Kerala State Electricity Board eyes short-term power purchases to meet peak demand till December

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Indicating that Kerala is likely to face power deficits in the coming months, the Kerala State Electricity Board (KSEB) has sought approval for short-term power purchases to meet the peak demand, notably in the evening hours.

In a petition before the State Electricity Regulatory Commission, the KSEB has requested approval for short-term purchases from June 15 to December 31 this year, but excluding September. These procurements are to be made from Manikaran Power Ltd, Jindal Power Ltd, Shree Cement Ltd and PTC India Ltd as per Union Power Ministry guidelines at per-unit rates above ₹9.

The commission is scheduled to hold a hearing on the petition on June 24.

The KSEB’s request has come at a time when the power utility has informed its consumers to expect supply restrictions limited scale till June 30 as El Nino-linked dry temperature conditions have increased power demand across India. Due to a combination of factors, Kerala would face a shortfall of 900 megawatts (MW) till June 30, the KSEB had said.

In its petition, the KSEB placed the estimated average peak-hour deficit during July, even in a normal monsoon scenario, at around 600 MW. In August, it could go up to 750 MW. During October to December, the deficit could be in the range of 800 MW to 1000 MW, “which may severely affect the power scenario of the State,” it said.

Fresh bids for September

In the case of September, the KSEB will float fresh bids as the lowest offer it got was as high as ₹ 12.98 per unit.

According to the KSEB, storage levels in the reservoirs of its hydroelectric power projects are “very low.” As per recent forecasts, the southwest monsoon is projected to be below normal. The availability of power in the market is limited owing to the hot weather in the northern states which has driven up demand. Adding to this, KSEB has to return electricity sourced under ‘swap’ and banking arrangements from other States for meeting the summer demand during the period from June 15 to September 30.

Published - June 20, 2026 04:35 pm IST

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