KOCHI: Anticipating a surge in demand during summer months, the KSEB has begun preparations to ensure availability of power during peak hours. Kerala’s power demand had surged during the months of March, April and May, which left the KSEB scrambling and forced it to purchase electricity at exorbitant rates from real time market to avoid load shedding.
The state’s power consumption had set an all-time record of 5,854 MW at 10:40 pm on May 2. The maximum daily consumption was 115.96 million units on May 3.
The KSEB is anticipating a maximum demand of 6,000 MW next April. It is getting 1,600 MW power as central share and 570 MW through long-term agreements. The plan is to ensure 1,600 MW from hydroelectric projects. Still, it may face a shortage of 700 MW in April. For this, it is planning to go for short-term power purchase and swap agreements with states like Punjab.
The KSEB had purchased short-term power for 24 hours at Rs 7.13 per unit in April and Rs 4.35 per unit in March last year. However, the rate during peak hour hovers around Rs 10 per unit. The board has received a quota for supply of power at peak hour at the rate of Rs 9.80 per unit.
Though Coal India Ltd has allocated coal linkage, the KSEB is not keen to establish a coal-based power plant in the state. It is considering a proposal to rope in a private firm to establish a thermal plant outside Kerala and supply power under a long-term agreement.
Since coal-based plants are highly polluting, the KSEB feels such power projects are undesirable in Kerala’s context. Besides, it will invite stiff resistance from environmental groups.
The Coal India Ltd has allocated coal from Mahanadi Coalfields Ltd (MCL) in Talcher, Odisha for the generation of 500 MW. The coal supply from MCL is scheduled to begin in August 2025.
“It is not feasible to establish a coal-based power plant in Kerala considering pollution issues and the huge transportation cost – the coal needs to be transported from Odisha by rail. We are planning to rope in a private firm who can establish a power plant near the Talcher coalfields. We will sign a long-term power purchase agreement. We have to invite a tender to select the power generator agency,” said KSEB chairman Biju Prabhakar.
According to the KSEB, it cannot afford to establish a coal-based plant as it needs an investment of Rs 5,000 crore. Besides, arrangements have to be made for transportation of coal and transmission of power from the plant to Kerala.
“The coal has been allocated from Talcher and IB Valley coalfields that are located around 380 km apart in Odisha. We are planning to invite a tender and the selected firm will have to make arrangements for transportation of coal to the plant. Then we have to set up power lines for transmission of power to Kerala,” said Prabhakar.