Power Sector in Kerala

Kerala is the first State in the country to attain 100 per cent house hold electrification. Electricity is being provided throughout the State 24x 7 x 365 without any power cut or load shedding. Having achieved universal electrification, the State is now concentrating on the modernisation of the grid to meet the ever increasing customer aspirations with respect to reliability, to attain the lowest level of system losses, to meet the requirements thrown up by decentralised renewable generation and to ensure safety of installations. In addition to all these, the State has also embarked upon a mission to build a state of the art transmission network by constructing new lines, substations and modernising existing systems, to be ready for taking in the projected boom in e-mobility. The State has kicked off the ambitious ‘Oorjja Kerala Mission’ which is a bouquet of five inter related projects namely, ‘Dyuthi 2021’, ‘Soura’ ‘Filament free Kerala’ ‘Transgrid 2.0’ and ‘e-safe’, woven together as a combination of priorities set by the above aspects. The underlying spirit of all the projects envisaged in the power sector of the State is to contain the challenges of climate change and to reduce the carbon foot print of the power sector.

The Government of Kerala is committed to maintaining the dominant position of the public sector in the State’s power sector. The Kerala State Electricity Board is unarguably one of India’s best performing public utilities in the power sector, on all aspects of its functioning including technical, customer service and financial parameters. In the series of disasters that have affected the State over the last three years, including two major episodes of flood and landslides and the Covid-19 pandemic, the KSEB has provided outstanding service to the people of the State in all respects. This includes maintaining the highest possible level of service, undertaking repairs and restoring damage speedily, and providing tariff and related concessions across many different sectors of the economy and the domestic sector, especially during the ongoing Covid-19 pandemic.

The vision of the State in the power sector does not see the KSEB as a competitor ranged against the development of renewable energy as is the dominant paradigm elsewhere. The KSEB’s participation indeed holds the key to the rapid deployment of solar energy, especially grid connected solar, and other innovative solar and wind projects across the State. The “Soura” programme referred to above, has been conceptualised in this framework, with the KSEB handling a major part of the deployment. The technological capacities of the KSEB need to be harnessed to the development of renewable energy rather than being set aside or left unutilised.

The power sector in the State is fully alive to the technological advances that have taken place in the recent two decades in the country and the State’s strategy in the sector is drawing on the benefits of this advance. It is also leveraging a number of new innovative ideas and initiatives to maintain its growth in the new era of sustainability. Especially in the era of renewables, newer forms beyond solar and wind need to be considered and evaluated for development and deployment in the State. The participation of the State’s S&T as well as the technological higher education institutions in such efforts would be mutually beneficial to both these institutions as well as the power sector itself.

Power demand

Peak demand of the State in 2019-20 was 4,316.8 MW on March 27, 2019 between 22.00 hours and 22.30 hours. Morning peak demand in 2019-20 was 3465 MW, on May 23, 2019 between 08.00 hours and 08.30 hours. Minimum demand was 1302 MW on August 09, 2019 between 4.30 and 5.00 hours. Average demand for FY 2020 was 3,567 MW.

Power Generation, Purchase and Sale

Kerala State’s Power scenario for 2019-20 is given in Table 11.2.3.

Table 11.2.3 Kerala State’s Power scenario for 2019-20

Particulars Energy in MU
Gross generation KSEBL 5,781.23
Power purchase from CGS at Kerala periphery 10,082.00
Power purchase through long term/medium term/short term contracts/swap at Kerala periphery 9,993.52
Total Power purchase from IPPs/CPPs inside the State 308.23
Total power purchase at Kerala periphery 20,383.76
Energy injected by Private IPP’s at generator end for sale outside the State through open access 37.50
Energy availed through open access at Kerala Periphery 405.86
Auxiliary consumption to be deducted. 58.42
EXPORT-Energy sales by KSEBL, SWAP Return by KSEBL and Energy injected by Private IPP’s at KSEB periphery for sale outside the State through open access 323.84
Total energy input to Kerala periphery for meeting the consumption of the State including energy wheeled through open access 26,226.08
Total energy at consumer end including energy wheeled through open access 23,058.91

Source: KSEBL

Sale of Power inside the State

KSEBL in 2019-20 has sold 22,948.82 MU power to 1,28,26,185 consumers including 11 bulk licences. ₹13,91,754 lakh were generated as total revenue. The total revenue from sale of power, including sales to other utilities outside the State is ₹13,918.79 crore.

Pattern of Power Consumption

Consumption of all LT categories of consumers increased except decrease in public lighting category and LT Industrial category and EHT consumers. The decrease in public lighting can be attributed to increase in LED lamps. The reason of decrease in LT industrial category and EHT category is assessed due to impact of Flood 2019 and Covid-19 in last quarter of the year. The details of the pattern of power consumption and revenue collected in 2019-20 are furnished in Appendix 11.2.1.

In Kerala, electrical energy consumption has increased to 23,058.91 MU (includes open access consumption) in 2019-20 from 21,750.25 MU in 2018-19, an increase of 5.67 per cent. Electrical Energy consumption in Kerala in 2013-14 to 2019-20 is depicted in Figure 11.2.1.

Figure 11.2.1 Electrical energy consumption in Kerala
Source: KSEBL
Aggregate Technical and Commercial (AT & C) Losses

In 2019-20, AT&C loss has increased to 14.07 per cent from 13.14 per cent and transmission and distribution (T&D) loss came down to 12.08 per cent from 12.47 per cent. KSEB has made significant achievement in the field of reducing T&D loss. But AT&C loss increased due to the impact of Covid-19 pandemic and lockdown restrictions. For Distribution SBU, the AT&C loss is 10.77 per cent and distribution loss is 8.70 per cent in 2019-20. The impact of AT&C loss reduction during the last five years is shown in Appendix 11.2.2. The AT & C loss and T & D loss from 2014-15 to 2019-20 is illustrated in Figure 11.2.2.

Figure 11.2.2 Aggregate Technical and Commercial (AT&C) losses, and transmission and distribution losses, in per cent
Source: KSEBL
Performance of Power Sector Agencies

Power development activities in the State are carried out mainly through four agencies, namely, Kerala State Electricity Board Limited (KSEBL), Agency for Non-conventional Energy and Rural Technology (ANERT), Electrical Inspectorate, and Energy Management Centre (EMC). The outlay and expenditure of these departments in Annual Plan 2019-20 and Annual Plan 2020-21 are shown in Table 11.2.4.

Table 11.2.4 Outlay and expenditure in the Annual Plan 2019-20 and Annual Plan 2020-21, in ₹ lakh

Sl No Name of theDepartment/Agency Annual Plan 2019-20 Annual Plan 2020-21
Outlay Expenditure per cent Outlay Expenditure up to September 2020 per cent
1 KSEBL 1,71,237.00 1,45,238.96 84.82 1,70,821.00 46,636.11 27.30
2 ANERT 5,200.00 1,061.56 20.41 4,180.00 1,133.56 27.11
3 EMC 883.00 401.27 45.44 763.00 0.00 0
4 Electrical Inspectorate 825.00 84.94 10.29 693.00 21.65 3.12
  Total 1,78,145.00 1,46,786.73 82.40 1,76,457.00 47,791.32 27.08

Source: Plan space

In the Annual Plan 2020-21, an amount of ₹1,76,457.00 lakh is provided for Energy sector. Out of this, ₹ 1,70,821.00 lakh is for Kerala State Electricity Board Ltd. (KSEBL), ₹4,180.00 lakh for Agency for Non-conventional Energy and Rural Technology (ANERT), ₹693.00 lakh for Meter Testing and Standards Laboratory (MTSL) and ₹763.00 lakh for Energy Management Centre (EMC). As per expenditure reported in the Plan space, ₹47,791.32 lakh i.e., only 27.08 per cent of the total outlay is expended till September 2020. The expenditure reported by KSEBL is ₹46,636.11lakh (27.30 per cent), ANERT is ₹1,133.56 lakh (27.11per cent), and Electrical Inspectorate is ₹21.65 lakh (3.12 per cent). But, EMC has not reported expenditure up to September, 2020.

Kerala State Electricity Board Limited (KSEBL)

Kerala State Electricity Board Limited is a (power utility) company incorporated under Companies Act 1956 (Central Act 1 of 1956). It is fully owned by Government of Kerala, under provisions of section 131 of the Electricity Act 2003 by re-vesting (under sub section (2) of section 131 and 133 of the Act) the functions, properties, interest, rights, liabilities, proceedings and personnel vested in State Government from erstwhile Kerala State Electricity Board. Revesting was done on October 31, 2013. KSEBL is a single holding company with Distribution, Transmission and Generation strategic Business units with separate accounting. The company was incorporated on January 14, 2011 and it started operation as independent company with effect from November 1, 2013. KSEBL has been responsible for the generation, transmission and distribution of electricity in the State, with particular mandate to provide electricity at affordable cost for domestic as well as agricultural purposes.

Achievements of KSEBL in 2019-20
  • The power disruptions that occurred during Floods 2019 was restored and normalised within a short span of days through Mission Reconnect 2019.
  • Provided uninterrupted power and maintained all essential services during Covid lockdown and subsequent unlocks through its dedicated staff, maintaining strict Covid protocol.
  • 2,91,517 new service connections were effected and 1,301 nos. of new distribution transformers installed. 1,080.5 km of 11 kV line and 3,689.141 km of LT lines constructed.
  • Construction of one 220kV substation, nine 110 kV, two 66 kV, six 33 kV substations and 366.4 km of lines in the voltage levels including 33 kV and above, capacity addition of 200 MVA step up transformers and 2,638 MVA step down transformers are the achievements in the transmission sector.
  • Transmission and Distribution losses brought down to 12.08 per cent in 2019-20 from 12.47 per cent in 2018-19. AT&C loss for Distribution Strategic Business Unit has been remained at 10.77 per cent despite impact of Covid in last quarter of 2019-20 and distribution loss is reduced to 8.70 per cent in 2019-20 from 9.09 per cent in 2018-19.
  • The 400 kV Tirunelveli-Kochi-Madakkathara-Udumalpet Power highway become a reality as the right of way was cleared by the resolution and action by State Government and KSEBL
  • Six e-Vehicle charging stations were set up with State funds in short span of time.
  • A capacity addition of 0.62 MW in Generation was achieved in 2019-20.
Oorjja Kerala Mission

Government of Kerala has launched ‘Oorjja Kerala Mission’ on June 14, 2018, aimed at the integrated development of electricity sector in the State. It aims at implementing five important projects detailed below in the next 3 years. The status of these projects are analysed below


KSEB intends to achieve a cumulative capacity of 1000 MW to its renewable content through Solar Projects by 2021. The status of the projects are given in Table 11.2.5.

