DERC Approves TPDDL’s Short-Term Power Procurement Plan To Address Delhi’s 2025 Summer Demand

The Delhi Electricity Regulatory Commission (DERC) issued an order concerning Tata Power Delhi Distribution Limited’s (TPDDL) petition for approval of short-term power procurement. The petition, aimed at addressing power shortages during Delhi’s summer season of 2025, proposed procurement through a competitive bidding process. During the summer of 2024, Delhi’s power demand reached unprecedented levels, and TPDDL forecasts similar peaks for 2025, necessitating action to ensure uninterrupted supply.

TPDDL projected a significant shortfall in power availability from May to September 2025. The estimated shortfall ranged from 150 MW to 643 MW across various periods. To address this, TPDDL proposed procuring 986 Million Units (MU) of power, combining round-the-clock (RTC) and peak-hour supply. The weighted average tariff discovered through the bidding process was ₹6.48 per unit, deemed competitive compared to other utilities’ rates. Various bidders participated, including major firms like Adani Enterprises, NTPC Vidyut Vyapar Nigam, and GMR Energy Trading.

The DERC analyzed the proposal, including deviations from the standard short-term guidelines and prior approval requirements for certain timelines. While the commission raised concerns about these deviations, it ultimately approved the procurement, acknowledging the urgency of ensuring a reliable power supply. However, the approval was conditional. TPDDL must fulfill its obligations to provide uninterrupted electricity and utilize surplus power efficiently within Delhi.

The commission also emphasized transparency in the procurement process and the alignment of discovered tariffs with market trends. The order highlights the critical need for proactive resource adequacy planning to manage peak demand effectively, ensuring that consumers are not adversely impacted by power shortages or higher costs.