The State Electricity Regulatory Commission on Monday cleared a Kerala State Electricity Board (KSEB) proposal to procure 200 megawatts (MW) of solar power, coupled with 100 MW/400 megawatt hour (MWh) of energy storage. The attraction of the deal is that the supply comes at ₹2.93 per unit for a period of 25 years.

Under this proposal, Kerala will be eligible for a supply of 200 MW during daytime and 100 MW for four hours from the energy storage system (ESS) for meeting the peak demand. SECI and KSEB has signed the power sale agreement on March 13 this year. The scheduled commencement of supply is from April 1, 2028.

The supply is being facilitated under the ISTS Tranche XX scheme of Solar Energy Corporation of India Limited (SECI), a Central Public Sector Unit. “At ₹2.93 per unit, the proposed solar power with four-hour storage offers a highly competitive alternative to expensive peak thermal and short-term exchange power. By locking in this rate for 25 years, the State secures a stable, cost-effective energy supply that avoids the volatility of fossil fuels and uncertain market prices,” the KSEB had informed the Commission comprising chairman T.K. Jose and member B. Pradeep.

SECI had originally floated a nationwide tender for a 2,000 MW ISTS-connected solar PV projects with 1,000 MW/4000 MWh ESS. The quantum offered to KSEB was from this proposal. Now, the Commission has asked the KSEB to urgently explore whether it can procure additional supplies under the SECI scheme. SECI had stated at a hearing organized by the Commission that out of the 2,000 MW under its scheme, only 500 MW has been tied up so far. Kerala needs to tie up more electricity from Battery Energy Storage Systems and hybrid power plants for meeting the increase in its peak demand, the Commission said.

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The State Electricity Regulatory Commission has rejected a petition filed by prosumers seeking ₹4.34 per unit instead of the ₹3.26 per unit approved by the Commission as the Average Pooled Cost of Power Purchase (APPC rate) for settling the net banked energy by prosumers and captive consumers. The decision came in a separate order issued by the Commission headed by T.K. Jose on Monday.

Published - July 27, 2026 08:59 pm IST