CHENNAI: The Tamil Nadu Power Distribution Corporation Limited (TNPDCL) has warned that the existing regulatory framework for sharing the cost of Inter-State Transmission System (ISTS) High Voltage Direct Current (HVDC) projects could significantly increase the state’s transmission charges, adding to the utility’s financial burden and eventually pushing up electricity tariffs.
According to an assessment submitted by TNPDCL to the Southern Regional Power Committee (SRPC), accessed by TNIE, the utility’s annual HVDC transmission charge liability could rise from about Rs 844 crore at present to nearly Rs 2,665 crore by 2030 if the existing cost-sharing mechanism and ISTS transmission charge waiver for renewable energy projects continue. This would mean an additional burden of over Rs 1,800 crore annually.
The assessment was undertaken after southern states raised concerns over a proposal to classify all ISTS HVDC projects as National Component assets, under which transmission costs are pooled and shared by power distribution utilities. The report said six upcoming renewable energy-linked HVDC projects, involving an estimated investment of Rs 1.36 lakh crore, are expected to be classified as National Component assets under existing regulations.
TNPDCL argued that this would unfairly shift costs to distribution utilities while renewable energy generators continue to enjoy transmission charge waivers. It recommended treating only the existing Raigarh-Pugalur-Thrissur HVDC project as a National Component asset.