High-cost power purchases and BESS delays; regulatory commission slams KSEB

THIRUVANANTHAPURAM: The Kerala State Electricity Regulatory Commission has pulled up the KSEB for its plan to procure peak-hour electricity at a steep price of ₹10 per unit from the Term-Ahead Market.

The Commission expressed dissatisfaction over KSEB’s failure to provide essential data requested earlier this week. The board has been ordered to immediately submit a detailed report on:

• Current daily electricity demand and solar generation stats.
• Details regarding "power banking" agreements (returning surplus daytime energy).
• A justification for the necessity of high-cost emergency purchases.

A major point of contention was KSEB’s "lethargic approach" toward the Battery Energy Storage System (BESS). The Commission noted that the current peak-hour crisis is largely a result of KSEB’s failure to implement storage solutions that would allow the state to use cheap solar energy generated during the day to meet high demand at night.

KSEB warned that denying permission for market purchases could lead to statewide power regulations. However, a slight dip in consumption has offered temporary breathing room. After peaking at over 6,000 MW recently, Thursday’s peak demand dropped to 5,950 MW, with total daily consumption recorded at 115.28 million units.

While KSEB claims it can comfortably manage a peak load of 5,300 MW through standard contracts, anything beyond that remains a financial and logistical challenge for the utility provider.