9.

ENERGY
The envisaged growth of 9 per cent in the National economy during the Eleventh
Plan period could be achieved only with a commensurate increase in the availability and
access to energy. Meeting the challenges of energy access and ensuring lifeline supply of
clean energy are essential for empowerment of individuals. For two-thirds of Indian
population, non-commercial fuel such as fire wood, crop residues etc. still remains as the
primary energy sources of households. The shortages in peak power and energy indicate
the magnitude of the problem.
Power Sector : State Profile:
Power sector in the State had a moderate growth and managed to meet the
challenges in terms of power demand during 2008-09. The installed power generating
capacity of the State was broad based by an addition of 92 MW capacity at Valuthur Gas
turbine Project. The gross energy availability of the State had a marginal increase of 118
mu. or by 0.2 per cent in 2008-09 against 3285 mu in 2007-08. Against these limitations,
the States peak demand for power rose to 9459 MW in 2008-09 from 8969 MW in 200708. The consumers demand for power was restricted and the State went to the extent of
introducing power cuts to manage the situation in summer months. The sale of power in
the State was 53506 mu in the review year, an increase of 1.28 per cent only. The per
capita consumption of power was also contained at 1000 units / kwh for the year 2008-09.
Table 1 : State Power Scenario : Recent Trend
Sl.
Details
No.
1. Installed
capacity
2. Generation
3. Gross Power
Availability
4. Total sales
within the State
5. Per Capita
Consumption
6. Peak demand

Unit
MW

200405
9531

200506
10031

200607
10098

200708
10122

200809
10214

AAGR
(%)
1.9

MU
MU

26450
52345

26915
56726

29481
63563

29241
66848

28983
66966

3.9
6.3

MU

40848

43582

49263

52831

53506

6.9

Kwh

815

860

960

1000

1000

5.2

MW

7473

8209

8803

8969

9459

5.6

Source: TNEB, Chennai.

During the five year period, from 2004-05 to 2008-09, the States installed
capacity had increased at an annual rate of 1.9 per cent against that of per capita
consumption at 5.2 per cent. The peak demand for power rose at an annual rate of 5.6 per
cent while that of gross availability and total sale at 6.3 and 6.9 per cent respectively.
The State was able to over rule the supply constraints and tried to maintain the
power cut free status, since 1992. The performance of the sector during the review year
2008-09 is narrated in the following sections, with the aid of certain crucial indicators in a
detailed manner.

129

Installed Capacity:
The installed capacity of the
State at 10122 MW in 2007-08 rose to
10214 MW in 2008-09. An additional
capacity of 92 MW was created at the
gas turbines of the States own projects.
The capacity additions from the Central
Sector Projects and that of Independent
Projects and external assistance were nil
for the review year 2008-09. Limited
additions from all the sources made the
State sector to suffer a little at the
backdrop of increasing demand for
energy.

Installed Capacity (MW)

6000
5000
4000
3000
2000
1000
0
State's
Ow n

Central
Sector

2006-07

IPPs

Captive
Pow er

2007-08

2008-09

Table-2: Installed Capacity : At the Command of TNEB

(MW)
Sl.No.
Details
2006-07
2007-08
2008-09
1.
States own
5597.385
5598.085
5690.085
2.
Central Sector
2837.000
2825
2825
3.
Independent Power
1154.160
1179.76
1179.76
Projects
4.
Others
174.350
214.65
214.65
5.
External Assistance
335
305
305
6.
Installed capacity at the 10097.895
10122.495
10214.495
command of TNEB
Gross Power Availability:

130

66966

37984

28983

66848

37607

29241

63563

34082

29481

The
States
gross
Gross Power Availability (MU)
availability of power during the
70000
year 2008-09 was 66966 MU;
60000
increased by 0.2 per cent from
50000
66848 MUrealized during 200708. The States own generation
40000
and purchases from various
30000
sources were in the ratio of 43:57
20000
in 2008-09. The output from the
States hydel, thermal and wind
10000
were reduced considerably. But
0
2006-07
2007-08
2008-09
for the additional units generated
by the gas turbines of the State,
Generation
Purchases
Gross Availability
overall generation from the
States own sources would have been witnessed an unprecedented fall. The energy
sectors receipt from the power purchases from the Central Sector Projects was also not to
be highly appreciated. The purchases at 37607 MUduring 2007-08, had moved up to
37984 MU, by 1.0 per cent.

Table-3: Gross Energy Availability : Source-wise

(MU)
Sl.No.

