TNPDCL to issue coal-based power tenders to meet electricity deficit
The Tamil Nadu Power Distribution Corporation aims to bridge a projected power gap of up to 7,500MW by July 2027.
The Tamil Nadu Power Distribution Corporation (TNPDCL) intends to invite new bids for round-the-clock electricity from coal-based plants, according to a report by Urban Acres.
The move follows three previous attempts to secure short-term power that resulted in expensive gas-based bids. Electricity and law minister C T R Nirmal Kumar said those agreements were not finalised because the rates quoted by bidders were too high.
In the last three tenders, the lowest quotes from gas-based plants were ₹37, ₹41.50 and ₹35 per unit. TNPDCL officials told the Times of India that while cheaper electricity was available in the third tender, bidders requested a condition requiring the utility to buy higher-priced power as well.
The new tenders seek to address a projected deficit of 3,000MW to 7,500MW through July 2027. Electricity consumption in the state is expected to exceed 23,000MW during the summer of 2027.
Officials stated that coal-based power would be significantly cheaper than gas-based options. Although the utility must purchase coal-based power for all 24 hours rather than just during peak times, officials said the rising demand could make this continuous supply commercially viable.