Keralam cuts deals with NTPC to tide over power crisis, meet long-term needs

The Keralam government on Wednesday took several important measures to tide over the state’s power crisis, including the setup of a dedicated power plant in the state to meet long-term energy needs.

The decisions were a result of discussions held between the State government and the National Thermal Power Corporation (NTPC) in Delhi. Chief minister VD Satheesan and state power minister Sunny Joseph held talks with NTPC CMD Gurdeep Singh and other top officials on procuring electricity to meet urgent needs as well as developing mechanisms for long-term requirements.

Keralam will get up to 300 MW power at a cost of ₹5.18 per unit from the Sinnar plant of NTPC in Maharashtra, a release from the chief minister’s office said.

The Kerala State Electricity Board (KSEB) will sign an MoU with NTPC and NTPC Green Energy Limited (NGEL) to set up a 2000 MWh Battery Energy Storage System (BESS) at Kayamkulam in Alappuzha district.

Additionally, new 160 MWhBESS projects at Pothencode and Sreekandapuram will be commissioned by March 2027.

Decision was also taken to expedite measures for the 27MW solar project, being developed by NTPC, at Kayamkulam.

To meet future energy needs, the State government, the CMO said, has appealed to NTPC to set up a dedicated power plant in the state. The NTPC will also sign a power purchase agreement to acquire power from the Ramagundam power plant in Telangana.

The discussions also centred on assuring NTPC’s professional and technical expertise to KSEB for modern power management systems.

“The decisions on renewable energy, energy storage, surplus electricity availability and long-term energy security will address the state’s needs,” the CMO said in a statement.

The decisions come after the State experienced a power crisis with the KSEB forced to enforce power cuts in the evenings and at night to meet burgeoning demand. A fall in rainfall, the El Nino effect and the lack of power purchase agreements collectively led to the crisis, the State government claimed.