High wind power potential, high solar insolation (the solar radiation energy it receives) and shortage of power make Tamil Nadu an ideal destination for investors in the renewable power sector.
The state has supported the harnessing of renewable energy, but policy, infrastructure and legal issues have hobbled the development of solar and wind power in the state. Energy from these sources could have helped the state tide through the power crisis.
The state even tried to promote domestic solar systems but the economics didn't work out. TN attracted interest when it announced its solar policy in October 2012, and investors planned to set up plants with a capacity of more than 800MW in TN, which would have increased the state's generation from non-conventional sources to 3,000 MW by 2015. However, legal problems have dogged large solar plants. For instance, the Appellate Tribunal for Electricity (Aptel) on Tuesday set aside a government order on Solar Purchase Obligation , which mandates that commercial consumers procure 6% of their power from solar plants. The Aptel judgment is likely to hamper solar power projects in the state. The only silver lining is that the Tamil Nadu Electricity Regulatory Commission, which had just one member for months, has got another member. "The appointment of a second member could mean that the order to sign power purchase agreements between Tangedco and solar power companies could be issued in February ," said D Arumugam, director of solar power infrastructure provider Marigold Steel & Power.
The use of solar pumps in agriculture could also help TN. "Around half a million farmers in TN are awaiting power connections. If they used solar pumps, the demand on the grid would reduce considerably," said Pashupathy Gopalan, president (Asia-Pacific ) of solar pump-maker SunEdison.
The state has stumbled with wind power too. TN had an installed wind power capacity of 7,145MW, but most of it is of no use because of a lack of infrastructure to evacuate the power.
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