Thiruvananthapuram, Oct 29 The KSERC on Thursday granted partial approval to the KSEB for short-term power procurement worth Rs 131.26 crore from November 2026 to March 2027 to address the ongoing power deficit in the state.
A commission bench comprising Chairman T K Jose and member B Pradeep approved the purchase of 164.16 million units (MU) of electricity at an average rate of around Rs 8 per unit through the Discovery of Efficient Electricity Price (DEEP) portal operated by the Union Ministry of Power.
Kerala State Electricity Board (KSEB) had sought approval to procure 356.63 MU of electricity between October 1, 2026, and April 30, 2027, at a total cost of Rs 336.25 crore, with an average rate of Rs 9.43 per unit.
As per the Kerala State Electricity Regulatory Commission (KSERC)’s order, KSEB has been permitted to procure 145 MW in November at Rs 7.44 per unit, and 120 MW in December at Rs 7.99 per unit.
For January and February 2027, the board can procure 240 MW at Rs 6.99 per unit in each month.
In March, it can purchase 270 MW at rates ranging from Rs 9.98 to Rs 10 per unit.
However, the commission did not approve the proposed procurement for April 2027, observing that the quantity of electricity offered during both night off-peak and peak hours was small while the rates were excessively high.
KSEB had proposed purchasing 115 MW during night off-peak hours at Rs 13.89 per unit and 75 MW during peak hours.
The commission observed that the power deficit had worsened due to reduced hydel generation following the El Nino effect and poor monsoon, coupled with a sharp rise in electricity demand across the state.
It said night off-peak power purchases were approved primarily to conserve water in reservoirs for hydel generation during the upcoming summer months.
The commission also directed KSEB to expedite the signing of a power purchase agreement for 540 MW from the Sinnar Thermal Power Plant, utilise power banking arrangements with states such as Uttar Pradesh and Punjab, operationalise delayed Battery Energy Storage Systems, and implement demand-side management measures to reduce peak demand by up to 500 MW.
(PTI News)
