Tamil Nadu will procure up to 1,000 megawatts of additional electricity between October 15 and 31 to meet demand and avoid power cuts, with the state expected to pay between ₹33 and ₹35 per unit for gas-based generation, Electricity Minister Nirmal Kumar said.
The minister said the electricity would be used mainly during the evening peak period from 6pm to midnight. The procurement is expected to add between ₹5 crore and ₹7 crore to the state electricity board’s daily costs.
According to the minister’s statement, the gas-based electricity has a production cost of more than ₹30 per unit. The higher purchase price reflects the fuel and generation costs associated with arranging additional supply at short notice, he said.
Tamil Nadu currently requires around 5,000 MW of additional electricity, according to the minister. However, only between 500 MW and 1,000 MW will be procured at the higher short-term price to manage the immediate requirement and maintain supply during the peak-demand window.
The announcement highlights the pressure on the state’s electricity system during periods when demand rises faster than contracted or available supply. By targeting the six-hour evening period, the procurement is intended to cover the part of the day when household, commercial and industrial consumption is expected to be concentrated.
The minister said the decision was based on the price of electricity, the cost of generation, the quantity available in the market and the state’s requirement. He also rejected what he described as incorrect allegations regarding the procurement process.
Tamil Nadu’s short-term purchase plan is also linked to a longer procurement timeline. The minister said work on obtaining electricity through a long-term tender would begin in February or March 2027. Until that process starts, the state will have to make short-term arrangements based on demand, availability and market prices.
The immediate procurement therefore serves as a bridge between the state’s current supply requirement and the planned long-term tendering process. For consumers, the stated objective is to prevent interruptions during the evening peak, while the electricity board will absorb a daily additional cost running into several crores.
The minister did not provide further details in the statement on the suppliers, the total quantity to be purchased over the 15-day period or the specific procurement mechanism. The next major milestone identified by the state is the start of the long-term tender process in February or March 2027.
