Posted by admin on 2025-11-12 06:34:03 |
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Power Procurement to Meet Growing Demand To address the state’s growing electricity demand, Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has decided to procure 1,580 MW of power for a period of five years from 11 private generators through medium-term power purchase agreements. The tariff range for these contracts falls between ₹5.50 and ₹6.15 per unit.
Contract Period and Regulatory Approval The power supply is scheduled to begin on February 1, 2026, and continue until January 31, 2031. Bids for the procurement were finalized through the DEEP portal, the Central Government’s online platform for transparent power auctions. The final agreements will be executed after approval from the Tamil Nadu Electricity Regulatory Commission (TNERC).
Key Suppliers and Power Aggregation Among the 11 participating firms, four are based in Tamil Nadu, while the remaining suppliers are located across Andhra Pradesh, Madhya Pradesh, Chhattisgarh, and Odisha.
Strengthening Power Supply Strategy As part of TNPDCL’s resource adequacy plan, the utility aims to maintain 70% of power purchases under long-term contracts (15 years) and 20% through medium-term agreements (five years). TNPDCL Chairman J. Radhakrishnan also noted that an additional 1,000 MW of medium-term contracts will soon be signed to reduce dependence on high-cost power purchases from the open market and power exchanges.
Conclusion
This development is a major advantage for generators, as it eliminates the need for consumer mapping and complex energy wheeling agreements, while offering attractive tariff rates. M/s eClouds Energy LLP strongly recommends generators to capitalize on this opportunity and participate in the upcoming medium-term power procurement process.