Chennai: Struggling to find private generators willing to supply low-cost power for six months next summer, TNPDCL has decided to sign five- and 15-year agreements to meet surging electricity demand as part of its resource adequacy plan.TNPDCL on Saturday floated a tender inviting bids from private power producers to supply 3,000 megawatts (MW) of power over the next five years. Tamil Nadu Electricity Regulatory Commission (TNERC) had recently given its nod to TNPDCL to float the medium-term power purchase tender. “We expect bidders to quote lower prices since they get a guaranteed sale of power for five years,” said an official.On Friday, TNPDCL opened bids for short-term power supply and found bidders quoting between ₹9.50 and ₹20 per unit to sell power to TNPDCL next summer. The quotes were lower than in previous tenders, where the discovered price ranged between ₹37 and ₹41.50 per unit. Electricity minister C T R Nirmal Kumar on Saturday clarified that TNPDCL would buy power up to ₹13 per unit. “Also, we will soon float tenders for long-term power purchase after 2014,” the minister posted on X.Tamil Nadu’s peak power demand reached an all-time high of 21,724 MW in July and is expected to cross 23,500 MW in 2027. The state’s average power demand is around 19,000 MW, and it is met by a combination of sources including generation from state-owned thermal plants, the state’s share from central govt-controlled plants, wind, solar, and long- and medium-term power purchase agreements.TN currently faces an average shortage of 4,000 MW next summer, and even if TNPDCL finds generators for 3,000 MW under medium-term agreements, the shortage cannot be fully met. “TNPDCL board will decide on purchasing high-cost power to overcome the power deficit,” said an official.Now, TNPDCL purchases 2,830 MW from 10 generators under long-term agreements, and another 2,814 MW under medium-term agreements. With most of the long-term agreements due to expire in 2027 and 2028, TNPDCL has decided to appoint a consultant to sign fresh long-term agreements. The benefit of a long-term agreement is lower-cost power, as generators will supply at ₹5 to ₹6 per unit.
