Thiruvananthapuram: Kerala state electricity regulatory commission (KSERC) has asked KSEB to submit detailed plans for capacity addition to meet rising demand for power in the state. The commission also cautioned KSEB that it will not grant blanket approval for short-term power purchase through exchanges, at excessive rates, unless KSEB submits a comprehensive plan to meet the peak hour demand with cheaper power. The commission urged KSEB to explore pumped storage options and battery energy storage systems (BESS) to store cheap power available during daytime.During 2024-25, KSEB had purchased about 4911 MU from short-term market and power exchanges, (which constitutes about 19% of the total purchase of KSEBL), with the total cost of Rs 3,116 crore (which accounts for 26% of the total cost of power purchase) . Further, out of the total power purchase, about 1104MU (4.32% of the total power purchase) was purchase from term ahead market (TAM) at the total cost of Rs 1,010.27 crore (9% of the total power purchase cost) at the average rate of Rs 9.15 per unit. This purchase is for meeting the peak demand of the state.During 2025-26 and in the current year also KSEB has been continuing this type of huge dependence on exchanges including TAM, without looking for alternatives, including enhancing own generation capacity for meeting the electricity demand of the state . KSERC has noticed that, Kerala is bestowed with very good water potential for developing hydro projects, including pumped storage hydro projects for meeting the summer peak demand of the state. A properly designed pumped storage project is a viable alternative for meeting the peak demand but obviously it is usually long gestation projects, the commission said.Central govt is giving due importance for the development of the pumped storage projects. About 12 pumped storage projects with a total capacity of 1,6120 MW are under construction in India. Further, as per the capacity addition plan of pumped storage projects till 2031-32, there are plans to add 54,610 MW by 2031-32. But it is ironical to note that, though KSEB has identified many pumped storage schemes during the last decade, none of the state’s projects was listed in the central electricity authority’s (CEA) capacity addition plan for pumped storage projects till 2031-32.The commission has also noted that, KSEB had proposed 800 MW Idukki (golden jubilee) extension scheme in the capital investment plan of SBU-G for the MYT period from 2022-23 to 2026-27 but no progress of the same was reported so far. Though KSEB has proposed a few battery energy storage system (125 MW -500MWh) through SECI at Mylatti-Kasaragod, and another 125 MW-500 MWh total capacity, its availability could not be ensured in the summer of 2026, it said.Considering these aspects in detail, KSERC directed KSEB that it should submit viable alternative proposals of generation capacity addition plans, including appropriate pumped storage schemes and BESS system for meeting the peak demand of the state.