2007-08

I.
1.
2.
3.
4.
II.
1.

Power Generation
29241
Hydro
6455
Thermal
21355
Wind mill
12
Gas
1419
Power Purchases
37607
Neyveli Thermal
7583
(I & II Expansion)
2.
Madras Atomic Power
1064
3.
National Thermal Power
5003
Corporation,
Ramagundam
4.
Madras Refineries,
23957
Manali & Others
5.
Gross Power
66848
Availability
Source: Statistics at a Glance, 2008-09, TNEB- 2.

% change
over previous
year

2008-09

% change
over to
previous
year
(-)0.9
(-)16.6
(-)1.6

(-)0.8
2.6
0.6
(-)27.0
10.3
5.4

28983
5386
21022
10
2565
37984
6888

(-)36.8
2.4

903
5160

(-)15.1
3.1

17.9

25033

4.5

5.2

66966

0.2

80.8
1.0
(-)9.2

Net Power Availability:

From the gross availability of power, a small proportion of energy went as
auxiliary consumption, Kadampari pumping and sales to other States. Due to States
efforts like periodic overhauling and other maintenances, the auxiliary consumption of the
power plants are kept at a minimal level. The net power availability to be distributed to
various categories of consumers in the State, is arrived after deducting the `line losses
during transmission. The quantum of power thus available in the State, for the year 200809 was 53506 MU A marginal increase of 1.3 per cent witnessed in 2008-09 made the
net power availability of the State to increase from 52832 MU in 2007-08 to 53506 MU
in 2008-09.
Table 4 : Coal Received and Power Generation Tamil Nadu
Coal Received
Power Generation
Thermal
(million tonnes)
(million units)
Power
Stations
2007-08
2008-09
2007-08
2008-09
Tuticorin
6.11 (-3.3)
5.88 (-0.8)
7974
7850
Ennore
1.93 (-28.5)
1.85 (-32.0)
2032
1938
Mettur
4.15 (19.4)
4.50 (-2.4)
6692
6459
North
2.95 (-26.4)
3.31 (-1.8)
4657
4775
Chennai
(Proportion of supply against linkages given is shown in brackets)
Source: Statistics at a Glance, 2008-09, TNEB.

The decline in power generation is mainly due to the resource crunch in the State.
The unseasonal and enormous rainfall had caused overflow in many of the reservoirs and
subsequently reduced the hydel generation. The flooding occurred in the coal pits had
hindered the coal harvesting and pulled down the thermal generation consequently.
131

Box - 1
Ultra Mega Power Projects:
Under the coal based Ultra Mega Power Projects (UMPPs), each with a
capacity of 4000 MW, nine sites were identified: one each in Chhattisgarh,
Jharkhand, Madhya Pradesh, Orissa, Andhra Pradesh, Gujarat, Karnataka,
Maharashtra and Tamil Nadu. Development work is being undertaken in Mundra
Project awarded to Tata Power Company and the Susan and Krishnapatnam
UMPPs awarded to the Reliance Power Ltd.
National Hydel Policy, 2008:
The dispensation for project development allowed for PSUs would be
available to private sector also, under the new hydel project, for a period of five
years. The affected families are expected to get a better relief and rehabilitation
package. For the developer, the risks associated with construction, operation and
maintenance would be reduced and early financial closure would be facilitated.
The concept of merchant sale of power is part of the new `Hydel Policy,
2008. To enable the project developer to recover costs incurred in obtaining the
project site, he is allowed for a special incentive by merchant sales upto a
maximum of 40 per cent of the saleable energy. In case of thermal plant, merchant
sale upto 15 per cent can be allowed.
Source: Economic Survey, 2008-09.

Consumption of Power:
The State grid connects various power projects with the consumers through a well
knitted network of transformers and power lines. As at the end of 2009, a total number of
1259 sub-stations with the Power Transformer capacity of 46096 MVA are functioning.
The network is knitted through a length of 1.64 lakh kms. of HT lines and 5.26 lakh kms.
of LT lines. Number of consumers served under this system is on the increase every year.
By the end of 2008-09, the number stood at the level of 203.87 lakhs. On an average,
about 5-6 per cent increase was seen in the aggregate consumers each year. Of the 203.87
lakh consumers, a small proportion (0.03%) comes under HT supply categories and the
rest remains as LT consumers. Among the Low Tension Consumers, Domestic
consumers account for 67.0 per cent followed by commercial (12.2%), agricultural
(9.2%), hut (6.1%) and industries (2.4%) sectors.
Pattern of Consumption:
The quantum of power sold within the State for the year had a smaller increase of
1.3 per cent in 2008-09; from 52832 mu in 2007-08 (pre) to 53506 mu. in 2008-09 (RE).
Domestic consumers along with agricultural and industrial (LT) category of consumers
take away about 85 per cent of the total consumption is the regular feature. However a
shift in the pattern of consumption of power could be visible.

