Tamil Nadu says power will not be procured at the quoted high spot-market price
Tamil Nadu’s power department said it will not buy electricity at the quoted high rates, amid a tender for 2,100 MW for the 2026-27 peak season.
Key highlights
Direct fact
In October 2026, Tamil Nadu’s power department said it would not procure electricity at the quoted high rates after a tender was floated for 2,100 MW for the December 2026 to May 2027 peak-demand period.
Key specifics
- The tender was issued for 2,100 MW of electricity for the December 2026 to May 2027 period.
- Companies reportedly quoted up to ₹41.50 per unit in the latest tender.
- A previous tender had sought 4,500 MW at a price band of ₹31 to ₹37 per unit.
- The minister said the state has enough power stock for the next 3 months.
- Tamil Nadu’s power demand has risen by 3,000 MW compared with last year.
Exam lens
TNPSC Economy/State administration question type: power procurement, peak-demand management, MW and per-unit pricing. Key facts: 2,100 MW, ₹41.50/unit, 4,500 MW earlier tender, 3,000 MW demand rise.