Table 11.2.5 Status of Solar Projects

Sl. No. Project MWp Target date Status
1 Roof top solar-Phase-1 EPC 46.5 2020-21 Under implementation through three vendors.
2 Roof top solar-Phase-1 RESCO 60 2020-21 For 60MWp in RESCO demand aggregation from roof tops of Government buildings envisaged.
3 Roof top solar-Phase-2 Subsidy (sanctioned) 50 2020-21 Under tender process (12.5MW to be implemented by ANERT) and is expected to be completion by April 2021
4 Roof top solar-Phase-2 Subsidy (anticipated) 100 2020-21 Also under tendering process and expected completion date is December 2021
5 Solar park Ambalathara 50   Commissioned
6 Solar park Paivallika 50 2020-21 Ongoing, developed by THDCIL
7 Solar Park-Cheemeni 100 2021-22 Land handed over to RPCKL by Government
8 NTPC Floating Solar 225 2021-22 Detailed Project Report received for 100MWp in Anchuruli and 25MWp in Cheruthoni. Another 100 MWp planned.
9 SECI Floating Solar 150 2021-22 Kulamavu-50MWp and Banasurasagar 100MWp-bathymetric survey to be conducted
10 Reverse bid by KSEBL from IPPs 200 2020-21 Bid on solar from ground mounted plants floated after approval from KSERC on all India basis
  Total Soura 1,031.5    

Source: KSEBL

Filament free Kerala

Through this project all the existing CFL and filament bulbs in domestic and street lighting sector in the State will be replaced with energy efficient and long lasting LED lamps targeting reduction in peak demand, global warming and Hg pollution. More than 13 lakh consumers have already registered for LED lamps in the 1st phase in which domestic sector was targeted. KSEBL has accorded sanction to award procurement of one crore LED bulbs to two firms in 70:30 ratio. It is expected that LED distribution can be completed by February 2021.

Dyuthi 2021

The projects included in Oorjja Kerala Mission, are in progress with a mission to up lift the distribution grid of KSEBL to international level. The total Plan outlay is ₹ 4,036.30 crore. Devastating floods during 2018 and 2019 has also affected the progress. Also Covid-19 pandemic has retarded the progress of projects. Now the target for 2019-20 and 2020-21 has been revised to March 2021. The financial progress is 21.85 per cent as on September 30, 2020.

Transgrid 2.0–2nd Generation Transmission network

This project aims at strengthening of transmission network to meet the future energy requirement of the State and is scheduled to be implemented in two phases. The 1st phase of the project is scheduled for execution during 2017-2022 and 2nd phase for 2019-2024. The works included in the 1st phase of the project are grouped into 13 packages and comprises construction of 12 substations and 2084 Circuit kilometre of EHT lines. Out of these 12 substations, 4 are Air Insulated Substations (AIS) and the remaining 8 are Gas Insulated Substations (GIS). 12 substations (AIS-3 Nos. and GIS-9 Nos.) are included in Phase II of the project which is grouped into 12 packages. ₹1,052.89 crore works have been completed as on September 30, 2020. This includes ₹523.54 crore funded by KIIFB, ₹461.87 crore funded in PSDF and ₹67.47 crore with KSEBL’s fund. Works amounting to ₹760 crore can be completed by end of this year. This year only ₹301.56 crore works are completed as on September 30, 2020. The physical progress of the work as on date is given in Table 11.2.6.

Table 11.2.6 Progress of Transgrid 2.0, Phase I and II in 2019-20

Sl No Work Quantum of work Progress
A Transgrid 2.0 – Phase I
a KIIFB Funded works
1 Erection of substations (220 kV-11, 400 kV-1) 12 nos 220 kV s/s Manjeri commissioned on June 23, 2020. Other 11 substations works are in progress
2 Construction of transmission lines 321 route-km 220 kV Karukkadam-Kothamangalam charged on December 11, 2019. Other works are in progress
b PSDF Work
1 Construction of transmission lines 211.46 route-km Two packages are funded in PSDF. Kakkayam-Nallalam work commissioned. The 220 kV portion of MDKA-MLPA already charged on July 10, 2019. All other works are in progress.
B Transgrid 2.0 – Phase II
a KIIFB Funded works
1 Erection of substations (220 kV-8, 400 kV-1) 9 nos 20 kV s/s Kakkad and Pathanamthitta tendered. For Sasthamcotta, Thuravur and Irinjalakuda KIIFB sanction is awaited. In case of Panjal, Palakkad and Edamon, DPR is being prepared
2 Construction of transmission lines 431.4 route-km Kottiyam-Kollan GIS work completed. Other two works awarded. For balance 4 works KIIFB sanction is awaited. For 6 works DPR is under preparation.
b Green Corridor Package
1 Erection of substations (220 kV-3, 400 kV-1) 4 nos Approval of MNRE awaited
2 Construction of transmission lines 102 route-km

Source: KSEBL


The eSafe project jointly mooted by Electrical Inspectorate and KSEB aims at zero electrical accidents in the State. In this Budget year, Electrical Inspectorate has been allocated funds to the tune of ₹ 4.08 crore to implement e-safe projects. Conduct of safety awareness programmes, rewiring tribal households at Agali, Sholayur and Pudur Panchayat Pilot implementation of safety system preventing accidents from snapping of Over Head lines and electric fence energiser test set up are envisaged this year. Also Local Self Government Department has accorded sanction to local bodies on January 24, 2020 to prepare project including family of NPG consumers to rewire their premise with at least four points and ELCB ensuring safety standards in their coming Annual Plan @ ₹12,287 per family. With the completion of the project, it is expected that all domestic households will be connected with earth leakage protection as per standards.


In 2019-20 the internal generation of KSEBL is 5,781.23 MU which is 24.18 per cent lower than last year. Net generation of the State is 6,050.65 MU. The internal generation of KSEBL is given in Table 11.2.7.

Table 11.2.7 KSEBL internal generation

Sl. No. Particulars Capacity as on March 31, 2019 (MW) Capacity added in 2019-20 (MW) Capacity as on March 31, 2020 (MW) (2)+(3) Total Internal Generation in 2019-20 (MU)
0 1 2 3 4 5
1 Hydel 2,058.76   2,058.76 5,741.83
2 Thermal 159.96   159.96 12.03
3 Wind 2.025   2.025 1.42
4 Solar 16.85 0.62 17.47 25.95
  Total 2,237.60 0.62 2,238.22 5,781.23

Source: KSEBL

Capacity Addition in 2019-20

Total installed capacity of power in the State as on March, 2020 is 3,061.37 MW. Of which, hydel power contributed the major share of 2,129.42 MW (69.56 per cent); while 676.54 MW was contributed by thermal projects (22.10 per cent), 70.28 MW from wind (2.30 per cent), and 185.13 MW (6.04 per cent) from solar. Figure 11.2.3 highlights the total installed capacity of Kerala from hydel, thermal and renewable sources.

Figure 11.2.3 Installed capacity, mega watt
Source: KSEBL

Appendix 11.2.3 gives the details of energy source and its installed capacity during the last five years while sector-wise details are presented in Appendix 11.2.4. Of the total installed capacity of 3,061.37 MW in 2019-20, the contribution of State sector is 2,238.22 MW (73.11 per cent), Central sector 359.58 MW (11.75 per cent) and private sector 463.57 MW (15.14 per cent). The details of power availability during the last six years are illustrated in Appendix 11.2.5.

Installed Generation Capacity

Kerala State Electricity Board Limited owns 37hydel stations of capacity 2,058.76 MW, one wind farm of 2.025 MW, two thermal plants of 159.96 MW and solar plants of 17.47 MW at various places. In 2019-20 the major addition was 60.39 MW by private plants. KSEBL added only 0.62 MW solar plants. RGCCPP Kayamkulam is the only CGS in the State. IREDA Solar Park of 50 MW at Kasaragod and 2MW ANERT, Kuzhalmandam solar plants are the State invested projects.

Ongoing Generation Projects in the State

The details of the ongoing hydroelectric projects in the State with expected date of commissioning are given in Table 11.2.8. KSEBL is executing 10 Hydel projects in the State with installed capacity of 193.5 MW, to be completed by 2021-22. Details of other hydroelectric projects, which are in the pipeline, are listed in Appendix 11.2.6.

Table 11.2.8 Ongoing Hydro Power Projects in the State

Sl. No. Name of Scheme Installed Capacity (MW) District Date of Project Sanctioned Expected date of commissioning
1 Thottiar HEP 40 Idukki January 16, 2009 December, 2021
2 Sengulam Augmentation Scheme 85 MU Idukki July 06, 2009 March, 2022
3 Chathankottunada II SHEP 6 Kozhikode November 09, 2017 March, 2021
4 Poringalkuthu SHEP 24 Thrissur January 01, 2014 May, 2021
5 Bhoothathankettu SHEP 24 Ernakulam February 15, 2014 August, 2021
6 Upper Kallar 2 Idukki December 12, 2016 April, 2021
7 Pallivasal Extension 60 Idukki March 02, 2007 December, 2021
8 Pazhassi Sagar 7.5 Kannur October 27, 2017 December, 2021
9 Chinnar 24 Idukki April 27, 2018 March, 2022
10 Peruvannamoozhy 6 Kozhikode May 25, 2018 May, 2021

Source: KSEBL

Enhancing Renewable Energy component in the Energy Mix of the State

KSEBL is considering all option to harness renewable power. Besides development of solar power through Soura projects, installations of other renewable plants are expedited. The target is to meet 40 per cent of energy requirements from Renewables by 2022. The existing, ongoing and pipeline renewable projects for 3309 MW are given in Table 11.2.9.

