Why has Tamil Nadu opted for an expensive electricity purchase agreement? | Explained
Why has Tamil Nadu opted for an expensive electricity purchase agreement? The Tamil Nadu government clarified that due to the high power demand in the State this time, thanks to a prolonged summer-like situation, it had to opt for such an agreement
Poor forecasting of the extended summer caused by El Niño, failure of the Southwest monsoon, not planning ahead to tie-up with power generators through short term power purchase agreements, the waning of the wind power, and the inability to utilise maximum capacity in thermal power plants are among the factors that have pushed Tamil Nadu to purchase power at high costs. Image for representation purpose only. File
The story so far: The Tamil Nadu Power Distribution Corporation Limited (TNPDCL) recently signed a power purchase agreement at over ₹30 per unit. This has been criticised by various Opposition parties, which have condemned the rate the State has to pay, drawing comparisons with other States that are paying much lower rates for power purchase agreements.
The government has clarified that due to the high demand for electricity in the State this time, thanks to a prolonged summer-like situation, it has had to opt for such an agreement. Energy Resources Minister C.T.R. Nirmal Kumar has claimed that at the moment, only gas power is available for purchase, and attributed the high cost of the power purchase agreement to the same.
Tamil Nadu / power (infrastructure) / government / electricity production and distribution
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