Keralam power crisis: Regulatory panel urges KSEB to fast-track battery energy storage projects

As Keralam scrambles to find additional electricity supplies to stave off an unprecedented monsoon-season power crisis, indications are that all the five large-scale battery energy storage systems (BESS) planned across the State are likely to be in place only toward the end of this year.

The Kerala State Electricity Board (KSEB) had originally informed the Kerala State Electricity Regulatory Commission (KSERC) that the five BESS projects would be completed by October 2026. But the latest updates indicate that this commercial operation date (COD) is likely to be met only in the cases of two projects in Kasaragod district – the BESS at Myalatti with a capacity of 125 megawatt/500 megawatt hour (MW/MWh) and the 15MW/60 MWh project at Mulleria.

The Mylatti project is being implemented through the Solar Energy Corporation of India (SECI) and the Mulleria BESS, through NHPC Ltd.

The BESS projects are seen as vital to Keralam for storing surplus power generated during the daytime – especially solar power – so that it can be used in the crisis-ridden evening hours. (The MW rating denotes the maximum amount of power that a BESS system can deliver at a given moment. MWh indicates the total amount of energy that the system can store.)

The BESS projects at Sreekantapuram (40 MW/160 MWh) and Areacode (30MW/ 120 MWh) – both implemented through NHPC Ltd – are likely to be commissioned by November 2026. However, the commission has noted that the BESS planned at Pothencode in Thiruvananthapuram district has been plagued by delays.

“There is considerable delay in the implementation of the BESS project at Pothencode (40MW/60MWh). KSEBL shall take steps to commission the project by December 2026, as committed in the letter of KSEB dated August 11, 2026,” the commission headed by T.K. Jose observed in a September 11 order on a petition filed by the KSEB for making additional power purchases for the September 2026-May 2027 period.

Despite the surge in daytime power generation on account of the increased solar energy capacity, Keralam has been unable to store this surplus power for meeting the soaring evening and night-time electricity demand. This handicap has led to the KSEB ‘surrendering’ daytime power already contracted from central generating stations (CGS) and round-the-clock (RTC) supply contracts).

“The present power crisis of the State can be eased to a greater extent by the commissioning of the above BESS projects of KSEB. Hence, the KSEB management shall ensure that no further delays occur in the commissioning of these BESS projects in the State,” the commission said. It also noted that the BESS capacity, likely to be commissioned by December 31, 2026, “will definitely improve the availability of electricity during peak hours.”

Expensive power purchases

At present, the KSEB is meeting the peak evening demand via expensive power purchases, which ultimately reflects in consumers electricity bills in the form of a surcharge. In April 2026, The regulatory commission also had noted that the KSEB was surrendering up to 1,000 MW out of its CGS and RTC contracts to accommodate the surplus solar power injected into the grid by prosumers.

In its order, the commission has also directed the KSEB to limit Keralam’s internal hydropower generation to a minimum during the daytime and shift the generation to evening hours to meet the peak demand. “KSEB shall ensure that stored water in reservoirs shall be used for generation of power to the full potential during peak hours and limit the day time hydro-power generation to lowest minimum considering the huge availability of power during day time and surrender of power during the last five months,” the panel said.

After a high-level meeting convened by Chief Minister V.D. Satheesan on Monday, Electricity Minister Sunny Joseph had said that Keralam was in talks with NTPC Ltd and other sources for procuring additional power to tackle the crisis.

Power curbs

At present, the KSEB has imposed power curbs during the 6.15 p.m.-12.45 a.m. period to address a shortage in the evening hours which it has attributed to the soaring nationwide electricity demand, deficient southwest monsoon and higher consumption within Keralam. However, the utility is also drawing flak from the public for unscheduled and multiple outages during the late evening hours.

India Meteorological Department (IMD) updates show the southwest monsoon – the mainstay of the State’s internal hydro generation – had fallen short by 27% during the June 1-September 15 period. Water storage in the hydel reservoirs currently stands at 62% of capacity, or equivalent to 2,575.62 million units (mu).