Table 11.2.9 Ongoing and pipeline renewable projects in the State

RENEWABLE ENERGY-Installed, Ongoing and Proposed
  Project Capacity in MWp Year of Completion Present Status
I Existing 204.22    
ii Ongoing and Proposed      
1 KSEBL projects 23.27 2020-21 Ongoing 13.355 MWp and Proposed 9.912MWp
2 Solar park-THDCL Paivallika, Kasaragode and Cheemeni. 150 2019-20 Paivalika 50MWp ongoing, Cheemeni 100MWp-land handed over to RPKCL
3 Saura Roof top solar-Phase-1 110 2020-21 46.5 MW in EPC mode under implementation. For 60MWp In RESCO demand aggregation from roof tops of Government buildings envisaged.
4 Saura Roof top solar-Phase-2MNRE subsidy scheme 150 2020-21 50 MWp allocated by MNRE is under tender process (12.5MW to be implemented by ANERT) and is expected to be completed by April 2021. Balance 100MWp allocation expected from MNRE is also under tendering process and expected completion date is December 2021
5 NHPC Floating Solar, West Kallada 50 2020-21 Tendering in process
  Project Capacity in MWp Year of Completion Present Status
6 NTPC Floating Solar-Kayamkulam 92 2020-21 Draft PPA Signed, work awarded by NTPC.
7 NTPC Floating Solar 225 2021-22 Detailed Project Report received for 100MWp in Anchuruli and 25MWp in Cheruthoni. Another 100MWp in Cheruthoni is under consideration
8 Reverse bid by KSEBL from IPPs 200 2020-21 Bid on solar from ground mounted plants floated after approval from KSERC on all India basis
9 PM-KUSUM 50 2020-21 Demand aggregated for 10MWp sanctioned. Requested for additional 40 MWp to MNRE
10 SECI Floating Solar 150 2021-22 Kulamavu-50MWp and Banasurasagar 100MWp-bathymetric survey to be conducted
11 Solar Power through SECI 200   Negotiation in process
  Total Solar-Existing, Ongoing and proposed 1,604.49    
B Wind      
I Existing 80.28    
II Proposed and ongoing      
1 NHPC Palakkad 8 2020-21 Ongoing
2 Ramakkalmedu (Pvt.) 2 2020-21 Ongoing
3 SECI TRANCHE VI scheme 200 2020-21 PSA executed
4 SECI TRANCHE VII scheme 100 2020-21 PSA executed
5 KSEBL-Kanjikkode 2.5 2020-21 Ongoing
6 KSEBL-Intercropping 2.65 2020-21 Ongoing
  Total ongoing and proposed 395.43    
c Hydel (Renewable)      
i Existing 215.56    
ii Proposed-Ongoing 193.5    
iii On pipeline 894   Includes 780MW Idukki extension scheme
  Total Hydel under RE-existing, ongoing and proposed 1,303.06    
D Waste to Energy      
1 Wayanad 0.2 2019-22 Planned
2 Njalianparambu 6 2019-22 Tender invited for work
  Waste to Energy-Total ongoing and proposed 6.2    
  Total Capacity expected at the end of 2021-22 3,309.18 MWp  

Source: KSEBL

The details of existing Solar plants of 204.22 MW are given Appendix 11.2.7.


The distribution network as on March 31, 2020 has 64,212 Ckt-km of 11 kV lines, 2,93,280 Ckt-km of LT lines and 81,470 distribution transformers with step down capacity of 9,915 MVA. The target and achievement of the distribution infrastructure in 2019-20 are given in Appendix 11.2.8. The infrastructure development of distribution system is included in Dyuthi 2021 project, under Oorjja Kerala Mission. During Covid-19 lockdown, KSEBL implemented several relief measures to consumers to support them during hard times. Also Customer Care Centre was strengthened and new services introduced to achieve customer loyalty and facilitate care of service.

Service at Door steps-Pilot implementation started in 39 sections under Electric Circle, Palakkad. As the name indicates the programme is to provide all services rendered by KSEBL to public as well as consumers at their door steps on call. The pilot implementation has attracted attention of all parties and is lauded as an earnest step in customer satisfaction by public as well as the media.

Self-Meter Reading App – KSEBL is developing a self-meter reading app and is planning to implement it by first November, 2020. The app can be used by layman or woman with ease. The app will serve as a solution to door lock problems and meter reading errors. The novel step will be useful for all categories of consumers as well as KSEBL field staff.

e-samayam. e-samayam, a virtual queue to visit section offices of KSEBL is being implemented as pilot in Kesavadasapuram and Vellayambalam section in Trivandrum.

Collection of arrears

Special attention was paid to collect arrears of electricity charges from time to time. The outstanding dues of private consumers as on September 30, 2020 are ₹963.79 crore. The Government dues, both Central and State together at the end of first quarter is ₹ 723.67crore. Of this ₹ 604.15 crore is attributed to State Government departments and State public sector undertakings. The major chunk of this arrear amounting to ₹399.05 crore belongs to KWA. KWA has to pay the arrears including interest payable up to September 30, 2018 in four annual instalments. Only the first instalment has been paid. It was also decided that current charge bills of KWA after September 30, 2018 will be paid from water charges by LSG. ₹140.64 crore has been paid and transfer of fund is pending from January 1, 2019.

Transmission –Normal

To achieve the goal of 24x7 uninterrupted quality power to the consumers and also for availability of power on demand, sufficient capacity of transmission network is to be developed. Also, works are necessary to satisfy the N-1 planning criteria put forth by the Central Electricity Authority. It is targeted to complete another 45 substation of different voltage level and 1,300 circuit kilometre of transmission lines by March, 2022.

Kerala’s transmission infrastructure consisting of substations, its targets and achievements and network details as on March 31, 2020 is given in Appendix 11.2.9 and Appendix 11.2.10.

Flagship projects of KSEBL

In addition to five projects included in Oorjja Kerala Mission cited above, the following four projects also form the flagship projects of KSEBL.


The State of Kerala is one among the first in India, which declared its e-mobility Policy. KSEB has been designated as the State Nodal Agency to ensure deployment of e-Vehicle charging stations across the State. With State funding of ₹8.2 crore, KSEBL planned to set up 32 charging stations covering all Districts of the State for ensuring State wide charging facility for e-Vehicles. Of this 6 stations are completed and work for balance stations are in progress. In Central funding through Department of Heavy Industries, Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-India) PHASE-II Scheme, 30 charging stations are being installed in seven cities with over one million populations. As on October 15, 2020 the Central Government has sanctioned another 181 stations and the installation of these 181 stations has to be completed by March 2022.

Kerala Fibre Optic Network (K-FON)

The scope of the project is to build a Wide Area Network across the State in order to provide cost effective and high speed internet connection to 30,000 Government offices and educational institutions and free internet access to 20 lakh BPL families. Implementation and maintenance of the network will be carried out by a Special Purpose Vehicle (SPV) with equity partnership of KSEBL, KSITIL and the State Government in the ratio 49:49:2. Among other benefits to KSEBL, the project ensures High Speed Internet Connectivity to all its offices. KSEB will get pole rent plus 4 fibres free of cost along the distribution line (47,289 km). It will meet additional data communication requirements for Control and Protection, Smart Grids and Smart Meters and Internet of Things. The assets created will vest with KSEBL.

The works are awarded in two packages. Package A with PAC ₹1,028.2 crore funded by KIIFB consist of K-FON works and Package – B, Reliable communication and Data acquisition network (RC and DA network) with PAC ₹ 99.2 crore in PSDF fund. The OPEX for Package A and B for seven years is ₹363.42 crore

The progress as on September 30, 2020 is as follows:

  • NOC Non IT-85 per cent completed.
  • DR IT-50 per cent completed.
  • Point of presence (PoP) – Civil Foundation works for 119/375 PoPs and Prefab erection for 85/375 PoPs have been completed.
  • Optical Ground Wire (OPGW) – 42.511/2,600.066 km has been completed.
  • All Dielectric Self Supporting cable – 5,535/35,000 km has been completed.
Enterprise Resource Planning (ERP)

ERP will allow KSEBL to use a system of integrated applications to manage the business and automate many back office functions related to accounting, material management and human resources. The project was conceived as a Centrally Sponsored Scheme under IPDS. ERP Project Plan was submitted to Power Finance Corporation. First instalment of ₹42.64 crore sanctioned (60 per cent grant) and ₹6 crore has been received. ERP implementation to be completed by August, 2020. Extension up to March, 2021 has been issued by PFC. ERP software is being developed in house and progress is as follows:

  • Project Plan finalised and development team formed as per time line.
  • UAT to be started from November, 2020.
  • Coding started from September 30, 2019 and it is in the final stage except some gaps. Delayed due Covid-19 restrictions.
  • Looking for module-wise implementation and planning to start procurement module from December, 2020.
Communicating Fault Pass Detectors (CFPD)

The employees of KSEB, after in-house research, developed cost effective Communicating Fault Pass Detectors which are very user friendly. KSEBL intends to deploy 16,267 plus CFPDs in its HT network within 2022. The progress as on September 30, 2020 date is as follows:

  • 3,255 units were assembled and issued so far, of which 2,564 units have been installed by October 06, 2020. Out of the total installed 801 units are found faulty.
  • The training of System Supervisors for field level maintenance assistance for CFPDs completed.

Central Government schemes

The details of implementation of important Central Government power sector schemes in Kerala are detailed below.

Ujwal DISCOM Assurance Yojana (UDAY)

This is the financial turnaround and revival package for electricity distribution companies (DISCOMs) initiated by the Government of India. Kerala Government and KSEBL signed MoU with GoI. The objective of signing MOU is improvement in internal efficiency of KSEBL. No financial assistance is included in MOU. KSEBL has achieved important operational targets except smart meter installation, ERP and Rural feeder audit. ERP being developed in house is in coding stage and feeder monitoring has been completed for rural feeders. KSEBL has taken a policy decision not to implement smart metering as on date.

Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

Govt. of India scheme, Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for the rural areas, was implemented in Kerala for rural electrification and strengthening of sub-transmission and distribution infrastructure, including metering at distribution transformers, feeders and consumers end. The details of financial and physical progress of implementation of DDUGJY are shown in Appendix 11.2.11. The closure report has already been submitted to REC.

Pradhan Mantri Sahaj Bijli Har Ghar Yojana–“Saubhagya”

Under Saubhagya scheme free electricity connections to all households (both APL and poor families) in rural areas and BPL families in urban areas including single point wiring were envisaged. Saubhagya as such, was not sanctioned to Kerala. ₹95.75 crore (less State tax, net amount of ₹88.45 crore) was sanctioned to Kerala to reconnect 3,19,171 households de-electrified during 2018 floods. Of which, ₹54.59 crore has been received. The closure report of Saubhagya has already been submitted to REC on February 27, 2020.

Integrated Power Development Scheme-IPDS

IPDS stage-1 was implemented in 25 distribution circles in the State to strengthen sub-transmission and distribution networks, metering of distribution transformers, feeders and consumers in urban area. Closures of IPDS (System Strengthening) for 25 Circles are in progress for submission to PFC Ltd.