132

Table-5 : Pattern of Power Consumption

Sl. No.
1.
2.
3.
4.
5.

Sector
Domestic
Commercial
Agriculture
Industry
Others
Total Sales (mu)

1998-99
19.0
5.6
27.1
37.7
10.6
16117

(% Share)
2003-04
2008-09
25.1
24.9
9.0
9.5
24.8
19.7
34.9
39.3
6.2
6.7
100.0
53506

Source: Statistics at a Glance 2007-08 TNEB, Chennai 600 002.

The consumption pattern of the various consumers in three points of time, as

depicted above indicate the following facts:
-

The proportion of domestic consumption in the total energy consumption is on the

increase. The peak level of 25.1 per cent reached during 2003-04, had slightly
subsidized to 24.9 per cent in 2008-09 (RE).
Increasing consumption of power by this sector indicates improved living standard
of the people in the State. Free supply of power to the hut dwellers is cited to be
the reason for this spurt in consumption.
The industrial sectors regaining the share of power consumption from 34.9 per
cent in 2003-04 to 39.3 per cent in 2008-09 (RE) is appreciable.
The agricultural sector which enjoyed the free power supply crabbed the industrial
share during 2000-01. Pumping of ground water from the deep wells at free of
cost increased the consumption of power in a larger scale. More or less sufficient
rainfall and improvement in ground water table had subsidized the power
consumption of the farming communities. Since 2000-01, a gradual reduction in
the share was seen. The share of this segment at 19.7 per cent in 2008-09 from
24.8 per cent in 2007-08 is to be highlighted.
The commercial sectors consumption from 5.6 per cent in 1998-99 to 9.0 per cent
in 2003-04 and further to 9.5 per cent in 2008-09, indicates the influence of
advertisement industry.
The industrial sector which shared about 42 per cent of the total energy.

Energy consumption pattern at the national level also shows a more or less similar
pattern. Industrial sectors consumption which saw a drastic reduction from 44.2 per cent
during 1990-91 to 34.0 per cent in 2000-01, had gained its share upto 37.7 per cent in
2007-08. Agricultural sector gathered the shedding of the industrial sector and maintained
its share at around 27.0 per cent in these two periods. In 2007-08, agricultural sector
contained its power consumption at 20.8 per cent. Against these two sectors
consumption, the domestic and commercial sectors had witnessed a sustained increase:
from 16.8 per cent to 24.1 per cent and 5.9 per cent to 9.3 per cent respectively during
1990-91 and 2007-08.
Power Demand and Supply : Month-wise:
Monthly power requirement and availability status of Tamil Nadu during 2008-09
is studied to identify the more power demanding month. In 2008-09, against the rate of
power requirement at 1.7 per cent, the availability had a lower rate of 0.8 per cent.
Summer months between April and June had an average increase of 4.6 per cent in
133

demand. Against this, the availability had an increase of 1.5 per cent. Power deficit at
3.31 per cent in May 2008 increased gradually to reach 13.14 per cent in October 2008.
Likewise, the highest peak demand of 8894 MU was met during September 2008.
Extended summer in the State had caused higher power demand.
Table 6: Power Requirement and Peak Demand : 2008-09
2008-09

Power
requirement
(MW)
April
5756
May
5924
June
6225
July
6407
August
6500
September
5970
October
5959
November
5088
December
4943
January
5357
February
5241
March
6350

Availability
(MW)
5513
5728
5980
5901
5840
5339
5176
4600
4560
4973
4805
5844

Surplus /
Deficit
(%)
(-)4.22
(-)3.31
(-)3.94
(-)7.90
(-)10.15
(-)10.57
(-)13.14
(-)9.59
(-)7.75
(-)7.17
(-)8.32
(-)7.97

Peak
demand
(mu)
9107
9158
9439
9287
9428
10072
9640
9002
8620
8862
9751
9799

Peak
demand
met (mu)
8677
8969
9211
8870
8740
8894
8498
7742
7779
8327
8595
8737

%
Deficit
(-)4.72
(-)2.06
(-)2.42
(-)4.49
(-)7.30
(-)11.70
(-)11.85
(-)14.00
(-)9.76
(-)6.04
(-)11.86
(-)10.84

Source: Monthly Review of Tamil Nadu Economy, July 2009, Regional Monitoring Service, CMIE.

