Energy Department
Demand No. 14
Policy Note – 2008 - 2009
1. TAMIL NADU ELECTRICITY BOARD
The Tamil Nadu Electricity Board is a statutory body formed on 01.07.1957 under the Electricity Supply Act, 1948 and is continuing under Electricity Act, 2003. The main objective of Tamil Nadu Electricity Board is to perform electricity generation, transmission and distribution functions in an effective manner and to supply quality power to its consumers.
The total generating capacity available to Tamil Nadu Electricity Board as on 29.02.2008 is 10122 Mega Watts. This comprises of 5597 MW of TNEB’s own generating stations, 1154 MW of Private Sector Power Plants, 2861 MW as Share from Central Sector generating stations, External assistance of 335 MW and others (Captive Power Plants) of 175 MW. Apart from this, a total capacity of 3693 MW is available from Wind Mills in the Private Sector, 451.6 MW from Co-generation plants and 104.85 MW from Bio-mass plants.
The maximum peak demand so far reached is 9076 MW (20.02.2008). The growth of energy consumption is expected to be of the order of 9% per annum. Energy consumption during 2007-08 upto February 2008 is 60,518 Million Units (MU) with a maximum daily consumption of 191.283 MU during 2007-08.
As on 29.02.2008 there are 1,193 substations, 1.61 lakh Kms. of Extra High Tension / High Tension (EHT/HT) lines, 5.12 lakh Kms. of Low Tension (LT) lines, 1.80 lakh distribution transformers and 192.15 lakh service connections.
I. CAPACITY ADDITION IN GENERATION:
The TNEB has planned to augment its generating capacity by 7808 MW and correspondingly to expand the transmission and distribution system during the XI Plan period (2007-12).
During 2007-08, in the State Sector, Valuthur Additional Gas Turbine Power Project with a capacity of 95 MW is likely to be commissioned in Ramanathapuram District in March 2008.
Under Central Sector, out of two units of 220 MW capacity each from Kaiga Atomic Power Station, Stage II, the first unit has been put on commercial operation on 06.05.2007 and a share of 54 MW is being availed by TNEB.
During 2008-09, under State Sector, the Periyar Vaigai Barrage Projects phase-1 (2 x 2 MW), 2 (2 x 1.25 MW) and phase-4 (2 x 1.25 MW) totaling 9 MW will be commissioned. Under Central Sector, the second unit of 220 MW capacity from the Kaiga Atomic Power Station, Stage II and the first unit of 1000 MW capacity of Kudankulam Atomic Power Project, Stage I, will be commissioned during 2008-2009. A share of 53 MW and 463 MW respectively will be made available to TNEB from the above two projects.
In the State Sector orders for setting up of 600 MW Plant at North Chennai Thermal Power Station has been placed and another 600 MW is proposed to be added at the same place. At Mettur Thermal Power Station tenders for establishment of 500 MW Plant under EPC basis have been called for and orders are likely to be placed before the end of March 2008. Similarly works for setting up Power Plants of 1000 MW capacity at Tuticorin Thermal Power Station and 500 MW at Ennore Thermal Power Station are at an advanced stage and tenders will be floated soon.
Under Joint Venture route, order for setting up of 2 x 500 MW Power Plant have been placed on EPC basis at North Chennai to be executed by NTECL which is a Joint Venture of TNEB with National Thermal Power Corporation. One more unit of 500 MW is proposed to be added at the same place. The project to set up 1000 MW Plant at Tuticorin by the Joint Venture with Neyveli Lignite Corporation is awaiting clearance from Government of India. Once the clearances are obtained, the Project activities will be commenced. Yet another Joint Venture with M/s.BHEL for setting up 2 x 800 MW Power Plant at Udangudi is planned. The Government of Tamil Nadu has issued orders for permitting the TNEB to enter upon the land earmarked for the project. Detailed Project Report for the Project is under preparation.
The Government have also proposed to add to the Generating capacity in the state by putting up Cogeneration Plants in 15 Co-operative and 2 Public Sector sugar mills in the State. The TNEB will invest nearly Rs.925 crores over the next two year in this project to create an additional capacity of 185 MW.
