TNERC clears Ennore expansion bidding as State braces for steep rise in power demand

CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved the tendering process to revive the long-stalled 1x660 MW Ennore Thermal Power Station (ETPS) Expansion Project, permitting Tamil Nadu Power Generation Corporation Ltd (TNPGCL) to float and process international competitive bids for its development under the Public-Private Partnership route and to procure the entire output through tariff-based competitive bidding.

In an order dated November 20, the Commission accepted deviations in the bidding documents, including the RFQ, RFP and Power Supply Agreement, observing that they were project-specific and designed to improve transparency and bidder participation. TNERC said the project must now proceed under section 63 of the Electricity Act through a transparent competitive bidding process.

The Commission stressed the urgency of new capacity additions, noting that the State's electricity demand has grown sharply in recent years. The State recorded a peak of 20,830 MW in May 2024, surpassing the Central Electricity Authority’s projection for 2025.

According to the CEA Resource Adequacy Plan, TNPDCL’s energy requirement is expected to rise from 142,441 million units in 2024–25 to 214,582 million units by 2031–32, with annual growth of between 5 per cent and 9 per cent. The order records that actual demand may exceed these projections due to the growing needs of EV manufacturers, data centres and other power-intensive industries.

The Commission also noted that coal linkage for the project has been earmarked under the revised SHAKTI policy. TNPGCL will lease 128 acres of land at Ernavur to the selected developer at a nominal annual rent of Rs 1 per hectare to help secure competitive tariffs for consumers. The Power Supply Agreement will run for 34 years, including a four-year construction period. TNERC directed the utilities to file a tariff adoption petition once the lowest bidder is identified.