Tamil Nadu should double wind energy capacity - IEEFA
Economic Times reported that Tamil Nadu should double its wind energy capacity to 15 gigawatts and increase its solar capacity six-fold to 13.8 GW by 2026-27 whilst simultaneously delivering cheaper electricity. Institute for Energy Economics and Financial Analysis on its report, "Electricity Transformation in India: A Case Study of Tamil Nadu", showed how Tamil Nadu is building 22,500 MW of expensive coal-fired power plants almost double the entire existing coal-fired fleet in the state despite the favourable investment and electricity tariff costs of wind and solar.
It warned that building more non-pithead coal-based plants at a time when existing plants are being used at a low 62% of the time, as opposed to the optimal 80 per cent, will make new and existing plants financially unviable.
The IEEFA's research and modelling predicts that many new coal-based plant proposals such as the 4,000 MW Cheyyur ultra mega power project will be cancelled due to unfavourable financial factors.
IEEFA's Energy Finance Studies Australasia Director Tim Buckley said that a more diversified electricity generation mix will best serve Tamil Nadu.
New lower cost solar capital additions and a major repowering of Tamil Nadu's wind projects, a concerted improvement in energy efficiency plus reduced transmission and distribution losses, should deliver more than 80 per cent of all electricity demand growth over the coming decade while also driving wholesale price deflation.
This investment program would also underpin the attempts of Tamil Nadu's power utility to operate profitably, something it has not been able to achieve for more than two decades whilst having a positive impact for the state's consumers.
Mr Buckley told IANS that "Despite being a world leader in wind energy, Tamil Nadu's wind farms are operating with aging and outdated technology. Upgrading or 'repowering' existing turbines alone could double the state's leading wind energy capacity.”
The IEEFA expects offshore wind to emerge as a new, cost competitive source of electricity generation.
The report highlights that any investment in new coal and nuclear based projects could cause further financial distress to any firm involved.
Mr Buckley said that "This is a clearly identifiable and recurring trend no matter which market or company we research across the globe.”
Tamil Nadu already operates the most diversified electricity generation fleet in India, with renewables representing 35 per cent of installed capacity as on March 2017, contributing to one fifth of India's total renewables generation.
Hydro represents another seven per cent of the total capacity.
It warned that building more non-pithead coal-based plants at a time when existing plants are being used at a low 62% of the time, as opposed to the optimal 80 per cent, will make new and existing plants financially unviable.
The IEEFA's research and modelling predicts that many new coal-based plant proposals such as the 4,000 MW Cheyyur ultra mega power project will be cancelled due to unfavourable financial factors.
IEEFA's Energy Finance Studies Australasia Director Tim Buckley said that a more diversified electricity generation mix will best serve Tamil Nadu.
New lower cost solar capital additions and a major repowering of Tamil Nadu's wind projects, a concerted improvement in energy efficiency plus reduced transmission and distribution losses, should deliver more than 80 per cent of all electricity demand growth over the coming decade while also driving wholesale price deflation.
This investment program would also underpin the attempts of Tamil Nadu's power utility to operate profitably, something it has not been able to achieve for more than two decades whilst having a positive impact for the state's consumers.
Mr Buckley told IANS that "Despite being a world leader in wind energy, Tamil Nadu's wind farms are operating with aging and outdated technology. Upgrading or 'repowering' existing turbines alone could double the state's leading wind energy capacity.”
The IEEFA expects offshore wind to emerge as a new, cost competitive source of electricity generation.
The report highlights that any investment in new coal and nuclear based projects could cause further financial distress to any firm involved.
Mr Buckley said that "This is a clearly identifiable and recurring trend no matter which market or company we research across the globe.”
Tamil Nadu already operates the most diversified electricity generation fleet in India, with renewables representing 35 per cent of installed capacity as on March 2017, contributing to one fifth of India's total renewables generation.
Hydro represents another seven per cent of the total capacity.
Posted By : Nanda Koijam on Fri, 09 Feb 2018