CHENNAI: A section of senior officials of the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) and experts in the energy sector have expressed concern over the recent decision of the Tamil Nadu Electricity Regulatory Commission (TNERC), allowing the Tamil Nadu Power Generation Corporation Limited (TNPGCL) to float and process tenders to kick start the stalled 600 MW Ennore Thermal Power Station expansion project
The concern mainly centred around their disappointment with the TNERC granting approval when the annual true-up petition of the financially-stressed TNPDCL, detailing actual expenditure and revenue, for the year 2024-25 is yet to be presented to the commission.
Noting that the ETPS project expansion be executed under the Design Build Finance Own Operate model, the officials pointed out that this demanded TNPDCL to enter into a long-term power supply agreement with the company selected for the project for 34 years.
A senior official commented that it was surprising that the TNERC granted permission without being able to scrutinise the latest financial status of TNPDCL as the project will have long-term financial implications.
Another TNPDCL official told TNIE that the Centre has instructed all states to promote renewable energy sources, particularly wind and solar, in order to move towards zero carbon emissions and Tamil Nadu was making progress in this regard.
“We are also planning to sign more agreements with private companies for setting up Battery Energy Storage Systems (BESS). At a time when the focus is shifting to green power, clearing such a large thermal project raises concerns,” the official said.
Bharathiya Electricity Engineers Association state general secretary E Natarajan said the project will add to significant financial burden. “A 660 MW thermal plant has very high fixed charges. This amount has to be paid even if the plant is not producing at full capacity,” he explained.
He added that TNERC’s order refers to several documents, including Annexures, the Detailed Feasibility Report, and the draft Request for Qualification, Request for Proposal and Power Sale Agreement. “None of these documents have been made available for public view,” he said.
Former TNERC member S Nagalsamy said long-term power purchase agreements often create trouble for the discom, as it becomes difficult to meet private developers’ conditions.