TN approves plan to create new distribution, generation & green energy companies replacing Tangedco, TEDA
The TNPGC would take care of the fossil fuel (coal and gas) based thermal power plants both the existing and under construction power plants.
CHENNAI: The State government has approved the proposal to bifurcate Tamil Nadu Generation and Distribution Corporation (Tangedco) into separate distribution and generation corporations while creating a new green energy corporation.
According to the government order, Tangedco would be split into the Tamil Nadu Power Generation Corporation Ltd (TNPGC) and Tamil Nadu Power Distribution Corporation Ltd (TNPDC).
The TNPGC would take care of the fossil fuel (coal and gas) based thermal power plants both the existing and under construction power plants.
The TNPDC will take care of the distribution of electricity across the state including power procurement, metering and billing, and customer support.
To fast-track the state's energy transition plans and also to get access to green funds, the Tamil Nadu Green Energy Corporation Limited (TNGEC) has been formed by integrating the renewable energy wing of Tangedco with the Tamil Nadu Energy Development Authority (TEDA).
It will own, operate, and maintain all existing and upcoming assets related to hydro generation, pumped hydro, and all clean and renewable energy projects.
Tangedco will continue to function until the formation of generation and distribution companies, and the new companies will be formed in this financial year, according to the GO. All the three new companies will be wholly owned subsidiary of TNEB Ltd.
The State government's decision to bifurcate Tangedco and the creation of a new green energy company was taken based on a recommendation of the private consultant who studied the financial viability of the utility in August last year.
As per the GO, the power sector is currently going through a paradigm shift with multiple disruptions across the value chain.
"Most of the disruptions focus on clean energy transition which requires traditional utilities to restructure their business operations to maximise value and minimise environmental impact," it said.
Currently, Tangedco ranks third in revenue from operations after Maharashtra and Uttar Pradesh and fourth in terms of gross energy sold after Maharashtra, Uttar Pradesh, and Gujarat.
Twenty states have unbundled their power corporations including Tamil Nadu and many of them have multiple distribution licensees. However, Tamil Nadu will follow the states like West Bengal, Chhattisgarh, and Maharashtra to have a single distribution company.
