Tangedco to discontinue power purchase

May 31, 2016 12:00 am | Updated 05:44 am IST - CHENNAI:

The Tamil Nadu Generation and Distribution Corporation (Tangedco) has decided to discontinue short-term power purchase, agreements for which will be expiring on May 31.

The decision was taken at a review meeting held with Chief Minister Jayalalithaa on Monday, where senior officials explained to her the availability of surplus power in the State and that wind power was picking up significantly. A senior Tangedco official said the discontinuance of short-term power purchase, priced at Rs. 5.05 per unit, would result in a saving of Rs. 900 crore to the corporation. The official said out of the total consumption of 300 million units (MU) of power per day in the State, wind power accounted for 50 to 70 MU and the projected wind season would continue till September.

Power managers, who treat wind as an ‘undependable’ energy, are confident of meeting the requirement for power in summer. In case the demand exceeds supply, emergency purchase would be made from the power exchange to bridge the short fall. The price of electricity from the power exchange would be in the range of Rs. 4 to 4.50 per unit at its highest during peak hours, the official pointed out. Even then, it would be a win-win situation for the State, and would result in huge savings.

According to officials, the major benefit arising out of stopping short-term power purchase is that the State does not have to pay the fixed cost to power generators even if the power was not used.

Power managers confident of meeting requirement for power in summer

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