Tamilnadu is the eleventh largest state in India by area and the seventh most populous state and aggressive industrial state. Thus electricity is an important infrastructural requirement for the growth of State.
In the electricity arena ,major areas of concern are
Power generation
Power transmission
Power distribution
Power delivery (to final customer)
Inorder to have the balanced approach all the areas haves to be addressed equally.In tamilnadu the problem is started from this very basic approach that all the areas were not addressed equally. This explains why, even when the state has installed capacity of 18382MW ,still it is not able to produce more than 10566 MW and not able to match the demand of 12,813 MW for the year 2012. Instead of addressing this concern, State Government is filing the case in Supreme Court and giving press statement blaming the central Government. Here State has undermined the other activities and continuously worried about generation only. It is also important to note that only in the power generation and transmission Central Government is involved with the State Government, other two above activities are fully within the ambit of state govt. Thus state govt cannot blame the Central Government for failing on these areas also.
Power Generation
Basically there are mainly five sources of power in a state
Own generation
Central allocation
Power purchased from independent power producers (IPP)
Short term power from the exchange
Other sources including wind power
The following table explains break down of power generation on each sector in Tamil Nadu:
If we compare the installed power capacity in Tamil Nadu from conventional source between 2004-05(9531 mw) to 2011-12 (10364 mw), there seems to be no significant capacity addition during the past 7 years as shown below:
Though there is growth in non conventional energy, like wind mills, co gen, biomass but that to does not help the situation beyond a point. The capacity utilization of wind power stations has been only around 30% on annualized basis, due to lack of wind speed during major part of the year. Majority of this wind mills are erected 15 years back with Scandinavian countries machinery, now the technology has gone for sea change. Because of this and other factors like TNEB not paying this wind electricity charges regularly, there is slackness in increase in capacity ; just addition of 163 mw in first quarter of 2012-13 against the addition of 644 mw during the first quarter of 2011-12.
It is important to note that there is widespread setting up of wind mills mainly because of various promotional schemes of UPA govt ,mainly because of income tax benefits under section 80 IA/IB which has provided huge depreciation benefits to the industries.
But one welcome note from tamilnadu state govt is they have announced to build up solar power capacity of 3000 mw in next three years. If they able to achieve the same it will help in relieving the
Power shortage problem
Less stress on grid since it does not require grid transmission being self-contained
Tamilnadu has been facing both peak and energy deficits over the last few years. Peak demand deficit in the state has increased from 1% in FY 2005-06 to 18% in 2011-12. Between 2005-06 and 2011-12, peak electricity demand grew at a compound annual growth rate (CAGR) of 8%, while peak demand met at CAGR of 5%. (See graph below)
Peak electricity demand deficit in Tamilnadu
Electricity deficit in the state has increased from 1% in 2005-06 to 11% in 2011-12. Between 2005-06 and 2011-12, electricity requirement grew at CAGR of 9%, while availability only grew at around 7% leading to increasing electricity deficits. (See graph below).
Actual Power Supply Position of the State of Tamilnadu
From the above charts it is very clear that state power crisis is not one day story but the bad seeds are sown for last few years; from 2011 electricity deficit has sharply increased to 11 % and it is expected to go up to 34 % this year-highest in the country- despite supports from Government of India. This problem is further compounded by delays in commissioning of the 2000 MW Kudankulam nuclear plant and setting down of serious of gas based plants with the capacity of 3000 MW along the AP coast, mainly because of dropping gas production KG D-6 block.
It is layman calculation that if the GDP grows at 8% per annum then power generation has to grow at 10% considering the 20% transmission losses.this means that tamilnadu has to increase the power capacity by 1500 mw per year and after meeting the present shortage of 3000 mw to 4000mw.
This is also provided that state government is properly able to implement the all the pending projects in time. As per the projections total capacity that will be added in the Tamil Nadu State from 2011-12 to 2015-16 is 7300 MW, out of which 1860MW will come from State sector, 4250MW from the Central sector and 1200 MW from the private sector. Thus, more than 70% of power supply support come from the Government of India. There cannot be more cooperation than this steps by the Central Government for any State.
Comparison with other States
As mentioned earlier, Tamil Nadu is expected to have a deficit of around 18%, which was the highest among all the States considered. Maharashtra and Andhra Pradesh are also expected to have a high deficit of 11% followed by Gujarat with an 8% deficit. Rajasthan and West Bengal on the contrary are expected to perform well with Rajasthan displaying a perfect balance and West Bengal having a large surplus of 16%.
Comparing this with the situation in 2003-04, it can be seen that the status of deficits in most of the states was the same, except in Tamil Nadu and Andhra Pradesh. Tamil Nadu, in particular, only had a deficit of around 1% in 2003-04. This deficit has been increasing rapidly, especially in the last five years .
The reason for the huge deficits in Tamil Nadu is due to the lack of power availability. Anticipating a huge increase in demand, driven by economic growth, states such as Maharashtra, Gujarat and Andhra Pradesh put in added efforts to increase the availability of power. This was done both by increasing own capacity and by encouraging private investment in power generation. On the contrary, such a long term vision to increase availability of power was absent in Tamil Nadu. This is analysed in detail in the following section.
