Kerala has unveiled its Draft Power Policy 2025, outlining an ambitious plan to expand its renewable energy capacity by 2030. The state aims to add 1 GW of utility-scale solar projects and develop solar parks across various regions. In addition to this, Kerala is targeting 2.5 GW of capacity through decentralized solar initiatives and another 1.5 GW from non-solar renewable sources such as wind and bioenergy.
To support this increase in renewable energy, the state plans to upgrade its transmission infrastructure. This upgrade will prepare the system to handle a projected peak load of up to 10 GW by the end of the decade. The Kerala State Electricity Regulatory Commission estimates that ₹522.38 billion will be needed by 2030 to build the required infrastructure and enable the smooth integration of renewable energy into the grid.
One of the most significant features of the new policy is the introduction of mandatory rooftop solar systems for certain categories of consumers. Commercial buildings with more than 100 square meters of area must install rooftop systems of at least 3 kW, while those with over 400 square meters must install a minimum of 5 kW. On the residential side, homes that use more than 500 units of electricity per month and have roof areas exceeding 100 square meters must install a minimum of 1 kW capacity.
The policy allows different business models such as capital expenditure, operating expenditure, leasing, roof rental, utility-owned systems, and build-own-operate-transfer models. Ground-mounted systems of up to 1 MW, if installed within a consumer’s premises, will also be eligible for rooftop solar benefits. Rooftop systems below 500 kW will no longer require inspection by the electrical inspectorate. Net metering will continue to be available for eligible consumers, provided project sizes are within 1 MW and renewable purchase obligations are met.
The state also emphasizes the importance of energy storage to ensure a steady and reliable power supply. Kerala plans to develop 2 GW/4 GWh of battery energy storage systems by 2030. All new renewable projects, including solar and wind, will be required to include storage systems in their design. At least 10% of the total project capacity must be allocated to battery storage, with the option to increase this share based on future needs.
The Kerala State Electricity Board projects that electricity demand will reach 7 GW during peak hours by 2031. Under a business-as-usual scenario, the state could face a shortfall of 2.6 GW during evening peak periods. Total electricity demand is expected to rise to 38,000 million units by 2030 and could increase significantly under carbon-neutral goals.
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