Kerala is exploring power purchases from other states to prevent a fresh spell of load shedding, but high prices and uncertain supply are complicating efforts to bridge an expected shortfall of 700-800 MW, according to Electricity Minister Sunny Joseph and senior Kerala State Electricity Board officials.
Joseph said the state government was in touch with various states to procure additional electricity. However, the availability and cost of power remained major obstacles. He expressed hope that market prices would decline in the coming days, allowing KSEB to buy electricity at more competitive rates.
The minister also said Chief Minister V D Satheesan was directly involved in discussions with other states on securing additional supply. The immediate concern is the availability of power after October 31, when KSEB’s access to an expensive supply arrangement with Himachal Pradesh may become uncertain.
According to senior KSEB officials, power from Himachal Pradesh is priced at Rs 14.50 per unit. Himachal Pradesh had offered up to 1,000 MW until May 2027, but the Kerala government was not in favour of purchasing electricity at that rate. KSEB has not received the government’s permission to continue the arrangement, officials said.
The approval issue also has regulatory implications. Officials said proceeding without government permission could create difficulties later when KSEB seeks approval from the state electricity regulatory commission for the purchase. The dispute therefore involves not only securing electricity but also establishing whether the cost can be justified and formally approved.
KSEB is currently hoping to meet the shortfall through the power exchange. Officials said electricity availability in the exchange had improved over the previous two days and could increase further if temperatures in northern Indian states continued to fall. Cooler weather could reduce demand for cooling and release more electricity into the day-ahead market.
Power bought through the exchange is expected to cost around Rs 10 per unit, which is the ceiling fixed by the government for the day-ahead market. That would be cheaper than the Himachal Pradesh supply, but it would leave Kerala dependent on daily market availability rather than a firm long-term arrangement.
KSEB officials said this dependence could continue to create uncertainty over daily power restrictions. The board may have to regulate demand according to the electricity available and warn consumers a day in advance if restrictions become necessary. The next decision will depend on the availability and price of power in the exchange, as well as the government’s position on alternative procurement arrangements.
