The Tamil Nadu Generation and Distribution Corporation (Tangedco) has purchased short-term power from the exchanges during the lockdown as prices have fallen below ₹4 per unit.
Between April 1 and 29, the State utility has procured 253.23 million units of power at ₹3.43 per unit from the Indian Energy Exchange and 100.80 million units of power at ₹2.93 per unit from Power Exchange India Ltd.
“As you can notice from the figures, we are purchasing around 5% of our electricity from the exchange, and that too at a cost cheaper than our own generation cost. This is one reason why we are keeping most of our own power plants on reserve shut during this time of low demand due to the lockdown. This has incidentally helped us build our coal stock to over 20 days of full generation,” a senior Tangedco official said.
Tangedco’s own generating cost is around ₹4.50 to ₹6 per unit.
According to the Indian Energy Exchange, the peak power demand across the country has declined by 25%. The State’s requirement for energy during the lockdown has been around 10,000 mega watt (MW), with more than 6,000 MW being received from Central generating stations, 2,000 MW from renewable energy and 2,000 MW from Tangedco’s combination of thermal, gas and hydro.
It also said that the average price in the exchange for day-ahead procurement has been as low as ₹2.36 per unit during the period March 24-April 20.
Power procurement by distribution utilities from southern, western and northern States such as Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab amongst others have continued, and infact increased over the last several weeks, owing to ample power availability and attractive prices, according to the Indian Energy Exchange.
“Distribution utilities are meeting their seasonal demand as well as replacing their costlier generation with low cost power available on the Exchange, thereby optimising procurement costs and saving significantly. A southern and a western distribution utility could individually save over ₹50 crore after the lockdown by stepping up procurement through Exchange,” Rajiv Srivastava, Managing Director and CEO, Indian Energy Exchange Limited, said.
“This is relevant at a time when distribution companies have the dual role of supplying 24/7 uninterrupted power as well as maintaining good financial liquidity,” he added.
