Business · Energy & Commodities · 3 hrs ago
Tamil Nadu seeks approval to buy 3,000 MW of power for five years
Tamil Nadu's power utility has doubled its proposed purchase of round-the-clock electricity, from 1,500 MW to 3,000 MW.
The Tamil Nadu Power Distribution Corporation Limited, or TNPDCL, wants to buy the power for five years through a medium-term tender.
The state regulator must approve the plan before the utility can proceed.
TNPDCL says power demand is about 19,000 MW and that demand has risen because of weather changes, a growing migrant population and more electric vehicles.
It estimates annual demand has reached 22,000 MW and warns the state could face a 7,000 MW energy shortage by 2029-30.
Some existing power agreements expire by 2028-29, creating a need for new supply arrangements.
The proposed purchase is estimated to cost ₹6,150 crore a year, while TNERC will also consider requests for short-term power tenders for February to July next year.
Tamil Nadu Power Distribution Corporation Limited has asked the State electricity regulator to approve the purchase of 3,000 MW of round-the-clock power for five years.
The proposed amount is double the 1,500 MW initially submitted to the regulator in February.
TNPDCL cited power demand of about 19,000 MW and an extended summer as reasons for the plan.
The corporation said annual demand had risen to 22,000 MW and projected an energy shortage of 7,000 MW by 2029-30.
The proposed procurement is estimated to cost about ₹5.50 per unit, with annual expenditure of ₹6,150 crore.
- Who
- Tamil Nadu Power Distribution Corporation Limited (TNPDCL).
- What
- It seeks approval to procure 3,000 MW of round-the-clock power for five years.
- When
- The proposal is before the Tamil Nadu Electricity Regulatory Commission; the purchase period would be five years.
- Where
- Tamil Nadu.
- Why
- TNPDCL cited high power demand and an extended summer, along with rising annual demand and future supply concerns.
This story does not have two clearly opposing sides.
TNPDCL submitted a proposal to procure 1,500 MW to the Tamil Nadu Electricity Regulatory Commission.
The Hindu reported that TNPDCL had increased its proposed procurement to 3,000 MW.
Long-term power purchase agreements covering 2,830 MW are due to expire.
TNPDCL said the State was set to face an energy shortage of 7,000 MW.
- Proposed purchase
- 3,000 MW of round-the-clock power
- Contract period
- Five years
- Estimated unit cost
- About ₹5.50 per kilowatt-hour
- Annual expenditure
- ₹6,150 crore
- Projected energy shortage
- 7,000 MW by 2029-30
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What people are saying
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