Kerala Electricity Board Gets Approval to Procure 300 MW for August Peak-Hour Shortages

Rapid Summary

• The Kerala State Electricity Regulatory Commission (KSERC) has permitted Kerala State Electricity Board (KSEB) to procure 300 MW of power on a short-term basis for August to address peak-hour shortages.
• KSEB projected power shortages of up to 600 MW in August, citing two key reasons:

– Maintenance at various generating stations nationwide following Union Ministry of Power directives due to heavy rainfall in northeast India.- A planned refueling outage at Tamil Nadu’s Kudankulam Nuclear Power Plant, affecting availability and pushing market prices higher.

• Power procurement details:

– 34 MW purchased from Tata Power Trading Company Ltd at ₹8.75/unit.
– 266 MW purchased from Greenko Energies Pvt Ltd at ₹9.18/unit, for supply during the peak evening hours from August 1-31 (7 p.m.-midnight).

• KSERC voiced concern over “excessive rates” and criticized KSEB for filing its petition with very short notice on July 29, leaving the commission little time for review before the decision deadline.
• KSERC expressed skepticism about KSEB’s demand projection of crossing a peak demand of approximately 4,479 MW in August given active monsoon conditions and lower recent demand figures in july.

Indian Opinion Analysis
The KSERC’s approval reflects pragmatic decision-making under tight circumstances but highlights deeper challenges facing Kerala’s electricity infrastructure and planning processes. The high costs associated with short-term procurement underline vulnerabilities tied to dependency on external power sources during outages or seasonal maintenance schedules. Additionally,issues such as inadequate prior notification suggest that better coordination and predictive modeling are necessary between regulatory bodies and providers like KSEB.Key drivers such as nuclear refueling schedules or nationwide generating station maintenance amplify systemic risks not just for Kerala but potentially neighboring states too-raising concerns over increasing reliance on volatile market prices during emergencies. Moving forward, policymakers might need bolstered frameworks both to optimize local generation capacity (e.g., hydro usage) and create buffers against price spikes thru diversified long-term contracts or storage solutions.

Read more: Published July 31,2025