KSEB has sought approval to procure electricity worth ₹336.246 crore for October 2026 to April 2027, citing weak hydropower inflows and a projected supply deficit of 1,200–1,500MW during the peak-demand months of March and April 2027.
The Kerala State Electricity Board has filed its proposal with the Kerala State Electricity Regulatory Commission (KSERC), seeking permission to buy power through the Union ministry of power’s Discovery of Efficient Electricity Price (DEEP) e-bidding portal. The procurement would cover early-morning and evening peak-hour requirements across the seven-month period.
KSEB attributed the expected shortfall to deficient rainfall during the southwest monsoon, which reduced inflows into major hydropower reservoirs. The board also reported that high temperatures had increased electricity demand, particularly during peak hours, widening the gap between available supply and consumption.
The proposal includes power from battery energy storage systems, thermal projects and pumped-storage projects. KSEB has already tied up power from PTC India Ltd, Jindal Power Ltd, Tata Power Trading Company Ltd and Manikaran Power Ltd, according to the report.
The proposed rates range from ₹6.99 per unit to ₹13.89 per unit, depending on the month and time block. The board has sought different quantities for specific periods. Its highest proposed requirement is 500MW each during the midnight-to-5am block in October 2026, January 2027 and February 2027. For March 2027, the requirement for the same block is projected at 700MW.
For April 2027, KSEB has proposed procuring 550MW during the early-morning block and 600MW during the 6.30pm-to-midnight period. These time-specific requirements reflect the board’s effort to secure electricity during periods when demand is expected to be highest or available generation may be constrained.
KSEB’s full-time directors approved the procurement proposal at a meeting held on September 25. The board has now approached KSERC under Regulation 78 of the KSERC (Terms and Conditions for Determination of Tariff) Regulations, 2021.
The regulator’s approval will determine whether KSEB can proceed with the proposed procurement arrangement and associated expenditure. The filing places the immediate focus on how Kerala will manage seasonal hydropower constraints, higher peak-hour demand and the cost of securing electricity from multiple sources before the projected deficit period begins.
