TNPDCL seeks approval to procure 3,000 MW of power
The Tamil Nadu Power Distribution Corporation Limited has doubled its proposed power procurement through a medium-term tender agreement.
The Tamil Nadu Power Distribution Corporation Limited (TNPDCL) has increased its proposed power procurement from 1,500 megawatt (MW) to 3,000 MW, according to The Hindu.
A senior TNPDCL official stated that the proposal involves buying 3,000 MW of round-the-clock (RTC) power for a five-year period under Finance, Operate and Own guidelines. This comes as power demand reaches approximately 19,000 MW during an extended summer.
The TNPDCL previously submitted a proposal for 1,500 MW to the Tamil Nadu Electricity Regulatory Commission (TNERC) in February. The corporation noted that annual power demand has risen to 22,000 MW from an average of 18,000 MW, citing weather changes, a growing migrant population, and increased electric vehicle sales.
The state is expected to face an energy shortage of 7,000 MW by 2029-30. Additionally, existing long-term power purchase agreements for 2,830 MW are due to expire by 2028-29.
The estimated cost for this medium-term procurement is roughly ₹5.50 per kilo watt per hour, with annual spending estimated at ₹6,150 crore. In October, the TNPDCL purchased power at ₹30 per unit to address a peak-hour shortage.
The TNERC will review the application for the medium-term purchase, along with requests for guideline deviations and permission to launch a short-term tender for RTC and peak-hour power for February to July next year.