TN power demand grows 20%

Tamil Nadu’s electricity demand is estimated to grow by 20 per cent in 2014-15 as compared with last year, according to the Electricity Minister Natham R Viswanathan.

Addressing a special mention in the Assembly today, he said the demand in the current year is pegged at 91,642 million units against 76,445 million units in 2013-14. The demand last year had been higher by 14 per cent over that of the previous year with the consumption growing steadily, he said.

According to the official statement, about 70 per cent of the demand is met from the State’s own sources and as its share of power from the central pool. The balance is purchased from other sources, he said.

The utility follows a merit order dispatch norm by procuring power from the lowest cost source first and in stages looking at more expensive options as spelt out by the Tamil Nadu Electricity Regulatory Authority.

Of the total demand the Tamil Nadu Generation and Distribution Corporation will get about 37 per cent, 34,253 million units, from its own power plants; 33 per cent, 30,534 million units, from central power plants; and 6.64 per cent, 6,082 million units from renewable energy, mostly wind power. The average cost of wind power is ₹ 3.15 a unit but is available for about four months during the windy season between June and September.

The State government has tied up for about 3,330 MW for long term supply from 11 private power companies at a levellised tariff of ₹ 4.91 a unit. Of this it gets for now 150 MW from Jindal and 74 MW from OPG. Power from other sources will be utilised in stages, the Minister said.

At the time these bids were finalised UP has entered into similar long term, 25-year agreements at a levellised tariff of ₹ 4.88 to ₹ 5.73 a unit.

Tamil Nadu has finalised medium term agreements for about 500 MW at a levellised tariff of ₹ 4.88 to ₹ 4.99.

During this period Maharashtra has tied up at a tariff of ₹ 5.46 a unit.

Tamil Nadu has also entered into short term agreements for about 1,393 MW at ₹ 5.50 a unit from power producers within the State. It has also entered into short term purchase agreements for about 773 MW at ₹ 4.93 a unit from outside the States but sources 150 MW because of inadequate transmission infrastructure. During this period Kerala has tied up for power at ₹ 5.88 a unit, he said.

Tamil Nadu also sources 2,829 million units, about 3 per cent of the power demand, from low cost independent power producers such as ST-CMS, Penna and Aban at about ₹ 4.04 a unit.

High cost IPPs such as GMR, MPCL, SPCL and PP Nallur supply 3 per cent, 2,950 million units at ₹ 12.50 a unit. This tariff includes a fuel cost of ₹ 11 paid directly to public sector oil companies such as IOC and BPCL. The IPPs get ₹ 1.50 as fixed charges for interest, depreciation and maintenance. Fixed charges have to be paid irrespective of whether power is purchased.

High cost IPPs are a source of last resort only after other cheaper sources are exploited, he said. The amount of power sourced from expensive sources will change by the hour and the day and will be stopped immediately when a less expensive source is available, he said.