TNERC approves Tangedco’s plan to procure 102 MW for 5 yrs

CHENNAI: Tamil Nadu Electricity Regulatory Commission has approved Tangedco’s proposal to procure 102 MW from GMR Kamalanga for five years for Rs 4.66 per unit under the finance own and operate (FOO) model after getting approval to purchase 1,500 MW.

To meet the growing power demand, Tangedco proposed to procure 1,500 MW of round-the-clock power for a period of five years, in December last year, appointing the Power Trading Corporation (PTC) as an aggregator.

In the tender floated by it, Tangedco has received bids from 11 generators to the tune of 2,764 MW. The lowest cost was quoted by GMR Kamalanga at Rs 4.66 per unit. Jindal Power (200 MW), MB Power (175 MW) and DB Power (150 MW) agreed to match the price of Rs 4.66 per unit.

The commission said that Tangedco issued the letter of award (LOA) to the four successful bidders on April 4 this year requesting to commence the supply of power from May 1. “Out of the four successful bidders, only two bidders GMR Kamalanga Energy Ltd and DB Power Ltd had accepted the LOA issued by the Tangedco. Jindal Power and MB Power have not accepted the LOA to supply the power citing a change in government policy on coal supply to the power sector,” it said.

TNERC said that the tariff, under the medium-term tender of Rs.4.66 per unit excluding a trading margin of Rs 0.0173 / per unit, is more competitive than the tariff at which Tangedco is getting power under long-term PPAs and shortterm in the range of Rs 4.82 per unit to Rs 5.24 per unit and the tariff discovered for the supply of peak hour power is in the range of Rs 8.95 to Rs 9.97 per unit from March 2022 to May 2022 (including transmission charges and losses).

“As far as the quantum for which in principle approval was given, Tangedco was able to mobilize only 10% (approx.) of the approved quantum (1500 MW), hence the petitioner has to furnish its plan of action to meet the remaining portion of the deficit over the projected demand,” it directed.

Tangedco received bids from 11 generators. The lowest cost was quoted by GMR Kamalanga at Rs 4.66 per unit