The Kerala State Electricity Board (KSEB) has revised its power purchase estimates for 2026-27 to ₹13,344.11 crore, marking a significant increase from previous projections.

Key Takeaways

  • KSEB's power purchase spending may rise by ₹1,596.28 crore.
  • Revised expenditure estimate for 2026-27 stands at ₹13,344.11 crore.
  • A projected power deficit of 1,187.66 million units (mu) is expected.
  • Kerala meets only 30% of its power demand through internal generation.

The Kerala State Electricity Board (KSEB) has submitted a revised claim to the Kerala State Electricity Regulatory Commission (KSERC), projecting that its expenditure on power purchases for the financial year 2026-27 could escalate by ₹1,596.28 crore. According to the new estimate, the total spending on power procurement is expected to reach ₹13,344.11 crore.

A Growing Financial Burden

This revision comes after the Commission had previously granted provisional approval for power purchases amounting to ₹11,747.83 crore during the multi-year tariff (MYT) petition process. The updated figures are part of a mid-year performance review and revised forecast submitted by the utility for the period spanning 2024-25 to 2026-27. A formal hearing on this petition is scheduled for August 18 in Thiruvananthapuram.

Why This Matters

BozokMedia analysis shows that Kerala's energy landscape is increasingly reliant on external sources. Currently, internal generation covers only about 30% of the state's total demand. The remaining 70% must be sourced from Central Generating Stations (CGS), Independent Power Producers (IPP), and power exchanges. As evening peak demand continues to rise, the cost of bridging this gap is becoming a significant fiscal challenge for the utility.

The widening gap between internal generation and peak demand is driving up procurement costs, putting immense pressure on the state's utility finances.

KSEB has also highlighted a projected deficit of 1,187.66 million units (mu) for the 2026-27 period. To mitigate this, the board plans to allocate ₹1,109.07 crore for short-term purchases through the Union Power Ministry’s DEEP e-bidding and e-reverse auction portal to meet peak deficits.

Did You Know?: Kerala's power demand often spikes significantly during evening hours, necessitating expensive short-term power purchases to maintain stability.

Frequently Asked Questions

1. What is the new estimated cost for KSEB's power purchase?
The revised estimate for 2026-27 is ₹13,344.11 crore.

2. Why is the spending increasing?
Increased peak demand and a projected deficit of over 1,187 million units are the primary drivers behind the cost hike.