If we compare the dependency power from each of the sources between Tamil Nadu and other states like Maharastra and Andhra Pradesh; we will understand that Tamil Nadu is the most dependent on the outside sources. Own generation by TNEB is the lowest among all the States. Further large portion of power supply in the state is allocated to it from central generating stations (CGS).
Next important thing is availability of power in the right time, from the past data it can be seen that the electricity demand in Tamil Nadu touches maximum in the month of October, after that it tappers down at the end of November. This peak in the month of October is mainly due to reduction in wind generation, reduction in hydro inflows and change in the load due to other condition. During this year reduction in demand met is mainly due to reduction in generation at Tamil Nadu Government own station; i.e. 500 MW reduction in State Government Hydro Generation and 1000MW reduction in State Thermal Generation. As far as withdrawal of power from the Central Grid there seems to be only marginal reduction. Without understanding this Tamil Nadu State Government is unnecessarily blaming the Central Government.
Transmission and Distribution
One more issue is, Tamil Nadu State Government is keep complaining that Central Government is not allowing more withdrawal of power through Central Grid even though certain other States who are having surplus are ready to supply the same to Tamil Nadu.
It is important note that Indian electrical map is divided into 5 grid that is Southern Grid, Northern Grid, North-Eastern Grid, Eastern Grid and Western Grid. Southern Grid faces an overall power deficit of 26% this year compare to 18.5% last year. Northern Grid faces shortfall of 1.3% and North-Eastern Grid will have a deficit of 10%, the Western Grid is likely to generate surplus power of 6.8% and Eastern Grid surplus of 7.9%.
Transmission of surplus power from surplus grid/State to deficit grid/state gets restricted because of two problems:
The inter regional transfer capability;
The intra grid transfer capability.
SR is connected with other regions through HVDC links with the following transmission capacity:
Talchar-Kolar HVDC bi-pole link connecting ER (Orissa) –SR (Karantaka): 2000MW
Bhadrawati HVDC Back to Back connecting WR (Maharashtra)-SR (AP): 1000MW
Gazuwaka HVDC Back to Back connecting ER (Orissa) – SR (AP):1000MW
As far as point one, The main problem faced by Tamil Nadu in transmission with respect to congestion in the Southern Grid. Southern Grid problem are linked to its isolation from other grids. This saved the Southern Grid from collapse when Northern and Eastern Grids broken down year ago but it hurts when the excess power in the Eastern-Western Grids cannot be transmitted south. It is important note that the Planning of transmission network is a coordinated process, where central electricity authority (CEA) in the standing committee meetings in consultation with CTU (power grid) and states decides the network for the evacuation of generation and transfer of power. Thus, the creation of transmission network is a well-planned and thought out project, this has to be done with huge future foresight by the Tamil Nadu State Government, which they have miserably failed to do so. Now, the Southern Grid can emerge out from this problem of isolation only after ongoing works on two lines connecting Raipur and Sholapur is completed. On completion they will be able to transmit 2500 MW.
Though the Tamil Nadu Government keeps blaming Central Government, w.e.f. 16th June, 2013, Central Government has enabled transmission of imported power from other generating systems located in Uttar Pradesh, Chhattisgarh and Gujarat to the tune of 500 MW through medium term open access.
As far as point two, for transfer of power within Southern Grid i.e. from Andhra Pradesh, Karnataka, Tamil Nadu and Kerala certain Extra High Voltage (EHV) lines had to be constructed by Tamil Nadu Government also, but seems, it is not commissioned so far.
Comparison with other States
Comparison of the T&D systems is done based on the following parameters – Density of the transmission and distribution lines, T&D losses and Aggregate Technical and Commercial (AT&C) losses. These parameters are presented below in tables and graphs.
Tamil Nadu also has relatively low T&D and AT&C losses of 18% and 19.5% respectively. Even though these values are relatively low, they have remained at these levels for the past ten years. The absence of improvement in the T&D and AT&C losses is an area of criticism. This is evident from the following graph which shows the movement of T&D losses in the different states since 2002-03. Tamil Nadu is the only state which has not reduced its T&D losses and improved the system over the years.
In the back drop of the above discussion Tamil Nadu State Government has to do the following reforms instead of continuously blaming the Government of India:
To keep a long term perspective of generating the power vis a vis the growth requirement like the way states of Maharashtra and Andhra Pradesh planned.
Debundling of generation, transmission, distribution and supply function in effective manner so that the generation company may make more profit which inturn will be useful for getting huge loans from the banks for the expansion/new power projects. Post Electricity Act, 2003 also reorganization of TNEB has not been done in such a big way.its mounting depts of more than 50000 cr is creating lot of problems.
State Government as revised the power tariff after 2003 only in July, 2010 and then in March, 2012. This revision of tariff has to be in a periodical manner.
To encourage wind power generation TNEB has to reduce the default of payment for purchase of power from 14 months to 60 days. Further new schemes to promote wind power generation to be announced to utilize the maximum potential i.e. 6000 MW.
To improve the generation of solar power more than 3000 MW through the help of Government of India schemes.
Like other States feeders for industrial load, commercial load, agricultural load and domestic load to be separated and the free power given to agriculture also has to be metered so that to understand the total loss in the distribution circuit.