Executive Summary:
The Ministry of Power addressed concerns regarding Tamil Nadu's increasing power demand. The government is implementing measures to boost power generation capacity in Tamil Nadu through thermal, nuclear, and renewable energy projects. These initiatives aim to encourage private sector investment in power generation, particularly in renewable energy.
Key Points / Main Content:
Power Generation Capacity Increase:
* Tamil Nadu's installed generation capacity is 43,107 MW.
* 3,440 MW of thermal and 500 MW of pumped storage capacity are scheduled for commissioning in the next three years.
* Tamil Nadu will receive approximately 2,151.8 MW from upcoming nuclear projects.
* An additional 6,000 MW of renewable capacity is planned for commissioning in the next three years.
* Schemes like PMKUSUM, PM Surya Ghar Muft Bijli Yojana, and VGF for Offshore Wind Energy Projects have been launched.
Grid Connectivity and Transmission:
* Tamil Nadu is connected to the National Grid via high-capacity transmission corridors (765 kV and 400 kV EHV AC lines, 800 kV HV DC System).
* Various inter-regional links are under implementation to facilitate power transfer to and from Tamil Nadu.
Private Sector Investment:
* Electricity generation is delicensed under the Electricity Act 2003.
* A Resource Adequacy Plan provides visibility for developers.
* MNRE has issued a bidding trajectory for 50 GW of RE power procurement bids annually from FY 2023-24 to FY 2027-28.
* ISTS charges are waived for interstate sales of solar and wind power for projects commissioned by June 30, 2025, Green Hydrogen Projects till December 2030 and offshore wind projects till December 2032.
* CEA has prepared a transmission plan for integrating over 500 GW of RE capacity by 2030, including evacuation of 8 GW RE in Tamil Nadu.
* 100% FDI is permitted under the automatic route.
* A Project Development Cell has been set up to attract renewable energy investments.
* Solar park and Ultra Mega Solar power project schemes are being implemented.
* A strategy for offshore wind energy projects outlines a 37 GW bidding trajectory by 2030.
* Green Energy Corridor Scheme funds new transmission lines and substations for renewable power evacuation.
* Green Term Ahead Market (GTAM) facilitates renewable energy sales through exchanges.
* A VGF scheme of Rs. 7,453 Cr is approved for 1 GW of offshore wind energy projects, with 500 MW off the coast of Tamil Nadu.
Tamil Nadu Government Initiatives:
* Policies encourage private developers for Pumped Storage Projects and Small Hydel Projects (100 KW to 10 MW).
* Pumped Storage Projects totaling 13,500 MW are planned under Public-Private Partnership.
* Developers have been identified for self-identified Pumped Storage Projects and small Hydro Projects via Expression of Interest.
Impact Analysis:
Power Generation Companies (Public and Private):
* Impact: Increased opportunities to participate in power generation projects in Tamil Nadu, particularly in renewable energy.
* Action Required: Evaluate opportunities, participate in bidding processes, and align with government policies and schemes.
Tamil Nadu DISCOMs:
* Impact: Greater availability of power to meet increasing demand and comply with Resource Adequacy Plan.
* Action Required: Tie up capacity as indicated in Resource Adequacy Plan.
Renewable Energy Implementing Agencies (REIAs):
* Impact: Increased opportunity to issue RE power procurement bids.
* Action Required: Issue bids as per bidding trajectory issued by MNRE.
Investors (Domestic and Foreign):
* Impact: Favorable investment climate with supportive policies and infrastructure development.
* Action Required: Explore investment opportunities, leverage incentives like FDI and VGF, and engage with the Project Development Cell.
Consumers in Tamil Nadu:
* Impact: Improved power supply and reliability due to increased generation capacity and grid connectivity.
* Action Required: None.
Key Entities Referenced
Tamil Nadu: A state in Southern India with increasing power demand and significant renewable energy initiatives.
Thiru D M Kathir Anand: Member of Lok Sabha who raised the question regarding power generation capacity in Tamil Nadu.
Shri Manohar Lal: The Minister of Power who provided the answer to the question in Lok Sabha.
Electricity Act 2003: Indian legislation that delicensed electricity generation, promoting private sector participation.
Ministry of New Renewable Energy (MNRE): Government of India ministry responsible for promoting renewable energy development.
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM): A scheme to support farmers in installing solar pumps and grid-connected solar power plants.
PM Surya Ghar Muft Bijli Yojana: A scheme to provide free electricity through solar rooftop installations.
Viability Gap Funding (VGF) Scheme: Financial support mechanism for offshore wind energy projects to improve their economic viability.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
STARRED QUESTION NO.178
ANSWERED ON 31.07.2025
POWER GENERATION CAPACITY IN TAMIL NADU
*178. THIRU D M KATHIR ANAND:
Will the Minister of POWER
be pleased to state:
(a) whether the Union Government has taken steps to increase the power generation
capacity and load flow through the Southern Grid in Tamil Nadu to match increasing
power demand in the State during the next three years and if so, the details thereof;
(b) the present status of power generation capacity in Tamil Nadu and the expected
increase in its power generation capacity during the next three years; and
(c) whether the Government has taken adequate steps to encourage and
accommodate new private players in power generation especially in Tamil Nadu and if so,
the details thereof?