The progress of IT part is as follows:

  • Phase-II IT Implementation under IPDS. The DPR for ₹22.86 crore, covering 21 Towns was sanctioned on February 20, 2017. Implementation related activities like ring fencing has been completed in all 21 towns. 367 modems in border meters and feeder meters of all 21 towns are installed. Modems are communicating with Central server. The integration of software applications with the existing RAPDRP applications are progressing.
  • Real Time Data Acquisition System (RT-DAS) for Non-SCADA Towns under IPDS.The Notice Inviting Tender for implementing RT-DAS was published on July 09, 2019. Since only one bidder has qualified the Technical evaluation, retendering was done. Now after Letter of Acceptance was issued to M/s. SCOPE TNM Pvt. Ltd. on June 11, 2020.
  • ERP Implementation under IPDS. See ERP under flagship projects
  • Smart Meter Implementation for UDAY participating States under IPDS. KSEBL has decided not to proceed with Smart Metering as on date.
  • RAPDRP Part A-SCADA/DMS Project. Part-A installation of SCADA completed in all three cities, Trivandrum, Kochi and Kozhikode. Third party inspection has been completed. Part-B works completed on March 31, 2018. Project closure was done on June, 2018.
  • Big Data Analytics. It is envisaged to develop a system for Big Data Analytics with an objective to transform large amount of raw data from the Core Applications of KSEB to a knowledge base for analytical purpose.
  • Cyber Security Projects

The following projects will be implemented in KSEBL with the handholding support of the Cyber security Consultant

  • Implementation of various advanced cyber security measures for improving the overall IT security landscape of the Organisation
  • Availing ISO Certification for the Data Centre/DR Centre.
  • KFON Project. Elaborated under flagship projects in States.
Pradhan Mantri Kisan Urja Surakshaevem Uttahan Mahabhiyan (PM KUSUM)

PM-KUSUM envisages utilisation of barren agriculture land for installing solar plants, providing a permanent income to farmers from power generation and solarisation of agriculture pumps which will reduce utilisation of power from grid and in turn reduce financial support from Government in the form of subsidies. MNRE has allotted 10MW solar plants to the State in component-A of PM-KUSUM scheme. KSEBL is implementing the scheme and has put forward two models for land owners. The first one is the Lease Model where panels are installed on lease (EPC/RESCO method) and second one is the Investment model (PPA method) where investment is done by land owners itself. 169 participants have registered in PM-KUSUM. Detailed survey completed and locations suitable for 10 MW plants have been identified in both models. Discussion with applicants in investment mode will be initiated at first and it is expected that the project can be completed at the earliest. In component –C, Solarisation of 10 Lakh Grid-connected Agriculture Pumps of individual pump capacity up to 7.5 HP included. Government of India will provide financial support up to 30 per cent of the cost of solarisation and States to also provide at least 30 per cent of the cost of solarisation, balance cost to be shared by the beneficiary farmer. ANERT is entrusted to implement solarisation of grid connected pumps.

Sustainable Rooftop Implementation for Solar Transfiguration of India (SRISTI)

Government of India, Phase II Grid connected rooftop solar programme, with a target for achieving cumulative capacity of 40,000 MW from Rooftop Solar (RTS) Projects by the year 2022 will be implemented with total Central financial support of ₹11,814 crore with Power Distributing companies (Discoms) as implementing agencies. Domestic consumers with ceiling of 10KWp plants are eligible for CFA. 50MW has been allocated to the State in this subsidy scheme. The 37.5 MW capacity of the project will be executed by KSEBL and rest 12.5 MW by ANERT. The State has requested for an additional 200 MW for 2020-21.

24 x7 Power for all

Kerala has attained 24 x7 power supply status in all areas of the State including agriculture consumers. 1,100 Urban feeders and 640 rural 11kV Feeder are connected to National Power Portal (NPP) and can be monitored.

Unnat Jyothi by Affordable LEDs for All (UJALA)

This scheme provides LED bulbs to domestic consumers with a target to replace 7.7 lakh incandescent bulbs in the country with LED bulbs by June, 2020. Kerala has already replaced 135.6 lakh lamps in households with LED bulbs. The achievement of the State is 83.76 per cent

Perform Achieve and Trade (PAT)

PATscheme is a flagship programme of Bureau of Energy Efficiency under the National Mission for Enhanced Energy Efficiency (NMEEE). The second cycle of PAT, notified in March, 2016 covers DISCOMs also. The Kerala State Electricity Board Limited has complied with all requirements mandated by the PAT Rules. KSEBL has ensured prompt and timely satisfaction of all action points stipulated in the PAT scheme, as part of the PAT Cycle II. KSEBL has also complied with all the mandatory provisions of the Energy Conservation Act 2001, as an electricity distribution company.

State funded projects

The progress of State Government funded projects in 2019-20 are given in Table 11.2.10.

Table 11.2.10 The progress of State Government funded projects

Sl.No. Project Requested by KSEBL (crore) AS accorded by Government (crore) Expenditure (crore)
1 ERP implementation 5.68 5.68 5.68
2 Smart Grid Kochi 17.6    
3 Tidal and Wave energy 0.02 0.02  
4 ESCOT project – HVDS 0.46 0.46  
5 ESCOT Project – Standardisation of DTR 0.54 0.54  
6 Edamon Kochi 400KV line compensation 3   3
  Total 27.3 6.7 8.68

Source: KSEBL

PGCIL interstate projects

The major interstate transmission projects are:

Pugalur-Trichur HVDC project. This project is an extension of 600 MW Raigargh –Pugalur HVDC corridor to Kerala. The Raigargh –Pugalur corridor has been test charged on May 2020. This 320 kV DC line of length 153.5 km has 92 km inside Kerala. Of this, 64 km up to Vadkkanchery is as overhead and rest 28 km is through UG cable. The line has 2000 MW capacity. The progress as on September 30, 2020 is as follows.

  • 400 kV HVDC station Thrissur – 95 per cent completed.
  • Transit Station Vadakkanchery –Expected to be completed by October, 2020.
  • 320 kV HVDC – UG cable Vadakkanchery – Thrissur stretch – completed 320 kV HVDC OH Portion (Ozhalapathy to Vadakkanchery).
  • Stringing on 12.34 km out of total 63.641 km pending
  • 400 kV LILO section (Thrissur S/S to 400 kV Kochi-Thrissur line) – Completed.

Project is expected to be completed by December, 2020.

Edamon-Kochi 400 kV line. The Edamon-Kochi line was test charged on September 2, 2019. With the completion of this stretch, first 400 kV power high way through the State i.e. Tirunelveli-Kochi-Thrissur-Udumalpet become reality. The line has 800 MW Capacity.

Dam Rehabilitation and Improvement Project (DRIP)

Dam Rehabilitation and Improvement Project (DRIP) aims to improve the safety and sustainable performance of existing dams and associated structures with the assistance of World Bank through Govt. of India.It is a flagship project of Ministry of Water resources, GR&RD, Government of India. The project has been extended to March, 2021. The components of DRIP are:

Component1 – Rehabilitation; remedial measures and improvement of basic facilities of 12 Hydro Electric projects consisting of 37 dams.

Component 2 – Institutional strengthening.

Component 3 – Project management.

In component 1 and 2 financial progress of ₹118.80 crore are achieved, while balance of ₹3.2 crore are only in tender stage, while in component-3 progress already achieved is ₹10.8 crore. The total expenditure incurred in all the components as per IUFR calculation till the quarter ending June 30, 2020 is ₹102.7 crore. The amount of claim reimbursed till date to Government of Kerala through GoI is ₹99 crore. The amount received by KSEBL from GoK is ₹62.8 crore.


In line with ongoing DRIP projects, CPMU, Central Water Commission is perusing with second phase of DRIP through World Bank Assistance. Administrative sanction has been obtained for ₹70 crore works from KSEBL. Works amounting to ₹22.5 crore have been tendered. The works included are strengthening of Poringalkuthu dam, strengthening road and setting up CC lab at Idamalayar dam.

Power Theft

Cases of power theft and connected abnormalities are very low in the State due to strict enforcement of law and awareness in society. KSEBL has Anti Power Theft Squad (APTS) constituted to detect pilferage and misuse of electricity in all Districts. Field staff is also given monthly targets for inspection. In 2019, 20,338 theft cases were detected, from which 2.38 MU were estimated as extracted by theft and malpractices. The cost of energy collected from assessments made during inspections in 2019-20 is ₹7.66 crore. Compared to 2018-19, there is an increase of 42.61 per cent in number of cases detected and 114.41 per cent increase in MU estimated. The cost of energy collected from assessments increased by 284.92 per cent.

Electrical Accidents

KSEBL has targeted 2019-20 as zero accident year and efforts were made to attain the objective. Considerable progress has been achieved in reducing accidents to department staff. There were 113 fatal accidents to human beings and 39 fatal accidents to animals from KSEBL installation. Compared to 2018-19 there is a decrease of 8.13 per cent in fatal accidents to human beings and a decrease of 30.35 per cent fatal accidents to animals. There was also 185 non-fatal accidents to human beings in
2019-20, while it was 211 in 2018-19. From consumer installations, 126 fatal accidents occurred to human beings and 25 Non-fatal accidents to human beings.

The Catastrophies

Impact of Covid-19 on the Power Sector

Due to the lockdown imposed by the Government from March 24, 2020, there has been considerable impact on the power sector. There has been considerable reduction on electricity consumption due to lockdown and consumers were unable to pay their due to the distribution companies. This has also affected the liquidity position of the distribution companies impairing their ability to pay to the generating and transmission companies.

Important policy measures announced by Central Government

Ministry of Finance, Government of India vide Office Memorandum No.F.18/4/2020-PPD dated February 19, 2020 had clarified that disruption of supply chains due to spread of Novel Corona Virus in China and any other country will be considered as a natural calamity and force majeure clause may be invoked wherever considered appropriate following due procedure.

In order to address the liquidity crunch of the distribution licensees, Ministry of Power, Government of India vide Order No.23/22/2019-R&R dated March 27, 2020, relaxed the provision of 100 per cent payment security to be ensured by the State Load Dispatch centres for the purchase of power by distribution licensees. As per the relaxation, it has been decided that considering the unprecedented and force majeure situation, power may be scheduled even if payment security mechanism is established for 50 per cent of the amount for which payment security is to be otherwise established contractually till June 30, 2020.

Ministry of Power, Government of India as per letter No.23/22/2019-R&R Part-4, dated March 28, 2020 had issued Directions under Section 107 of the Electricity Act to Central Electricity Regulatory Commission in public interest to specify a reduced Late Payment Surcharge (LPS) for payments which become delayed beyond a period of 45 days from the date of presentation of bill during the period from March 24, 2020 to June 30, 2020 to generating companies and licensees treating the restrictions placed by the Central Government as force majeure event. The reduced LPS is applicable for a period till June 30, 2020. Further, it was stipulated that the LPS should not be more than the cost that the generating companies and transmission licensee would have to bear because of the delayed payment. In the case of generating companies and transmission licensees, whose tariff was determined under section 63, Discoms may claim the relief from its obligations regarding the rate at which LPS is to be paid as per the force majeure provisions in the PPA.

Government of India has also requested the State Governments to issue similar directions under Section 108 of the Electricity Act to respective State Commissions and the distribution companies pass on similar or more benefits to the consumers with regard to LPS. Further to this, Central Government vide letter No.11/16/2020-Th-II dated May 15, 2020 issued advisory to all Power Generation and Transmission CPSEs under Ministry of Power and all Subsidiaries/Joint Ventures of Power Generation and Transmission CPSEs under the Ministry of Power for deferment of capacity charges for power not scheduled, to be payable without interest after the end of lockdown period in three equal instalments and to provide rebate of about 20-25 per cent on power supply billed (fixed cost) to Discoms and inter State Transmission charges levied by PGCIL The advisory was communicated to the Government of Kerala and Discoms for passing on to the end consumers in the electricity bill for the lockdown period on account of Covid-19 Pandemic.

