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New Models of Power Transmission and Distribution on The Anvil

  • Reforms to be implemented in progressive manner

  • The State government will implement reforms in the power sector in a progressive manner so that benefits of competition and innovation are delivered to consumers by way of reliable supply at the most economic price and commercial terms, according to the Vision Tamil Nadu 2023.

  • This would call for new models of electricity transmission and distribution, which had been successfully implemented in several countries, stated the document that was released by Chief Minister Jayalalithaa on Thursday.

  • Envisaging the capacity addition of 20,000 megawatt (MW) in 10 years, the document stated that five power generation projects (under Case 2 bidding as per norms of the Union Power Ministry) were estimated to bring in the new capacity.

  • At least 5,000 MW would come up by 2017 to make good the shortage of peak power and energy shortage that Tamil Nadu was facing now.

  • The total investment in the energy sector was estimated at Rs. 4,50,000 crore.

  • New power generation capacity dedicated for Tamil Nadu, located within the state or elsewhere, would account for a bulk of the investments at Rs. 2,80,000 crore.

  • HIGH CAPACITY CORRIDORS

  • Among facets of the strategy for energy were two port-based Ultra Mega Power Projects of 4,000 MW each; selective thrust to green power by maximising investments in wind power and solar energy to create generation capacity of 5,000 MW each and significant investment required in the transmission sector to create evacuation capacity for the higher power generation capacity with adequate buffers.

  • Projects on select high capacity transmission corridors would be taken up on PPP (public-private partnership) basis to establish the necessary evacuation infrastructure.

  • LNG TERMINALS

  • The other aspects included the establishment of two greenfield liquefied natural gas terminals with a capacity of 5 million tonne per annum each; city gas pipeline infrastructure in about 10 towns and a smart grid system that would enable lowering the cost of energy to consumers, spark innovation in energy management at all levels in the energy chain across the economy and improve the reliability and security of the electricity grid.

  • The three components – LNG terminals, gas grid and smart grid – would require Rs. 20,000 crore each.

Source