Box -2
Energy Serving Certificates
Under the Perform, Achieve and Trade (PAT) plan, to be implemented
during early next year, over 700 industrial units across the country spread in
energy intensive industry groups such as steel, cement and petrochemicals
would be given targets for reducing energy consumption in respective areas.
The energy saved through this mode would be sold to the deficiency units.
Amendments to the Energy Conservation Act, 2001 would be made to make
the proposed Energy Saving Certificate a tradable instrument.
This energy tradability concept broadly aims at ensuring energy saving
at a least cost; while the certificates guarantee the achievement energy cut
targets. This scheme has the potential to cut down 5 per cent of the national
energy consumption by 2015.
Source: Business Line, 26.01.20.
Non-Conventional Sources:
A natural resource is a renewable resource if it is replaced by natural processes at
a rate comparable or faster than its rate of consumption by human. Renewable energy is
the energy generated from natural resources such as sunlight, wind, rain, tides and
geothermal heat. About 18 per cent of global energy consumption came from renewable
sources with 15 per cent from hydroelectricity and 3.4 per cent from other renewables.
Wind power, however, is growing at the rate of 30 per cent annually with a world wide
installed capacity of 121,000 MW in 2008. To promote the renewable energy sources in
134

the State, Tamil Nadu Energy Development Agency is the nodal agency of the Ministry
of New and Renewable Energy, GOI was registered under the Societies Registration Act.
This agency identifies and estimates the potential of renewable energy in the State. It
creates awareness and helps to enhance the energy contribution of these sources. The
Installed power generating capacity of these sources in Tamil Nadu rose to 4790 MW by
the end of March 2009 from 4304 in the corresponding period of 2008. This accounts for
37 per cent of the countrys capacity. Of the total capacity of 4790 MW, about 99.6 per
cent came from the private sector. Tamil Nadu as a forerunner in producing electricity
from renewable sources of energy such as wind, biomass, solar and waste materials,
generate and feeds into the grid and supplementing the conventional power.
I. Grid Interactive Power Generation:
1.1.Wind Power:
Wind power is the conversion of wind energy into a useful form of energy such as
using wind turbines to make electricity. To the total States installed capacity of
renewable sources, wind power accounts for about 90 per cent (4287 MW) as on
31.3.2009. Tamil Nadu endowed with three lengthy mountain ranges on the western side,
has the potential of 5500 MW capacity : 1650 MW in Palghat pass, 1300 MW in
Shengottai pass, 2100 MW in Aralvoimozhi pass and 450 MW in other areas. So far, in
26 sites wind farms were set up under the fold of private sector. Upto 2008-09, the wind
power has an overall capacity of 3430 MW and generated a cumulative quantum of 26742
mu as on 31.3.2008. Wind mills are also being used directly for pumping water for
drinking and irrigation purpose.
1.2.Biomass Power:
Bio-mass produced by green plants through photo synthesis using sunlight,
contains organic matter which could be converted to energy. Estimated power generation
potential from surplus biomass in Tamil Nadu is 487 MW as per the District level study
carried out by Anna University. Besides this, another 450 MW is available from bagasse
based co-generation in sugar mills. Energy from these sources is produced either by
gasification or by combustion route. These power projects are eligible for a package of
incentives provided by Government of India. This package comprises of fiscal
concessions such as accelerated depreciation, concessional customs duty, excise duty
exemption, income tax exemption on projects for 10 years etc.
1.3.Power Generation from Urban and Industrial Wastes:
Solid wastes from civic activities and liquid wastes generated out of industrial
activities are processed to produce energy. These waste products are treated either by
biomethanation or by combustion. There are three projects with a total capacity of 4.25
MW are in operation, this includes 250 KW capacity functioning in Koyambedu
vegetable complex.
1.4.Solar Power:
For the promotion of solar energy, Ministry of New and Renewable Energy has
framed policy guidelines in January 2008. The incentives offered to this generation were

