The prices on power exchanges have hit the maximum ceiling of ₹10 per unit during peak hours, with States including Tamil Nadu seeing high power demand amid rising temperatures.
Tamil Nadu’s peak power demand crossed 19,000 MW for the first time on April 19, touching 19,087 MW and the following day it touched 19,387 MW.
The trading in power exchanges happen in 15-minute blocks and prices keep changing based on the demand. There are a total of 96 blocks.
On April 19 and 20, during the evening peak and night hours the prices at the exchanges were in the range of ₹7 per unit to ₹10 per unit. The Central Electricity Regulatory Commission had asked the power exchanges to cap the prices up to ₹10 per unit for all contracts from April 4 till further orders.
Tamil Nadu Generation and Distribution Corporation Ltd. (Tangedco) manages the power demand through various sources including own generation, power arrangements, renewable energy and purchase from the exchanges. The State has an installed capacity of 16,417.38 MW of conventional sources and 18,288.78 MW of renewable sources.
Even though Tamil Nadu has an allocation of 7,170 MW power from Central Generating Stations, the peak availability is only 5,900 MW, as per the Energy Department’s policy note for 2023-24. Tangedco gets 2,830 MW power through long term power purchase agreements executed for a period of 15 years from 2013, the policy note said. Similarly, through medium term power purchase agreements executed for a period of three/five years, it procures 252 MW power, it added.
The State utility has tied up 1,562 MW power under short term contracts for the months of February, March, April and May 2023 at ₹8.50 per unit from inter and intra-State generators. Tangedco also has swap power arrangements with other States under which the surplus power in other States is supplied to it for the required period. This will be returned by Tangedco when surplus power is available during June to September of every year. The swap arrangement has helped avoid expenditure on peak hour purchase at a cost of ₹10 per unit, as per the policy note.
Tangedco has tied up for buying power through the exchange under long-term contract system. From 6 p.m. to 11 p.m., the utility has tied up for 1,293 MW in April and 565 in May, it added. With the various arrangements, summer demand will be managed without any interruption of power, the note added.
The power price on exchanges has been touching the maximum of ₹10 per unit, amid record demand across the country, said an official. With cool weather over the past few days and a rain forecast till this weekend, prices on the power exchanges have eased a bit, he added. The State’s peak demand was hovering around 16,412 MW on Monday evening.
