Kerala’s power shortage is set to receive short-term relief and a longer-term storage boost after NTPC agreed to supply the state with up to 300MW and support battery energy storage projects, chief minister V D Satheesan said after talks in New Delhi. The measures include a proposed 2,000MWh battery energy storage system at Kayamkulam and two smaller systems scheduled for commissioning by March 2027.
Satheesan and power minister Sunny Joseph represented Kerala at the meeting. The Kerala State Electricity Board, NTPC and NTPC Green Energy Limited will sign a memorandum of understanding to implement the Kayamkulam battery energy storage system, according to the chief minister’s account of the discussions.
The state will receive up to 300MW from NTPC’s Sinnar project in Maharashtra at a tariff of Rs 5.18 per unit. The additional supply is intended to strengthen Kerala’s immediate power availability as the state manages restrictions that returned after a gap of 10 years.
Two other battery energy storage systems, each with a capacity of 80MWh, are planned at Sreekandapuram and Pothencode. These projects are expected to be commissioned by March 2027. Unlike conventional generation projects, battery storage systems can help manage when electricity is available by storing power and releasing it when demand or supply conditions require.
The discussions also covered renewable generation at Kayamkulam. NTPC will speed up follow-up action on a 27MW solar project there, with cooperation from the Kerala government. The state has also asked NTPC to establish a dedicated power station for Kerala to address its longer-term electricity needs.
NTPC has expressed willingness to sign a power purchase agreement to supply the required electricity from its Ramagundam plant, Satheesan said. The agreement would provide a framework for procuring power from the plant, but the announcement did not specify the proposed capacity, tariff or commissioning timeline for the dedicated supply arrangement.
The plan also involves institutional support for KSEB. NTPC’s professional and technical expertise will be made available to the state utility to strengthen management, technical operations and modern power management systems. The announcement did not provide details of the specific systems, implementation schedule or responsibilities that will form part of this support.
Kerala’s current shortage followed monsoon failure and a coal shortage in the country, according to the report. The state government has repeatedly attributed the situation to the cancellation of long-term power purchase agreements signed during the previous United Democratic Front government. The opposition has argued that poor planning was responsible for the restrictions.
The proposed measures therefore combine immediate power procurement with storage, solar generation, technical assistance and a possible dedicated generating source. The next formal step is the signing of the memorandum of understanding among KSEB, NTPC and NTPC Green Energy for the Kayamkulam storage project, while the two 80MWh systems are scheduled for completion by March 2027.
