Tangedco major buyer of power from high price day ahead market in 2023-24

Tangedco dominates High Price Day Ahead Market, purchasing majority of electricity at ₹17.65 per unit in 2023-24.

Tamil Nadu Generation and Distribution Corporation (Tangedco) was the major buyer of electricity from the High Price Day Ahead Market in power exchanges, according to data shared in the report on the short-term power market in India 2023-24 released by the Central Electricity Regulatory Commission (CERC).

CERC had approved the introduction of High Price Day Ahead Market (HP-DAM) in February 2023. The dedicated market segment was introduced to enable high-cost generators, who have otherwise not been able to participate in the day-ahead market due to the existing price ceiling. The bid price range initially was between ₹0/kWh to ₹50/kWh in this segment, later revised to ₹0/kWh to ₹20/kWh w.e.f. 11 April 2023.

At present, only gas-based generating stations using imported Regasified Liquefied Natural Gas (RLNG) and naphtha, imported coal-based generating stations using only imported coal; and Battery Energy Storage Systems (BESS) are allowed to sell power in the HP-DAM segment.

Total Volume transacted through High Price Day Ahead Market in Indian Energy Exchange was about 32.07 million units (MU) in 2023-24 and Tangedco accounted for 20.98 MU or 65.43%. Tangedco’s weighted average purchase power was ₹ 17.65 per unit, as per the report. State power utilities from Andhra Pradesh, Bihar and West Bengal and other private players were the other buyers in the segment.

Tangedco also bought 6.86 MU of electricity in 2023-24 at a weighted average price of ₹16.48 per unit, from High Price Day Ahead Market of Power Exchange India (PXIL), another power exchange. This is 88.35% of the total 7.77 MU transacted in the segment.

States including Tamil Nadu purchase power from the exchanges as a short term measure, to meet increasing demand during summer season. During 2023-24 period, Tamil Nadu reached a record peak power demand of 19,387 MW on April 20, 2023.

Tamil Nadu has the highest power demand in the southern region. The State has the highest number of factories, accounting for 15.66% of the total number of factories in India (2,53,334). During summer this year, the State’s power demand hit a new record, touching an all-time-high of 20,830 MW on May 2. The daily consumption hit a new high of 454.32 MU on April 30.