Tamil Nadu to incur Rs 5-7 crore daily for peak power purchases

Tamil Nadu Generation and Distribution Corporation Limited (TNPDCL) will bear an extra financial burden of Rs 5 crore to Rs 7 crore per day to purchase gas-based power for meeting peak demand requirements, according to Energy Resources Minister Nirmal Kumar.

The state power utility needs to procure only 1,000 MW of additional capacity, specifically to address evening peak demand challenges during a 16-day window from October 15 to 31. This targeted approach aims to bridge the supply-demand gap during high-consumption hours without requiring large-scale procurement across the entire day.

The temporary gas power purchase arrangement reflects the state's strategy to manage power availability during peak demand periods while keeping procurement costs contained. Officials have indicated that this measure is a short-term solution to ensure adequate electricity supply during the specified period.

The additional daily expenditure underscores the financial pressures faced by state distribution utilities in meeting peak demand through costlier thermal alternatives. Tamil Nadu's move highlights the ongoing challenge of balancing power supply stability with fiscal constraints faced by regional electricity distribution networks across India.