The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved a petition filed by the Tamil Nadu Power Distribution Corporation Ltd. (TNPDCL) to float a short-term tender for the procurement of power to meet the expected rise in electricity demand during the summer months of 2025. The Commission passed the order on April 1, 2025, in response to Miscellaneous Petition No. 53 of 2024, allowing TNPDCL to procure power for specified time slots from March 1 to May 10, 2025.
TNPDCL had projected a peak demand of 22,080 MW for the summer of 2025, citing past records that showed an all-time high demand of 17,563 MW in April 2022, 19,387 MW in April 2023, and 20,830 MW in May 2024. The surge in electricity demand has been attributed to post-COVID industrial recovery, increased commercial activity, and hot weather conditions.
To manage the summer demand, TNPDCL requested to purchase 850 MW from 00:00 to 08:00 hours 1,425 MW from 18:00 to 24:00 hours during March 2025; 1,300 MW from 00:00 to 06:00 hours, and 2,610 MW from 18:00 to 24:00 hours in April 2025; and 650 MW from 00:00 to 08:00 hours and 1,080 MW from 18:00 to 24:00 hours during the first ten days of May 2025. The Commission has approved TNPDCL to float tenders and procure this power through the DEEP (Discovery of Efficient Electricity Price) portal.
The Commission observed that TNPDCL had previously filed a similar petition (M.P. No. 50 of 2024), which approved procurement from February to May 2025. However, due to updated demand forecasts and a revised indent from the State Load Dispatch Centre (SLDC), TNPDCL had to seek additional power procurement and proposed floating a second short-term tender.
TNPDCL cited limited power availability through exchanges in 2023 and 2024, where they were able to secure only 15% to 25% of their bid quantum despite bidding at the maximum price of ₹10 per unit. It also mentioned that ongoing projects like Ennore SEZ, Udangudi Stage II, Kudankulam Units 3 and 4, and the ETPS Expansion would only contribute to the grid after 2027–2030.
In its findings, the Commission highlighted inconsistencies in TNPDCL’s installed capacity data and emphasized the need for better forecasting. It directed TNPDCL to engage a consultant for power purchase optimization and submit a comprehensive short-term power purchase plan for FY 2025–26 and FY 2026–27 by June 30, 2025.
The order also gives ex-post facto approval for publishing the Request for Proposal (RfP) in newspapers and on the TNPDCL website. TNPDCL is instructed to limit power procurement through short-term open access (STOA) to within 5%–10% of the total required quantum and follow previous directions, including filing a compliance report and tariff adoption petition.
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