KSEBL Seeks KSERC Approval For 6 MW Solar Project At Moongilmada Under CAPEX Model

Kerala State Electricity Board Limited (KSEBL) has submitted a petition to the Kerala State Electricity Regulatory Commission (KSERC) for the approval of a 6 MW solar power project at Moongilmada, located in the Palakkad district. The project, which will be developed under the CAPEX model, will be installed on land owned by the Irrigation Department. The government of Kerala has granted permission for the installation, and the land, covering approximately 36 acres, will be leased to KSEBL for 25 years. The lease rent has been set at 3% of the Average Power Purchase Cost (APPC) rate, a rate that may vary depending on changes in the APPC fixed by KSERC.

The Ministry of New and Renewable Energy (MNRE) launched the PM-KUSUM scheme to support the installation of solar power plants, particularly to benefit the agricultural sector. The Moongilmada solar project falls under this scheme, aiming to supply power to agricultural feeders. The expected capacity utilization factor (CUF) of the plant is between 19% and 21%, with an annual energy generation target of 10 million units.

KSEBL issued a tender for the execution of the 6 MW project in January 2023, with three companies bidding for the work. The bids were opened, and M/s MBH Power Private Ltd, Vadodara, emerged as the lowest bidder with a bid of ₹28.825 crores, excluding GST. The other bidder, M/s Inkel Limited, quoted ₹31.5 crores. The contract has been awarded to M/s MBH Power Private Ltd, subject to KSERC’s approval, with the project expected to be completed within nine months. A letter of award for the contract has been issued to the company.

The total cost of the project is estimated to be ₹28.825 crores, but with Central Financial Assistance (CFA) of ₹6.3 crores from the MNRE, the cost is reduced to ₹22.525 crores. This amount includes the cost of operation and maintenance (O&M) for the first five years. The project will also require the construction of a 33 kV line to evacuate the power, with an estimated cost of ₹3.7 crores for building a 33 kV bay and laying an underground cable.

KSEBL plans to manage and maintain the 36 acres of land for the plant’s entire operational life, which is expected to be at least 25 years. The company has requested that the project be included in the CAPEX plan of the SBU-G (Generation) division. The approval from the KSERC is crucial for the implementation of the 6 MW solar plant, which is expected to contribute significantly to Kerala’s renewable energy capacity and support the state’s power generation needs.

KSEBL has formally requested KSERC’s approval for the 6 MW solar project at Moongilmada, with plans to implement it under the CAPEX model. The project has received support from the government, and with the tendering process already completed, the project is set to move forward upon receiving the necessary regulatory approvals.