HYDERABAD: The state recorded its highest-ever peak power demand of 15,752 MW at 7.45 am on Wednesday. The power utilities met the demand without imposing power cuts on any category of consumers by purchasing the required electricity.
According to officials, the reasons behind the early morning peak demand were agriculture needs in rural areas and the use of geysers in urban areas. They, however, noted that they were purchasing power at lower prices and saving the government’s money.
“The previous highest demand of 15,623 MW was met on March 8, 2024. In the last 14 months, all measures have been taken by the government to ensure sustained and reliable supply of quality power to all categories of consumers, including agriculture, industry and domestic,” said Transco chairman and managing director Krishna Bhaskar.
The demand for power has been increasing year after year. In December 2024 and January 2025, the increase in peak demand was 13.49% and 10.10% respectively when compared to the same months a year earlier. “Given this trend, the distribution companies have initiated measures to meet power demand exceeding 17,000 MW during the upcoming summer season,” Krishna Bhaskar said.
To meet this demand, the distribution companies — SPDCL and NPDCL — have planned to procure the power from existing long-term contracts as well as from the power exchanges.
“Power purchase is required because the base availability of power in the state, through long-term contracted agreements, is 9,134 MW, requiring the Discoms to plan for market purchases during non-solar hours. In fact, during solar hours, the total solar power augmentation does not fill in the total gap with peak demand,” the Transco CMD explained.
Judicious choice
“Whenever the rates in the exchange are less than the variable cost of thermal power plants, during certain period of the day it makes economic sense to purchase power from the market and back down the expensive thermal power stations at that particular point of time,” he said.
“In the recent months of December and January, the distribution companies have purchased power at an average rate of Rs 2.69 and Rs 2.82 per unit, backing down the thermal stations, the average rates for which were Rs 3.97 per unit and Rs 4.18 per unit. The saving that accrued to the distribution companies through their judicious choice of choosing to procure from the exchanges in particular time periods (when the exchange rates were low) is Rs 196.68 crore in December and Rs 185.27 crore in January,” Krishna Bhaskar claimed.
The Transco chief said that from December 2023 to January 2025, the total saving that accrued to the distribution companies due to this optimisation is Rs 982.66 crore.
“Had this amount not been saved, it would have led to an additional burden on the consumers. The efficient usage of the exchange markets to optimise power purchase spending was recognised by the Union government, which adjudged Telangana SLDC as the best in the country and presented an award on December 14 in Indore,” Bhaskar added.
