Tangedco gets nod to buy 500 MW to tide over future deficit

Chennai

TANGEDCO has filed a petition seeking approval for procurement of RTC power up to 500 MW through Medium Term Contract for a period of three years initiated by the Ministry of Power under pilot scheme II at Rs 3.26 per unit excluding transmission charges.

In the petition, TANGEDCO said that it is meeting the demand from the installed capacity of conventional sources of 14,783 MW. Considering a plant load factor of 85 percent, the net availability would be 12,565. According to the MOP guidelines, the demand forecast should be based on the latest Electric Power Survey which has projected a deficit of 2396 MW, 1506 MW, and 111 MW for 2020-21, 2021-22, and 2022-23.

With the expected delay in the commissioning of the Central and the State Thermal Power Projects including Neyveli New, Ennore SEZ, Udangudi, Uppur, and Ennore Expansion projects, TANGEDCO planned to procure power through medium term basis for three years. The pilot scheme under which the PFC Consulting would act as an aggregator to procure 2500 MW from the coal based power generation companies which were commissioned and without power purchase agreements.

"TANGEDCO has to pay Rs.3.26 per unit (excluding transmission charges) at the rate of 85 percent of the PLF. The tariff for the balance 15 percent of the contracted quantum, fixed cost is Rs.0.815 per unit and variable cost will be Rs.1.63 per unit and the total tariff is Rs.2.445 per unit which will be much cheaper than other PPA tariff," argued the chief engineer for private power purchase.