The Kerala State Electricity Regulatory Commission has examined the tariff proposals submitted by the Kerala State Electricity Board Limited (KSEB) for the period 2024-2027. A key focus of these proposals is the integration of renewable energy, particularly solar power, into the state’s electricity grid while addressing financial sustainability.
KSEB’s proposals include a series of tariff adjustments to bridge a significant revenue gap. The revisions account for the costs associated with maintaining infrastructure, integrating renewables, and managing increasing consumer demand. Public hearings were held across the state to gather stakeholder feedback, reflecting objections and support for the proposed changes. Despite some resistance, the commission highlighted the necessity of these measures to support a sustainable energy transition.
The adoption of solar energy has grown substantially, with over 1,200 MW of installed capacity and monthly additions of 30-50 MW. Solar energy is primarily generated during the day when grid demand is lower, resulting in an excess supply. KSEB highlighted challenges with prosumers, who inject surplus solar power into the grid during low-demand hours and consume power during high-cost periods. This discrepancy increases financial strain on the utility, as power during peak hours often costs over ₹10 per unit.
To support solar energy prosumers, the commission has enhanced the rate for surplus solar energy supplied to the grid, raising it from ₹2.69 to ₹3.15 per unit in 2023-24. These efforts aim to encourage solar adoption while addressing the financial dynamics of energy supply and demand.
The commission emphasized the importance of equitable tariff policies. Solar prosumers contribute to reducing dependency on conventional energy, but the costs associated with balancing grid operations need to be distributed fairly among all consumers. Public comments revealed widespread support for renewable energy expansion, coupled with concerns about tariff increases and infrastructure investments.
Renewable energy remains central to Kerala’s energy policy, with solar power playing a pivotal role in meeting demand sustainably. The commission reiterated its commitment to supporting the growth of renewables through balanced tariff structures and grid management strategies. These steps are expected to address revenue gaps and enable further investments in renewable energy infrastructure, fostering a cleaner and more resilient energy ecosystem for the state.
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