TN to repurpose four coal plants for clean energy, grid stability
COAL & MINING

TN to repurpose four coal plants for clean energy, grid stability

The Tamil Nadu government will soon increase its renewable focus as its coal-based thermal plants get phased out one-by-one as they turn 25 years old.

According to a study, four coal-based thermal power plants of 3,990 MW capacity and repurposing them for clean energy and grid stability can benefit the state by Rs 4,000 crore. It can also stabilise the state’s electricity system.

Climate Risk Horizons has quantified the costs and benefits of retiring 3,990 MW of old coal plants, including Tuticorin I, II and III of 1,050 MW, Mettur I and II of 840 MW, North Chennai Stage-I of 630 MW and NLC-II Stage-I of 1,470 MW.

The four coal power have high per-unit running costs and are dependent on lengthy coal supply chains, prone to disruption, as seen by the recent power crisis caused by low coal stocks.

Oxford Sustainable Finance Group study suggests that the financial benefits of repurposing these coal plants would be 2-3 times the costs of decommissioning and most cases, more than cover the cost of new capital expenditure (capex) required for solar, batteries and synchronous condensers.

Total decommissioning costs for the four plants were about Rs 1,300 crore, and the benefit of repurposing solar PV with battery storage would be Rs 2,400 crore.

Utilising the pre-existing land and grid connection facilities would significantly reduce the cost of the power generated. It would lower the Levelised Cost of Energy to Rs 1.42 and Rs 2.33 per unit for solar PV and PV with battery storage, respectively.

Repurposing the thermal power plants and their associated ash ponds for solar and battery storage would yield 348 MW of solar and 36 MW of four-hour battery storage capacities.

Reducing the state's dependence on expensive and obsolete coal plants is essential for the energy and financial security of the state. With increasing air and water pollution from coal plants and the severe climate change impacts that Tamil Nadu is currently facing, the state requires long-term solutions.

CEO of Climate Risk Horizons, Ashish Fernandes, said that Tamil Nadu has the opportunity to improve its financial and environmental health and also decarbonise its electricity sector.

Image Source

Also read: TN power projects seeks govt's help to develop coal block in Angul

The Tamil Nadu government will soon increase its renewable focus as its coal-based thermal plants get phased out one-by-one as they turn 25 years old. According to a study, four coal-based thermal power plants of 3,990 MW capacity and repurposing them for clean energy and grid stability can benefit the state by Rs 4,000 crore. It can also stabilise the state’s electricity system. Climate Risk Horizons has quantified the costs and benefits of retiring 3,990 MW of old coal plants, including Tuticorin I, II and III of 1,050 MW, Mettur I and II of 840 MW, North Chennai Stage-I of 630 MW and NLC-II Stage-I of 1,470 MW. The four coal power have high per-unit running costs and are dependent on lengthy coal supply chains, prone to disruption, as seen by the recent power crisis caused by low coal stocks. Oxford Sustainable Finance Group study suggests that the financial benefits of repurposing these coal plants would be 2-3 times the costs of decommissioning and most cases, more than cover the cost of new capital expenditure (capex) required for solar, batteries and synchronous condensers. Total decommissioning costs for the four plants were about Rs 1,300 crore, and the benefit of repurposing solar PV with battery storage would be Rs 2,400 crore. Utilising the pre-existing land and grid connection facilities would significantly reduce the cost of the power generated. It would lower the Levelised Cost of Energy to Rs 1.42 and Rs 2.33 per unit for solar PV and PV with battery storage, respectively. Repurposing the thermal power plants and their associated ash ponds for solar and battery storage would yield 348 MW of solar and 36 MW of four-hour battery storage capacities. Reducing the state's dependence on expensive and obsolete coal plants is essential for the energy and financial security of the state. With increasing air and water pollution from coal plants and the severe climate change impacts that Tamil Nadu is currently facing, the state requires long-term solutions. CEO of Climate Risk Horizons, Ashish Fernandes, said that Tamil Nadu has the opportunity to improve its financial and environmental health and also decarbonise its electricity sector. Image Source Also read: TN power projects seeks govt's help to develop coal block in Angul

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?