The Kerala State Electricity Board Limited (KSEBL) has approved a capital expenditure plan of ₹647.8 crore for the financial year 2026-27, aimed at strengthening the state’s power infrastructure and supporting its transition towards renewable energy. The plan covers transmission and distribution network enhancements, the development of energy storage solutions, and the expansion of smart metering and electric vehicle charging infrastructure.
Out of the total budget, ₹117.5 crore has been allocated for transmission projects, while Rs 166.9 crore is dedicated to upgrading the distribution network. A major portion of the transmission budget, amounting to ₹598.75 crore, will support the ongoing TransGrid 2.0 programme, which focuses on modernizing the intra-state grid. Additionally, ₹463.83 crore is set aside for routine system strengthening initiatives to improve overall reliability.
In the distribution segment, ₹127 crore will be invested under the Dyuthi scheme to enhance efficiency and service quality. The plan also includes a ₹100 crore allocation for deploying smart meters across the state, reflecting a push towards advanced metering infrastructure. Electric vehicle charging infrastructure is another key focus, with ₹52 crore earmarked for setting up charging stations to support the growing adoption of EVs in Kerala.
To facilitate renewable energy integration, KSEBL has set aside ₹17 crore for Battery Energy Storage Systems (BESS) and ₹1.7 crore for preparing detailed project reports for Pumped Storage Projects (PSPs). The generation sector has been allocated ₹84.9 crore to support existing and new initiatives. In addition, the board approved a revised capital outlay of ₹478.975 crore for the 2025-26 fiscal year.
These investments align with the state’s energy transition goals under the Kerala State Electricity Regulatory Commission (Renewable Energy and Related Matters) Regulations, 2025. The regulations set ambitious Renewable Purchase Obligation (RPO) and Energy Storage Obligation (ESO) targets for distribution licensees like KSEBL. For 2026-27, the minimum RPO is set at 46% of total consumption, including 2.8% from hydro, 1.8% from wind, and 41.4% from other renewable sources. The ESO is set at 1.5%, with at least 85% of the stored energy required to come from renewable sources.
KSEBL’s planned investments in grid modernization, storage systems, and EV infrastructure are crucial for meeting these regulatory requirements. The board’s strategy reflects a strong commitment to building a resilient and sustainable power system, supporting the integration of renewable energy, and enabling Kerala’s transition to a greener energy future.
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