Tamil Nadu required to tie-up an additional 7,000 MW thermal capacity till FY 2034-35: Union Power Ministry

Tamil Nadu has planned contracts for 6,486 MW from thermal power capacity till FY 2029-30. Further, the State is required to tie-up an additional 7,000 MW from thermal capacity till FY 2034-35, Union Power Ministry said, citing the Resource Adequacy Plan by Central Electricity Authority (CEA).

According to Union Ministry of Power, the planned 6,486 MW includes three thermal power projects by Tamil Nadu Power Generation Corporation Ltd (TNGCPL) under construction. This includes North Chennai Thermal Power Plant (Stage III) Project (1 x 800 MW), Udangudi Thermal Power Project Stage-I (2 x 660 MW) and Ennore SEZ Supercritical Thermal Power Project (2 x 660 MW).

However, the under construction thermal power projects of TNPGCL – Ennore Expansion TPS (1×660 MW) & Uppur STPP U1&2 (2 x 800 MW) are not included in 6486 MW planned capacity, the Ministry told Standing Linkage Committee (Long-Term) for Power Sector which decides on coal linkage for power sector.

Union Ministry of Power has requested the Standing Linkage Committee (Long-Term) for Power Sector to consider the request of Tamil Nadu government to earmark long-term coal linkage to TNPGCL under the revised coal allocation policy (SHAKTI Policy, 2025) for conducting tariff based competitive bidding to develop and procure 660 MW of power from Ennore TPS Expansion project.

The Standing Linkage Committee will take a call on the coal allocation for the Ennore TPS Expansion project. Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) is presently meeting the demand from the Installed Capacity of conventional sources of 15043 MW (Thermal 4320 MW + Gas 408 MW + Independent Power Producers 775 MW + Central Generating Stations Share 6558 MW + Long Term Open Access 2830 MW + Medium Term Open Access 152 MW). Considering a Plant Load Factor of 85%, the net availability will be 12786 MW, Tamil Nadu Electricity Regulatory Commission (TNERC) said in a recent order.

TNPDCL had executed 11 Long Term Power Purchase Agreements (PPA) for aggregate quantum of 3330 MW for a period of 15 years from 2014 to 2028. Out of 3330 MW, 500 MW PPA executed with Ind Barath Energy (Utkal) Ltd was terminated and at present 2830 MW power under long term is being procured and the PPAs will expire in FY 2028-29, it noted.

The median shortfall/demand deficit for FY 2026-27 and FY 2029-30 is 4,858 MW and 6,997 MW respectively, taking into account expiry of contracts and upcoming projects. TNERC allowed TNPDCL to float medium term tender for procurement of 800 MW round the clock Power for a period of five years from power plants all over India under Finance, Own and Operate (FOO) guidelines from 01-02-2026.