Further to this, Ministry of Power vide letter dated No.11/16/2020-Th-II dated June 10, 2020 communicated the amount of rebate as ₹50.86 crore and the capacity charges deferred is 63.38 crore to State of Kerala.

Reliefs announced by Government of Kerala

Government of Kerala has also announced several measures for coping with difficulties encountered during the lockdown. Hon’ble Chief Minister, Government of Kerala in the press conference held on April 21, 2020, announced that the Industrial and Commercial Consumers of KSEB Ltd. have been provided with an option for the deferred payment of fixed charges for the months of March, April and May, 2020 up to December 15, 2020 at an interest rate of 12 per cent (instead of 18 per cent) on deferred fixed charges. Later, this facility has been extended to Private Hospitals also, as per the directions of State Government. The domestic consumers were also allowed to remit half of their bill amount during lockdown period and to remit balance amount in two equal instalments.

Impact on finances of KSEB

The Covid-19 pandemic has adversely impacted the financial position of KSEB Limited. It is estimated that the loss sustained by the utility during the period March to July, 2020 because of the pandemic and considering the factors mentioned hereunder will be around ₹1240 crore.

A summary of financial impact of Covid-19 on KSEB is given in Table 11.2.11.

Table 11.2.11 Financial impact of Covid-19 on KSEB, as estimated on July 31, 2020, in ₹ crore

Sl.No.   Expenditure
1 Loss of revenue due to reduced sale of energy ₹865.13
2 Arranging transportation for stranded employees ₹0.08
3 Waiver of interest on delayed payment of electricity charges (domestic) ₹12.28
4 Absorption of bank transaction charges for online payment ₹4.50
5 Providing cash-back for promotion of online transaction ₹9.00
6 Waiver of Application Fee ₹1.00
7 Rebate on Fixed Charges (Industries/Comml Establishments. and Pvt Hospitals) ₹76.62
8 Interest burden on deferred payment of Fixed Charges ₹3.24
9 Additional Subsidy to Domestic Consumers ₹200.00
10 Interest burden due to deferment of Additional Security Deposit ₹17.00
11 Setting up Covid-19 relief facilities ₹50.00
12 Interest burden due to deferment of Pole Rental Charges ₹0.20
  Total ₹1239.05

Source: KSEBL

Floods 2019

Most of the losses due to the monsoon in 2019 were in the northern Districts of Palakkad, Kannur, Kozhikode, Malappuram and Wayanad. The three generators of Kakkayam, seven minor hydroelectric power stations and floating solar plant on the Barapole Canal were damaged. The operation of 43 substations, including two 220 kV substations and six 110 kV substations, was disrupted. It is estimated that 50.47 lakh consumers were affected by the 2019 floods. It is estimated that KSEBL had suffered a loss of ₹243.05 crore during this monsoon.

Floods 2020

The State of Kerala witnessed heavy cloud bursts followed by incessant rains bringing in large scale damages, as part of the monsoon during August, 2020. A large number of structures including electrical installations were damaged due to uprooted trees and some installations were washed away due to landslide and gushing water. KSEB Ltd. was one of the affected departments with many of its installations damaged and its distribution network in disarray. Damages caused widespread interruptions, especially in the Idukki and Kannur Districts.

In the distribution network damages to 56 transformers and 8,506 poles were reported, along with distribution line snapping at 36,274 locations (length of conductor damaged-7254.9 km) causing damages to the extent of 86.18 crore as per KSEBL estimation

After Floods

Emergency Action Plan

As on date Emergency Action Plan (Tier-I) for 37 dams approved by CWC has been published in KSEBL web site. Stakeholder consultation meeting for 24 dams of KSEBL was conducted. O&M manuals for 36 dams approved by CWC are published in the web site of KSEBL.

De-siltation of reservoirs

In the light of unprecedented rain fall and consequent landslides and flood during August, 2018 and August, 2019, KSEBL accorded sanction to invite Request for Proposal (RFP) for the desiltation of reservoirs of KSEB as per the guidelines specified in the approved Standard Operating Procedure (SOP) by Government of Kerala. Desiltation work of Lower Periyar reservoir has been awarded to M/s Travancore Cements Ltd. The work could not be started for want of temporary diversion of forest land for stacking the desilted material. In the case of Maduppety, Anayirankal, Ponmudi, Sengulam and Kallarkutty reservoirs, tenders were invited for assessing the storage capacity and letter of acceptance issued to M/s. Geo Marine Solutions Private Ltd., Mangalore on September 30, 2020. For Poringalkuthu reservoir Bathymetric survey was arranged through Kerala Engineering Research Institute, Peechi. Kundala reservoir storage capacity has been assessed recently and no desiltation required. Storage assessment study of major reservoirs is planned in DRIP-II.

Challenges and Issues

The challenges and issues faced by the utility are:

  • Legal Environment. Further liberalisation of the Electricity market as proposed in the Electricity (amendment bill) 2020, if realised would further erode the consumer base and revenue of the utility considerably, which has been affected already by twin challenges of Open Access regime and decentralised renewable generation. The new Sub License clause may lead to induction of private licensees in profit prone areas. In the case of draft Electricity(RightsofConsumers) Rules, 2020 bulk proposal are already implemented by KSEBL but some proposals like prepaid metering have financial implications. The draft standard bidding documents for privatisation of distribution licences if implemented will leverage the process of privatisation, many clauses like costing of assets in NPV which allows transfer of asset at a very low value. These amendments question the existence of the utility in public sector.
  • Power purchase. KSEBL has been able to keep power purchase cost at optimum level. Due to exorbitant cost, Kerala is not in a position to absorb power from Kayamkulam unit of NTPC; but is paying the Fixed Charge. Interference of power ministry was requested to ensure that the burden is brought down to minimum by reduction in Annual Fixed Cost and additional allocation of alternate cheaper power to Kerala, but no intervention was made till date. Also increase in cost of thermal power due to FGD and DeNOx equipment installation in TPS across the country and the transfer of burden to DISCOMs remains a threat.
  • Generation. Capacity addition has become an issue in the State, due to limitations to develop large Hydel stations and coal based stations in wake of opposition from environmental groups. Scarcity of barren land to install solar plants, limited wind energy potential are the hindrances in developing RE power. Also waste to energy plants do not get started as expected in many places due to protest from local people against the plant. The ongoing hydel projects are badly delayed ranging from 5 to 10 years due to various reasons as seen from
    Table 11.2.8.
  • Transmission. Inadequate power corridors to import power from Northern grid and insufficient network of intra state transmission lines have been the issues faced by the State. Right of way problem and scarcity of land for drawing new transmission lines is the main hindrance for intra state transmission network development. As per CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020, the transmission charges of AC line under balance component will lead to transferring of liability of underutilised capacity to States like Kerala who are not responsible for these asset additions. It is expected that there will be an increase in transmission charges payable by State to 2-3 times the existing charges. Also in case of Raigargh-Pugalur-Madakkathara HVDC line, 70 per cent of the transmission charges have to be paid as regional component. If the line is declared as national asset, burden on State can be reduced to 30 per cent.
  • Distribution. The network has many bottle necks like poor networking, old and under rated lines, lack of alternate feeding facility, low HT/LT ratio and non standard structures. Increasing electrical accidents is another issue faced. Upcoming e-vehicles boom, demands adequate charging infrastructure and additional power. The delay to announce and implement new Central schemes for distribution sector has forced the utility to divert its own fund for capital works. The task of installation of smart meters in distribution as envisaged by GoI is also a challenge to KSEBL which possibily can reduce losses and enhance prudent revenue collection.
  • Covid-19. Impact of Covid-19 on the utility has been severe. ‘Liquidity Infusion Schemes are the need of the hour. The Liquidity Infusion Schemes under the ‘Atmanirbhar Bharat Abhiyan ’is only a loan package; that too with an unreasonable interest rate and conditions like Government guarantee. Moreover, scheme which proposes to transfer the amount directly to Generating Companies to clear their dues from DISCOMs is practically of no use to utilities like KSEB who are making prompt payment.


Energy can be generally classified as non-renewable and renewable. Over 85 per cent of the energy used in the world is from non-renewable supplies. Most developed nations are dependent on non-renewable energy sources like fossil fuels (coal and oil) and nuclear power. The other renewable or potentially renewable sources are solar, geothermal, hydroelectric, biomass and wind. Most developing countries have abundant renewable energy resources.

The implementing and regulating agencies associated with the non-conventional and renewable sources of energy in Kerala are (i) Agency for Non-conventional Energy and Rural Technology (ANERT), (ii) Energy Management Centre (EMC) and (iii) Meter Testing and Standards Laboratory (MTSL).

Agency for Non-Conventional Energy and Rural Technology (ANERT)

Agency for Non-conventional Energy and Rural Technology (ANERT) is an autonomous body under the Power Department, GoK. ANERT is the nodal agency for the implementation and propagation of non-conventional sources of energy in the State. It is also the nodal agency for the Ministry of New and Renewable Energy Sources (MNRE), GoI, to carry out the Central Government programmes in Kerala.

The scheme-wise outlay and expenditure of ANERT in 2019-20 and 2020-21 (expenditure up to September, 2020) is given in Table 11.2.12.

Table 11.2.12 Outlay and expenditure of ANERT in 2019-20 and 2020-21, in ₹ lakh

Sl No Schemes Annual Plan 2019-20 Annual Plan 2020-21
Outlay Expenditure per cent Outlay Expenditure upto September, 2020 per cent
1 Programmes on Renewable Energy 3,500 478.80 13.68 2,030.00 863.28 42.53
2 Renewable Energy Public Engagement, Outreach, Studies and Development 1,700 582.77 34.28 400.00 270.28 67.57
3 ANERT – a Knowledge Hub for Renewable Energy       1,750.00 0.00 0.00
  Total ANERT 5,200 1,061.57 20.41 4,180.00 1,133.56 27.11

Source: Planspace

Achievements of ANERT in 2019-20
  • 100 kW solar hybrid power plants have been installed. These are grid-connected systems with minimum battery storage to provide backup for critical loads. This is in light of the new Regulation of the KSERC permitting grid-connected systems with battery storage. The inauguration is expected to be done shortly.
  • Government buildings – Total Capacity Commissioned – 619 kW with ANERT Plan funds, and 1,350 kW with the institution’s funds.
  • 4.3 MW of solar rooftop system under MNRE subsidy programme (April to September, 2019)
  • Solar Cold storage – 5 tonne vegetable storage for 30 hours – 6 kW solar – Subicsha Coconut Producer Company Ltd, Kozhikode
  • Solar Water ATM – 3,000 lpd water purification system with 3 kW solar – 2 nos. Installed at Alappuzha (commissioned) and Kannur
  • Community Solar steam cooking system – Neryamangalam Pre-Matric Hostel – suitable for 100 inmates – 30 sq. metre solar concentrating collectors
  • Supporting R&D and innovation – Small projects by academic institutions funded by ANERT. One project on fuel cell was completed
  • Electric vehicles being provided on hire to Government departments and institutions in a tie-up with EESL
  • Solar agro farming – 25 kW solar in farm lands without affecting the crops – installed at Chittoor, Palakkad
  • Training for Urja Mithra technicians, accredited solar installers and inspectors.

