Miracles cannot be performed, Kerala trying hard to tackle power shortage: Minister Joseph

Kochi: Kerala Electricity Minister Sunny Joseph on Friday said the Kerala State Electricity Board (KSEB) was making every effort to overcome the power shortage in the state. He also hit back at the Opposition, saying lapses during the previous government's tenure had contributed to the present situation.

Joseph said Kerala was facing a severe power shortage as electricity demand had increased by more than 1,000 MW compared with the same period last year, while power generation had declined.

Power demand rises as generation falls

Speaking to reporters in Kochi, Joseph said the state was facing a situation where power restrictions could have to be imposed more than once.

The minister said he had held a special discussion with the KSEB chairman and board members on the power crisis.

"It is not enough to adjust power cut schedules for just one single time slot because there is a severe power shortage. Compared to the same period last year, there is an additional demand of over 1,000 MW. That is the main issue," he said.

He attributed the increase in electricity consumption partly to greater use of air conditioners and fans, as well as the growing number of electric vehicles.

According to Joseph, peak demand has also shifted towards late night as people charge their electric vehicles after returning from work and other activities.

Coal shortage adds to supply pressure

"Consumption has increased, while generation has decreased. There is also a coal shortage, which is why we, along with all other states, received a letter from the central government regarding this," the minister said.

He said Kerala could not immediately enter into long-term power purchase agreements because such contracts require tenders, participation by eligible suppliers, regulatory approvals and several months to complete.

KSEB has also been unable to secure enough electricity through short-term purchases in the day-ahead and real-time markets, he said.

"There is no availability in those markets either. Since power generation has fallen and demand has surged nationwide, supply has dropped. According to demand-supply theory, when demand rises and supply falls, prices skyrocket," Joseph said.
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Solar power available, but storage remains a challenge

The minister said electricity was available at lower rates during the daytime because of solar generation. However, Kerala currently lacks sufficient infrastructure to store solar power for use at night.

Projects are under way to establish power storage facilities at Mylatti and Mulleria in Kasaragod, Sreekandapuram in Kannur, Pothencode in Thiruvananthapuram and Areekode in Malappuram, he said.

Joseph added that work on a 500 MW Battery Energy Storage System (BESS) project at Brahmapuram in Ernakulam would begin once the land-related issues were cleared.

Kerala meets only 25 per cent of power needs through own generation

Joseph said Kerala currently generates only around 25 per cent of its electricity requirement internally and has not been able to launch a major power project since the Idukki project.

"Hydroelectric power is our primary source, but we are unable to start new hydroelectric projects," he said.

The state also faces difficulties in pursuing nuclear power projects despite suggestions from the Centre to explore the option, he said.

465 MW power agreement cancelled during previous tenure

Joseph said a 25-year power purchase agreement signed during the tenure of former Electricity Minister Aryadan Muhammed to procure 465 MW at Rs 4.29 per unit was cancelled during the previous government's tenure.

He said efforts were now under way in the Supreme Court to restore the agreement.

"When Kerala officially withdrew from the agreement, the power supply companies began selling that power to other states and agencies at higher prices instead of giving it to us at Rs 4.29," Joseph said.

He said Kerala was now experiencing the impact of losing the 465 MW supply secured under the agreement.

Responding to criticism from the former electricity minister, Joseph said cancelling the agreement had been a mistake made during the previous government's tenure.

"I am very grateful that he admits the mistake made during his time. Cancellation of the contract that provided power at Rs 4.29 happened during his term," he said.
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State repaying 530 MW borrowed during summer

Joseph said Kerala had borrowed 530 MW of power during March and April to meet peak summer demand and was now repaying it.

A portion of the borrowed power would be repaid by mid-September, while the full repayment would be completed by September 30, he said.

He also said several power generation projects had not been completed and that the current government had initiated steps to overcome the legal hurdles affecting them.

More power restrictions possible

Asked whether power restrictions would continue throughout September, Joseph did not give a specific date and pointed to the possibility of increased rainfall.

He said processes for entering into new power purchase agreements were also progressing.

The minister appealed to the public to cooperate with the government's efforts to address the crisis.

"I reiterate: miracles cannot be performed in this sector. We are ready to buy power from wherever it is available at an allowable, fixed price. We are exploring all possibilities," he said.

(With PTI inputs)