Tamil Nadu Pays a Record Rs 37 a Unit for Evening Peak Power Through October

Tamil Nadu's distribution utility has signed the costliest short-term power deals in its history to get through the rest of October. The Tamil Nadu Power Distribution Corporation Limited finalised purchases from 12 to 31 October that put roughly 2,000 MW into the evening peak at rates up to Rs 37 per unit, including 181 MW of gas-fired supply at that ceiling, The New Indian Express and ET Energyworld reported on 13 October. The buys land in a month when peak demand is still running well above last year, central station maintenance has cut expected imports, and wind output is weak.

According to a senior TNPDCL official quoted by The New Indian Express, the utility will take 2,062 MW at Rs 31.99 to Rs 34.49 per unit from midnight to 2 am through 31 October, and another 2,001 MW at Rs 33.37 to Rs 37 from 6 pm to midnight for the evening peak. ET Energyworld put the round-the-clock tranche at 1,500 MW in the Rs 31.99 to Rs 34.49 band and the evening tranche near 2,000 MW up to Rs 37.

The tender, floated around 6 October, sought 1,500 MW overnight and 3,000 MW in the evening. The official told TNIE that gas plants were ready to supply when thermal power was not available cheaply. Electricity Minister C. T. R. Nirmal Kumar had said earlier in the tender week that Tamil Nadu was not receiving about 3,000 MW expected from the central grid while peak demand had risen by a similar amount year on year. The Times of India noted that Andhra Pradesh's coordination committee finalised about 150 MW for the same period at Rs 16 to Rs 20 after bidding on 9 September. No other state has signed DEEP agreements at this cost for the window, ET Energyworld reported, even though several discoms floated tenders and left them unfinalised.