135

turned to generation based. A maximum amount of Rs.12.00 per Kwh is given as

incentive for electricity generated from solar photovoltaic and Rs.10.00 per Kwh to that
of solar thermal is being offered. All the registered, existed companies can avail this
incentive.
II. Stand alone Renewable Energy Systems:
Renewable energy from the non-conventional sources has the advantage of being
generated and distributed wherever needed. In other words, it does not need any
centralized generation system in the grid and lengthy transmission lines. A number of
systems are available for energy needs.
1. Solar thermal system which utilize the heat energy from the sun and use the same
for heating water / air. Solar water heating systems, solar air heating system /
dryer and solar cookers are some examples.
2. Solar cooker is a device that uses the heat energy of the sun to cook food.
3. Solar photovoltaic systems convert the solar photovoltaic (SPV) cells / modules
into electricity.
4. Solar Lighting Systems are used for electrification of 150 remote habitations
which might not be electrified through the grid, under the Government of Indias
Remote Village Electrification Phase I programme.
5. Biomass Gasifiers are used for conversion of solid bio-mass such as wood, wood
waste, agricultural residues etc. into a combustible gas mixture called producer
gas.
6. Biogas is a flammable gas used as fuel. The gas produced from cattle dung, agro
waste, kitchen waste, sugarcane, press mud and human waste, is a clean and
convenient fuel for cooking and lighting in households. MNRE has sanctioned
two projects of 10 kw and 5 kw capacity each to be installed in Coimbatore and
Salem districts respectively. Power generation from these projects are to be
utilized for electrification of tribal areas. The State Government provides subsidy
at 30 per cent installation cost of toilet linked bio-gas plants in institutions and
women sanitary complexes in panchayats. During 2003-04 and 2004-05, totally
19 such projects were established in institutions and 39 nos. in Panchayats through
Director of Rural Development and Panchayat Raj.
Estimated Reserves and Conservation:
Energy Statistics released for the year 2008 by Government of India, has
estimated the energy potential of various States in India. The following table brings out
the fact that Tamil Nadu has 7.7 per cent of the non- conventional sources potential and
10.0 per cent of the overall resources.

136

Table-7 State-wise Estimated Reserves of Energy Sources: 2008-09

Sl.
No

States

Wind
power

Small
hydro

Cogenera
tion

Indust
rial
waste

Andra
8968
552
200
187
Pradesh
2
Assam
0
213
5
11
3
Bihar
0
213
200
117
4
Chhatisgarh
0
706
0
39
5
Gujarat
10645
196
200
172
6
Haryana
0
110
0
32
7
Karnataka
11531
643
300
219
8
Kerala
1179
708
10
56
9
Madhya
1019
400
25
119
Pradesh
10 Mahatrastra
4584
762
1000
438
11 Orissa
255
295
25
33
12 Punjab
0
390
150
68
13 Rajasthan
4598
63
10
93
14 Tamil Nadu
5530
499
350
240
15 Uttarpradesh
0
292
1000
270
16 Uttaranchal
0
1609
0
7
17 West Bengal
0
393
10
221
Total
48561
14291
19500
3836
*-Total will not tally Source: Energy Statistics,2008,GOI.

(Million Tonnes)
Crude Natur % age
Oil
al Oil
Share
(Billio
to
n
Total
Cubic
Meter
s)
4.37
40.33
50.2

Coal

Lignite

186697

376
160
44134
0
0
0
0
20560

0
0
0
2662
0
0
10
0

173.12
0
0
135.37
0
0
0
0

112.34
0
0
73.74
0
0
0
0

9818
65264
0
0
1062
0
0
0
264536

0
0
0
4485
31327
0
0
1
38929

0
0
0
0
0
0
7.98
0
770.12

0
4.2
0
16.8
0
0.2
0
2.4
0
10.0
29.77
0.4
0
0.4
0
0.2
1089.97 100.0*

0.2
0.2
11.5
3.6
0
3.2
0.5
5.7

The number of consumers and their energy requirements are increasing year after
year, but the availability and the estimated potential of the State and Nation are limited.
The Government is managing to supply the requirements. However, it is the sole
responsibility of the individuals to save the stock and at this stage the Energy
Conservation concert arises.
Energy Conservation:
The Energy Conservation Act, 2001 was enacted during the X Plan period and
subsequently the Bureau of Energy Efficiency (BEE) was set up at the national level. The
Integrated Energy Policy (IEP) laid out by the Union Planning Commission proposed for
energy security to all citizens. It also emphasizes energy efficiency and demand side
management as essential components of energy strategy. The Eleventh Plan aimed for
energy conservations strategy designed to create and strengthen the Institutions at the
Centre and State to carry out the Provisions of the Act 2001. Accordingly, BEE will be
strengthened at the nodal national organization which would be empowered to provide
direction to the energy conservation programmes in the State. Various targeted sectors
were spelt out for focusing energy conservation programmes. Those sectors were 15
energy Intensive Industries like aluminium, cement, iron and steel, textiles,2 5 small
medium enterprises, commercial buildings and establishments, residential / domestic
sector, street light & municipal water pumping, agriculture sector and transport sector.

137