Tamil Nadu’s power demand remained flat in the first half of 2025-26

Tamil Nadu’s power demand remained flat in the first half of 2025-26. The State’s energy requirement was 69,092 million units (MU) during the April-September 2025 period, when compared to 69,303 MU in the same period last year, as per data from the Central Electricity Authority, under the Union Ministry of Power.

The State’s peak power demand or maximum demand has also been lower at 19,878 MW in the first half of 2025-26, when compared to the levels reached in the same period last year. Tamil Nadu saw an all-time high peak demand of 20,830 MW, reached on May 2, 2024, and a record high daily consumption of 454.32 MU on April 30, 2024.

Tamil Nadu had expected maximum peak demand expected for this year to be 22,150 MW, 6% higher than the previous year peak demand of 20,830 MW. The State has the highest power demand in the southern region. The State has the highest number of factories, accounting for 15.66% of the total number of factories in India.

According to ratings firm ICRA, India’s electricity demand saw a muted 1% growth in the first half of FY2026, due to factors such as early monsoon. It projects India’s electricity demand to grow by about 4.0%-4.5% in FY2026, as it expects a strong recovery in the second to offset the monsoon-related weakness seen in the first half.

Meanwhile, as per data from the Southern Regional Power Committee (SRPC) based on the next 13-month period from October 2025 to October 2026 load generation balance reports furnished by State Load Despatch Centres, Tamil Nadu is expected to see a power deficit in the 2026 summer period. Tamil Nadu is expected to see a peak power demand of 20,700 MW in April 2026, against which the availability is projected to be 13,756 MW, resulting in a deficit of 6,944 MW.

The Tamil Nadu State Load Despatch Centre informed SRPC that it was planning to procure power through short-term tender of around 2,400 MW and medium-term tender had been opened and under negotiation for around 1,500 MW. Additionally, banking arrangements will also be pursued. Further, completion of Udangudi  (2×660 MW Supercritical Thermal Power Project Stage I), Unit-1 is expected by November 2025, it said.

The Tamil Nadu Power Generation Corporation Limited’s (TNPGCL) own thermal power capacity stands at 5,120 MW, including the North Chennai Stage III 1X800 MW. Along with the State’s share from Central Generating Stations (CGS) and other contracts, Tamil Nadu’s total conventional capacity stands at 16,713.87 MW.

During the summer months, the State manages power deficit by procuring power through short and medium term tenders and power purchase through exchanges, among others.