Tamil Nadu may procure up to 1,500 MW of electricity at an estimated Rs 35 per unit to meet rising peak power demand during the festive season, as the state looks to bridge short-term supply requirements. The procurement is being considered as a temporary arrangement to ensure uninterrupted electricity supply and reduce dependence on more expensive emergency purchases. Tamil Nadu Electricity Minister CTR Nirmal Kumar said the actual quantum purchased would depend on prevailing rates and requirements.
The state had invited bids for around 3,500 MW of electricity for the period between October 15 and 31. However, it is currently planning to purchase only around 1,500 MW, depending on demand and market conditions. The additional procurement could entail expenditure of around Rs 5 crore a day and would be used primarily to meet peak-hour demand between 6 pm and midnight.
Peak Demand Expected To Rise
Tamil Nadu's peak electricity demand had increased from around 16,800 MW during the corresponding period last year to nearly 21,700 MW this year, representing an additional requirement of around 4,000 MW to 5,000 MW.
The state has been exploring multiple sources to secure electricity at lower rates. Arrangements have already been made to procure around 430 MW from Assam, while discussions have also been held with Kerala over supplying solar power during the day in exchange for electricity at night.
Tamil Nadu is also considering procuring 4,000 MW to 5,000 MW through long-term arrangements, although a final decision is yet to be taken. Tenders for another 1,500 MW to 2,000 MW under five-year contracts are also expected.
The state is planning to procure an additional 6,000 MW to 8,000 MW by 2028-29 to ensure adequate power availability. Tamil Nadu currently receives around 1,800 MW less than its expected allocation from central generating stations, including Neyveli Lignite Corporation. Against an anticipated supply of around 3,500 MW, generation is currently around 500 MW lower, adding to the state's short-term power requirement.
The state has also been reviewing its solar power procurement procedures following estimated losses of around Rs 1,000 crore under the previous system. New applications have been suspended for four months while the state formulates a policy covering battery energy storage. Online monitoring and technology-verification systems are also being developed to improve transparency in renewable energy procurement.