The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) plans to set up a 4,000 MW solar power park with 2,000 MW of battery storage systems to meet the growing demand for power in Tamil Nadu. TANGEDCO is expected to develop a 1 MW solar power plant with a 3 MW battery storage systems at the Kariyapatti substation in Virudhunagar district as a demonstration.
Further, 500 MW pumped storage hydel power plants would be installed in Kanniyakumari and Theni districts. Meanwhile, a feasibility study would be conducted to develop 11 such projects totalling 7,500 MW capacity in different districts of Tamil Nadu. In addition, the government has budgeted Rs 12.7 billion for the installation of smart metres in transformers to measure line losses, as well as plans to install smart metres for consumers. Also, steps will be taken to sign medium-term contracts for the purchase of 1,500 MW of power at Rs 3.26 per kWh, as well as short-term power purchase agreements with generators.
Further, TANGEDCO is planning to set up 20,000 MW solar power projects with battery storage, 3,000 MW of pumped storage hydro power project, and 2,000 MW of gas-based power plants in the next ten years. These projects may require a loan of Rs 1,325 billion. To this end, TANGEDCO has signed a memorandum of understanding with the Indian Renewable Energy Development Agency (IREDA).