The Government of Tamil Nadu is encouraging establishment of coastal thermal power plants under Merchant Power Plant route. Letters of facilitation have been issued to ten firms for establishment of power projects under Merchant Power Plant route for total capacity of 17140 MW. Further more than 10 applications for establishment of merchant power plants for another 15000MW are under the active consideration of the Government.
II. POWER SUPPLY POSITION
The generation from the thermal, hydro and gas stations and wind stations of Tamil Nadu Electricity Board for the past five years is furnished below:-
(in million units)
Sl. No. |
Description |
2002-03 |
2003-04 |
2004-05 |
2005-06 |
2006-07 |
2007-08
(upto Feb.08) |
I |
Own generation |
|
|
|
|
|
|
1 |
Thermal Stations (2970 MW) |
21080 |
20430 |
20004 |
18795 |
21228 |
19320 |
2 |
Hydro Stations (2184MW) |
2724 |
2067 |
4426 |
6141 |
6292 |
6135 |
3 |
Gas Stations
(424 MW) |
1107 |
1593 |
2003 |
1964 |
1944 |
1245 |
4 |
Wind stations
(19 MW) |
18 |
24 |
17 |
15 |
17 |
12 |
| |
Total (I) |
24929 |
24114 |
26450 |
26915 |
29481 |
26712 |
II |
Total purchases |
21485 |
25384 |
25895 |
29811 |
33557 |
33806 |
| |
Gross Generation (I+II) |
46414 |
49498 |
52345 |
56726 |
63038 |
60518 |
The performance of Ennore Thermal Power Station has improved after Renovation and Modernization works. The Plant Load Factor which was less than 30% has now been increased to 50% in 2007-08.
The sustained peak demand for the year 2002-03 was 6957 and it has subsequently increased to 7228 MW (2003-04), 7473 MW(2004-05), 8209 MW (2005-06), 8803 MW (2006-07) and during 2007-08 it is 9076 MW. The sustained peak which was increasing by 200 to 300 MW every year has phenomenally increased by 500 to 600 MW for the past two years.
The anticipated demand during 2008-09 will be around 9,500 MW. Average daily consumption is expected to be 180 Million Units
The storage position as on 07.03.2008 excluding Mettur is 1218.67 MU which was 1215.45 MU on the same day last year. The Hydro generation during 2006-07 was 6,292 MU. Against the targeted 4,491 MU from Hydel Stations in 2007-08, 6,135 MU have been generated upto February 2008.
Steps taken to overcome the power shortage
Central Generating Station (CGS) Additional Allocation
The estimated power shortage all over India is about 15%, since there has been slippage in addition to generation capacity throughout India, besides the performance of some nuclear power plants is also poor.
In order to tide over the shortfall, the Hon'ble Chief Minister of Tamil Nadu approached MOP for the additional allocation of power. As a result the Ministry of Power / Govt. of India has allocated 300 MW more from unallocated quantum of Southern Region to TNEB from 26.12.07 for the evening peak hours (i.e. 18:00 Hrs to 22:00 hrs) which was later reduced to 200 MW from 19.01.2008. In addition, TNEB is going ahead with SWAP arrangement for getting power from Punjab, Madhya Pradesh, West Bengal and Jammu & Kashmir which can be returned in July & August. TNEB is purchasing power from other states/traders also.
In this situation, with least inconvenience to the consumers, demand management has been introduced in Tamil Nadu. The peak demand reduction is achieved by demand management measures such as
a) staggering of industrial holidays
b) by using captive sets during peak hours.
III. TRANSMISSION AND DISTRIBUTION IMPROVEMENTS
The outlay for the XI Plan period (2007-12) is Rs.21,159.14 Crores. The proposed Capital Outlay for 2008-09 is Rs.3460.00 Crores. The break up under various heads is as follows:
Rs. in Crores
Sl.No |
Description |
XI Plan Outlay |
Outlay for |
| |
|
(2007-12) |
2008-09 |
1 |
Generation |
12497.67 |
1519.61 |
2 |
Renovation & Modernisation |
551.47 |
66.59 |
3 |
Transmission & Distribution |
7000.00 |
1707.44 |
4 |
Rural Electrification |
500.00 |
163.10 |
5 |
Survey & Investigation |
610.00 |
3.26 |
|
TOTAL |
21159.14 |
3460.00 |
Under Transmission & Distribution network, 75 new substations of various voltage categories and 1400 circuit Kms of EHT lines will be added during 2007-08. During the XI Plan period (2007-2012), it is programmed to establish 300 new substations and erect 4,000 Circuit Kms. of EHT lines.
