
CHENNAI: Chennai’s power demand is expected to grow by 22.5 % in 2027-28, compared to 2022-23, which is taken as the base year for the 20th Electricity Power Survey of India, brought out recently by the Central Electricity Authority.
While the power consumption was 17,443 Million Units (MUs) in 2022-23, it is likely to go up to 21,361 MUs in 2027-28. The city’s power demand is projected to grow at a Compound Annual Growth Rate (CAGR) of 4.14%.
According to the report, the electricity demand of Chennai termed as India’s health capital is projected to rise to 26,335 MUs with CAGR of 4.28% by 2032-33. Chennai will remain the city with the fourth highest power consumption in the country.
The report revealed Hyderabad, Mumbai, and Kolkata will be the top three cities in 2027-28 with power consumption of 32,913 MUs, 30,200 MUs, and 23,228 MUs, respectively.
Coimbatore, a hub of textile industry in South India, is expected see a power demand of 4,650 MUs in 2027-28 and 5,995 MUs in 2032-33, making it the second-largest electricity consumer in Tamil Nadu.
The Central Electricity Authority (CEA) conducted the survey across 45 cities to project electricity demand from 2023-24 to 2032-33, using 2022-23 as the base year. The electricity demand forecast is an important input for planning the power sector to meet the future power requirements of various sectors.
The forecast considered electricity usage across various sectors, including domestic, commercial, public lighting, public water works, irrigation, industrial consumption, railway traction, and bulk supply to non-industrial consumers and licensees.
A senior official from Tamil Nadu Electricity Board (TNEB) told TNIE, “The state currently operates 1,091 substations and over 38,772 circuit kilometers of transmission lines. While this infrastructure is sufficient to meet current needs, the rising power demand will require further expansion.”
Highlighting TNEB’s financial difficulties, the official noted, “The utility’s debt has reached `1.6 lakh crore, with an annual interest burden of `16,000 crore. Infrastructure development is being funded through subsidies and loans from the central government, Power Finance Corporation, and Rural Electrification Corporation.”
To address funding challenges, TNEB plans to implement new projects through Public-Private Partnership (PPP) models.
Another official pointed out Chennai recorded Transmission and Distribution (T&D) losses of 7.63% in 2022-23. Efforts are under way to reduce these losses to 6.63% by 2027-28 and 5.63% by 2032-33.
He also said, “The rising power demand and infrastructure needs underscore the importance of strategic planning to ensure uninterrupted electricity supply in the years ahead”.