Tamil Nadu releases policy for small hydel projects to attract pvt investment

CHENNAI: The State government has released the Tamil Nadu Policy for Small Hydel Projects 2024 to encourage private developers to set up small hydel projects with a capacity ranging from 100 kilowatts to 10 megawatts (maximum unit size of 5 MW each).

Such projects have minimal environmental impact while providing reliable and sustainable energy sources that complement the state’s broader energy strategy. The policy, one of the three renewable energy policies recently cleared by the State cabinet, mandates that developers of such plants provide

10% of the power generated to the State government free of cost.

The Tamil Nadu Generation and Distribution Corporation (Tangedco) has 47 hydropower stations with a generation capacity of 2,321.90 MW. Of them, the State utility has nearly 78 MW of small hydro capacity. The Mukurthy Mini Power House has sSuch projects have minimal environmental impact while providing reliable and sustainable energy sources that complement the state’s broader energy strategy.mall hydel units of 0.35 MW, which is the lowest capacity unit in the State. As per the Ministry of New and Renewable Energy (MNRE), the potential for power generation from small, mini and micro hydropower projects in TN is 660 MW.

The new policy allows developers to set up small hydel plants from 100 KW to 10 MW on streams, canals, and rivers. Such projects will be operational in the next 5 years, and also be eligible for benefits and incentives for the next 40 years, such as exemption from payment of electricity duty.

Tamil Nadu Green Energy Corporation Ltd will be the state nodal agency for registration and granting in-principal for the projects.