Kerala State Electricity Board Ltd. (KSEBL) has submitted a petition to the Kerala State Electricity Regulatory Commission for approval to procure 166 MW of firm and dispatchable power from Satluj Jal Vidyut Nigam (SJVN). This power will come from SJVN’s ISTS Connected Renewable Energy Power Project, which includes energy storage systems. This initiative is part of KSEBL’s efforts to meet its renewable energy obligations and address the increasing power demand in the state.
KSEBL highlights the necessity of this procurement to fulfill its renewable energy obligations and ensure a steady power supply to consumers. The project by SJVN is designed to provide a consistent supply of renewable energy, integrating solar and wind power with energy storage systems to maintain reliability. The power will be delivered through an interstate transmission system, making it accessible for distribution across Kerala.
The proposal follows a competitive bidding process initiated by SJVN for the procurement of 1,500 MW of power from renewable energy projects with energy storage. This approach is in line with the national policy encouraging the procurement of renewable energy through competitive bidding to ensure cost-effectiveness. SJVN’s bid was successful, offering a tariff of ₹4.46 per kWh, which includes a trading margin.
KSEBL plans to secure 166.66 MW to ensure 150 MW of power is available during peak hours. This ensures that the power supply remains stable and meets the high demand during specific times of the day. The contract with SJVN is proposed for 25 years, with the power purchase agreement expected to be signed within a month of the approval.
The project features an average annual capacity utilization factor (CUF) of approximately 70%, ensuring the availability of power for about 16-17 hours daily. This availability is crucial for meeting the state’s power demands, especially during peak hours in the morning and evening. The project also includes provisions for penalties if the power supply does not meet the agreed standards, ensuring accountability and reliability.
KSEBL emphasizes the role of energy storage systems in optimizing the energy mix and meeting renewable energy targets. These systems store excess power generated during periods of low demand and release it during peak demand, balancing the supply and demand efficiently. This is particularly important as commercial and industrial consumers increasingly seek to consume renewable energy, often through specific agreements with utilities for green tariffs.
The petition outlines the expected growth in power demand in Kerala, projecting a 4% annual increase. This growth necessitates additional power sources to avoid deficits and ensure continuous supply. The procurement from SJVN’s renewable energy project is seen as a strategic move to address this demand while supporting the state’s renewable energy goals.
The initiative aligns with the broader national and state policies promoting renewable energy adoption. By securing a long-term contract with SJVN, KSEBL aims to enhance its renewable energy portfolio, meet regulatory obligations, and provide sustainable energy solutions to its consumers. The inclusion of energy storage systems further underscores the commitment to integrating advanced technologies for efficient energy management.
The petition is open for public comments and feedback until June 27, 2024. Stakeholders and the general public are invited to share their views on this proposal. A public hearing is scheduled for July 9, 2024, providing a platform for direct engagement and discussion on the proposed procurement.
This move by KSEBL is part of a series of efforts to strengthen the state’s renewable energy infrastructure, ensuring a reliable and sustainable power supply for the future. By investing in renewable energy projects and advanced storage systems, Kerala is taking significant steps towards a greener and more resilient energy landscape.
Please view the document here for more details.
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