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JUN 07 2016

Surplus TN allows generators to sell power outside state

  • Economic Times, ET Bureau / Hyderabad
  • Created: Tue 07th JUN 2016

With the power situation improving in the state, the Tamil Nadu government has allowed private power companies to sell electricity to other states by lifting Section 11 of the Electricity Act 2003.

An order to this effect was issued by the government on May 31. The last time the government withdrew the section was in 2014 but within a few months, it re-imposed the section due to shortage. According to the order,there is surplus power to the extent of 300 MW. Along with Kudankulam unit 2, the surplus may increase in the coming months.

In addition to the above, there's some 430MW of standby power from independent power producers as well as 500MW from long term sources. So even if there is a surge in demand up to 1,000MW, Tamil Nadu will be comfortably placed to handle it, said a senior official. ''The power companies, including wind generators, can now sell power to other states or private companies by using the grid and they will have to pay user charges (wheeling charges).

Even if the demand touches 17,500MW we will be able to meet it without any problem as we have many standby sources," he said. Last year some wind power companies went to the court seeking an order to the government to lift the section. ''It is a great decision. Now we will be able to sell power generated to other states which have shortage.

It is only between May and September we generate power but at times TNEB would not evacuate the power and it would go waste,'' said a wind power generator. With a small capacity of 3MW, the generator is hopeful of selling power generated through the power exchange. So far one company has come forward to sell power to other states. TNEB hopes to review the situation in September and take a call on whether to bring back the section.




Tamil Nadu WHEELING Standby Independent Power Producers Grid Wind Electricity Act Wind Power Tamil Nadu State Electricity Board Power Electricity STANDBY Kudankulam Nuclear Power Plant WHEELING

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