A N S W E R
THE MINISTER OF POWER
(SHRI MANOHAR LAL)
(a) to (c) : A Statement is laid on the Table of the House.
*******STATEMENT
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) IN RESPECT OF LOK
SABHA STARRED QUESTION NO.178 FOR REPLY ON 31.07.2025 REGARDING
POWER GENERATION CAPACITY IN TAMIL NADU ASKED BY THIRU D M KATHIR
ANAND.
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(a) & (b) : The installed generation capacity in the State of Tamil Nadu is 43,107
MW. The following measures have been taken to increase the power generation
capacity in the State in next three years:
(i) 3,440 MW of thermal capacity and 500 MW of pumped storage
capacity in the state sector are scheduled to be commissioned in the
next three years.
(ii) Tamil Nadu will get share of about 2,151.8 MW from the Nuclear
projects scheduled to be commissioned in the next three years.
(iii) About 6,000 MW of renewable capacity is scheduled to be
commissioned in the state in the next three years.
(iv) Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan
Mahabhiyan (PM-KUSUM), PM Surya Ghar Muft Bijli Yojana, Viability
Gap Funding (VGF) Scheme for Offshore Wind Energy Projects have
been launched.
Tamil Nadu is well connected with the National Grid through high capacity
transmission corridors comprising of 765 kV and 400 kV Extra High Voltage (EHV)
AC lines as well as +/-800 kV High Voltage (HV) DC System which facilitates
smooth transfer of power through Inter State Transmission System (ISTS)
network between Tamil Nadu and other Southern Region States/ National Grid.
Various Inter-Regional links viz. Narendra (SR) – Pune (WR) 765 kV D/c line,
Angul (ER) – Srikakulam (SR) 765 kV 2nd D/c line and Bidar (SR) – Parli (WR) 765kV
D/c line are in different stages of implementation. These Inter-Regional links shall
facilitate in meeting the import requirements of Southern Region including Tamil
Nadu during peak demand season of Southern region. The links will also facilitate
export of surplus power from Southern Region.
(c): As per the Electricity Act 2003, generation of electricity is a delicensed
activity.
…….2.- 2 -
The Government of India has taken several steps to encourage investment
by the private players in the power generation in the country, including Tamil
Nadu, particularly in renewable sector. These, inter-alia, include the following:
(i) Resource Adequacy Plan indicating the capacity to be tied up by DISCOMs has
been prepared for the next ten years. This gives visibility to the generation
developers including private players to set up generation capacity in the
country including Tamil Nadu.
(ii) Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for
issuance of RE power procurement bids of 50 GW/annum by Renewable Energy
Implementing Agencies (REIAs) from FY 2023-24 to FY 2027-28.
(iii) Inter State Transmission System (ISTS) charges have been waived for inter-
state sale of solar and wind power for projects to be commissioned by 30th
June 2025, for Green Hydrogen Projects till December 2030 and for offshore
wind projects till December 2032.
(iv) In order to facilitate the integration of large scale renewable generation
capacity addition in the country, the Transmission plan i.e. "Transmission
System for Integration of over 500 GW RE Capacity by 2030" has been prepared
by CEA. This includes the transmission system for evacuation of 8 GW of RE
(including 5 GW of off shore wind) in Tamil Nadu, out of which, for 1.5 GW RE
capacity, transmission system (ISTS) is already commissioned; for 1 GW
(including 0.5 GW offshore wind) RE capacity, transmission system (ISTS) is
under implementation and transmission system (ISTS) for evacuation of 5.0
GW RE capacity has been identified and would be taken up for implementation
in a phased manner commensurate with the RE capacity addition.
(v) Foreign Direct Investment (FDI) has been permitted up to 100 percent under
the automatic route.
(vi) Project Development Cell for attracting and facilitating investments in
renewable energy sector has been set up in Ministry of New & Renewable
Energy.
(vii) Scheme for setting up of Solar parks and Ultra Mega Solar power projects is
being implemented to provide land and transmission to RE developers for
installation of RE projects at large scale.
(viii) "Strategy for Establishments of Offshore Wind Energy Projects" has been
issued indicating a bidding trajectory of 37 GW by 2030 and various business
models for project development.
…….3.- 3 -
(ix) Laying of new Transmission lines and creating new sub-station capacity has
been funded under the Green Energy Corridor Scheme for evacuation of
renewable power.
(x) Green Term Ahead Market (GTAM) has been launched to facilitate sale of
Renewable Energy through exchanges.
(xi) The government has approved the Viability Gap Funding (VGF) scheme at a
total outlay of Rs. 7,453 Cr for the implementation of Offshore Wind Energy
Projects, for the installation of 1 GW of offshore wind energy projects, out of
which 500 MW is to be installed off the coast of Tamil Nadu.
Further, the Government of Tamil Nadu has taken following steps to
encourage participation of private sector in power generation in the state:
(i) Policies for establishment of Pumped Storage Projects and Small Hydel
Projects (from 100 KW to 10 MW) to encourage participation of private developers
have been issued by the Government of Tamil Nadu.
(ii) Pumped Storage Projects totaling to 13,500 MW have been envisaged in
various locations of Tamil Nadu and are to be established under Public Private
Partnership Mode.
(iii) For development of self-identified Pumped Storage Projects and small Hydro
Projects, developers have been identified by calling Expression of Interest and is
in the process of allotment.
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