THIRUVANANTHAPURAM | September 4, 2026: The Kerala State Electricity Board (KSEB) has spent around ₹1,190 crore on costly electricity purchases over the past five months, highlighting the pressure on the state’s power system amid rising demand and limited availability during peak hours. The figures were submitted by KSEB to the Kerala State Electricity Regulatory Commission while seeking approval for additional short-term power purchases.
KSEB is seeking permission to purchase electricity through short-term contracts from nine companies, with proposed rates ranging from ₹9.40 to ₹12.50 per unit. The purchases are intended to help the state meet its electricity requirements from September through May next year.
The request comes at a time when Kerala is facing increased pressure on its electricity supply. State power consumption has risen significantly, with daily usage recently crossing 90 million units, while peak-hour demand has also reached high levels. A shortage in the national power grid has further complicated KSEB’s efforts to secure electricity at affordable rates.
Against this backdrop, the Regulatory Commission has once again directed KSEB to speed up the implementation of Battery Energy Storage System (BESS) projects. Battery storage is expected to allow electricity generated or purchased during lower-demand periods to be stored and used during expensive peak hours.
The Commission has expressed concern over delays in completing the planned BESS facilities. Kerala was expected to begin receiving peak-hour power from battery storage during September, and the regulator has indicated that the implementation should not be delayed further.
The regulator has also asked KSEB to provide additional details about the proposed short-term contracts and examine its daytime power-generation pattern. The Commission indicated that additional costs arising from shortcomings in KSEB’s planning should not simply be passed on to electricity consumers through tariffs.
KSEB’s BESS plans have already faced delays. The board is currently pursuing a study on the technical feasibility and commercial viability of establishing battery energy storage systems across Kerala.
The development comes as energy storage becomes increasingly important for states attempting to balance fluctuating renewable generation, peak-hour demand and power procurement costs. At the national level, battery storage is also gaining importance as India expands renewable-energy capacity.
