Tamil Nadu Power Demand Likely To Nearly Double By 2035

16 Apr 2026 CW Team

The Tamil Nadu Power Distribution Corporation Limited's sixteenth annual report for 2024-25 showed power purchase spending that consumed most of its revenue. Converted from crore figures the utility's power procurement totalled Rs 759,603.2 million (mn) while total income converted to million was Rs 1,004,171.3 mn, indicating nearly 75 per cent of income went to buying power. The report warned that sustained reliance on costly private procurement is not sustainable for the utility's finances. It recommended greater emphasis on expanding state owned generation capacity to manage rising demand.

A senior TNPDCL official said no major state owned plants had come into full commercial operation since North Chennai Stage II, with two units of 600 megawatt (MW), was commissioned in May 2014. North Chennai Stage III with 800 MW had recently commenced commercial operations but the plant load factor stood at around 40 per cent while some technical works remained to be completed. The official named pipeline projects including Udangudi with two units of 660 MW, Ennore SEZ with two units of 660 MW, Uppur with two units of 800 MW and an ETPS expansion with one unit of 660 MW.

The official said the first unit of the Udangudi project was nearing completion and expected to begin commercial operations soon and that after the Assembly elections the new government should concentrate on completing these projects to boost state owned generation. Increased generation was presented as a path to reduce dependence on private procurement and to address the utility's debt, which was stated at around Rs 1,760 billion (bn).

The Central Electricity Authority's National Generation Adequacy Plan for 2026-27 to 2035-36 projects Tamil Nadu's energy requirement to rise by about 89 per cent over the next ten years. The state demand is projected at 148,219 million units (mn units) in 2026-27 and is likely to reach 280,398 mn units by 2035-36. Tamil Nadu is expected to be second among southern states while Andhra Pradesh is projected to top the list with 293,798 mn units in 2035-36. Gujarat's requirement is forecast at 365,811 mn units by 2035-36. The Tamil Nadu Power Distribution Corporation Limited's sixteenth annual report for 2024-25 showed power purchase spending that consumed most of its revenue. Converted from crore figures the utility's power procurement totalled Rs 759,603.2 million (mn) while total income converted to million was Rs 1,004,171.3 mn, indicating nearly 75 per cent of income went to buying power. The report warned that sustained reliance on costly private procurement is not sustainable for the utility's finances. It recommended greater emphasis on expanding state owned generation capacity to manage rising demand. A senior TNPDCL official said no major state owned plants had come into full commercial operation since North Chennai Stage II, with two units of 600 megawatt (MW), was commissioned in May 2014. North Chennai Stage III with 800 MW had recently commenced commercial operations but the plant load factor stood at around 40 per cent while some technical works remained to be completed. The official named pipeline projects including Udangudi with two units of 660 MW, Ennore SEZ with two units of 660 MW, Uppur with two units of 800 MW and an ETPS expansion with one unit of 660 MW. The official said the first unit of the Udangudi project was nearing completion and expected to begin commercial operations soon and that after the Assembly elections the new government should concentrate on completing these projects to boost state owned generation. Increased generation was presented as a path to reduce dependence on private procurement and to address the utility's debt, which was stated at around Rs 1,760 billion (bn).

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