Chennai, Jan 10 (NationPress) The Tamil Nadu government is making significant strides to revive the long-stalled expansion of the Ennore Thermal Power Station, soliciting bids for the project's completion via a public-private partnership (PPP) model, driven by the escalating electricity demand in the State.

The Tamil Nadu Power Generation Corporation Limited has released tenders for the establishment of a 1×660 MW supercritical coal-fired thermal power unit at Ennore on a design, build, finance, own and operate (DBFOO) basis.

TANGEDCO will act as the nodal agency representing the Tamil Nadu Power Distribution Corporation Limited, which will acquire electricity from the project under a long-term power purchase agreement (PPA).

This expansion was initially sanctioned by the State government in March 2012 to enhance the generation capacity at the Ennore facility.

An engineering, procurement, and construction (EPC) contract was awarded to a private company in May 2014, with plans for the unit to become operational by January 2018.

Unfortunately, construction halted due to the contractor's financial difficulties, and by March 2018, progress had lagged below 20 percent. The contract was subsequently terminated the following month.

In a later effort to rescue the project, the incomplete works were re-assigned to another company in December 2019 on an "as-is-where-is" basis.

However, that attempt also failed to gain traction, and the contract was terminated in February 2024, due to insufficient execution, leaving the project dormant for several years.

In light of these challenges, the State has decided to pursue the PPP approach, emphasizing the urgent necessity for adding reliable base-load capacity. The revitalized project will possess an installed capacity of 660 MW, with 617 MW to be contracted for delivery to the State utility.

Power generation is anticipated to commence within 48 months from the designated start date. According to the tender conditions, the successful bidder will be accountable for completing the remaining works, securing project financing, operating and maintaining the plant, and supplying power under a long-term contract.

The project will be awarded to the bidder offering the lowest tariff, which includes a fixed charge and a fuel charge.

The fixed charge will be correlated to plant availability, while the fuel charge will hinge on actual generation using coal sourced through an allocated linkage.

This revival occurs at a time when Tamil Nadu's power demand is sharply rising.

Peak demand has surged by over 6,000 MW in the past eight years, reaching 20,830 MW in May 2024, significantly ahead of expectations. Official projections suggest peak demand could surpass 21,700 MW by 2026–27 and exceed 28,000 MW by 2031–32, further intensifying the necessity for additional generation capacity.