Overview
- This week state ministers acknowledged an acute supply shortfall that has led to scheduled cuts and local outages as demand rose and renewable and hydro output fell.
- Kerala officials are negotiating multiple short-term options, including purchases from NTPC and other states or discoms, but no NTPC deal at roughly Rs 30 per unit has been finalised.
- The government and KSEB warn that buying power at Rs 30 per unit would impose a heavy fiscal burden and would require Cabinet approval and legal review before proceeding.
- Longstanding structural gaps — about 78–80% of Kerala's power comes from outside the state, cancelled long-term PPAs covering roughly 465 MW at about Rs 4.26 per unit, and little battery or pumped storage — have increased exposure to volatile short-term prices and raised costs estimated by KSEB at over Rs 2,130 crore.
- Beyond the immediate scramble, the crisis has sharpened political pressure on the new government and prompted plans for a revised power policy, new procurement deals, and investment in storage and local generation to prevent repeat shortages.