Kerala is managing a severe power deficit as electricity demand hits 4,800 MW and hydel reserves drop to 28%. The government stated that any nuclear power plant proposal for Cheemeni must undergo extensive public and political consultation before proceeding.
Kerala is currently facing a significant energy challenge as its power demand has climbed to 4,700–4,800 MW, a sharp increase from the 3,500–3,600 MW recorded during the same period last year. With the state generating only about 17% of its total requirement internally, the government is exploring long-term solutions, including a potential nuclear power plant in Cheemeni, Kasaragod. However, Electricity Minister Sunny Joseph has clarified that such a project will only move forward after a complete consultation process involving the public, political parties, and local representatives.
Impact of Declining Hydel Reserves
The current energy shortage is largely driven by a heavy reliance on hydel power, which has been severely affected by poor monsoon rains. Hydel reservoir levels have plummeted to 28%, compared to 60% at this time last year. This sharp decline, paired with rising temperatures and higher power usage from household appliances and the growing adoption of electric vehicles, has put immense pressure on the Kerala State Electricity Board (KSEB). To manage the immediate shortfall, the state has been forced to rely on short-term procurement at higher market rates.
Cost and Infrastructure Challenges
The financial impact of the crisis is compounded by issues with power purchase agreements and storage limitations. The state is currently involved in a legal battle in the Supreme Court regarding the cancellation of a past long-term agreement that could have secured power at a lower cost of ₹4.29 per unit. Furthermore, while the state is investing in renewable energy, solar power utilization remains constrained by inadequate battery storage infrastructure. This mismatch forces the state to buy power at approximately ₹10 per unit during nighttime hours, significantly higher than daytime solar costs.
Conservation and Future Outlook
To bridge the supply gap, the government has appealed to residents to reduce non-essential electricity usage, particularly during peak hours. Efforts are also underway to promote energy efficiency, such as advocating for standardizing air conditioner temperatures at 25 degrees Celsius. Despite the ongoing crisis, the state is currently honoring its commitment to repay electricity borrowed from other states to maintain grid stability. Investors and stakeholders should monitor the progress of the legal proceedings regarding the cancelled power purchase agreement and the timeline for any formal project proposals for the Cheemeni site, as these will directly influence the state’s long-term power costs and energy security.