| Work Detail |
The Kerala State Electricity Regulatory Commission (KSERC) has approved the banking of surplus power by Kerala State Electricity Board Ltd (KSEBL) with Punjab State Power Corporation Limited (PSPCL). KSEBL filed a petition on June 18, 2024, seeking approval for banking arrangements to manage surplus power generated in May and July 2024, with a return period set for April 2025. KSEBL faced an unprecedented electricity demand during the summer of 2024, particularly from March to early May. However, heavy summer rainfall in Kerala significantly reduced electricity consumption from mid-May onwards. The demand, which peaked at 5,854 MW on May 2, dropped to around 4,200-4,300 MW by the second half of May. This led to excess power availability, as hydropower generation had to be conserved due to increased reservoir levels at Idukki, Idamalayar, and Sabarigiri. With monsoon rains predicted to be normal to above normal, KSEBL decided to utilize surplus power through banking transactions. To manage this surplus, KSEBL entered into a banking agreement with PSPCL, allowing the exchange of power in two phases. In the first phase, KSEBL supplied power to PSPCL between May 24 and June 1, 2024. The return period for this transaction was set for April 1 to April 30, 2025. The power supplied included 150 MW from 3:00 AM to 6:00 PM and 300 MW as round-the-clock (RTC) power. PSPCL committed to returning 105% of the banked power during April 2025. In the second phase, KSEBL entered another banking transaction through Arunachal Pradesh Power Corporation Pvt. Ltd. (APPCL), an aggregator. Between July 1 and July 31, 2024, KSEBL supplied 200 MW of surplus power to PSPCL during specific hours at night and early morning. PSPCL will return 105.9% of this banked energy from April 1 to April 15, 2025. The trading margin for this transaction was initially four paise per unit but was negotiated down to 2.9 paise per unit. KSEBL explained that the agreements were necessary to balance demand and supply, prevent wastage of surplus hydropower, and ensure adequate power availability for the summer of 2025. The agreements also helped minimize financial losses by avoiding expensive short-term power purchases during peak demand periods. KSERC examined the petition and found that the transactions complied with the Electricity Act, 2003, and the KSERC Tariff Regulations, 2021. The regulations allow for short-term power procurement and banking arrangements to optimize power availability and cost efficiency. The Commission noted that KSEBL’s banking transactions were necessary due to the contingency situation caused by unexpected rainfall and demand fluctuations. After reviewing the petition, KSERC ratified both banking agreements. It approved the power supply to PSPCL from May 24 to June 1, 2024, with a return period in April 2025. It also approved the second agreement through APPCL, covering July 2024 supply with a return period in April 2025. The Commission directed KSEBL to ensure that PSPCL returns the banked power as per the agreed terms. The approval of these transactions provides KSEBL with a structured approach to managing surplus power efficiently while ensuring that Kerala has sufficient electricity supply during the peak summer months of 2025. |
