TN Policies Reduced Power Deficit: Study

Published: 06th September 2014 06:17 AM  |   Last Updated: 06th September 2014 06:17 AM   |  A+A-

CHENNAI: The State government’s policies in the electricity sector has resulted in an increase in installed power capacity from 2.2 per cent in 2010 to 12.2 per cent, but to attain Vision 2023 goal of double digit growth Tamil Nadu needs to estimate the energy requirement in line with such levels of growth, says a recent study.

Prepared by ICRA Management Consulting Services for Madras Chamber of commerce and Industry, the study while hailing the state government’s initiatives also highlighted the delay in implementation of power projects.

According to the report, a total of 12 projects had been delayed by 15 to 80 months. These also include the Koodankulam nuclear projects. It says compound annual growth rate in installed capacity in TN was 6.9 per cent in the last five years while nationwide it remained 8.6 per cent in the same period.

Demand for energy has grown by 6 per cent in the last five years in the state. “The gap between demand and supply shot up to 17.5 per cent in 2012-13. However, during 2013-14, the supply improved by 15.5 per cent over the previous year resulting in reduced energy deficit of 5.9 per cent,” reveals the report. Significantly, the state’s peak power deficit has reduced by 7.6 per cent in financial year 2014 after reaching a high level of 17.5 per cent in 2012. This is much better than Karnataka and Maharashtra but higher than the national peak deficit of 4.5 per cent.

The report suggests that the state has to take long term power procurement planning to ensure energy security besides securing long term access to fuel sources and adequate transmission corridors.

Speaking during an event ‘Energy-Economy-Environment’, organised by MCCI and India Energy Forum, Former power secretary Anil Razdan stressed the need for TN to go in for gas grid which could supply door-to-door gas. Not surprisingly, he Razdan batted for nuclear energy stating that it was important for nation’s energy security.

P S Bami, president of India Energy Forum, highlighted the delay in implementing the power projects in Tamil Nadu. R R  Rao, managing director of ICRA Management Consulting Services also spoke on the occasion.

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