The Kerala State Electricity Regulatory Commission (KSERC) has approved and ratified a short-term power banking arrangement between Kerala State Electricity Board Ltd (KSEBL) and Chhattisgarh State Power Distribution Company Ltd (CSPDCL), validating the exchange of surplus electricity during Kerala’s monsoon season.
The arrangement was initiated after Kerala experienced a significant increase in power availability between June and September 2025. Heavy monsoon rainfall boosted hydroelectric generation, while growing rooftop solar generation from prosumers added to daytime electricity availability. To avoid curtailment and make productive use of the surplus, KSEBL offered available power through the GNA Energy OTC Platform in September 2025. CSPDCL responded to the offer, resulting in an agreement for energy banking without monetary energy charges.
Under the arrangement, KSEBL supplied 200 MW of electricity to CSPDCL from September 6 to September 30, 2025. The supply was scheduled outside Kerala’s peak evening hours, covering early morning and late-night periods. In return, CSPDCL was required to return the banked electricity during Kerala’s lean power availability period from November 26, 2025, to January 15, 2026.
The return obligation was fixed at 103% of the energy supplied, with the returned power to be provided on a continuous round-the-clock basis. The agreement also specified that energy transfer would take place at the regional periphery of the exporting utility. The importing utility was responsible for applicable transmission drawal charges.
The agreement included provisions to protect Kerala against any failure to return the banked electricity. In case of default, the unreturned energy was to be settled at the Indian Energy Exchange Day-Ahead Market price, along with an additional premium of ₹2 per kWh.
By the time the regulatory petition was considered, the transaction had already been completed successfully. KSEBL exported 102.50 million units of surplus electricity in September 2025 and subsequently received 105.575 million units from CSPDCL during the agreed return period. This represented the stipulated 103% return ratio.
The Commission observed that the arrangement was consistent with the objectives of the Electricity Act, 2003, and applicable state tariff regulations, which encourage efficient utilization of available power resources. It concluded that the banking mechanism helped prevent wastage of surplus hydro and solar generation while providing dependable electricity to Kerala during the winter demand period.
KSERC therefore formally approved and ratified the completed power banking transaction between KSEBL and CSPDCL.
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