KSEBL Seeks Approval For 500 MW Solar Power Procurement To Boost Renewable Energy And Storage Capacity

Kerala State Electricity Board Limited (KSEBL) has filed a petition before the Kerala State Electricity Regulatory Commission, seeking approval to procure 500 MW of solar power, including 250 MW for two hours of peak power supply, through the ISTS Tranche XV scheme offered by the Solar Energy Corporation of India (SECI). This procurement aligns with renewable energy mandates under the Electricity Act, 2003, and the Kerala State Electricity Regulatory Commission’s regulations. It aims to meet Renewable Purchase Obligations (RPO) and enhance energy storage capacities while optimizing power purchase costs.

SECI has facilitated this procurement under the national policy promoting renewable energy to achieve a target of 500 GW of non-fossil fuel capacity by 2030. Through competitive bidding, SECI secured 1200 MW solar power capacity, paired with 600 MW/1200 MWh energy storage systems, ensuring cost-effective tariffs. The discovered tariffs stand at ₹3.42 per unit, with an additional ₹0.07 per unit as trade margin. KSEBL plans to utilize this procurement to meet increasing power demand, ensure cost stability, and reduce dependence on fossil fuels.

KSEBL emphasizes the financial significance of this procurement, which contributes to stabilizing tariffs for consumers. Renewable energy reduces risks associated with fuel price volatility and ensures sustainable energy availability. The proposed power purchase agreement (PPA) includes a 25-year term and provisions for 250 MW of peak power availability during specific hours, benefiting the state’s energy security and cost-effectiveness.

This initiative also supports compliance with central and state guidelines for resource adequacy planning, requiring distribution companies to secure a majority of their power needs through long-term contracts. The Ministry of Power has directed KSEBL to prioritize renewable energy contracts, including this one, as part of broader efforts to meet future energy demands and RPO targets.

KSEBL has already expressed consent for the procurement and signed a draft PPA, awaiting regulatory approval. The commission’s support is sought to formalize this arrangement, highlighting its role in addressing growing power demand, fostering renewable energy adoption, and meeting storage obligations.

The petition underscores the increasing importance of energy storage systems, which enable more effective integration of renewable energy into the grid. It aligns with directives suggesting the inclusion of energy storage obligations in the state’s energy policies. This procurement represents a strategic step in ensuring sustainable energy solutions for Kerala while meeting regulatory and policy requirements.