“Demand for power has been growing. There are multiple sources of supply and the average cost has also fallen compared to recent years,” said Akshaya Kumar, Chairman of the Tamil Nadu Electricity Regulatory Commission (TNERC).
Kumar expressed concern over investments in the power sector drastically coming down, even while demand has been growing. “With improved standards of living, per capita consumption is bound to expand. But we do not see rapid growth on the supply side.
“A silver lining is the focus on renewable energy. There have been attractive additions to the wind and solar energy capacity. But supplies from renewable energy sources are intermittent. It is essential to augment capacities through base load stations,” said Kumar.
While expressing satisfaction over the significant addition to nuclear power capacity in the state, the TNERC Chairman said the capital cost of nuclear power stations is much higher. On safety
considerations, there is also the need for frequent shutdowns to attend to problems.
Kumar welcomed the prospects for getting natural gas from the Indian Oil gas terminal at the Ennore Port. “A gas turbine is more efficient than the thermal power plants. It can be erected quick and at a lower cost. The gas-based plant will also provide the flexibility of switching on and off to tackle peak loads. But there are, as such, not many proposals to set up a gas-based power unit in Tamil Nadu,” said Kumar.
The TNERC Chairman said the infrastructure at Basin Bridge that has a 120 MW capacity based on naphtha and kept as a unit to meet emergency needs of the government and other essential requirements, can be converted into a combined cycle plant based on gas perhaps with higher capacity too.
