HT consumers ask why no nod to purchase power from open market

CHENNAI: Even as Tamil Nadu grapples with power shortages due to high demand, industrial consumers are asking why they are being prevented from buying electricity directly from the power exchange instead of adding to the burden on the state-owned distribution utility.

Renewable energy (RE) developers are also questioning why the state government has not invited fresh applications for new projects since March and why several completed projects are still awaiting grid connectivity.

High-tension (HT) consumers are allowed to buy electricity directly from generators or power exchanges under the open-access system instead of depending entirely on Tamil Nadu Power Distribution Corporation Limited (TNPDCL). For this, consumers have to obtain a standing clearance from the State Load Despatch Centre (SLDC) after securing a No Objection Certificate (NOC) from the Superintending Engineer concerned.

However, industry sources said the SLDC has not been issuing such clearances since June. As a result, HT consumers who would normally buy part of their requirement from the IEX (Indian Energy Exchange) have had to draw the power from TNPDCL.

According to industry representatives, nearly 1,000 MW of demand that could otherwise have been met through open-access purchases is now being supplied by TNPDCL.

“We normally procure nearly 10 lakh units from the IEX every month for our own consumption instead of buying it from the state-owned discom, as the rules permit HT consumers to do so,” Tamil Nadu Spinning Mills Association CEO K Venkatachalam told TNIE.

“For the past four months, however, we have been buying electricity only from the discom. There are nearly 10,000 HT consumers across the state. Had the SLDC issued standing clearances, consumers could have bought power from the IEX and reduced the burden on the utility,” he said.

Venkatachalam said this was particularly significant when TNPDCL itself had been buying about 2,000 MW additionally during this period. According to him, completed RE projects with a combined capacity of around 1,000 MW are waiting for grid connectivity. Venkatachalam urged the state government to intervene and resolve the problems.

S Somasundaram of Bannari Amman Spinning Mills Ltd said it has been buying nearly 10 lakh units every month from TNPDCL since June instead of sourcing it from the IEX.

A senior TNPDCL official told TNIE that a new portal was being developed to process applications for RE projects and was expected to be launched in October. “Fresh applications for RE projects will be invited after the portal is launched,” the official said, acknowledging no addition to RE capacity from May. The official declined to comment on the non-issuance of standing clearances to open-access consumers.