TNPDCL seeks nod to procure 3,000 MW

CHENNAI The Tamil Nadu Power Distribution Corporation Limited (TNPDCL) has increased the quantum of its proposed power procurement from 1,500 megawatt (MW) to 3,000 MW through a medium-term tender agreement. The TNPDCL, which submitted the proposal to procure 1,500 MW to the Tamil Nadu Electricity Regulatory Commission (TNERC) in February this year, has now doubled the quantum.

A senior TNPDCL official said amid a power demand of about 19,000 MW and an extended summer, it has been proposed to buy 3,000 MW of round-the-clock (RTC) power for five years, under the Finance, Operate and Own guidelines. TNERC will take up the application for medium-term power purchase, along with requests for deviation from the guidelines and permission to float a short-term tender to procure RTC and peak-hour power for the period from February to July next year.

TNPDCL submitted in its application that the annual power demand had increased to 22,000 MW from an average of 18,000 MW due to various factors, including changes in weather pattern, increasing migrant population, and a surge in electric vehicle sales, with the State set to face an energy shortage of 7,000 MW by 2029-30. The senior official said the long-term power purchase agreements signed for a quantum of 2,830 MW would expire by 2028-29, prompting new procurement plans.

The estimated cost of the medium-term procurement is around ₹5.50 per kilo watt per hour, with the annual expenditure pegged at ₹6,150 crore. When the State faced a power shortage this October, TNPDCL had to purchase power at a cost of ₹30 per unit to bridge the peak-hour gap.