TNERC permits TANGEDCO to purchase 1000MW power for 3 years

The Tamil Nadu Electricity Regulatory Authority (TNERC) has given permission to TANGEDCO to purchase 1000MW of power for three years at ₹3.26 per unit, through a pilot project of the Power Trading Corporation (PTC).

TANGEDCO is expected to face power shortage in the current year and in the upcoming financial years. The procurement of 1000MW of power will help TANGEDCO meet the higher demands, even if its own thermal projects are not commissioned on time.

TANGEDCO sought approval of the TNERC for procuring 1000MW RTC power a few months back, through medium term contract for a period of three years, under the Pilot-II Scheme initiated by the Centre at ₹3.26 per unit, in addition to the already approved quantum of 500MW RTC Power under the same scheme.

A survey conducted by TANGEDCO on the expected power demand in the coming years had found that the demand and availability up to 2026 has been assessed and the deficit projected without considering renewable energy. The deficit estimated is to the tune of 1345 MW (2021-22) and 2115MW for financial year 2022-2023.

TANGEDCO’s upcoming thermal projects are no way near commissioning. “The ongoing projects at Ennore SEZ, Udangudi, Uppur, ETPS Expansion are also getting delayed and expected to be commissioned and contribute to grid beyond the forecasted period,” said TANGEDCO in its petition to TNERC.

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The power demand was less during the COVID-19 period due to the lockdown. Now, the load growth has increased after the lockdown restrictions were lifted. “At present, the deficit experienced during peak hours and due to outages of generation plants are met through hydro generation or purchase of power from power exchanges,” said TANGEDCO.

Union Power Ministry has issued guidelines for procurement of power under Pilot-II Scheme for medium term through PFC Consulting Limited as nodal Agency and M/s PTC India Limited as aggregator.

The guideline was issued to facilitate procurement of power of 2500MW for three years from generating companies having coal-based power plants, which are already commissioned and without power purchase agreements.

The proposed scheme envisages procurement of power through a competitive bidding process to be conducted by PFC Consulting Limited, and supply of power between successful bidders and distribution licensees.

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TANGEDCO has executed a long-term agreement with the generators for the purchase of 2830MW.

“In this arrangement, since August 2015, the petitioner has to pay a total tariff of ₹4.22 to ₹4.75 per unit to the inter-state generators, and ₹5.24 to ₹6.29 to the intra-state generators. The tariff of generators using domestic coal was less than ₹4 per unit and with imported coal was ₹5.29 per unit,” said TANGEDCO.