CHENNAI: Tangedco’s plans of establishing re-gasified liquefied natural gas (R-LNG) power projects ranging from 18-20 MW with a total capacity of 2,000 MW as part zero-carbon initiative have been stalled, thanks to the delay in relocating assets from the decommissioned Ennore thermal plant.
Official sources said approximately 100 acres of land were required for these projects, and the state had decided to utilise the decommissioned Ennore plant. Unfortunately, assets like transformers and power cables remained on the premises causing delay.
A senior official told TNIE, “Tangedco floated tenders to sell the equipment on October 24. However, the initial bids listed low prices. We are hoping for more reasonable rates.” E Natarajan, state general secretary of Bharatiya Electricity Engineers Association, said installing R-LNG power plant would cost Tangedco at least Rs 10 crore per MW, resulting in an approximate total project cost of Rs 20,000 crore. Moreover, the cost of power generation using natural gas would be as high as Rs 18 per unit against Rs 5 for hydro, solar and wind power projects. It is better Tangedco considers solar or wind projects since the utility is grappling with heavy losses, Natarajan said.
S Nagalsamy, a former member of Tamil Nadu Electricity Regulatory Commission, highlighted the increase in generation costs and urged Tangedco to carefully weigh in advantages and disadvantages before proceeding with R-LNG plants. He also proposed the adoption of wind and solar power projects with battery storage facilities as an alternative.
In response, a senior official said, “Wind and solar power generation might only be possible during certain seasons and thermal power stations could take up to 6 hours to start. However, natural gas power projects could become operational within just 30 minutes. The utility is currently discussing the best path forward.”