Chennai, November 13, 2026
The Tamil Nadu Power Distribution Corporation Limited (TNPDCL) has sought approval from the Tamil Nadu Electricity Regulatory Commission (TNERC) to procure an additional 3,000 megawatts (MW) of round-the-clock (RTC) power. This move aims to address the escalating power demand in the state, which has seen a significant increase due to factors including changing weather patterns, a growing migrant population, and a surge in electric vehicle sales.
Information was available with The Chenab Times that the TNPDCL’s proposal to procure 3,000 MW represents a doubling of its earlier request of 1,500 MW, submitted to the TNERC in February of this year. The corporation plans to enter into a medium-term tender agreement for this procurement, which will span five years and operate under Finance, Operate and Own guidelines.
A senior TNPDCL official indicated that the decision to increase the procurement quantum is a response to the current power demand, which hovers around 19,000 MW, coupled with an anticipated extended summer. The TNERC is expected to review the application for this medium-term power purchase, along with requests for deviations from existing guidelines and permission to float a short-term tender for procuring RTC and peak-hour power specifically for the period between February and July of the upcoming year.
The application submitted by TNPDCL highlights a substantial rise in the state’s annual power demand, escalating to approximately 22,000 MW from a previous average of 18,000 MW. Projections suggest that Tamil Nadu could face an energy shortage of up to 7,000 MW by 2029-30 if current trends persist. This anticipated deficit is further compounded by the fact that long-term power purchase agreements, currently covering 2,830 MW, are set to expire by 2028-29, necessitating proactive procurement strategies.
The financial implications of this proposed procurement are significant. The estimated cost for acquiring this 3,000 MW of power is approximately ₹5.50 per kilowatt-hour (kWh), translating to an annual expenditure projected at ₹6,150 crore. This planned expenditure comes in the wake of recent challenges, where TNPDCL had to purchase power at a considerably higher rate of ₹30 per unit in October to manage peak-hour deficits. The current medium-term procurement is intended to secure power at a more stable and predictable cost, mitigating the risks associated with last-minute, high-cost purchases from the spot market during periods of peak demand.
The drive for enhanced power procurement is also influenced by global and national trends. The increasing adoption of electric vehicles is contributing to a higher overall energy demand, placing additional strain on the existing power infrastructure. Furthermore, changing weather patterns, potentially linked to climate change, are leading to more extreme temperature variations, necessitating greater power availability to meet cooling demands during extended hot periods.
The TNPDCL’s proactive approach aims to pre-empt potential power shortages and ensure a consistent supply for domestic, commercial, and industrial consumers. By securing power through medium-term agreements, the corporation seeks to balance immediate demand with long-term energy security, creating a more resilient power distribution network for the state. The regulatory commission’s approval will be crucial in determining the final quantum and terms of this significant power procurement initiative.
The Chenab Times News Desk
