Monthly Archives: May 2015

Cheyyur UMPP will make electricity unaffordable in TN, says report

Even as Tamil Nadu contends with rising electricity rates, the Cheyyur UMPP will place an upward pressure on electricity tariffs in the state, says a research report prepared by US-based IEEFA
The 4,000MW ultra mega power project (UMPP) worth Rs24,200 crore at Cheyyur in Tamil Nadu is financially not viable and would only make electricity unaffordable in the state, says a report.
The report prepared by US-based Institute of Energy Economics and Financial Analysis (IEEFA) for Chennai-based Indian Institute of Public Policy (IIPP), says, “…the tariff for consumers would be Rs4.9 per kWh (unit) in 2021, its first year of operation, and an average tariff of Rs5.95 per unit over its 40 year life. Every year of delay will push up costs further. These rates are up to five times higher than tariff costs at other UMPPs and coal-fired power plants.”
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Cheyyur plant not viable

Experts say price of electricity from the 4,000-MW project will be fivetimes higher than the tariff at other ultra mega power plants

The proposed 4,000-MW ultra mega power project at Cheyyur is financially not viable and would put an upward pressure on electricity tariff. This would also make electricity unaffordable for consumers, says a report.

The report prepared by US-based Institute for Energy Economics and Financial Analysis (IEEFA) for Chennai-based Indian Institute of Public Policy explains that in the first year of its operations, which is 2021, the tariff for consumers would be Rs. 4.9 per unit. On an average, tariff would be Rs. 5.95 per unit over its 40 year life.

“This pricing is five times higher when compared to the tariff at the other ultra mega power plants (UMPPs) and coal-fired power plants,” says Jai Sharda, Managing Partner, Equitorials, a financial analysis firm that studied the economic viability of the Cheyyur plant.

Read full story here: http://www.thehindu.com/news/national/tamil-nadu/cheyyur-plant-not-viable/article7229273.ece

US Report Claims Proposed Cheyyur Power Project is Not Financially Viable

CHENNAI: The proposed 4,000 MW coal-fired power plant in Cheyyur taluk of Kancheepuram district will either be a loss-making proposition or consumers will have to pay higher tariffs, a US-based Institute for Energy Economics and Financial Analysis (IEEFA) said in a report commissioned by the Chennai based think-tank Indian Institute of Public Policy.

The IEEFA report, based on publicly available documentation on the plant, states that the tariff of power generated would be Rs 4.9/unit in the first year of operation (2021) and would level off to Rs 5.95/unit over the plant’s lifetime reaching Rs 8.3/unit in 2036.

“It does not include cost overruns as a result of delays in land acquisition or on-the-ground resistance or increase in international coal prices,” said Jai Sharda, the copartner of Ahmedabad based Equitorials, an Indian financial analysis company that has prepared the financial model for the report.

Read full story here: http://www.newindianexpress.com/cities/chennai/US-Report-Claims-Proposed-Cheyyur-Power-Project-is-Not-Financially-Viable/2015/05/21/article2825338.ece

Cheyyur UMPP will make electricity unaffordable in TN; UMPP Policy Flawed: Report finds

PRESS RELEASE

CHENNAI. 20 May, 2015

Even as Tamil Nadu contends with rising electricity rates, a new report finds that the 4000 MW coal-fired power plant proposed in Cheyyur is not financially viable as it will place an upward pressure on electricity tariffs in the state. The report concludes that “Ongoing and planned grid and transmission improvements, competitive wind and solar prices, the existing pipeline of power projects in Tamil Nadu and greater resource planning have diminished the need for construction of Plant Cheyyur.”

Read full press release here

Read Executive Summary in English here

Read Executive Summary in Tamil here

Read Full Report in English here