KSEB has ruled out the need for additional power purchases to meet Kerala’s requirements during November and December, putting the state government’s proposed 500MW arrangement with GNA Energy in doubt.
The Kerala State Electricity Board conveyed its latest assessment to the government after Chief Minister V D Satheesan sought a review of an earlier projection that the state could face a power shortage in November. KSEB CMD N Prasanth and energy secretary Puneet Kumar are understood to have informed Satheesan that additional procurement would not be required during the two-month period.
The earlier shortage projection was submitted during the tenure of former KSEB CMD M G Rajamanickam. It had recommended additional power procurement to meet anticipated demand, including a proposal to purchase electricity from Himachal Pradesh. Satheesan subsequently directed officials to examine the basis of the projected shortage and the circumstances behind the recommendation to procure power from the northern state.
The government was also examining a proposal to purchase 500MW of round-the-clock power through GNA Energy, an over-the-counter platform that connects electricity buyers and sellers. The proposed arrangement was being considered for the November-to-March period at a rate of Rs 8.9 per unit.
The procurement plan was intended to ensure uninterrupted electricity supply during a period when demand was expected to exceed the power available to Kerala. KSEB’s latest assessment that additional power will not be necessary in November and December has therefore raised questions over the immediate requirement for the proposed arrangement.
The state government is understood to have ruled out proceeding with the GNA Energy purchase, although the report indicates that the arrangement is likely to be withdrawn rather than formally cancelled at this stage. The change reflects a reassessment of the state’s anticipated demand and available supply before entering into a multi-month power procurement commitment.
The assessment does not settle Kerala’s power requirement for the entire proposed procurement period. Any decision on purchasing electricity beyond December will depend on a fresh evaluation of requirements for the remaining months, according to the report. The government’s review will also examine why the earlier assessment indicated a need for additional procurement and how the projected shortage was calculated.
