Thermal projects delayed, TN to spend as much as Rs 20 per unit to buy high-cost electricity
The state faces a steep deficit during the evening peak hours from 6 pm to 12 midnight, of 3500 MW in March and 4950 MW in April. It's estimated that the state's peak power demand will reach a new high of 22,150 MW in April, bettering its record all-time high of 20,830 MW on May 2, 2024.
Ennore Thermal Power Station
CHENNAI: The long delay in commissioning the new thermal power projects is burning a hole in the pocket of the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL). The utility now faces the huge challenge of meeting the ever-increasing demand by procuring short-term and high-cost power from the day-ahead market to meet the daily requirement.
According to a State Load Despatch Centre (SLDC) estimate, the state faces a steep deficit during the evening peak hours from 6 pm to 12 midnight, of 3500 MW in March and 4950 MW in April. It's estimated that the state's peak power demand will reach a new high of 22,150 MW in April, bettering its record all-time high of 20,830 MW on May 2, 2024.
Since November last year, TNPDCL has floated multiple short-term tenders to procure round-the-clock and peak-demand power for the February to May period. For April, when the state faces the highest deficit of 4,950 MW, TNPDCL sought to procure 5,290 MW for peak demand in three separate bids and signed an agreement to procure 1,276 MW at a cost ranging from a minimum of Rs 9.29 per unit to a maximum of Rs 20 per unit, says the DEEP (Discovery of Efficient Electricity Price) portal.
Considering the high demand during summer, TNPDCL will rely on high-cost Day Ahead Market (DAM) and Short Term Open Access (STOA) tender to meet the peak-hour demand. It also invited a tender for procuring power under the swap arrangements during the non-solar hours (midnight to 8 am) and evening peak hours (6 pm to 12 am) in March, April and May. It plans to procure 500 MW of power during non-solar and evening peak hours. Under swap arrangements, surplus power in other states is diverted to TNPDCL and the same will be returned during the July-September peak wind power generation period.
Tamil Nadu Electricity Regulatory Commission has approved the TNPDCL tenders with an alert on the need for prior approval while floating bids in the future.
However, TNPDCL officials noted that the power generation from the windmills would also help bridge the gap between demand and supply.
A trade union leader said if the utility had commissioned all its ongoing thermal power projects on time, the state would have been power surplus.
The 800 MW North Chennai Stage III Thermal Power Plant should have commenced commercial operation by now but is still facing various issues, he said, criticising the utility's decision to take up the 660 MW Ennore Expansion project and 1600 MW Uppur Thermal Power under the public-private partnership.
