CHENNAI: Tamil Nadu’s energy requirement is expected to increase by about 89% over the next 10 years, according to the latest National Generation Adequacy Plan released by the Central Electricity Authority (CEA) for the period from 2026-2027 to 2035-2036.
The state’s demand is projected at 1,48,219 million units (MU) in 2026-27 and is likely to rise to 2,80,398 MU (89%) by 2035-36. Among the southern states, Tamil Nadu is expected to rank second in terms of power requirement, while Andhra Pradesh is projected to top the list with a demand of 2,93,798 MU in 2035-36.
At the national level, Gujarat is expected to record one of the highest energy requirements, reaching 3,65,811 MU by 2035-2036.
Tamil Nadu Power Distribution Corporation Limited (TNPDCL), in its 16th annual report for 2024-25, had highlighted the financial burden of power procurement. The utility stated that it spent Rs 75,960.32 crore on power purchases, including procurement from private sources, while its total income stood at Rs 1,00,417.13 crore. This shows that nearly 75% of its income was spent on buying power.
It is clear that such high spending on power purchase is not sustainable in the long run. With demand expected to rise steadily, there is a need to reduce dependence on costly private procurement and focus more on increasing state-owned power generation capacity.
A senior TNPDCL official, on condition of anonymity, told TNIE that no major power plants have come into full commercial operation after the commissioning of North Chennai Stage II (2x600 MW) in May 2014. “North Chennai Stage III, with a capacity of 800 MW, recently commenced commercial operations. However, the Plant Load Factor (PLF) currently stands at around 40% alone as some technical works are yet to be completed,” he said.
The official further said that several major projects are in the pipeline including Udangudi Supercritical Thermal Power Station (2x660 MW), Ennore SEZ Supercritical Thermal Power Project (2x660 MW), Uppur Supercritical Thermal Power Project (2x800 MW), and ETPS Expansion Supercritical Thermal Power Project (1x660 MW). Among these, the first unit of the Udangudi project is nearing completion and is expected to begin commercial operations soon.
He added that after the Assembly elections, the new government should focus on completing these ongoing projects and increasing the state’s own power generation. This, he said, would also help in reducing the utility’s total debt, which currently stands at around Rs 1.76 lakh crore.