In various stages of implementation:

  • Rooftop solar for Police Department buildings in Ernakulam District – orders issued for 300 kW
  • Solar charging station at ANERT (with fast charge facility) nearing completion
  • Under the programme of setting up power plants for private entities – 5 MW solar power plant in a quarry at Malappuram – MOU signing stage
  • Moonglimada – a 6 MW solar power plant in the land of KWA at Palakkad is in the tendering stage
  • Training programme for college students in association with respective colleges – online basic programme to be launched in a few days. Many requests being received for advanced courses in renewable energy
  • Testing laboratory set up for solar systems in cooperation with STIC (CUSAT)
Challenges and Issues
  • Availability and accessibility of land
  • Resource constraints for promoting Renewable Energy Projects.
  • No clear policy on Power Procurement from Renewable Energy Sources.
  • Non-adherence to Renewable Purchase Obligation (RPO) targets and compensation thereon.
  • Lack of SOP’s for RE Projects and relaxation on wheeling and transmission charges

As part of ANERT, a preferential tariff/generation based incentives/viability gap funding to promote RE projects meeting RPO targets, a renewable energy fund in the form of green energy cess against every unit of nonrenewable energy consumed, Policies for limiting wheeling/transmission charges on Renewable Energy and enhanced limits on solar generators to grid, Standard operating procedures for RE projects and making RE marketing in major domestic buildings/commercial industries, Hallmarking percentage of the infra fund in various sectors for RE projects, Re-orienting ANERT as a knowledge hub for Renewable Energy are to considered.

Energy Management Centre (EMC)

Energy Management Centre (EMC) is the State designated agency of Bureau of Energy Efficiency, MoP, GoI for promoting energy conservation, energy efficiency and enforcing Energy Conservation Act, 2001 in the State. EMC also promotes small/mini/micro hydel schemes. SHP Cell constituted by GoK under Power Department is also attached in EMC to give impetus for development of SHPs through private participation.

The scheme-wise outlay and expenditure of EMC in 2019-20 and 2020-21 (expenditure up to September, 2020) is given in Table 11.2.13.

Table 11.2.13 Outlay and expenditure of EMC in 2019-20 and 2020-21, in ₹ lakh

Sl No Schemes Annual Plan 2019-20 Annual Plan 2020-21
Outlay Expenditure per cent Outlay Expenditure up to September 2020 per cent
1 State Energy Conservation Awards 25.00 10.00 40.00 25.00 0.00 0.00
2 Energy Conservation Activities 312.00 175.90 56.38 228.00 0.00 0.00
3 Infrastructure Development and Institutional Strengthening 361.00 149.96 41.54 295.00 0.00 0.00
4 Kerala State Energy Conservation Fund 185.00 153.50 82.97 215.00 0.00 0.00
  Total – EMC 883.00 489.36 55.42 763.00 0.00 0.00

Source: Planspace

Achievements of Energy Management Centre

Awards and recognitions

  • NITI Aayog with the support of BEE prepared the State Energy Efficiency Preparedness index for the year 2019 and Kerala topped along with Haryana and Karnataka in Achiever Category
  • EMC bagged the first place in the National Energy Conservation Award instituted by the Ministry of Power, GoI in the category of State Designated Agency

Energy Conservation programmes

  • Energy conservation efforts in the State saved 337.6 MU of electricity and 17,674.8 kiloliters of Oil and reduction in 19,542 kg of Carbon Dioxide
  • Investment Grade Energy Audit was conducted at Civil Station, Pathanamthitta and the energy audit recommendations were implemented through Kerala PWD (Electrical wing)
  • In this financial year, 12 firms availed the energy audit subsidy scheme of EMC
  • Implementation of energy efficiency activities in Government Hospitals as demonstration projects
  • Implementation of energy efficient pumping system at “Raw Water Supply System to Niranam – Kadapra-PH Division, Thiruvalla” of Kerala Water Authority
  • A detailed energy audit was performed at the Guruvayoor Dewasom Board buildings including the temple building for identifying the energy conservation opportunities
  • Model Energy Efficiency Village Program in Aranmula Grama Panchayat inaugurated on 22nd June 2019. As part of the programme, Walk Through Energy Audits and awareness campaigns were conducted at Schools/Government offices/buildings by the concerned selected Audit Firm and EMC Resource persons
  • As part of Model Energy Efficiency Village programme, 6,000 nos of 9 watts LED bulbs were distributed to the domestic consumers of the Perumbalam Grama Panchayat
    @ ₹50 per bulb. With the support of BEE, EMC has awarded the work of installation of 10 kWp Off Grid Solar PV system at the Primary Health Centre at Perumbalam Grama Panchayat. The work is being implemented through ANERT Deposit work
  • The detailed energy audit of six (6) major HT pumping stations of Kerala Water Authority (KWA) is performed through EMC empanelled energy audit firm
  • Energy Management Centre had started the process of empanelling qualified/experienced vendors with the intention to supply star rated fan at an affordable price to customers through Urjamitra, thereby increasing the penetration of energy efficient equipment throughout the State.
  • As part of Energy Clinic 2019-20, energy survey was done in 69,680 houses by the women volunteers in Kerala and 3,000 units of energy was saved.
  • Total of 9,155 schools from all over Kerala were enrolled and awareness classes were conducted as part of the flagship programme SEP 2019-20.
  • URJA KIRAN 2019-20 programmes covered all the 140 Assembly Constituencies. The focal theme for the Urjakiran program was “Energy efficiency and Conservation” and of 64,276 people participated in the programme.
  • Energy conservation signature campaigns were conducted in all the 140 constituencies in Kerala with the association of 166 NGOs.
  • 40 women empowerment projects conducted in assembly constituencies in Kerala in association with 40 agencies.
  • 3 Day training programme on LED bulb repair for specially abled children from National Career Service Centre, Nalanchira was conducted in May, 2019 and 2 day training programme on LED star making was given to the same batch of students in December, 2019.
  • As part of the KSECBC cell activities, 5 training programmes were conducted.
  • As part of the SEP Tech, 11 student projects and 5 tech fest were guided and supported by EMC.
Small Hydro Power Development
  • Projects in progress (execution in final Stage) : Anakampoil (8 MW), Arippara (4.5MW)
  • EMC had showcased 89 Small Hydro Power Projects in various Districts of Kerala in the Global Investors Meet ‘ASCEND 2020’ organised by KSIDC, Government of Kerala.
  • River basin study of Pampa River basin and Achencoil River basin of Pathanamthitta District is being prepared
Research and Development
  • Energy Management Centre (EMC) Kerala in partnership with World Institute of Sustainable Energy (WISE) is conducting a study titled “Review of Energy Efficiency Policy Framework in India and Support State Designated Agencies in Implementing the Energy Conservation Policy”. As part of this study one day workshop was organized.
  • EMC has completed the “Research Study on Energy Productivity: A Sectoral Analysis for Kerala” in association with Centre for Development Studies (CDS), Thiruvananthapuram.
  • Projects in association with CDAC for “Energy Efficient Houseboats” and “Smart Energy Meter” are underway.

Challenges and Issues

  • Financing models based on energy saving/productivity/benchmarks in priority areas.
  • Mechanism to handhold and implement energy management projects
  • Emission reduction and Climate Change mitigation not mandatory
  • Commercial sector activities not mandated to follow energy efficiency in design/construction stages
  • Energy Conservation Building Code Rules (ECBC) needs to be adapted by PWD, LSGD and Developers
  • Demand aggregation of existing inefficient appliances and their replacement.
  • Adoption of energy efficient in the Agricultural value chain sector.
  • Protocols/Policies for adoption of energy efficiency in domestic sector.
  • High land costs and forest clearance issues in Small Hydro Power development.
Fight against Covid-19
  • All employees were given work from home using VPN facility as a quick response to Covid-19 lock down phase.
  • All the awareness programmes, panel discussions, meetings were switched to online webinar mode
  • Certificate courses and training programmes launched for various target groups.
  • Covid-19 Break the Chain and SMS campaigns were implemented effectively with the monitoring of internal Covid-19 cell.
  • Webinar was arranged for the employees to understand guidelines as part of Break the Chain campaign at the work place. Webinar was handled by Dr. Mohammed Asheel, Executive Director, Kerala Social Security Mission
  • Online competitions were arranged during lock down phase with the theme “Energy Conservation”
  • Facebook live is conducted every Wednesdays on the topic “Energy Conservation in Domestic Sector”
Department of Electrical Inspectorate

The Electrical Inspectorate is functioning under the Department of Power, GoK. Safety inspections are carried out and sanction for energisation for all HT/EHT and other medium voltage installation in the State are issued by this inspectorate. The motto of Meter Testing and Standards Laboratory (MTSL) is to provide testing and calibration of various types of electrical equipment. At present, calibration facilities is available for voltage, current, resistance, frequency, power, power factor and energy. The testing facilities include pre-commissioning tests for protection relays and instrument transformers. Also, pre-commissioning tests are conducted for power transformers, cables and circuit breakers. All calibrations and tests are conducted as per national and international standards. Enquiry into all electrical accidents occurring in the State, forwarding the reports to the State Government and taking actions against responsible person/authority are also done by Electrical Inspectorate.

The Electrical Inspectorate department implements three schemes namely; Meter Testing and Standards Laboratory, Effective Implementation of Quality Control Order and E-Safe Kerala. Revenue from the department for the last two years is ₹106.738 crore (excluding duties from KSEBL), which includes testing fees from Meter Testing and Standards Laboratory (MTSL), other Regional Testing laboratories and from other services. Through quality control inspection, the sale of non-standard electrical equipment can be controlled to some extent.

The scheme-wise outlay and expenditure of Electrical Inspectorate in 2019-20 and 2020-21 (expenditure upto September 2020) is given in Table 11.2.14.

