Now Reading: Kerala power purchase costs may rise Rs 1,596 crore in 2026-27
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Kerala power purchase costs may rise Rs 1,596 crore in 2026-27
The Kerala State Electricity Board (KSEB) has revised its estimate for power purchase spending in 2026-27 to Rs 13,344.11 crore, a rise of Rs 1,596.28 crore from the Rs 11,747.83 crore provisionally…
The Story in Brief
The Kerala State Electricity Board (KSEB) has revised its estimate for power purchase spending in 2026-27 to Rs 13,344.11 crore, a rise of Rs 1,596.28 crore from the Rs 11,747.83 crore provisionally approved by the Kerala State Electricity Regulatory Commission. The revised projection is part of a mid-year performance review petition submitted by KSEB, with a hearing scheduled for August 18.
Kerala meets only 30% of its demand through internal generation, relying on purchases from central stations, independent producers, and power exchanges. KSEB expects a 1,187.66 million unit deficit in 2026-27, as total requirement is 33,813.53 mu against availability of 32,625 mu. The increased spending includes Rs 1,109.07 crore for short-term purchases via the DEEP portal to meet peak deficits.
The Indian Opinion
KSEB's revised forecast puts the spotlight back on Kerala's power planning, but the narrative of a 'crisis' often ignores structural realities: the state depends on hydroelectricity, which fluctuates with monsoon patterns, and has limited thermal backup. Rather than blaming the board alone, consumers should watch the August 18 hearing for concrete numbers on how much peak deficit is covered and whether short-term purchases are driving up costs. The real test is whether KSEB can secure long-term contracts to reduce volatility.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
