Kerala board forced to buy high-cost power as Karnataka cuts supply

The recent decision by Karnataka to stop supply of power has forced Kerala State Electricity Board (KSEB) to go for high-cost thermal power to meet the State's daily demand.

Karnataka used to supply 10.2 million units daily to Kerala at around ₹7 a unit. It recently stopped supply, citing “extraordinary circumstances.”

The KSEB has obtained a stay on the Karnataka order from the Kerala High Court. Around 24 private parties are the generators/suppliers.

However, it was able to secure supply of only 5 million units daily now and the shortfall is met by purchases from other sources, including the high-cost thermal power from NTPC’s Kayamkulam and BSES plant at Eloor near here at ₹12 unit, senior KSEB sources said.

They said the peak-hour demand has shot up to around 70 million units daily and it was at 68 million units yesterday as several areas received good summer showers. They attributed the rise in demand to increased use of air-conditioners.

The hydel situation is at a comfortable position. The water storage in the reservoirs of the hydroelectric projects stood at 35 per cent of the total capacity. With this, 1,481 million untis could be generated.

At the current rate of daily generation of an average 24 million units up to May 31, an estimated 950 million units might needed to be generated. Currently, 24- 25 million units are generated from the hydel projects.

On an average, 27.53 million units are received from the Central grid, which is the full quota allotted to the State, they said.

Around 12 millions units are purchased daily from other sources. From the NTPC and BSES, two million units are purchased daily while the balance of power generated by them is sold to Tamil Nadu.

The KSEB sources said power is available at comparatively lower rates from Gujarat and Maharashtra but for want of a transmission corridor, it cannot be brought to the State and hence it goes for high-cost power available locally.

KSEB’s diesel power plant at Kozhikode is generating high-cost 1 million units daily to meet the demand from northern Kerala.

Brahmapuram diesel plant is not being operated at present as the situation has not so far necessitated generation of power from it, they said.

Overall, the situation is comfortable. The current summer rains have not been sufficient enough to build up any significant inflow to the reservoirs, the sources added.