With the Tamil Nadu authorities set to enhance its renewable focus as its thermal crops get phased out one by one as they flip 25 years old, a examine signifies that retiring 4 coal-based energy crops with a mixed capability of three,990 mega watt (Mw) and repurposing them for clean energy and grid stability companies can ship Rs 4,000 crore to the state in advantages. At the identical time, it might deliver stability to the state’s electrical energy system.
The examine by analysis organisation Climate Risk Horizons has quantified the prices and advantages related to retiring 3,990 Mw of old coal plants– Tuticorin I, II & III (1,050 Mw), Mettur I & II (840 Mw), North Chennai Stage-I (630 Mw) and NLC-II Stage-I (1,470 Mw).
The 4 old coal crops are approaching or have gone previous the 25-year-old life after which they’ve to mandatorily be retired. They even have excessive per-unit working prices and are depending on prolonged coal provide chains which are susceptible to disruption, as seen by the latest energy disaster precipitated by low coal shares due to provide and evacuation points. Previous analysis had proven that retiring these crops and changing their deliberate technology with cheaper, new, renewable energy would save the Tamil Nadu Generation and Distribution Corporation (Tangedco) Rs 35,000 crore by method of decrease electrical energy prices.
The evaluation seemed on the particular particulars of the crops in query and detailed the decommissioning prices and monetary advantages that might accrue from repurposing the prevailing land and electrical infrastructure for a mixture of photo voltaic PV, battery storage and grid stabilisation companies.
“Our study suggests that the financial benefits of repurposing these coal plants would be 2-3 times the costs of decommissioning, and would, in almost all cases, more than cover the cost of new capital expenditure required for solar, batteries and synchronous condensers,” stated Gireesh Shrimali, head of transition finance analysis, Oxford Sustainable Finance Group, who’s lead creator of the report.
Total decommissioning prices for the 4 crops assessed was about Rs 1,300 crore, whereas the one-time advantages from repurposing for photo voltaic PV with battery storage can be Rs 2,400 crore. The evaluation additionally discovered that whereas repurposing coal plant for photo voltaic PV and battery storage, if the old energy plant turbogenerator can be repurposed to function a synchronous condenser, the advantages are much more important at almost Rs 4,000 crore.
Utilising the pre-existing land and grid connection services would end in a considerably decreased value for the facility generated. This would deliver the Levelised Cost of Energy down to Rs 1.42 and Rs 2.33 per unit respectively for photo voltaic PV and PV with battery storage, offering Tangedco with an inexpensive supply of versatile energy. Repurposing the crops and their related ash ponds for photo voltaic and battery storage would yield capacities of 348 MW of photo voltaic and 36 MW of four-hour battery storage.
“Reducing dependence on expensive and obsolete coal plants is essential for Tamil Nadu’s energy and financial security. With growing air and water pollution from coal plants, as well as the severe climate change impacts that Tamil Nadu is facing, the state needs to look at long-term solutions,” stated G Sundarrajan of Poovulagin Nanbargal, a Chennai-based NGO.
“As the state grapplrepurposing its expensive coal plants must be part of the discussion. Tamil Nadu has the opportunity to improve its financial and environmental health while also starting the journey to decarbonise its electricity sector,” stated Ashish Fernandes, chief govt officer of Climate Risk Horizons.