TNPDCL spent ₹7,953 crore on electricity purchases

The Tamil Nadu Power Distribution Company Limited (TNPDCL) reported it spent ₹7,953 crore on purchasing electricity in 2023-24. This investment covered 8,606 million units of power bought from energy exchanges. According to a recent report by the Central Electricity Regulatory Commission (CERC), TNPDCL was a key buyer in the High Price Day Ahead Market. This market allows high-cost power producers to sell electricity that might not be offered due to price limits. Initially, the TNPDCL estimated it would buy 4,428 million units for ₹4,170 crore in the year. Last year, it spent ₹3,863.37 crore for 4,061.35 million units. The corporation noted that higher demand and lower supply often occur during summer months, making it hard to secure power. TNPDCL's analysis shows that when bidding for power during the summer, they sometimes received only 30% of their requested amount. This happened as demand greatly outpaced supply. This summer, Tamil Nadu's power demand is expected to exceed last year's peak of 20,830 MW recorded on May 2, 2024.