No Power Cuts in State ; KSEB to Secure Short-Term Power Contracts

The Kerala State Electricity Board (KSEB) has taken proactive measures to resolve the ongoing electricity scarcity in the state without resorting to load shedding. To address the power deficit, the board has initiated a bid for a tender, seeking to purchase 200 MW of power through short-term contracts. Additionally, a further tender for the acquisition of 500 MW of electricity will be launched, with the condition of repayment during the upcoming monsoon season.

In a recent review meeting led by Electricity Minister K. Krishnankutty, KSEB concluded that it is more cost-effective to explore alternative methods of obtaining electricity than relying on advance payments for power exchange purchases. KSEB’s financial struggles stemmed from upfront payments required for electricity acquisition through exchanges. Meanwhile, Kerala contends with a daily power shortage of up to 1000 MW.

During the summer months, it is customary to source power externally, under the stipulation that payments will be settled in the subsequent rainy season—a practice referred to as a transfer agreement. This approach affords the government ample time to reimburse the promptly secured electricity. However, KSEB will need to cover a percentage of the procurement cost, in addition to the actual purchase expenses. Only in cases of transfer agreement breakdowns will electricity be procured from the power exchange.

Krishnankutty emphasized the importance of a campaign aimed at curbing nighttime electricity consumption. The power crisis and the board’s strategic endeavors will be elucidated to Kerala’s Chief Minister on August 25th.