KSERC Calls for Detailed Plans from KSEB to Address Power Demand
KSERC: No blanket nod for high-cost power purchase
The Times Of IndiaImage: The Times Of India
The Kerala State Electricity Regulatory Commission (KSERC) has instructed the Kerala State Electricity Board (KSEB) to submit comprehensive plans for power capacity addition. KSERC will not approve high-cost short-term power purchases unless KSEB explores cheaper alternatives like pumped storage and battery energy systems.
- 01KSEB purchased 4,911 MU from short-term markets in 2024-25, costing ₹3,116 crore.
- 02KSERC emphasized the need for KSEB to enhance its own generation capacity instead of relying heavily on power exchanges.
- 03Kerala has significant hydro potential for developing pumped storage projects, which are long-term solutions for peak demand.
- 04Despite identifying pumped storage schemes, none were included in the Central Electricity Authority's capacity addition plan until 2031-32.
- 05KSEB's proposed 800 MW Idukki extension scheme has not progressed, and battery energy storage systems may not be ready by summer 2026.
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The Kerala State Electricity Regulatory Commission (KSERC) has mandated the Kerala State Electricity Board (KSEB) to provide detailed plans for increasing power generation capacity in response to rising demand. KSERC has expressed its reluctance to grant blanket approvals for short-term power purchases at high rates without a comprehensive strategy from KSEB. In the fiscal year 2024-25, KSEB's reliance on short-term markets accounted for 19% of its total power purchases, costing ₹3,116 crore. The commission highlighted the state's potential for developing hydroelectric projects, particularly pumped storage systems, which could serve as viable alternatives for meeting peak demand. Notably, while KSEB has identified several pumped storage schemes over the past decade, none have made it into the Central Electricity Authority's capacity addition plans. Additionally, progress on KSEB's proposed 800 MW Idukki extension scheme remains stagnant, and the availability of battery energy storage systems is uncertain for the summer of 2026. KSERC has urged KSEB to explore these alternatives to ensure reliable power supply.
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The directive from KSERC could lead to more sustainable and cost-effective power generation solutions in Kerala.
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