Amid soaring power demand across States, including Tamil Nadu, power prices on exchanges are on the rise.
Tamil Nadu has the highest power demand among the southern States. It logged an all-time high demand of 20,830 MW on May 2, exceeding the previous high of 20,701 MW recorded on April 30 amid the continuing heat wave.
Tangedco’s own thermal power capacity stands at 4,320 MW. Along with the State’s share from Central Generating Stations (CGS), and long-term and short-term power purchase agreements, the State’s conventional installed capacity was 16,417.38 MW.
During summer, Tangedco meets the shortage in availability through short-term and swap power arrangements, and purchases from power exchanges. In April 2024, the market clearing price in the Day Ahead Market was ₹5.1 per unit, according to Indian Energy Exchange.
On May 2, when Tamil Nadu recorded the high peak power demand, the clearing price stood at ₹8.8 per unit in the evening. So far this month, the market clearing prices have ranged between ₹6.2/unit to ₹8.8/unit, according to the data available on the India Energy Exchange website.
The trading in power exchanges happen in 15-minute blocks, and prices fluctuate based on demand. There are a total of 96 blocks. The maximum prices have been capped at ₹10 per unit.
As per the 2022 tariff petition, approved by the Tamil Nadu Electricity Regulatory Commission, Tangedco plans to buy 6,130.70 million units of power from exchanges at a cost of ₹3,911.17 crore in 2024-25.
