KOCHI: “We do not view the ongoing severe power crisis as a setback, but as a golden opportunity to formulate a comprehensive power policy and power management system, Chief Minister V D Satheesan said on Saturday.
Inaugurating the CORE RENev Expo & Energy Conclave 2026 at the Jawaharlal Nehru Stadium in Kochi, he said the government will roll out a new power policy in October.
Power demand has increased by 920 MW, from 4,445 MW in September last year, Satheesan said. Keralam produces only 15% of the electricity it requires, and has to purchase the remaining power from outside, which creates a major financial burden. The cost of purchasing power, which is currently around `13,000 crore, is likely to cross `16,000 crore this year, he said.
The state’s experience of relying heavily on hydropower in the past, environmental and rehabilitation concerns related to projects such as Silent Valley and Narmada, limitations on thermal power projects due to population density, and protests against nuclear power projects, including at Koodankulam and Cheemeni, have highlighted the need for Kerala to turn towards non-conventional and renewable energy sources, Satheesan said.
The government would not repeat the mistakes related to power-purchase agreements and procedural lapses of the past that had resulted in the state having to procure electricity at high prices, he added.
Reducing transmission losses to below 8% and preventing power theft were major achievements, the chief minister said. He proposed several measures, including optimising daytime power consumption, expanding rooftop solar projects, implementing community-level battery storage systems, shifting electric vehicle charging and pump-set usage to daytime hours, and introducing pumped-storage systems.
Satheesan said the new power policy will take into account the rising use of air conditioners among the public due to climate change and the anticipated increase in energy demand from industries such as semiconductors and artificial intelligence.
The solar sector would be developed as an industry rather than being treated merely as a service, he said. The government would remove hurdles in the sector and support investors.
The government would rapidly implement a modern power policy aimed at finding a permanent solution to the state’s energy crisis, taking into account demand projections for 2030-31, the CM said.