The Tamil Nadu Generation and Distribution Corporation (Tangedco) has sourced 1,135 million units of electricity from other states in the last one year under swap agreements. And, officials say this has reduced dependency on high cost power from the exchange to meet peak demand.
Unlike the power purchase agreements, swap agreements are between the utilities to exchange surplus power. Tangedco made the swap for the first time in 2021 with Rajasthan, Madhya Pradesh, Punjab and Uttar Pradesh and received 793.46 million units (MU) till March 2022. From April 2022 to March 2023, Tangedco received 1,135.34 MU of power from other states.
Correspondingly, Tangedco returned 923 MU till March 2022 and 1046.41 MU for the subsequent period.
This agreement does not involve money as it is just an exchange of surplus power between the utilities. TN will get the surplus power from other states, mostly from January to March until solar generation picks up here. Post-summer, when the electricity demand returns to normalcy, TN will give power to the same states.
This mostly happens from June to September, when we get wind energy, said Tangedco chairman and managing director (CMD) Rajesh Lakhoni. The understanding is that when a state returns the power to another, it will give 5 per cent more than what it received. It works out to 3.15 per unit compared to the higher cost of 10 per unit in the power exchange during summer, said an official.
Another senior official said the power from other states is used to meet the lighting peak or evening peak as solar generation stops after the daytime.
“Only after exhausting power from other states and power from short-term agreement, do we purchase power from the exchange,” said the official.
