KSERC Rules CIAL Must Pay Grid And Banking Charges, Advises Battery Storage To Reduce Grid Dependence In Kerala

The Kerala State Electricity Regulatory Commission (KSERC) has issued its final Order in a dispute filed by Cochin International Airport Limited (CIAL) against the Kerala State Electricity Board Limited (KSEBL). The petition, submitted on March 14, 2025, under O.P. No. 28/2025, concerned the refund of grid support and banking charges incurred by CIAL. Hearings for the case were held on May 27, 2025, and September 16, 2025.

CIAL, acting as a prosumer, operates a large solar power plant with a capacity of 38.864 MW, which significantly exceeds its contract demand of 9 MVA. The airport operator requested that its banking transactions with KSEBL continue to be governed by the Kerala State Electricity Regulatory Commission (Renewable Energy) Regulations, 2015, which were in effect prior to the current framework. CIAL sought a refund of charges it had paid and requested that the older regulations be applied to its solar energy banking arrangements.

The Commission carefully reviewed the petition, the counter affidavit filed by KSEBL, and the discussions held during the hearings before issuing its Order on November 27, 2025. KSERC determined that CIAL is liable to pay charges for the use of the transmission and distribution system, including fees associated with availing banking facilities. This liability is in line with Regulation 26 of the KSERC (Renewable Energy and Net Metering) Regulations, 2020, which remains applicable for the duration of the current regulations.

As a result, the Commission rejected CIAL’s requests for a refund of grid support and banking charges and did not agree to apply the 2015 regulations to the airport’s transactions. The reasons for this decision were detailed in paragraphs 8 to 22 of the Order, citing the obligations of prosumers to contribute to transmission and distribution system costs when utilizing the grid for energy banking or other related services.

In addition to its decision, KSERC provided guidance for CIAL to manage its electricity more efficiently and reduce reliance on KSEBL’s grid. The airport operator was advised to consider installing adequate Battery Energy Storage Systems (BESS), which would allow CIAL to store excess solar generation and use it when needed, reducing dependency on grid transmission and distribution services. This suggestion, outlined in paragraph 23 of the Order, highlights the Commission’s emphasis on encouraging self-sufficiency among large prosumers and promoting the adoption of advanced energy storage solutions.

Following the issuance of this Order, the petition by CIAL was formally disposed of, concluding the regulatory review process. The case underscores the importance of compliance with current net metering and renewable energy regulations in Kerala, and it also reflects the growing role of energy storage systems as a tool for managing grid dependency and optimizing the use of renewable energy. The decision sets a precedent for how large-scale solar prosumers may be charged for grid services under KSERC regulations while encouraging the adoption of storage technologies to enhance energy autonomy.