Kerala Chief Minister V D Satheesan (File Photo)
Kerala

Kerala govt in talks with several states, power companies to purchase electricity: CM Satheesan

Satheesan said Kerala’s power demand could rise from 5,000-6,000 MW to 10,000 MW by 2030, driven by households and emerging industries.

Express News Service

THIRUVANANTHAPURAM: Keralam Chief Minister V D Satheesan on Wednesday said the state expects to bring the acute power crisis “under complete control” within a week, even as the government works on a separate power-supply plan from October to the next monsoon and prepares a new long-term electricity policy.

The government is negotiating with multiple states and power producers to bridge the immediate deficit, with Kerala having already approached eight states and procured 150 MW through resale and another 150 MW from the Nuclear Power Corporation of India Ltd (NPCIL) at ₹4.65 per unit.

“We are reducing the power cuts. I believe we will be able to bring things under complete control within a week,” Satheesan said at his post-Cabinet briefing.

The Chief Minister said the present crisis was not attributable to poor rainfall alone. A sharp increase in consumption, constraints on internal generation, high evening peak demand and the absence of adequate storage for renewable energy had compounded the situation.

Electricity consumption in September has risen by around 925 MW over the corresponding period last year, he said. Kerala currently generates around 2,500 MW from renewable sources, mainly solar, but most of this power is available only during the daytime. Without battery or other storage infrastructure, it cannot be deployed to meet the evening peak.

The government is now drawing up an immediate plan for the period beginning October 1 and extending until the next monsoon, including arrangements to procure power from other states, institutions and Central public sector undertakings.

At the same time, Keralam is pursuing long-term power purchase agreements after an earlier 25-year agreement at ₹4.29 per unit was cancelled and not replaced, Satheesan said. He added that the government was negotiating fresh contracts while keeping the regulatory ceiling on procurement costs in mind.

Satheesan said Kerala’s power requirement, currently around 5,000-6,000 MW, could reach 10,000 MW by 2030, particularly with growing household consumption and the expected expansion of industries such as semiconductors and artificial intelligence.

The long-term strategy will focus on renewable energy and storage, including pumped-storage projects. With adequate storage, Keralam could potentially raise its usable renewable capacity from around 2,500 MW to 5,000-6,000 MW, allowing solar power generated during the day to meet evening demand.

The government will also unveil a revised comprehensive electricity policy, Satheesan said, factoring in demand projections up to 2030 and the constraints on expanding conventional hydropower.

He said private investment would be welcomed in renewable energy, but ruled out any move to privatise KSEB. The government’s policy, he said, was to make the public utility self-reliant while retaining it in the public sector.

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