Tamil Nadu buys power at Rs 20/unit to tackle crisis

Debt-ridden Tangedco has been forced to procure power from exchanges at a high cost of up to Rs 20 per unit with private thermal plants unable to supply contracted quantities owing to coal shortage. Wind power generation has also started to drop due to SW monsoon withdrawal.

Even though coal stock in Tangedco’s thermal power plants fell below four days, power managers were able to handle the private thermal plants’ decline thanks to the availability of wind power. But, with the SW monsoon nearing its end, wind power generation has started showing a declining trend, sources said.

On Friday evening, wind power generation fell to about 1,200 MW at 6 pm from 1,900 MW while the State’s power demand was peaking. When TN met its peak demand of 13,728 around 7 pm, wind generation dropped to about 700 MW. “To meet peak demand, Tangedco has to procure about 2,300 MW to 2,850 MW from spot market in the power exchanges,” a source said, adding, that with coal shortage pushing the demand for power, spot market prices have gone up to Rs 20 per unit.

On Friday, Tangedco procured 19.87 million units from the Indian Power Exchange (IEX) and Power Exchange India Ltd (PXIL). “Power sold through bids for the 15-minute block for 24 hours varies based on demand. For one 15-minute block from 7.45 pm to 8 pm, the price touched Rs 20 per unit,” a source said.

A senior Tangedco official said when the wind power season ends, NE monsoon would set in TN bringing rains which in turn will bring down power demand.

“If power demand comes down to 13,000 MW - 14,000 MW, we can overcome the decline in wind power with our existing sources of power generation and would only need to procure power from the sot markets sometimes,” the official said, adding that the surge in spot market power prices would impact finances of all utilities, including Tangedco, which is already bleeding.