Table 11.2.14 Outlay and expenditure of Electrical Inspectorate in 2019-20 and 2020-21, in ₹ lakh

Sl No Schemes Annual Plan 2019-20 Annual Plan 2020-21
Outlay Expenditure per cent Outlay Expenditure upto September, 2020 per cent
1 Meter Testing and Standards Laboratory (MTSL) 470.00 47.27 10.06 245.00 1.14 0.46
2 Effective Implementation of QCO 155.00 5.24 3.38 40.00 1.38 3.45
3 E-safe Kerala 200.00 32.43 16.21 408.00 19.13 4.69
  Total 825.00 84.94 10.30 693.00 21.65 3.12

Source: Planspace

Achievements of Electrical Inspectorate in 2019-20
  • In 2019-20, 434 electrical accidents occurred, of which 282 fatalities happened (222 human and 60 animals affected)
  • Retained SQMS “SEVOTHAM CERTIFICATION” (Service Quality Management System Certification) as per I.S. 15700: 2005 from the Bureau of Indian Standards for the department.
  • Organised and successfully conducted training programmes for officers at Thiruvananthapuram, Ernakulam and Kozhikode region.
  • Calibration of equipments have been undergone in regional testing laboratories at Thiruvananthapuram, Kottayam, Idukki and Ernakulam.
  • NABL accreditation maintained at Meter Testing and Standards Laboratory, Thiruvananthapuram and regional testing laborataries at Kottayam, ldukki, Thrissur, Palakkad, Malappuram, Kozhikode, Wayanad and Kasaragod.
  • AImost 17,685 energy meters have been tested in Meter Testing and Standards Laboratories and other regional meter testing laboratories in 2019-20 and an amount of ₹2.22 crore is obtained as revenue from laboratories in 2019-20.
  • National Accreditation Board for Testing and Calibration Laboratories training has been conducted for officers of the department.
  • Meter Testing and Standards laboratory, Thiruvananthapuram has been renovated and testing facility is improved.
  • Hired vehicles in District offices for conducting statutory inspections as well as QCO inspection.
  • A total amount of 36.456 crore is obtained as revenue from the statutory inspections conducted.
  • Conducted safety awareness programmes throughout the State.
  • Rewired and standardised the wiring for 400 domestic consumers, at Agali, Pudur and Sholayar Panchayat in Palakkad District with four light points and plug points with ELCB.
  • Telecasted electrical safety awareness messages through audio/visual/print media.
  • Total revenue from the department for last financial year is ₹68.062 crore (excluding duties).
Kerala State Electricity Regulatory Commission (KSERC)

KSERC, a statutory organisation of quasi-judicial nature, was established in 2003. The Commission takes efforts to maintain a fair, transparent and objective regulatory system in the power sector of the State.

Functions of the Kerala State Electricity Regulatory Commission:-

The major functions vested with the Commission under the provisions of the Electricity Act, 2003 are as follows:-

  • Determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State.
  • Regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution and supply within the State.
  • Facilitate intra-State transmission and wheeling of electricity.
  • Issue licenses to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State.
  • Promote co-generation and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee.
  • Adjudicate up on the disputes between the licensees and generating companies and to refer any dispute for arbitration.
  • Levy fee for the purposes of the Electricity Act, 2003
  • Specify State Grid Code
  • Specify or enforce standards with respect to quality, continuity and reliability of service by licensees.
  • Fix the trading margin in the intra-State trading of electricity, if considered, necessary.
  • Advise the State Government on all or any of the following matters, viz:- promotion of competition, efficiency and economy in activities of the electricity industry, promotion of investment in electricity industry, reorganisation and restructuring of electricity industry in the State, and the matters concerning generation, transmission, distribution and trading of electricity or any other matter referred to the State Commission by that Government.
Important Activities of the KSERC in 2019-20

The Commission held a number of routine internal meetings to transact business relating to administrative matters, framing and finalisation of regulations, admission of petitions, Annual Revenue Requirement and Expected Revenue Charges (ARR and ERC) of the licensees and other matter related to the day to day functioning of the Commission. The number of petitions received and disposed of by the commission in 2019-20 was 53 and 75 respectively.

Important Regulations notified by the Commission.

As per the provisions of the Electricity Act, the Commission has to issue Regulations with respect to the matters relating to the functions of the Commission. The Regulations are the sub-ordinate legislations under the Electricity Act. In the current year, the Commission has issued the important Regulation in the field of Renewable Energy and also issued amendment Regulations in the Supply code and Tariff Regulations. The details are given below:

The Kerala State Electricity Regulatory Commission (Renewable Energy and Net Metering) Regulations 2020, dated 7th February 2020, published in Government Gazette no. 1345 dated 05th June 2020.

Government of India has targeted large scale expansion of energy from Renewable sources. Accordingly, a system for integration of renewables along with proper legal framework is necessary. Further, Section 86(1)(e) of the Electricity Act, 2003 mandates that the State Electricity Regulatory Commission to promote co-generation and generation of electricity from Renewable Source of Energy by providing suitable measures for connectivity with the grid and sale of electricity to any person and specify for the purchase of electricity from such sources a percentage of the total consumption of electricity within the area of the distribution licensee. However, there has been a considerable technological improvement in the renewable energy sector in the recent past. The capital cost of solar PV plants and wind energy systems has reduced drastically and the capacity utilisation has increased. All these has resulted in considerable reduction in the cost of energy generation from solar and wind sources, which is now less than electricity generated from conventional coal based power stations. Considering these changes and the targeted large scale penetration of renewable energy in to the sector, the Commission decided to enact the above Regulations, replacing the existing Kerala State Electricity Regulatory Commission (Grid Interactive Distribution Solar Energy System) Regulations, 2014 and Kerala State Electricity Regulatory Commission (Renewable Energy) Regulations, 2015.

In the above regulations, the Commission has determined the Renewable purchase obligation (RPO) for the obligated entities. RPO obligation mandates the ‘Obligated entities’ either to generate or purchase certain minimum quantity renewable energy from solar and non-solar sources in their electricity consumption portfolio. The obligated entities include the distribution licensees in the State, the open access consumers (consumers who purchase energy from sources other than the incumbent distribution licensees) and the captive energy consumers. The mandated RPO of obligated entities as per the Regulation are given in Table 11.2.15.

Table 11.2.15 The mandated RPO of obligated entities as per the Regulation

Year Quantum of generation/purchase of renewableenergy sources as a percentage of total consumption
Non-solar Solar Total
2019-20 8.00 4.00 12.00
2020-21 9.00 5.25 14.25
2021-22 10.25 6.75 17.00

Source: KSERC

As shown above, in the year 2019-20, an obligated entity has to either generate or purchase a total of 12 per cent of the total consumption of energy from renewable sources. Out of the 12 per cent, 4 per cent is from solar energy and the balance 8 per cent can be from non-solar sources such as small hydro, wind, bio fuel generation, urban or municipal solid waste and such other sources approved by the Ministry of New and Renewable Energy, Government of India.

As per the Regulations, if there is a shortfall in meeting the RPO by any obligated entities, the said short fall can be met through the purchase of solar or non-solar Renewable Energy Certificates as the case may be. Further the excess of solar energy consumed over the solar renewable energy purchase obligation, the same can be accounted towards non solar obligation.

There is also a provision in the Regulation, to designate a State Agency by the Commission for the monitoring the compliance of the RPO.

The regulation provides for the legal and technical framework for installing grid interactive Renewable energy systems with net metering facility at the premises of the ‘prosumer’. A prosumer is a capitive consumer having renewable energy system installed in their premises and injects the surplus energy into the grid using the same network. The net metering is an arrangement provided by the distribution licensee to their consumers. Under the said arrangement a prosumer can generate and use the electricity from their own renewable energy systems and supply the excess energy if any after off-setting the electricity supplied by the distribution licensee.

The control period of the Regulations is for five years from 2019-20. During the control period, the parameters used for the determination of tariff are kept unchanged so as to provide a regulatory certainty. The generic tariff also determined by the Commission for the purchase of energy by the distribution licensees as per the Regulations for various sources of renewable energy for the year 2019-10 is given in Table 11.2.16.

Table 11.2.16 The generic tariff for various sources of renewable energy for the year 2019-20

Various sources of renewable energy ₹ /kWh
Small Hydro Electric projects of and below 5MW 5.53
Wind energy projects of and below 25 MW (with CUF 24%) 3.75
Solar PV projects with less than 5MW at a location 3.35

Source: KSERC

Orders issued by the Commission

During the year the Commission disposed of 75 petitions. Among these important was the order on the approval of the Aggregate Revenue Requirements for KSEB Ltd and tariff for the control period from 2018-19 to 2021-22. The Order was issued after conducting the Public hearing at Kozhikode, Ernakulam, Kattappana and Thiruvananthapuram. Table 11.2.17 provides the Revenue Gap approved for the Distribution wing of KSEB Ltd for the control period 2018-19 to 2021-22 to be recovered through revision of tariff.

Table 11.2.17 ARR of SBU-D approved for the years 2018-19 to 2021-22

Particulars SBU-D
2018-19 2019-20 2020-21 2021-22
ARR 13,754.02 15,501.03 15,973.31 16,487.91
Non-Tariff Income 531.55 548.10 571.23 594.36
Net ARR 13.222.47 1,4952.93 15,402.08 15,893.55
Total revenue from existing Tariff 13,190.32 14,152.38 14,457.33 14,895.02
Revenue Gap -32.15 -800.56 -944.75 -998. 53

Source: KSERC

Based on the above, the average cost of supply and the revenue gap per unit on which tariff is to be determined is given in Table 11.2.18.

Table 11.2.18 Average Cost of supply to be realised from consumers

Average cost of Supply Unit 2018-19 2019-20 2020-21 2021-22
Average cost of supply to be realised ₹ /kWh 5.76 6.10 6.17 6.20
Revenue gap/unit ₹ /kWh -0.01 -0.35 -0.39 -0.40

Source: KSERC

KSEB Ltd in their petition, furnished tariff revision proposals for two years of the control period that is, 2018-19 and 2020-21. The proposed tariff increase was for almost all the tariff categories including Bulk supply Tariff. After examining the provisions of the Act, Regulations and Tariff Policy, the Commission enhanced the overall tariff, (fixed/demand charge and energy charge) so as to increase the revenue to the tune of ₹ 902 crore to bridge the approved revenue gap in 2019-20. Details given in Table 11.2.19.

Table 11.2.19 Revenue at existing tariff and Approved tariff for KSEBL.

