Digital Library on Green Mobility


Evaluating the Financial Future of Electric Utilities Using Scenarios Analysis: The Case of Tamil Nadu

Publication Year: 2024

Author(s): Sundararagavan S, Anirudh S, Palani H


Tamil Nadu’s electric utility, TANGEDCO, faces a high level of financial debt. This financial distress is adversely impacting the utility’s loan borrowing capability, which is in turn affecting grid infrastructure upgrades and timely payments to RE generators. Although TN has about a tenth of India’s installed electricity generation capacity, the state plans to increase its generation capacity by 33 GW by 2030, almost doubling its financial year 2022–23 capacity. Over 80 percent of this new capacity is expected to be RE, in keeping with the state’s goal of generating half its power from RE sources by 2030. RATE is a multi-year spreadsheet-based scenario-building tool that will help the utility assess its finances under different scenarios. This research paper examines the impacts of four specific scenarios: High Sales Migration (HSM): A potential decline in consumer energy sales due to sales migration. High Renewable Purchase Obligation (RPO): An increase in the share of RE sources in the state’s energy mix. Impact of Coal Cost Inflation (ICCI): Rise in fuel costs due to increased coal imports. New Green Policy Initiatives (NGPI): Implementation of TN’s new green policies covering electric vehicle and green tariffs.

Source of Publication: World Resources Institute

Vol/Issue: Version 1.0, January 2024

Country: India

Publisher/Organisation: World Resources Institute


Theme: Economic | Subtheme: Tariff