Stories
TN Absorbs Extra Costs to Prevent Power Cuts Amid High Demand
- •Tamil Nadu Electricity Minister R Nirmal Kumar stated that the state is paying a premium to avoid power cuts for industrial and MSME sectors, absorbing up to Rs 7 crore in daily extra expenses.
- •The state is procuring 1,000 MW of expensive gas power at Rs 33 to Rs 35 per unit to meet evening peak hour requirements between October 15 and 31.
- •Tamil Nadu's power demand has hit a 10-year high of 21,000 MW, marking a 5,000 MW increase compared to the previous year.
- •A new comprehensive solar and battery storage policy will be rolled out within a week, along with plans to replace 6,000 aging transformers this year.
- •The minister criticized the previous AIADMK administration for stalling the Uppur power plant despite a Rs 6,000 crore investment, while announcing plans to revive the facility.
Key Questions Answered
Tamil Nadu's power requirement has reached a 10-year high of 21,000 MW, which is an increase of 5,000 MW compared to the previous year. To meet evening peak hour requirements between October 15 and 31 and avoid power cuts like other states, Tamil Nadu is purchasing 1,000 MW of gas power at a premium of Rs 33 to Rs 35 per unit through NVVN.
The state government plans to roll out a comprehensive solar and battery storage policy within a week. Additionally, short-term procurement arrangements will soon be replaced by long-term power purchase tenders by the end of the month, pending approval from the Tamil Nadu Electricity Regulatory Commission (TNERC).
The Uppur Thermal Power Project is a stalled supercritical coal-fired power plant involving a Rs 6,000 crore investment. It faced severe hurdles, including legal land acquisition challenges, local opposition over environmental degradation, and the National Green Tribunal putting its environmental clearance in abeyance on March 18, 2021.
