The State Electricity Department emphasised that the expansion would enhance grid stability while increasing power generation.
The project was initially proposed to be executed under a public-private partnership model, according to a report by The Hindu.
The decision follows discussions in a Southern Regional Power Committee meeting in early 2025.
The engineering, procurement and construction (EPC) contract for the ETPS expansion was awarded to Lanco Infra Tech in 2014 but terminated in 2018 due to slow progress.
BGR Energy Systems was then awarded the contract in 2022 for Rs 44.42bn ($510.9m), but this too was terminated in 2024 for similar reasons.
The State Energy Department’s policy note for 2024/25 indicated a renewed interest in executing the project under a PPP model, considering the current energy scenario.
The Central Electricity Authority reported that SBI Caps was engaged to prepare a feasibility report for the project.
In December 2024, the State Electricity Department emphasised that the project would enhance grid stability and increase power generation.
With Tamil Nadu’s power demand rising 10% annually, projects such as ETPS and the Udangudi supercritical thermal project are crucial for meeting this demand without impacting the environment.
TNPGCL’s thermal power capacity stands at 4,320MW, while Tamil Nadu’s total conventional capacity, including the state’s share from central generating stations and other contracts, is 15,839.56MW.
Meanwhile, India’s renewable energy sector is also facing challenges in executing utility-scale projects, with weak demand for tenders and project delays, as noted by the Institute for Energy Economics and Financial Analysis.
These challenges could affect the country’s target of at least 500GW of non-fossil power capacity by 2030.
In 2024, India issued a record 73GW of utility-scale renewable energy tenders, surpassing the Ministry of New and Renewable Energy’s annual plan of 50GW.
