CHENNAI: It has been two years since the state government announced its ambitious plan to install solar power parks across the state. But, the project has not taken off yet due to the unavailability of land and insufficient funds.
In September 2021, the then electricity minister, V Senthil Balaji, announced in the Assembly that solar power plants would generate a total of 6,000 MW to cut carbon emissions. The government planned to kickstart the project in Tiruvarur, Karur, Salem, Erode, Chengalpattu and Kancheepuram.
A senior Tangedco official privy to the project told TNIE, "In these districts, we were able to find only 4,000 acres of land. We need at least 10,000 acres to install solar panels with a combined capacity of 2,000 MW."
The project was planned under the design, build, own, operate and transfer model. This means it will be done under a private-public partnership. However, given Tangedco's debt of Rs 1.4 lakh crore, investors are reluctant to take on such a massive project, he added.
Another official said, "Recently, a consultant had suggested splitting the state-owned power utility into separate entities for generation, distribution and renewable energy sectors. At present, the government is contemplating merging non-conventional energy sources and the Tamil Nadu Energy Development Agency to form a new renewable energy company. The government can provide capital investment for this purpose," he said.
Once this company is established, obtaining loans will become more feasible, allowing the initiation of renewable energy projects, he added.
S Nagalsamy, former member of TNERC, said, "Given the rising demand for power, it's imperative to expand generation sources. So, the government must prioritise solar projects."