the peak electricity demand of 29,975 MW, the projected installed capacity of the RE resources would be 21,508 MW.

"The other progressive states in the area of RE are Gujarat and Rajasthan. But the interest is still limited to a few states..," Assocham Secretary General D S Rawat said.
Gauging the conventional capacity addition growth between 2014 and 2022, it is clearly seen that Tamil Nadu is adding capacity beyond its demand.

"This beckons for a robust market mechanism to accommodate RE power within the state and also explore market mechanism to trade its power to the RE deficit states," the paper suggested.