Tamil Nadu has moved to buy electricity from the open market at up to Rs 35 per unit during peak hours after a shortfall in central power allocations, reduced wind generation and higher demand, Electricity Minister Nirmal Kumar said. The short-term procurement will be used for 16 days until October 31, with the state expected to purchase 1,500 MW rather than the 3,500 MW mentioned in the tender announcement.
The minister said Tamil Nadu was facing a combined shortfall of 4,850 MW in supplies that it had been receiving or expected to receive. Power of 1,880 MW due from Neyveli Lignite Corporation has not been available since last month, according to the explanation reported by Dinamalar. At the same time, wind power generation has fallen sharply because of lower wind speeds.
Tamil Nadu was expected to receive 3,500 MW from wind generation but was receiving only about 500 MW, leaving a gap of 3,000 MW. The minister also said electricity demand had risen compared with the same period last year, while high temperatures had kept consumption elevated across the state.
The procurement is intended specifically to cover peak-hour demand and prevent power cuts. Minister Nirmal Kumar said that without the additional purchases, Tamil Nadu could face a situation similar to other states, with outages lasting two or three hours. The report does not specify the total financial value of the procurement or identify the suppliers that may provide the power.
Although the tender announcement referred to 3,500 MW, the state plans to buy only 1,500 MW under the immediate arrangement, the minister said. The power will be used until October 31, while separate arrangements have been made for the three days around Diwali, when demand is expected to require additional planning.
The minister attributed the need for short-term contracts to the absence of long-term power purchase agreements during the previous five years of the DMK government. He said the government would issue notifications for long-term agreements within October. The immediate procurement therefore addresses a short supply window, while the proposed long-term tenders are intended to provide a more durable response to the gap between demand and dependable generation.
For consumers, the immediate issue is whether the purchased power can cover peak demand during the stated 16-day period and the Diwali window. The next formal milestone is the release of the long-term procurement notifications later this month, according to the minister’s statement.
