Tangedco gets nod to procure 500 MW of power to meet expected deficit

The power will be obtained for a period of three years, under the Union Ministry of Power’s pilot scheme II

The Tamil Nadu Generation and Distribution Corporation (Tangedco) has obtained a nod from the State power regulator to procure up to 500 MW of round-the-clock power for a period of three years under the Union Ministry of Power’s pilot scheme II. The power would be procured at ₹3.26 per unit excluding transmission charges and trader margin.

In its petition before Tamil Nadu Electricity Regulatory Commission, the Tangedco said total power availability is 14,783 MW, out of which 4,320 MW is from its own thermal power generation stations, 6,151 MW as share from Central power generation stations, 2,830 MW from long-term agreements and 550 MW from medium-term agreements and 516 MW from its gas based power plant. The State utility also said there is a deficit in power requirement to the tune of 2,396 MW for FY 2020-21, 1,506 MW for FY 2021-22 and 111 MW for FY 2022-23 respectively.

Assuming a plant load factor of 85%, the net availability will be 12,565 MW, it added.

The Tangedco further said the first unit of the new Neyveli thermal power station was declared completed in January 2020, but the generation has not stabilised. The expected completion date of the second unit by end March 2020 is also getting delayed, and so the expected availability of 600 MW has been reduced, it added.

The ongoing projects considered at the Ennore SEZ super thermal power project, Udangudi, Uppur and Ennore Thermal power station expansion are also getting delayed and are expected to be commissioned and contribute to the grid beyond the forecast period, Tangedco said.

It also said currently, the deficit experienced during peak hours and due to outages of generation plants are met through hydro generation / purchase of power from power exchanges.

In order to meet the deficit projected for the next three years, Tangedco said the option available before it was procurement under the medium term for three years.

The Central government had launched the pilot scheme II, to facilitate procurement of 2,500 MW of power from coal based power generating stations which are already commissioned, but don’t have a power purchase agreement. PFC Consulting is the nodal agency and PTC India is the aggregator for the project.

The scheme envisages procurement of power through competitive bidding processes to be conducted by M/s. PFC Consulting Ltd. The successful bidder will supply power to the distribution licensee through the PTC who will sign a power purchase agreement with the generators and back-to-back agreement with the distribution utility.

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