The Transmission & Distribution loss in TNEB as a whole has been estimated as 18% for the year 2006-07, considering the units generated, units sold and computed agricultural and hut services. TNEB has proposed to undertake measures to reduce the line loss by 1% every year to achieve the target T&D loss of 15% at the end of XI Plan as furnished below:
a) Improvement of HT:LT ratio |
0.5 % |
b) Erection of Substations and EHT link lines |
0.3 % |
c) Installation of LT fixed capacitors, strengthening of distribution lines replacing defective meters, etc. |
0.2% |
1. ACCELERATED POWER DEVELOPMENT AND REFORMS PROGRAMME (APDRP)
Government of India has sanctioned 25 schemes for Rs.968.20 Crores in 2002-03 under APDRP in 10th Plan. The Government of India is financing 50% of the scheme cost sanctioned (25% as loan and 25% as grant) and the balance loan of 50% is tied up with REC. Subsequently Ministry of Power withdrew the consultancy charges and the revised scheme cost was fixed at Rs.929.21 Crores. The scheme is in operation in all 6 Corporations, 5 Electricity Distribution Circles and 14 towns. TNEB has spent nearly Rs.800 Crores under the scheme. The schemes are nearing completion and will be closed in 2007-08.
Government of India is formulating the revised APDRP in XI plan aiming to reduce line loss below 15% in urban area and to ensure energy accounting and auditing through Information Technology. The guidelines for funding under revised APDRP are under preparation by the Ministry of Power/Government of India. The schemes will be posed based on the guidelines.
2. RURAL ELECTRIFICATION CORPORATION ASSISTED SCHEMES
The Rural Electrification Corporation provides loan assistance for line loss reduction schemes over a five year period from 2003-04 onwards. Schemes for line loss reduction have been sanctioned in respect of following Districts:
Sl.No. |
Districts |
Cost of Scheme |
| |
|
(Rs. in Crores) |
1. |
Coimbatore North) |
87.86 |
2. |
Trichy (North) |
138.92 |
3. |
Dindigul |
109.35 |
4. |
Madurai |
75.64 |
| |
Total |
411.77 |
3. POWER FINANCE CORPORATION ASSISTED SCHEMES
The details of schemes sanctioned by Power Finance Corporation (PFC) are furnished below:
Sl. No |
No. of Schemes
sanctioned |
Sanctioned amount
Rs. in Crores |
Works to be taken up |
1. |
21 schemes |
260.94 |
Documents executed and works under progress. |
2. |
16 schemes |
60.20 |
Establishment of 16 Substations |
3. |
50 schemes |
122.05 |
Establishment of 22 Substations & Power Transformer capacity enhancements in 39 Substations |
4. RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY) SCHEMES
RGGVY Scheme (Rajiv Gandhi Grameen Vidyutikaran Yojana) was launched by the Ministry of Power, Government of India with the objective of creating rural electricity infrastructure for electrification of all the rural households by 2012.
Towards achieving total electrification of households in rural areas sanction for schemes in respect of 26 Districts of Tamil Nadu State for an amount of Rs.447.41 Crores in the first phase (out of schemes posed for 29 District) has been obtained from Government of India.
Action is being taken to implement the schemes.
IV. GENERAL
1. POWER SUPPLY TO AGRICULTURE, HANDLOOM & POWERLOOM, HORTICULTURE CROPS, LOCAL BODIES, VILLAGE AND TOWN PANCHAYATS.
1. Target for Agriculture services under normal category (free category) services has been increased from 5,000 to 10,000 Nos.
2. 2.4 Lakhs agricultural consumers coming under Self Financing Scheme are also extended free power supply.
3. Free power supply upto 100 units bi- monthly is given to handloom weavers who are having their own work sheds and are engaged in weaving.
