CHENNAI: Chennai, one of India’s large cities, consumes almost 13,000 GWh in a year which is 14 per cent of the total power generated and purchased by state power utility Tangedco, says a draft City Climate Action Plan of the Chennai Corporation accessed by TNIE.
The humongous power consumption in turn contributes to 61% of overall emissions in the city. This is expected to increase further due to rapid economic growth and the replacement of conventional vehicles by electrical ones in the city, the report said.
While the issue raises the need to embrace renewable energy sources to tackle the problem of carbon dioxide emission and rising temperature, the transition to 100% renewable power sources poses significant challenges.
To meet the current level of power demand, Tamil Nadu would require an electricity storage system with a peak output of 17,000 MW. The state’s pumped energy storage capacity, however, is only 400 MW, says the report prepared in consultation with stakeholders such as Tangedco, Teda (Tamil Nadu Energy Development Agency), and Indian Oil Corporation.
TN needs to increase investment in renewable energy, says report
The most significant challenge in achieving this transition is the need to maintain sufficient storage systems to address daily variations in solar and wind power. Solar power production is highest during midday when electricity demand is typically low, while electricity demands peak at night when solar energy production is near zero. Grid instability due to demand and supply mismatches can result in load shedding or even complete blackouts.
For Tamil Nadu, this implies a significant need for long-duration energy storage systems. The climate change report also underscores the need for the state to increase its investments in renewable energy and energy-efficient systems and built environments. Chennai must strongly advocate an increase in renewable energy and energy-efficient buildings.
Under the Tamil Nadu Climate Change Mission, the state has already pledged not to commission any new coal power plants apart from those that are already in the pipeline. Another significant challenge is the implementation of the Tamil Nadu Solar Energy Policy, 2019 which had declared a target of achieving 3,600 MW of solar energy in the consumer category by 2023. As of 2022, only about 325 MW or 9.03 per cent of the target has been achieved.
The poor feed-in tariff for net-billed and gross-metered consumer solar connections is largely responsible for this yawning gap. The current feed-in tariff for solar rooftop plants is between `3.6 and `3.1/unit, while the average domestic and commercial power tariff is around `6.6/unit (as of June 2022). Bi-directional net metering is not available for most consumers with solar installations, resulting in an extremely low internal rate of return (IRR) for solar rooftop projects.
As a result, citizens do not view this as an advantageous initiative. The issue has been highlighted by several public and private organisations, including IOC and the Greater Chennai Corporation. The report recommends that the state revise the net-metering policy and offer attractive rates to encourage more citizens to invest in rooftop solar power.