The Kerala State Electricity Board Limited (KSEBL) has approached the Kerala State Electricity Regulatory Commission (KSERC) seeking approval for a short-term power purchase agreement to address the state’s growing electricity shortage. In its petition, KSEBL has requested permission to procure 200 MW of Round-the-Clock (RTC) power for one year, from July 15, 2026, to July 14, 2027. The procurement was carried out through the Ministry of Power’s Discovery of Efficient Electricity Price (DEEP) e-bidding portal in accordance with the prescribed bidding guidelines.
According to the petition, the utility decided to procure additional power after identifying a significant supply gap in the state’s electricity system. Kerala is facing a projected power deficit due to increasing electricity demand and lower availability of domestic power generation. A detailed Load Generation Balance (LGB) assessment showed that the situation has become more challenging because of weak South-West monsoon rainfall and the impact of El Niño weather conditions. These factors have reduced water levels in major reservoirs, limiting electricity generation from the state’s hydropower stations. As a result, KSEBL found that its existing power resources were insufficient to meet demand during both peak and off-peak hours.
KSEBL initially floated a tender to procure power for the shorter period between June 15 and August 31, 2026. However, the bids received under that process were found to be expensive and unsuitable for ensuring a stable power supply. To improve competition and secure a more reliable supply, the board decided to extend the procurement period to one year and invited fresh bids through the DEEP portal.
The revised bidding process attracted three participants: NTPC Vidyut Vyapar Nigam Limited, Power Pulse Trading Solutions Limited, and Arunachal Pradesh Power Corporation Private Limited. After evaluating the bids on June 30, 2026, KSEBL observed that participation remained limited and the discovered tariffs were higher than the average prices seen in the Day-Ahead Market (DAM) over previous years. Since the required 200 MW capacity could be sourced from the two lowest bidders, the third bidder was not considered further in the procurement process.
To reduce the financial burden on electricity consumers, KSEBL’s standing committee negotiated with the lowest bidder, NTPC Vidyut Vyapar Nigam Limited. The negotiations resulted in the tariff being reduced from the original quoted price of Rs. 5.98 per unit to Rs. 5.96 per unit. Following established procurement procedures, the second-lowest bidder, Power Pulse Trading Solutions Limited, was asked to match the revised price. The company agreed to supply power at the same tariff.
Under the final arrangement, KSEBL will procure 100 MW of RTC power from NTPC Vidyut Vyapar Nigam Limited and another 100 MW from Power Pulse Trading Solutions Limited, both at a uniform tariff of Rs. 5.96 per unit. The Full-Time Directors of KSEBL approved the procurement proposal on July 15, 2026, after which the utility submitted its petition and supporting affidavit to KSERC, seeking the commission’s approval for the one-year power purchase arrangement.
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