The Tamil Nadu Electricity Regulatory Commission has permitted the Tamil Nadu Generation and Distribution Corporation (Tangedco) to purchase 2,122 megawatt (MW) from eight companies for 15 years.

Of the eight companies, three will source power from plants in the State, accounting for 1,162 MW. The remaining five will have 950 MW supplied from plants outside the State.

The purchase has been allowed on the ground that the State would have a shortfall of 4,836 MW for 2013-2014. Already, the Corporation had firmed up power purchase for 1,208 MW. Along with the expected power from new projects, the Corporation hopes to tide over the shortfall.

The proposed quantum of power – 2,122 MW - actually forms part of the offer made by 12 bidders in response to the Tangedco’s tender.

Except one, all other bidders agreed to match the rate offered by the lowest bidder-1, which was Rs. 4.01 per unit as in September.

The tender follows the Commission’s order of December 2012, allowing the Corporation to buy 1,000 MW [round the clock] with a provision of plus or minus 20 per cent for 15 years. Consequently, the Tangedco had initially decided to buy 1,208 MW.

The latest order of the Commission, approving the purchas, was made, dismissing a petition filed by the Indian Wind Power Association and Tamil Nadu Spinning Mills Association.

The Commission held that the Associations had no locus standi to implead themselves in the case as “wind power is infirm power whereas the petition [filed by the Corporation, seeking approval for power procurement] is for purchase of base load power.”

The additional quantum is likely to be supplied from February next year.

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