Tamil Nadu faces a record-high power demand, reaching 20,830 MW on May 2 due to the scorching heat. With its thermal capacity limited to 4,320 MW, the state relies on short-term purchases and power exchanges, where prices hit ₹8.8 per unit amid the peak. Tangedco’s strategy includes sourcing 6,130.70 million units from exchanges, costing ₹3,911.17 crore in 2024-25. The market clearing prices, fluctuating between ₹6.2 to ₹8.8 per unit, reflect the supply-demand dynamics. Despite efforts to manage shortages, sustained high demand challenges Tamil Nadu’s power infrastructure.
Rising Power Demand Spurs Price Surge in Tamil Nadu
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