TANGEDCO may buy additional 1,500 MW to handle summer surge

CHENNAI: To meet the summer demand, the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has planned to procure an additional 1,500 Mega Watts (MW) of power through the Power Trading Corporation of India Limited (PTC) for five years.

It recently submitted papers to the Tamil Nadu Electricity Regulatory Commission (TNERC) seeking approval for this. A senior official told TNIE that though an agreement will be signed with PTC to procure 1500 MW of power based on the summer demand next year, it will supply power to the PSU for the next five years. TNERC will finalise the prices.

The official also recalled that the PSU signed an agreement with PTC India to procure 550 MW on October 26, 2018, at the rate of Rs 4.24 per unit. This agreement is set to expire on March 31, 2022. TANGEDCO needs to buy power since the State’s average daily demand is 13,200-14,000 MW, he said, adding that it is expected to rise to 17,000 MW in summer next year. The State witnessed its maximum demand of 16,846 MW on April 10, 2021.

“Sometimes, power generation reduces because of issues such as availability of coal, water, gas, and technical problems. So, to meet the need, it is necessary to purchase power from private parties and exchanges,” said a senior official.

The official also pointed out that this Public Sector Undertaking (PSU) has already executed 11 long-term power purchase agreements (15 years) for the procurement of 2,830 MW. These agreements will expire in 2028. Though the PSU planned to procure power under medium-term agreements (which are executed for a period of one to seven years), there is no proposal for long-term purchase of power.