4. Similarly free power upto 500 units bi-monthly is given to the power loom weavers who run their own power looms.
5. The tariff rate for the horticulture crops has been reduced from the existing LT Tariff V to LT Tariff III A.
6. To quicken the process of effecting street light service connections, it has been decided to collect a flat rate of Rs.9500/- per pole from Local Bodies.
7. For Local Bodies, the Belated Payment Surcharge has been reduced from 12% to 6% per annum with effect from 13.03.2007 and the arrears on BPSC have been waived.
8. Similarly, the period of payment of current consumption charges for Local Bodies has been extended from 20 days from the date of demand to 60 days from the date of demand, with effect from 13.03.2007.
9. The tariff rate for Street Lights and water works in Village Panchayats has been reduced from Rs.3.40 per unit to Rs.3.00 per unit. Similarly, the tariff rate for Town Panchayats has been reduced from Rs.3.40 per unit to Rs.3.30 per unit. The Tariff rates for Corporations and Municipalities have been reduced from Rs. 3.50 per unit to Rs. 3.30 per unit. This is made applicable to TWAD and Chennai Metro Water also.
2. FREE ELECTRICITY FOR HUT SERVICES COMING UNDER FREE COLOUR TV SCHEME.
Providing free colour TV sets to poor families in the State was one of the election manifestos of the present Government. As the first phase of implementation, 30,000 families mostly Tribals in the Nilgiris District were chosen by the Government. Under Phase I of this scheme, electricity supply connections were extended to 4,209 families living in inaccessible hill tracts in Nilgiris mountain area, within a record time of 30 days. TNEB has also provided 374 new service connections in Samathuvapurams. In the second phase of free colour TV distribution service connections have been given to 1,14,209 households and in the third phase, 1,464 new household connections have been given. So far free electricity service connection has been provided to 1,20,256 service connections under this scheme.
3. WASTE LAND DEVELOPMENT PROGRAMME OF HON’BLE CHIEF MINISTER
In order to facilitate cultivation of lands being distributed to landless farmers under the Hon’ble Chief Minister’s Waste Land Development Programme for providing 2 acres of land to landless farmers, free electricity is being extended for cluster of lands. Under this scheme, free electricity has been extended to 74 services in 17 districts. Services are effected on top priority as and when applications are received.
4. COMPUTER BASED POWER FAILURE REDRESSAL CENTRES
Computer based power failure redressal centres are functioning in Chennai, Coimbatore, Madurai, Trichy, Erode, Salem and Tiruppur. It has also been programmed to extend this facility to the District Headquarters at Tirunelveli, Nagercoil and Vellore.
5. COMPUTERISATION OF LT BILLING AND COLLECTION – PROJECT "BEST"
For easy payment of electricity bills by the low-tension supply consumers, TNEB is implementing Project BEST (Billing of Energy Services by TNEB) at a cost of Rs.215 crores. The project has become operational in 615 Urban sections. In the balance 1,805 rural sections it will be completed by March 2008. On completion of Project BEST, it is expected that anytime anywhere payment of bills will become feasible.
6. FORMATION OF A TRANSMISSION UTILITY
As already stated, addition in state/Central /Joint Venture to the extent of 7808 MW has been planned during 11th plan. In addition the Government has issued facilitation letter to 10 Merchant Power Plants for creating a capacity of 17140 MW in the next 60 months.
For evacuating the power from the above sources, new transmission lines have to be erected, taking into account the likely surplus capacity to be exported to other regions. Huge investment for establishing the EHT line and substations is required and the cost is expected to be around 25,000 crores. Board is not having adequate funds or capacity to generate the funds to take up these works in addition to investment in new generation schemes and hence avenues to tap the financial institutions have to be explored. If a separate transmission corporation is formed then this will facilitate raising finances from public and financial institutions.
Besides as per the provisions of the Electricity Act, 2003, there should be a separate State Utility for Transmission. Hence it has been proposed to form a separate Transmission Utility under the control of the State Government by carving out the transmission lines and substations of 66 KV level and above from the existing Board. As required by law, this will be a State run Utility and the Government does not intend to privatize the TNEB. This State owned Transmission Corporation will be headed by Chairman, Tamil Nadu Electricity Board and the Chief Engineer (Transmission) will be its Managing Director.
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