Kerala State Electricity Board Ltd (KSEBL) has approached the Kerala State Electricity Regulatory Commission (KSERC) seeking approval to procure 200 MW of round-the-clock (RTC) power for one year, citing persistent power deficits, weak South-West monsoon conditions, critically low reservoir levels and the potential impact of El Niño on electricity availability.
The proposed power procurement will cover the period from July 15, 2026, to July 14, 2027, with KSEBL estimating a base-load deficit of around 200 MW throughout the year. The move comes as Kerala faces increasing pressure on its power supply system amid rising electricity demand and concerns over the availability of hydropower.
Kerala has a significant dependence on hydroelectric generation, making reservoir levels and monsoon performance critical to the state’s power availability. KSEBL’s core committee has reportedly highlighted the potential impact of weak monsoon conditions and low water storage levels on power availability during FY2026-27.
Key Procurement Details:
- RTC power sought: 200 MW
- Procurement period: July 15, 2026, to July 14, 2027
- Estimated base-load deficit: Around 200 MW
- Discovered tariff: ₹5.98/kWh
- Negotiated tariff: ₹5.96/kWh
The utility said an earlier tender for procuring 200 MW of RTC power for a shorter duration had resulted in significantly higher tariffs. KSEBL therefore initiated a fresh procurement process for a longer supply period to address its projected power deficit.
Following a competitive bidding process conducted through the Ministry of Power’s DEEP portal, tariffs of ₹5.98 per unit were discovered for two 100 MW power blocks. The bids were submitted by NTPC Vidyut Vyapar Nigam Ltd (NVVN), which is sourcing power from Meenakshi Energy Ltd, and Power Pulse Trading Solutions Ltd, which is sourcing electricity from Adani Power’s Raipur thermal power plant.
KSEBL subsequently negotiated with the successful bidders, bringing the tariff down to ₹5.96 per unit. The second bidder also agreed to match the revised L1 tariff, allowing the utility to secure its complete 200 MW requirement at a uniform rate.
The proposed RTC procurement is in addition to the peak-hour power purchases already approved by KSERC for July-December 2026. KSEBL’s revised Load Generation Balance assessment indicates that the state could face shortages not only during peak demand periods but also during off-peak hours and in its overall RTC power requirement.
The development highlights the growing challenges faced by power utilities in managing electricity supply amid weather-related uncertainties. For Kerala, the combination of low reservoir levels, monsoon uncertainty and potential El Niño effects could place additional pressure on its hydro-dependent generation capacity, increasing the need for reliable external power procurement to maintain grid stability and meet demand
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