CHENNAI: Tamil Nadu Generation and Distribution Corporation (Tangedco) has extended an invitation to other state distribution companies (discoms) to avail themselves of electricity through a swap arrangement, leveraging wind power generation. The move comes as the state is experiencing the peak of wind season, which is expected to last until September.
The power utility procured a significant wind power of 4,886 MW from private parties on Tuesday, followed by 5,079 MW on Wednesday. With ample wind power availability, Tangedco is now prepared to offer electricity to select states through swap arrangement.
A senior Tangedco official told TNIE, “The power utility has entered into swap arrangements, wherein two utilities or states exchange power to address seasonal variations in surplus and deficit situations. These arrangements are based purely on energy-to-energy transactions, without any monetary transactions.”
This innovative method of power procurement allows surplus power from other states to be supplied to Tangedco during periods of high demand, with the power utility reciprocating by returning the surplus power during the wind season, which typically occurs between June and September every year, the official added.
Another official highlighted that the swap arrangement enables Tangedco to avoid additional expenditure each year. During the summer season, the cost of electricity at power exchanges can range from Rs 10 to Rs 20 per unit. By leveraging the swap arrangement, Tangedco mitigates this expense.
In recent times, Tangedco has successfully utilised swap power arrangements from state utilities in Madhya Pradesh and Rajasthan to meet the peak demand during morning and evening hours from January to March 2023. These intra-day arrangements were made as hydropower generation in these states reached its peak.
During the financial year 2021-22, the power utility procured 790 million units of electricity, while in 2022-23, the figure rose to 1,130 million units. These power supplies were obtained through swap arrangements with Punjab, Rajasthan and Madhya Pradesh.