KSEB Seeks Regulatory Approval for Short-Term Power Purchases
The Kerala State Electricity Board (KSEB) has requested ratification from the Kerala State Electricity Regulatory Commission for its short-term power purchase agreements covering September 1, 2026, to May 15, 2027. The procurement process, conducted via the Union ministry of power’s DEEP e-bidding portal, received approval from KSEB’s full-time directors on August 17. A provisional letter of award was issued on August 7, ahead of the bids' expiration on August 9.
The tender resulted in power purchase rates ranging from ₹6.5/unit to ₹12.5/unit. The lowest rate was for round-the-clock power in September, while the highest rates were observed for peak and early-morning time blocks later in the procurement period. For instance, round-the-clock power in April 2027 was priced between ₹6.99-₹7.1/unit. Peak-hour rates (6:30 PM-midnight) reached ₹9.42/unit in November and December, increasing to ₹11/unit in April and May. Rates for the midnight-5 AM block varied from ₹7.7/unit in January and February to ₹10.47/unit in April, with some May bids at ₹12.5/unit.
KSEB attributed the need for these purchases to an anticipated power deficit, scheduled maintenance of generating stations, and increased summer demand. The board is also seeking regulatory approval for the associated additional expenditure and its recovery mechanism.