The Hindu : Tamil Nadu / Chennai News : TNEB’s cost of coal import from Indonesia goes up

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Thursday, Jul 17, 2008
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Tamil Nadu

Tamil Nadu - Chennai

TNEB’s cost of coal import from Indonesia goes up

Special Correspondent

Surcharge for promoting solar energy will be viewed as an increase in power tariff, says TNEB member

— Photo: K. V. Srinivasan

DEBATE ON TARIFF: (From left) Mohan Verghese Chunkath, Chairman and Managing Director, Tamil Nadu Energy Development Agency; R. Rajupandi, Member, Tamil Nadu Electricity Regulatory Commission; S. Kabilan, Chairman of the Commission; B. Jeyaraman, Member; and S. Machendranathan, Chairman, TNEB, at a conference in Chennai on Wednesday .

CHENNAI: The cost of coal imported by the Tamil Nadu Electricity Board from Indonesia has risen to $130 a tonne from $50 in the past three years, according to TNEB Member (Accounts) S. Kathiresan.

The Board imports 15 lakh tonnes a year through the MMTC to meet the shortfall in requirements.

Addressing a conference of stakeholders organised by the Tamil Nadu Electricity Regulatory Commission (TNERC) on Wednesday to discuss issues related to the tariff for renewable sources of energy, Mr. Kathiresan said that in wake of the rising prices of the fuel, the need for tapping renewable sources, especially solar, had become relevant.

As for the ceiling on solar power purchase, he said the overall cost of generation was Rs. 4.25 per unit. The Board would not face any hardship if the tariff for the purchase was fixed in such a way that the overall cost did not go beyond Rs. 4.26 per unit.

As for the idea of levying a surcharge for promoting solar energy, Mr. Kathiresan said consumers would view such a move as an increase in the general power tariff.

The Board has estimated that this year, 68,685 million units of energy will be fed into the system. Of this, 41 per cent will come from the Board’s plants, and it will buy the rest from others.

Asked to clarify on the tariff norms of the Union Ministry of New and Renewable Energy, T.C. Tripathi, Adviser of the Ministry, said Rs. 15 per unit fixed by the Union Government as the cost of production was notional. This was meant to mark the launch of the Ministry’s scheme of generation-based incentive.

The scheme attracted an overwhelming response, as proposals for setting up of 2,000-MW solar plants had been received. But, Dr. Tripathi hastened to add that it remained to be seen how many of them would come through. Till now, the Ministry had cleared only one project to be implemented in West Bengal with a 2-MW capacity.

TNERC chairman, S. Kabilan, who presided over the conference, called for a thorough analysis of issues such as the cap on the Board’s purchase of solar power and the consumers’ capacity to absorb the burden.

Debashish Majumdar, Chairman and Managing Director, Indian Renewable Energy Development Agency, called for attractive tariffs.

Mohan Verghese Chunkath, Chairman and Managing Director, Tamil Nadu Energy Development Agency (TEDA), said the Ministry’s scheme had several limitations.

As for the time-limit of 10 years for provision of incentive, he said solar photovoltaic projects had a time horizon of 20-25 years, whereas solar thermal projects had a longer period. The tariff policy should ensure predictable revenue for 20 years.

T.B. Chikkoba, former Member (Generation) of the Board, suggested that as in the case of wind energy, the Board install demonstration solar plants with the help of the TEDA and the Union Ministry.

Solar energy should be promoted through the use of solar lanterns and mini and rooftop solar plants that can be installed in residential and commercial complexes.

K.E. Raghunathan, chairman and managing director of Eco-solar Technologies, which has proposed to establish a 5 MW photovoltaic project in Madurai at a cost of Rs. 120 crore, said the Ministry’s scheme might act as a stimulus, but it would not help in the large-scale use of solar energy.

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