KSEB eyeing power purchases to meet summer demand

For April and May, the utility has projected a deficit of approximately 1,200 MW during the evening hours when daily consumption is at its peak

Anticipating a surge in electricity demand during the summer months, the Kerala State Electricity Board (KSEB) is hoping to have power purchase agreements in place well in advance to avoid shortages.

For April and May, the power utility has projected a deficit of approximately 1,200 MW during the evening hours (6 p.m. to 10 p.m.) when daily consumption is at its peak. The summer and the upcoming Lok Sabha elections during April-May are “most likely to increase the demand further”, according to the KSEB. Further, water storage in the hydroelectric dams is lower than in previous years. Storage stood at 67% of the total capacity on January 16, the lowest in recent years.

On Wednesday, the Kerala State Electricity Regulatory Commission considered a KSEB petition seeking approval for short-term power purchases from Adani Enterprises, PTC India, and Tata Power Trading Company for a total of 200 MW in April and 175 MW in May at ₹8.69 per unit.

The KSEB has also sought approval for certain deviations from the Model Bidding Document for tendering the purchases in line with the General Network Access (GNA) regulations on the use of the inter-State transmission system which came into effect in October 2023.

“Considering the critical power situation in the State in the coming summer, it was decided to explore all available offers/sources to ensure firm power during the coming summer months,” the KSEB said in its petition.

The commission’s decision is awaited.

That said, the aforementioned proposals may not be enough to address the deficit in full, and the power utility is likely to look at additional procurements, a KSEB official told The Hindu. “We had planned to procure 250 MW each round-the-clock power during both April and May. But we received bids only for 200 MW in April and 175 MW in May,” the official said.

The KSEB had decided to tie up supply in advance as electricity demand is likely to go up in the northern States as well during April and May.

According to the KSEB projections placed before the commission, the peak demand is likely to touch 5,371 MW between 6 p.m. and 10 p.m. in April and 5,281 MW in May. The deficit is projected at 1,205 MW for April and 1,250 MW in May.