Tamil Nadu is planning to purchase up to 2,100 MW of electricity at rates reaching ₹41.50 per unit to meet peak demand during the evening and night hours. The proposed purchases are scheduled for December 2026 to May 2027, according to reported tender details.
The proposed rate is higher than the previous reported peak of ₹37.50 per unit. Journalist Kannan Jeevanantham shared details of the tender, which reportedly includes different price offers, with some electricity lots priced at around ₹35 per unit.
The planned purchases come amid concerns about rising electricity demand, reduced wind power generation and supply shortages. Demand is expected to increase during the warmer months, putting additional pressure on the state’s power supply system.
The proposed procurement has sparked debate over electricity planning and costs. Critics have questioned the need to buy power at such high rates, particularly amid reports that the state’s power utility carries debt of around ₹2.4 lakh crore.
Others argue that securing electricity during peak hours is necessary to maintain an uninterrupted supply for households and businesses. Electricity Minister CTR Nirmal Kumar has reportedly described short-term power purchases as a temporary measure to bridge supply gaps while longer-term arrangements are developed.
The proposed procurement highlights the challenges Tamil Nadu faces in balancing electricity demand, supply reliability and costs. Further details on the final purchase rates and contracted power volumes will depend on the tender process and official decisions.
