Proposal approved to buy short-term power for summer

TNERC has said that the quantum sought could be permitted with a direction to TNPDCL to seek approval for a quantum well in advance in future to enable it to give adequate consideration to its proposals.;

Author :  DTNEXT Bureau
Update:2025-04-05 05:30 IST
Proposal approved to buy short-term power for summer

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CHENNAI: Tamil Nadu Electricity Regulatory Commission (TNERC) has approved the proposal submitted by Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) to procure short-term power from March to May this year to ensure uninterrupted power supply.

In the order, TNERC has said that the quantum sought could be permitted with a direction to TNPDCL to seek approval for a quantum well in advance in future to enable it to give adequate consideration to its proposals.

The utility has sought permission to procure 2,610 MW during the evening peak hours and 1,300 MW from zero hours to 6 am in April and 1,080 MW during evening peak hours and 650 MW from zero hours to 8 am from May 1 to 10. It said that the all-time high demand for electricity has been steadily increasing by around 6% every year, and particularly minimum demand and consumption increased during summer.

“The peak demand occurred during 2024-25 with 20,830 MW on May 2 and surpassed CEA’s projection of 19,413 MW for 2024-25. The demand this summer is expected to reach around 22,080 MW,” it argued.

The commission, in the order, said that the installed capacity of conventional sources is 18,749 MW whereas it noticed that in the present petition, “The quantum furnished under the same category is 15,197 MW. Such inconsistency in the basic parameters, from which the additional power requirement is determined, is viewed with serious concern and displeasure.”

Recalling its earlier direction dated February 14, the Commission said that the utility should engage a consultant with expertise in providing solutions for power purchase optimisation, including demand forecasting, dynamic procurement and RE integration using AI/ML based analytics and IOT to overcome the issues faced by the Power Purchase wing. The Commission has taken careful consideration of the submissions relating to demand forecast, availability of power quantum and the block wise quantum of power required to the period for which approval for procurement is sought.

“The petitioner is directed to prepare its short-term power purchase plan, including power exchange for the next two years (2025-26 and 2026-27) and submit it to the Commission on or before June 30,” it said. “TNPDCL should maintain and adhere to the power purchase through STOA within the range of 5-10% of the total quantum required and procured through various sources including from power exchanges.”

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