CHENNAI: Finance Minister Thangam Thennarasu on Tuesday said Tamil Nadu’s power demand is expected to double in the coming years from current levels, prompting the government to draw up plans to generate 100 billion units of renewable green energy as part of a broader push to strengthen the State’s energy infrastructure and accelerate the transition to clean power.
“A new integrated renewable energy policy will be released shortly to enhance renewable energy capacity and provide a comprehensive framework for the sector’s expansion in the State,” he added.
Presenting the 2026-27 interim Budget in the Assembly, the Minister said that preliminary studies had been completed to establish a 1,000 MW pumped storage hydroelectric project in the Vellimalai area of Kanyakumari district.
The project, proposed to be implemented under the public-private partnership model, is estimated to involve an investment of Rs 5,320 crore and is aimed at improving grid stability and enabling better integration of renewable energy into the power system.
To ensure assured round-the-clock availability of green power, the government has finalised tenders for installing battery energy storage systems with a capacity of 1,000 MWh.
The storage facilities are expected to help manage peak demand, improve reliability and support the integration of intermittent renewable sources such as solar and wind power. Around Rs 18,091 crore has been allocated for the Energy Department.
L Santhosh, president of theTamil Nadu Electricity Consumers’ Association, said the Budget placed strong emphasis on strengthening energy infrastructure to meet rising power demand.
The proposed pumped storage project and battery energy storage systems will be crucial for grid stability and round-the-clock green power supply,L Santhosh, president of theTamil Nadu Electricity Consumers’ Association
The association, however, flagged the need for timely execution and effective implementation of the projects to ensure that the targets set out in the Budget translate into tangible outcomes on the ground.