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.