KOCHI: The KSEB may start receiving up to 540 MW from the 1,350-MW Sinnar thermal power plant near Nashik, Maharashtra, from January 2027, offering relief to the state as it prepares for a challenging power situation in the coming months.
The KSEB has completed initial discussions with NTPC for a power purchase agreement (PPA) from the plant, with the agreement now in the final stage of vetting. Though Chief Minister V D Satheesan, after meeting NTPC chairman Gurdeep Singh in Delhi, mentioned 300 MW, KSEB officials said Keralam could get around 540 MW from two units of the plant.
A consortium of NTPC and Maharashtra State Power Generation Company acquired the Sinnar plant in Nashik from Rattan India Power in February 2026.
The long-term agreement is for supplying round-the-clock power at Rs 5.18 per unit, including a fixed charge of Rs 1.90. The arrangement will benefit Keralam as it has surplus power during daytime and can surrender Sinnar power during those hours and draw it during peak demand.
Though a recent short-term agreement with the Himachal Pradesh Electricity Board for 600 MW during peak hours has helped KSEB withdraw power cuts, depleting dam storage and the threat of El Nino are causing concern.
Peak-hour demand could cross 6,000 MW by February if El Nino triggers heatwave conditions.
The state is also moving ahead with a proposal to establish a 2,000-MWh Battery Energy Storage System (BESS) at Kayamkulam in partnership with NTPC and NTPC Green Energy Ltd.