CHENNAI: Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has decided to drop its earlier plan of procuring 500 MW of short term power for peak demand as the price quoted was higher. Instead, the State’s power utility plans to procure higher quantum of round-the-clock power in the range of 632-672 MW at the price of up to ₹4 per unit.
Earlier, the power utility had planned to procure 350 MW of round-the-clock power and 500 MW of peak power from February - May 2017, based on its review of the power situation. The proposal was cleared by the Tamil Nadu Electricity Regulatory Commission (TNERC) and TANGEDCO issued a tender.
In a new petition filed with TNERC, TANGEDCO said the best rates received for 350 MW round- the-clock power was ₹2.92-₹3.15 per unit. For the peak power, the range was ₹3.60 to ₹5.80 per unit for a quantum of 410-500 MW. However, all the bids were received from the North Eastern Region, it said.
The State utility said since there were grid connectivity issues, it would be difficult to procure power from the North Eastern Region. It would use that power when connectivity becomes available.
“Kudankulam Unit II is yet to achieve commercial operation and Kudankulam Unit I is likely to be taken off for annual overhaul for 60 days from the end of January 2017. Hence, the Unit I may not be available during February 2017 and March 2017 also,” TANGEDCO said in its petition.
As a result, TANGEDCO said it mulled various options for sourcing power, including offers from the Southern region. Against the peak demand requirement of 500 MW, there were two offers for 125 MW at a price of ₹5.16 and ₹5.80 per kwh. TANGEDCO pointed out the rates were higher, when compared to what other states get from Southern region. It also said short term procurement during October 2015-May 2016 was done at rate of ₹5.05 per kwh from intrastate developers and added that the generation capacity and transfer capability with the region had increased.
For round-the-clock power, TANGEDCO said that it received offers at discount from some private developers in the Southern region. Ramco Cements Ltd., Tamil Nadu Power Company Ltd, the India Cements Lgd, IL&FS and Sempcorp Gayatri and Arkay Energy Ltd. have offered rates less than ₹4.00 per unit, it added. “The total quantum from Southern Region, which quoted up to ₹4 per kwh, comes to 672 / 632 MW,” it said.
TANGEDCO now plans to procure 672 MW round-the-clock power each for February and March 2017. About 632 MW each of round-the-clock power would be procured for April 2017 and May 2017. The prices would be up to ₹4 per unit, while it proposed to do away with separate procurement for peak demand.
TNERC approved TANGEDCO’s plan and said the procurement rate of ₹4 per unit was found to be reasonable since it was below the average rate of realization of TANGEDCO.
