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At a time several States are struggling to meet the power demand situation, Tamil Nadu’s power utility Tangedco (Tamil Nadu Generation and Distribution Corporation) is utilising the quick opportunity to sell surplus power to the exchange at a higher rate besides exploring swap deals to meet the demand during peak periods.
This year, Tamil Nadu saw its peak demand crossing 16,000 megawatt (MW) for 17-18 days compared to 2021, which saw a peak demand just for 8 days. On April 29, the State had its peak demand of 17,563 MW and fortunately, Tangedco was able to meet the demand, owing to its short term power purchase agreements.
Relief from weather
Meanwhile, the weather provided some respite, too, this month. With heavy rains and winds, power demand has dipped suddenly for many days, providing an opportunity for Tangedco to sell the surplus power at a higher rate since many States are facing a shortfall. “In the past few days, we could sell 4.5-5 lakh units of surplus power daily at a cost of ₹10 per unit. If demand continues to stay at a lower level, we will sell the excess quantity to the market,” Rajesh Lakhoni, CMD of Tangedco, told BusinessLine.
On May 1, it sold about 1.44 lakh units to the power exchange, while on May 8, the discom sold 4.5 lakh units of surplus at a cost of ₹12 per unit.
Power-swap deal
The general practice is to get into a power-swap deal under which, Tangedco will have an agreement to sell its excess energy to power-starved States and take back the same quantum during March/April period.
“We are expecting some bids to come for power-swap in the next few days and we hope to swap 500-1,000 MW with whoever is willing,” said Lakhoni. It expects surplus power during June-August 2022 as the wind energy sector is expected to generate higher capacity.
As Tangedco is carrying a huge quantum of accumulated losses (₹1,39,226 crore), it has embarked on several measures to shore up revenues and cut costs.
Lakhoni said while several States are struggling to provide power to industrial units, Tamil Nadu was supplying power without any disruption. “There are load-sheddings in some States, which don’t want to buy power. But, Tamil Nadu doesn’t do load-shedding as we buy power to meet the shortfall. Tangedco is well-prepared to meet the demand till next January 2023,” he said.
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