Tamil Nadu Targets 50% Renewable Energy Share By 2031, Plans Major Grid And Storage Expansion

The Government of Tamil Nadu has outlined an ambitious roadmap for the state’s energy sector through its Policy Note for 2026–2027. Presented by Minister for Energy Resources and Law C.T.R. Nirmal Kumar, the policy focuses on expanding power generation, strengthening transmission and distribution infrastructure, increasing renewable energy adoption and improving consumer services.

A major welfare measure under the policy came into effect on May 10, 2026. Domestic consumers using up to 500 units of electricity every two months will receive up to 200 free units. The scheme is expected to benefit around 2.23 crore households. Consumers using more than 500 units during a two-month period will continue to receive 100 free units. The Tamil Nadu government will bear the cost through direct tariff subsidies provided to the Tamil Nadu Power Distribution Corporation Limited (TNPDCL).

Tamil Nadu had a total installed power capacity of around 46,846 MW as of July 1, 2026. Conventional sources accounted for 18,498 MW, including thermal, gas and central generating stations, while renewable sources contributed 28,348 MW from hydro, wind, solar, biomass and co-generation. The state aims to increase renewable energy’s share to 50% of its overall energy mix by 2031 while reducing carbon emissions by 70%.

Several major generation projects are also progressing. The 2×660 MW Udangudi Supercritical Thermal Power Project Stage-I has reached 97.36% physical completion. Commercial operation is expected for Unit I in August 2026 and Unit II in December 2026. The 2×660 MW Ennore SEZ Thermal Power Project is progressing toward commissioning in late 2027.

Tamil Nadu is also strengthening its renewable energy portfolio. The state ranks second nationally in wind power, with 11,686.21 MW installed capacity, while solar capacity has reached 15,278.74 MW. To address renewable intermittency and improve grid stability, the state is developing large-scale battery storage projects. A 1,000 MWh standalone Battery Energy Storage System (BESS), supported through Viability Gap Funding, is scheduled for completion by December 2026. Another 1,500 MWh BESS supported by the Power System Development Fund is targeted for September 2027.

The 500 MW Kundah Pumped Storage Project is another key initiative and is expected to be completed by June 2027. These storage projects are intended to support reliable integration of increasing renewable generation into the state grid.

Transmission and distribution modernization remains another major priority. Under the Revamped Distribution Sector Scheme (RDSS), works worth ₹8,929.86 crore are being implemented to reduce aggregate technical and commercial losses to 10%.

Consumer services are also being upgraded through smart meters for government facilities, 125 Fuse-off Call Vehicles, expanded response centres and WhatsApp chatbot services. These measures are aimed at faster grievance resolution and improved reliability, supporting the state’s objective of providing continuous 24×7 electricity supply.