Tamil Nadu to Procure 3,000 Megawatts of Electricity Amid Peak Demand Crisis

by

Narendra Jijhontiya

Tamil Nadu to Procure 3,000 Megawatts of Electricity Amid Peak Demand Crisis

Chennai, October 8 (Daily Kiran) : The Tamil Nadu Power Distribution Corporation Limited (TANGEDCO) has issued an urgent tender to procure up to 3,000 megawatts of electricity during peak evening hours. This decision comes as the state faces a significant rise in electricity demand, nearing 20,000 megawatts, due to prolonged heat and reduced wind energy production.

The procurement will occur between midnight and 2 AM, with the tender open for submissions from private power producers both within and outside Tamil Nadu through the central government’s “Discovery of Efficient Electricity Price” (DEEP) portal. The bulk of the electricity will be purchased for the period from October 12 to 31, focusing on the hours from 6 PM to midnight.

Currently, TANGEDCO is already sourcing 3,000 megawatts through short-term purchases and power swap arrangements, in addition to acquiring similar amounts from power exchanges during peak hours. A senior official from TANGEDCO noted that the extended heat wave since September has led to unusually high electricity needs. The reduction in wind energy output and lower supply from central generating stations have necessitated this additional procurement.

The ongoing El Niño conditions have prolonged the summer season, resulting in high electricity consumption even after the typical peak period. The official explained that while there is a surplus of electricity during the day due to strong solar power generation, demand peaks in the evening.

If the northeast monsoon arrives by October 20, it could alleviate some of the demand pressures, allowing for annual maintenance of thermal units before the next summer. However, a weak monsoon may compel further electricity purchases in November.

On Tuesday, the state recorded a consumption of 432.6 million units of electricity, nearly matching last year’s highest daily consumption. The peak demand reached 19,921 megawatts, with TANGEDCO’s thermal stations contributing 80 million units and central generating stations adding 83.4 million units. Short-term purchases provided an additional 38.5 million units, while power exchanges contributed 36.5 million units.

Energy Resources Minister R. Nirmal Kumar stated that peak hour demand has increased by 3,000 megawatts compared to last year. The unavailability of 3,000 megawatts from the central pool forced the issuance of short-term tenders. He added that Tamil Nadu has already purchased 4,500 megawatts from the open market and will continue to arrange for additional supply based on demand. The pressure on supply is partly due to reduced wind power generation and limited availability from central stations.

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