Tamil Nadu Forms New Green Company TNGECL From TEDA And Tangedco

Tamil Nadu Forms New Green Company TNGECL From TEDA And Tangedco

In a bid to push for green energy generation in the state, the Tamil Nadu government has formed the Tamil Nadu Green Energy Corporation Limited (TNGECL). The corporation was formed by separating the renewable energy department of Tamil Nadu Generation and Distribution Corporation (Tangedco) and merging it with the Tamil Nadu Energy Development Agency (TEDA) under the Companies Act, 2013.

The order issued by the state government said, “TNGECL has been formed with the aim to fast track the State’s energy transition plans and at the same time help in getting access for funds for green projects.”

With this step, Tangedco will be segmented into two separate corporations that will include Tamil Nadu Power Generation Corporation Ltd (TNPGC) and Tamil Nadu Power Distribution Corporation Ltd (TNPDC). TNPGC will take care of existing and under-construction fossil fuel-based thermal power plants and TNPDC will manage electricity distribution, encompassing power procurement, metering, billing, and customer support.

According to reports, TNGECL will be involved in bringing all renewable energy projects under one umbrella in the existing power grid and further explore the opportunities of energy storage solutions like batteries for stable power supply. The decision to restructure Tangedco and create a dedicated green energy company is based on recommendations from a private consultant who assessed the financial viability of the firm last year. The statement also noted that the government aims to align with clean energy transitions and maximise value while minimising environmental impact as it recognises the evolving landscape of the power sector.

Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) was formed in 2010 after TNEB was restructured, it has 16,652 MW power generation capacity under hydro, thermal, and gas stations and projects while the power generation capacity through non-conventional means stood at 17,225.11 MW as of April 2022.

TNGECL will have nine board members and it will include a Chairman and Managing Director with an aim to bring wind, solar and hydro projects under one platform and also ease the process of getting clearances for green energy companies in the state.