KOCHI: With Keralam withdrawing from its power purchase agreement with Himachal Pradesh, the state is expected to plunge into an acute power crisis from November 1.
Facing a shortage of around 900 MW during peak hours, the KSEB will be forced to impose power cuts if it fails to procure additional power from the real-time market. The maximum available power in the state is 4,200 MW, and the demand ranges between 4,800 MW and 5,500 MW. However, a decision on announcing the power cut schedule will be taken based on the trend in the power exchange in the coming days.
The KSEB is hoping to purchase additional power from the national energy exchange to bridge the gap in supply and demand. According to a top KSEB official, power availability in the national exchange increased in recent days, with rain in North India reducing power consumption. If available, KSEB will have to buy over 500 MW on a daily basis. The rate of power in the real-time market fluctuates based on demand, but maximum price has been fixed at Rs 10 per unit.
‘Peak-hour consumption crossed 5,000 MW on October 29’
The state was forced to impose power cuts in September as peak-hour consumption crossed 5,500 MW. To tide over the crisis, the KSEB entered into an agreement with the Himachal Pradesh Electricity Board to procure 900-1,200 MW at Rs 14.50 per unit during peak hours from October 1. However, the state finance department and power regulatory commission objected to purchasing power above Rs 10 per unit.
“There will be a crisis as we will experience a shortage of around 900 MW during peak hours from Sunday. But the availability of power in the real-time market has increased in recent days. Peak-hour consumption in Kerala crossed 5,000 MW on Thursday, and we have a shortage of 800-900MW,” said an official.
However, the biggest challenge will be in the February-March period — during the exam season — as the power regulatory commission has rejected a proposal to purchase 270 MW additional power.
There could be a decline in internal generation also as the storage in hydel projects may be low.
