Tamil Nadu will reduce its dependence on expensive open-market electricity purchases after northeast monsoon rains lowered power demand by around 1,000MW, while continuing to protect supply during evening peak hours, Electricity Minister C T R Nirmal Kumar said on Thursday.
The decision followed a review meeting at the Tamil Nadu Electricity Board headquarters covering electricity demand, procurement costs, generation capacity, monsoon preparedness and complaints about interruptions. Officials will adjust the state’s purchases according to rainfall and demand, particularly during the evening peak period, the minister said.
Earlier this week, the state electricity agency signed agreements to purchase 3,500MW at rates of ₹32-37 per unit. The short-term procurement plan drew criticism from political parties, but the state said it had anticipated the need for additional power when demand remained close to summer levels.
With demand now falling because of the rains, the state has reduced the additional purchase requirement to 300MW, according to the minister. “The drop in power demand has prompted us to buy 300MW,” he told reporters after the review.
The change is intended to prevent the state from buying electricity at high prices when it is not required. A government release said the additional cost of procuring power to meet peak demand could range from ₹5 crore to ₹7 crore a day. The scale of that exposure has made demand forecasting and procurement timing central to the state’s response.
However, the review also highlighted the competing cost of interruptions. Any reduction in purchases must be balanced against the risk of inadequate supply during periods of high demand, particularly in the evening. Interruptions can cause substantial losses for industries and commercial establishments, making reliability an operational concern beyond household electricity consumption.
The meeting also addressed complaints about power interruptions and reviewed monsoon preparedness. The state’s procurement approach will therefore depend on how rainfall affects demand and whether generation capacity can meet the evening peak without requiring large volumes of short-term electricity.
The immediate issue is the mismatch between a procurement plan made when demand was high and a subsequent fall in consumption caused by weather. Tamil Nadu’s next steps are to continue monitoring rainfall, demand, available generation and peak-hour requirements before adjusting open-market purchases further.
