CHENNAI: Tamil Nadu will procure 1,500 MW of additional power for six peak hours daily from October 15 to 31 to meet rising demand and prevent power cuts, Electricity and Law Minister R Nirmalkumar said on Tuesday.

Responding to criticism over the high cost power purchase, the minister said the state had invited bids for up to 3,500 MW but would purchase only 1,500 MW, depending on the rates quoted and the requirement. The procurement would be limited to 6 pm to midnight, when solar generation is unavailable and demand remains high.

The additional procurement is expected to cost the state around Rs 5 crore a day, as gas-based power is currently available at rates of around Rs 35 per unit. Naphtha-based power, which costs about Rs 47 per unit, would not be considered, he said.

Explaining the need for the procurement, Nirmalkumar said Tamil Nadu's peak demand had risen from 16,800 MW during the corresponding period last year to around 21,700 MW this year, an increase of nearly 30%. Persistent heat attributed to El Niño had contributed to the surge, which had not been adequately anticipated in national-level demand forecasts.

The state was also facing a shortfall of around 4,850 MW from its existing power arrangements. Of this, around 1,850 MW was unavailable from the central allocation, while wind power generation had fallen sharply, with only around 500 MW available against 3,500 MW tied up through existing arrangements.

The minister said the government had explored cheaper sources of power, including procurement from Assam, from where it had tied up 430 MW of thermal power. Tamil Nadu had also attempted to secure power through arrangements with other states, but the available supply was insufficient to meet the shortfall.

“Had we not made these arrangements, we would have been forced to impose power cuts for two to three hours, as several other states have done,” he said, adding that the short-term procurement was intended to prevent interruptions to consumers.

Nirmalkumar said the government would issue tenders this month for long-term power procurement of at least 3,500 MW, with the final capacity yet to be decided. It was also preparing a five-year procurement contract for 1,500 MW to 2,000 MW. The government aimed to secure an additional 6,000 MW to 8,000 MW by 2028-29 to improve supply security.

He alleged that the previous DMK government had not entered into any long-term power purchase agreements during its five-year tenure, leaving the state dependent on short-term procurement. The present government would address the gap through longer-term contracts, he said.

The minister also said the government was working to improve the utilisation of the state's installed thermal generation capacity. Against an installed capacity of around 4,300 MW last year, actual generation during the corresponding period was about 2,200 MW. The current generation had risen to around 4,200 MW to 4,300 MW against an installed capacity of approximately 5,300 MW, indicating improved utilisation.

He said the government was examining ways to revive the Uppur thermal power project, where substantial civil works and equipment procurement had already been completed but the project had remained stalled. A detailed project plan was being prepared, and the equipment would be inspected before work resumed. Restarting the project would help strengthen the state's own generation capacity, he added.

The government was also planning to introduce battery storage and revise its renewable energy procurement policy. Nirmalkumar said new solar applications had been kept on hold for four months while the government reviewed the existing arrangements, citing concerns over alleged irregularities and the need to integrate battery storage.

He alleged that the previous administration had entered into solar power arrangements that resulted in financial losses and said the government was examining legal options in the matter. The revised policy would seek to improve transparency, ensure access to real-time generation data and manage surplus renewable power more efficiently.

Responding to criticism over the high cost of short-term power, the minister said the quoted rates reflected the limited availability of gas-based generation. He maintained that the government was procuring cheaper power wherever possible and would buy the higher-cost supply only to cover the remaining shortfall.

Nirmalkumar also denied reports that existing power purchase agreements had been cancelled after the TVK government took office, saying contracts could not be terminated arbitrarily under the applicable national guidelines.

On the power interruption reported at the Secretariat on Monday, he said the issue was confined to an electrical board on one floor, which had reportedly overheated and was repaired within about 15 minutes. He denied that the incident amounted to a power cut affecting the entire Secretariat and said critical facilities, including hospitals, had redundant feeders to ensure uninterrupted supply.