Kerala power crisis deepens as KSEB seeks more electricity at higher prices

Kerala power crisis deepens as KSEB seeks more electricity at higher prices

Thiruvananthapuram: Kerala is facing a worsening electricity shortage as rising demand, weak monsoon conditions and limited availability of power from outside the state put increasing pressure on the Kerala State Electricity Board.

KSEB is seeking permission to purchase additional electricity at higher prices if necessary. The state government is also in talks with NTPC to secure additional power at the lowest possible rate as authorities try to reduce the need for power restrictions.

The move comes as Kerala struggles to meet a large gap between electricity demand and available supply, particularly during evening and night time peak periods.

Electricity demand crossed 5,200 MW on September 10, while peak hour availability was around 4,200 MW, according to recent reports. This resulted in a peak hour shortfall of about 1,000 MW.

KSEB has been imposing temporary power restrictions during peak hours, particularly at night. Recent restrictions have been introduced in several areas as the board tries to manage the shortage without placing excessive pressure on the wider electricity system.

Recent reports indicate that high demand has continued until around 2 am. The extended period of high consumption has made it more difficult for KSEB to balance supply and demand.

Several factors are behind the crisis.

Kerala depends heavily on electricity purchased from outside the state because its own generation is not enough to meet total demand. Hydropower is an important part of the state's electricity system, but weak rainfall has reduced the amount of water available in reservoirs.

Kerala's rainfall remained below normal during the current monsoon season. Reservoir storage under KSEB was also significantly lower than at the same time last year.

Lower water levels are a concern because hydropower provides an important source of electricity that can be used to meet demand. KSEB also has to manage the available water carefully rather than using all of it to meet immediate demand.

At the same time, electricity consumption has risen sharply. Hot and humid weather has increased the use of air conditioners, fans and other household appliances. Electric vehicle charging at night has also contributed to the changing pattern of electricity use.

Domestic consumers account for about 75 per cent of Kerala's electricity connections, making household demand an important part of the state's overall electricity consumption.

Kerala is also being affected by wider pressure on India's electricity system.

As of September 9, 59 coal fired power plants across India had critically low coal stocks. The national electricity system has also been facing high demand as hot weather increases the need for cooling.

These conditions have made it more difficult for Kerala to obtain enough additional electricity from the national market.

Kerala's growing solar capacity has not been enough to prevent the present shortage. The state had about 2,508 MW of installed solar capacity by the end of May 2026, including about 2,036 MW of rooftop solar.

Solar power is strongest during daylight hours, while Kerala's most serious supply problem is occurring during the evening and night. This means that large solar capacity cannot by itself solve the shortage after sunset.

Battery storage could help address this problem in the future. KSEB is developing a 125 MW battery energy storage system at Mylatti in Kasaragod, with a storage capacity of 500 MWh. The project is expected to be completed in October.

The immediate shortage has also led to renewed debate over earlier long term power purchase agreements.

A major political dispute concerns a 465 MW power purchase agreement. The current government has criticised earlier decisions related to the agreement and has argued that the loss of that power supply contributed to the present difficulties.

CPI(M) leader and former chief minister Pinarayi Vijayan has rejected the government's criticism and pointed to legal and regulatory issues surrounding the agreement.

The dispute remains politically contested and is not the sole explanation for the current electricity shortage. The present crisis has developed from a combination of higher demand, weak rainfall, lower hydropower availability and difficulties in securing sufficient electricity from outside Kerala.

Chief Minister V D Satheesan had earlier said that the government was trying to resolve the shortage by September 15. However, the continuing efforts to secure additional electricity indicate that the supply problem remains unresolved.

The government has also decided to establish a feeder level system to alert consumers about planned power restrictions. The move is intended to give households and businesses advance information about possible interruptions.

For KSEB, the immediate challenge is to secure enough electricity to meet the evening and night time peak without placing excessive financial pressure on the board.

Buying electricity at higher prices could reduce the need for power restrictions, but it would also increase KSEB's procurement costs.

The crisis has highlighted Kerala's dependence on electricity from outside the state. It has also increased attention on the need for additional generation, battery storage and reliable long term power procurement to manage periods of high demand in the future.


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