Tamil Nadu Data Center Power Tariff 2026: Complete Breakdown
TANGEDCO tariff structure for data centers in Tamil Nadu, including dual peak windows, highest demand charges in India, and night rebate opportunities.
Tamil Nadu, with Chennai as its data center hub, offers unique advantages including submarine cable connectivity and industrial tariff classification. However, operators must navigate TANGEDCO's dual-peak ToD structure and India's highest demand charges.
Quick Reference: Tamil Nadu HT Industrial Tariff
| Component | Rate (FY 2025-26) |
|---|---|
| Base Energy Rate | ₹7.50/kWh |
| Demand Charge | ₹608/kVA/month (Highest in India) |
| Fuel Adjustment Charge | ₹0.12/unit |
| Electricity Duty | 5% |
| Power Factor Threshold | 0.90 |
Time-of-Day (ToD) Tariff Structure
Tamil Nadu's distinctive feature is its dual peak window structure—both morning and evening peaks attract surcharges.
| Time Slot | Hours | Adjustment |
|---|---|---|
| Night Off-Peak | 22:00 - 05:00 | -5% Rebate |
| Normal | 05:00 - 06:00 | Base Rate |
| Morning Peak | 06:00 - 10:00 | +25% Surcharge |
| Normal | 10:00 - 18:00 | Base Rate |
| Evening Peak | 18:00 - 22:00 | +25% Surcharge |
Impact of Dual Peak Windows
For data centers, the morning peak (06:00-10:00) often coincides with:
- Batch processing jobs scheduled overnight completing
- Business hours starting across Asia
- Cooling systems ramping up as ambient temperature rises
Strategies to minimize morning peak impact:
- Schedule batch jobs to complete by 05:00
- Pre-cool the facility during night off-peak hours
- Stagger UPS battery charging cycles
Demand Charge Strategies
Given Tamil Nadu's premium demand charges, operators should:
- Right-size contracted demand: Don't over-provision; you pay whether you use it or not
- Peak shaving: Use battery storage to reduce maximum demand spikes
- Load balancing: Distribute high-power equipment startup across time windows
Chennai Data Center Advantages
Despite higher demand charges, Chennai offers unique benefits:
- Submarine cable landing: Direct connectivity to international routes
- Lower land costs: Compared to Mumbai, Chennai offers 40-50% lower real estate
- Skilled workforce: Strong IT talent pool from local tech industry
- Port proximity: Easy import of data center equipment
Annual Tariff Revision
TNERC has historically capped annual tariff increases at 6%. This provides more predictability compared to states with larger year-over-year variations.
Green Energy Options
Tamil Nadu is India's wind energy leader, offering opportunities for:
- Wind power purchase through open access
- Solar-wind hybrid installations
- Group captive arrangements for smaller operators
Sample Bill Calculation
For a 50-rack facility in Chennai consuming 90 MWh/month with 35% peak consumption:
| Component | Calculation | Amount |
|---|---|---|
| Energy (Peak 35%) | 31.5 MWh × ₹9.375 | ₹2,95,313 |
| Energy (Normal 50%) | 45 MWh × ₹7.50 | ₹3,37,500 |
| Energy (Off-Peak 15%) | 13.5 MWh × ₹7.125 | ₹96,188 |
| Demand Charge | 200 kVA × ₹608 | ₹1,21,600 |
| FAC | 90,000 × ₹0.12 | ₹10,800 |
| Electricity Duty (5%) | 5% of energy + demand | ₹42,530 |
| Subtotal | ₹9,03,931 | |
| GST (18%) | ₹1,62,707 | |
| Total Bill | ₹10,66,638 |
Try Our Calculator
Use our ToD Power Tariff Calculator to estimate your Tamil Nadu data center electricity costs with your specific consumption pattern.
Sources
- TNERC Tariff Order FY 2025-26
- TANGEDCO HT Industrial Schedule
- Tamil Nadu Electricity Duty Rules
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