Tangedco Launches ₹10,000 Crore Project to Upgrade LT Lines to HT, Aiming to Reduce Transmission Losses

Tangedco is taking significant steps to reduce transmission losses by converting low-tension (LT) lines to high-tension (HT) lines across Tamil Nadu. Typically, HT lines, operating at 11kV and above, are used for long-distance transmission, while LT lines (220V) are utilized for shorter distances, such as household power delivery. However, HT lines are more efficient, as higher voltage reduces transmission losses.

According to sources, Tamil Nadu has built a large number of unnecessary LT lines over the years due to the lower cost of LT infrastructure compared to HT. Yet, the state's Aggregate Technical and Commercial (AT&C) losses stand at around 11.6%, one of the lowest in the country. The state government is aiming to bring this down to below 10%. A 1% reduction in AT&C losses could result in savings of approximately ₹800 crore.

Tangedco has already begun converting LT lines to HT, completing 500 kilometers of upgrades. However, this is just the beginning. The company estimates it can convert 3,000-4,000 kilometers annually over the next decade, with the total project cost expected to be around ₹10,000 crore.

Meanwhile, Tangedco Chairman and Managing Director Rajesh Lakhoni expressed concerns regarding the economic viability of pumped storage plants (PSP) during a discussion at the Confederation of Indian Industry’s Energy Transition Summit. While PSPs are costly to build and provide long-term energy storage solutions, Lakhoni raised concerns that, with the rapidly declining costs of battery storage, PSPs may become economically unsustainable in the future. Batteries, which currently last around seven years, may soon offer a cheaper alternative to PSPs, which have fixed tariffs and long lifespans of up to 40 years.

Despite his concerns, Lakhoni clarified that Tangedco would continue its plans to develop PSPs. The Tamil Nadu government has already identified 12 locations for setting up PSPs with a combined capacity of 11,500 MW. These projects, worth ₹60,000 crore, will be executed in a public-private partnership model, as announced by Finance Minister Thangam Thenarasu in the 2024 state budget.

HBL