Tariff Category Revenue expected for the FY 2019-20 atExisting tariff Revenue expected for 2019-20 at the proposed tariff by KSEB Ltd Revenue from Approved tariff
Amount Increase (annual) Amount Increase (annual)
(₹ crore) (₹ crore) (₹ crore) (₹ crore) (₹ crore)
LT Categories
LT-I Domestic 4,744.32 5,511.29 766.97 5,283.27 538.95
LT Industries 804.75 847.11 42.36 851.01 46.27
LT-V Agriculture 88.05 101.81 13.76 101.90 13.84
LT-VI General 1,565.63 1,645.00 79.37 1,594.64 29.01
LT-VII Commercial 1,613.30 1,669.53 56.23 1,665.84 52.54
LT-VIII Public lighting 183.92 197.85 13.93 202.59 18.67
LT hoardings 4.01 4.01 0.00 4.14 0.14
HT Categories
HT-1 Industry 1,507.51 1,620.10 112.59 1,600.14 92.63
HT-II 699.91 709.88 9.97 716.17 16.26
HT-III 5.23 5.47 0.24 5.82 0.59
HT-IV 672.57 668.44 -4.13 686.87 14.29
HT-V 13.27 12.82 -0.45 14.23 0.96
EHT Category
EHT-66 kV 213.10 245.08 31.98 227.73 14.63
EHT-110 kV 435.74 481.76 46.02 465.63 29.89
EHT 220kV 55.80 67.01 0.02 63.60 4.72
EHT Gen 57.37 58.26 0.89 58.88 1.51
Railways 179.27 203.54 24.27 185.34 6.06
KMRL 10.01 11.34 1.33 10.20 0.19
Licensees and Bulk consumers 394.43 437.53 43.10 416.22 21.80902.94
Addl. revenue     1,247.44    

Source: KSERC

Consumer Advocacy and compliance Audit

Compliance audit wing in the Commission is in charge of monitoring the Compliance of the Electricity Act, Rules, Regulations by licensees and generating companies. The Consumer Advocacy Cell (CAC) is working towards creating awareness among the consumers about the power sector and the regulatory process thereby ensuring consumer participation in the Electricity Regulatory Process. CAC is aiming to enlighten the consumers about the Regulatory mechanism and their role in the functions of the Electricity Regulatory Commission by conducting classes at various centres and publishing newsletters and pamphlets.

Main objectives of the Consumer Advocacy Cell:-

  • Promote consumer education and empower them to participate effectively in the regulatory process.
  • To act as a source of information to consumers and provide them with the necessary guidance on various electricity related issues
  • To arrange workshops and training programmes for unorganised consumer groups.
  • To publish newsletters, pamphlets, fact sheets and other informative materials.
  • To recommend to the Commission on matters relating to consumer protection.
Compliance Audit

All licensees in the State are expected to comply with the provisions of the Regulations and orders issued by the Commission. A Compliance Examiner has been functioning in the office of the Commission. Consumers and general public can send reports on non-compliance or violation of the provisions of the Electricity Act-2003 and Regulations to the Compliance Examiner.

As part of the Compliance Audit periodic inspections of field offices of distribution licensees are arranged to determine the compliance level. The compliance wing conducts spot inspections in the distribution section offices of KSEB Ltd and other licensees in the State and corrective action are also taken up with the licensees. Discriminatory billing of consumers, realisation of higher amounts as additional deposit to consumers, discrepancies in assignment of tariff, realisation of the excess charges, non-adherence of the performance standards are few of the irregularities brought to the attention of the Commission by the Compliance Examiner and taken up with the licensee for corrective actions.

Consumer Grievance Redressal Forum (CGRF) and Electricity Ombudsman

The Electricity Act envisages protection of the interests of consumers by making it mandatory for licensees to establish Consumer Grievance Redressal Forums (CGRFs) for redressal of grievances of consumers as per the guidelines issued by the State Commission. Consumers whose grievances are not settled by the CGRF or aggrieved by the decision of the CGRF can approach the Electricity Ombudsman appointed by the State Commission. A summary of the petitions received and disposed of by the various CGRFs under the distribution licensees in 2019-20 is given in Table 11.2.20.

Table 11.2.20 Petitions received and disposed of by the various CGRFs under the distribution licensees in 2019-20

Name of the CGRF Complaints pending as on April 1, .2019 Complaints received in 2019-20 Complaints disposed in 2019-20 Complaints pending as on March 31, 2020
CGRF, KSEB Ltd, Kottarakkara 25 131 140 16
CGRF, KSEB Ltd Ernakulam 28 124 126 26
CGRF, KSEB Ltd, Kozhikode 37 155 175 17
CGRF, Thrissur Corporation 0 11 7 4
CGRF, Technopark, Thiruvananthapuram 1 Nil Nil 1
CGRF, Cochin Port Trust, Kochi Nil Nil Nil Nil
CGRF, KPUPL, Kochi Nil Nil Nil Nil
CGRF, CSEZA, Kochi Nil Nil Nil Nil
CGRF, Rubber Park India (P) Ltd, Kochi Nil Nil Nil Nil
CGRF, lnfopark, Kochi Nil Nil Nil Nil
CGRF, Smartcity, Kochi Nil Nil Nil Nil
CGRF, KDHPCL, Munnar Nil Nil Nil Nil

Source: KSERC

It is to be noted that of the total number of 448 complaints disposed of, decision on 285 are in favour of the consumers.

Electricity Ombudsman is a statutory authority to settle the grievances of consumers aggrieved by non-redressal of the grievances by the Consumer Grievance Redresal Forum. The abstract of appeals received and disposed of during the year under report by the Electricity Ombudsman is given in Table 11.12.21.

Table 11.12.21 The abstract of appeals received and disposed of during the year under report by the Electricity Ombudsman

No. of petitions pending as on March 1, 2019 15 Appeals and 1 Review.
No. of petitions received in 2019-20 102 Appeals and 3 Reviews.
No. of petitions disposed in 2019-20 100 Appeals and 4 Reviews.
No. of petitions pending as on March 31, 2020 17 Appeals.
No of sittings conducted 119

Source: KSERC

Of the petitions disposed of during the year 56 appeals and 4 Reviews were in favour of the consumers.

Impact of Covid-19 on the activities of the Commission

The lockdowns and restrictions imposed on account of the containment measures on account of Covid-19 has resulted in changes in the working pattern in the Commission. As per the orders issued by the Government of Kerala, attendances of employees were limited in the Office of the Commission and work-from home facility was allowed to the employees. Further as a deviation from the earlier practice, the Commission has conducted hearings through video conference mode for disposal of its petitions.

Way Forward

For the healthy growth of the power sector and to formulate agreed policies and programmes, there should be close and constant interaction and better coordination among different organisations of power industry. Better synergy between the sister concerns like KSEBL, ANERT, EMC and Electrical Inspectorate through comprehensive Plan like Oorjja Kerala Mission will develop the energy sector in the State to truly global standards by 2021.

The State of Kerala has fulfilled the objective of total electrification and State distribution grid is now capable of providing power on demand in any inhabited locality, within a matter of hours and that too at reasonable cost without power cut or load shedding. Despite of the oppressive environment, KSEBL was able to explore opportunities in power market including power exchanges. Power purchase cost of KSEBL including internal generation is only ₹ 3.30/unit for year 2019-20. Adequate power is tied up by KSEB Ltd. to meet the base demand. For shortages during evening peak hours during summer KSEBL has successfully utilised banking of power from other utilities. Adequate arrangements are planned for next summer.

KSEBL is considering all option to harness renewable power and to be competitive in this field. Besides development of solar power through Soura projects, all other sources are expedited. The target is to meet 40 per cent of energy requirements from Renewables by 2022. It is planned to enhance renewable capacity by 1,829 MW and another 700 MW through contracts by 2021-22. 780 MW Idukki extension scheme is also on the anvil. This will enable KSEBL to be flexible in planning a suitable mix to meet load requirement. Through Transgrid 2.0, transmission lines are designed in such a way that, they requiring minimum or even no additional land/RoW. Modern Gas Insulated Substations were adopted to minimise land requirement of Substations. The new 400 kV Tirunelveli – Kochi – Trichur –Udumalpet power high way and ongoing extension of Raigargh-Pugalur HVDS to Trichur is expected to improve the power import capabilities of the State by 2,800 MW.

The flood of 2019 together with Covid-19 pandemic onslaught has widened the ACS-ARR gap in 2019-20. The ACS-ARR gap is ₹ 0.197 per Unit. KSEBL was able to increase its revenue in the past years and flattened the expenditure curve. On calculating the loss as the percentage of revenue it may be noted that operational loss is within tolerable limits. Sufficient cash flow is ensured for the operation of KSEBL. Also KSEBL never required external support to meet losses. The State of Kerala is one among the first in India, which declared its e-mobility Policy. Considering the preparedness of KSEB in this regard, the State Government has designated KSEB as the State Nodal Agency to ensure deployment of e-Vehicle charging stations across the State. KSEBL is moving in the right track to meet the challenge. With completion of the 62 charging stations targeted this year and another 181 stations proposed for coming years, a State wide base network for vehicle charging will be created.

By replacing all filaments lamps and fluorescent lamps and tubes in domestic sector and street lights by its variant, energy efficient, long lasting LED lamp and tubes though Filament free Kerala programme, State envisages a reduction in evening peak demand and reduced CO2 emissions and capturing Hg from going to earth. The State has already ventured into energy efficiency lighting by distributing over 1.35 crore LED lights in Domestic Efficient Lighting Programme as part of Demand Side Management. All these measures stress the commitment of utility to a clean environment for sustainable development.

KSEBL as a public utility gave first priority to the aspiration of lakhs of consumers under lock down. For many, when their long-term savings was eroded during the lock down and had no income to spend, KSEBL lent a helping hand to support those who are in need by announcing relief measures for consumers to alleviate miseries of lockdown. The utility has normalised its operations post lockdown. Despite losses, the utility is under transformation to coexist with Covid-19 pandemic by modernising its services for maintaining Covid-19 protocol and reaching out to customers at their door steps. As described above KSEBL is prepared to meet the challenges and issues in power sector by improving its operational efficiency without privatisation and is set to achieve global standards through Oorjja Kerala Mission. The successful experience of Kerala model of restructuring emphasises the importance of existence as an integrated utility for effectiveness of services and on the other hand attaining efficiency and more financial control by vertical unbundling into strategic business units. As a public utility KSEBL achieved equitable distribution of electricity everywhere in the State at affordable cost and has evolved as a sustainable model.

ANERT has to re-orient by laying more emphasis on awareness creation in renewable energy sections and developing an eco-system suitable for the sustained use of renewable energy devices. For improving the conditions of the power sector in the State, it is proposed to complete all hydel plants that have already been started. Priority has to be given to construct mini-micro hydel plants to the extent possible.

The Government’s top most priority is to increase power generation to ensure availability of power to match the increasing demand. At the same time, quality of power is also of equal importance. The non-conventional sources of energy should be utilised to the maximum extent possible in meeting our energy requirements. Electricity generation from wind, solar photovoltaic, small and medium hydro projects should be tapped to its full potential. To ensure adequate economic and social growth in any country, it is indispensable that all available energy sources be used in the most effective and economical manner, particularly for the generation of electricity.

Regarding energy efficiency, policies, protocols, rules and regulations on energy efficiency, management and version updation, financing energy efficiency projects highlighting benchmarks, persistence and compliance through energy audits, linking outcomes, evolving right balance between standard and skilled human power, regulators initiatives and appliance’s market approaches may be considered.