CHENNAI: A couple of months after the Tamil Nadu Green Energy Corporation Limited (TNGECL) invited applications to develop Small Hydel Projects (SHPs) in the state, the agency has so far received 12 proposals from private developers, officials said.
The capacities of each of these SHPs, which can be set up across canal systems, rivers and streams without having to build any structures for storing the water, can range from 100 kilowatts (KW) to 10 megawatts (MW), with each unit in an SHP not exceeding 5 MW.
TNGECL managing director Dr Aneesh Sekhar told TNIE that the government is encouraging private participation in SHPs to boost renewable energy production. “Of the 12 proposals, five are currently under evaluation. However, no project has been finalised yet. Approvals will be granted after detailed evaluation and site inspections,” he said.
While TNGECL has not completed any SHPs so far, a 20 MW project is nearing completion in Namakkal district. “Most of the work is over and the plant will begin power generation soon,” Sekhar added.
Tamil Nadu had released a policy for SHP late last year. “Based on the policy, we are now processing applications. Private firms with access to water sources can apply to set up these plants,” another senior official said. He said the firms can generate power for their own use (captive use), sell it to third parties within the state, or supply to distribution companies to help meet the Renewable Purchase Obligation (RPO) targets set by the Tamil Nadu Electricity Regulatory Commission (TNERC).
While the RPO set for 2024-25 was 29%, Tamil Nadu managed only around 26 %. The state has an installed hydropower capacity of 2,321.90 MW, but SHPs have so far received limited focus. In contrast, neighbouring Karnataka is actively promoting such projects, the official added.