Archive · 23 Sep 2026
Kerala Plans Long-Term Power Procurement Amid Electricity Shortage
Kerala does not have enough electricity to meet current demand.
Chief Minister V D Satheesan said the government will make both short-term and long-term plans to buy power.
The plan is meant to cover the period from October 1 until the next monsoon.
Electricity use has increased by about 950 MW since last September.
Power is also harder to buy because other Indian states are facing shortages.
Kerala was offered some power from Himachal Pradesh at a high price, but it did not need all of it.
The state has arranged extra electricity from the Nuclear Power Corporation and restarted a unit after maintenance.
Even after adding 650 MW, Satheesan said about 1,000 MW is still lacking.
Chief Minister V D Satheesan said Kerala will develop a long-term power procurement plan from October 1 until the next monsoon.
The state faces a shortage due to the absence of a long-term agreement, higher consumption and reduced market availability.
Power consumption has risen by about 950 MW compared with September last year.
Kerala secured 150 MW from the Nuclear Power Corporation at Rs 4.65 per unit and restored a 150-MW unit after maintenance.
The state has added 650 MW but still faces an estimated 1,000-MW gap, according to Satheesan.
- Who
- Kerala Chief Minister V D Satheesan and the state government.
- What
- The government will prepare a long-term power procurement plan while arranging immediate supplies to address an electricity shortage.
- When
- The announcement was made on Wednesday, September 23; the planned supply period begins October 1 and runs until the next monsoon. A broader meeting was scheduled for Thursday.
- Where
- Kerala, with shortages also reported in several other Indian states.
- Why
- The shortage is linked to the cancellation of a former 25-year power purchase agreement, a roughly 950-MW rise in consumption and reduced electricity availability in the market.
Government explanation
Previous-government responsibility
Cause of the shortage
Government explanation
The current government says the crisis reflects sharply increased consumption, reduced power availability across states and the lack of a replacement long-term agreement.
Previous-government responsibility
Satheesan attributed a major part of the problem to the previous Left government’s cancellation of Kerala’s 25-year power purchase agreement without arranging another long-term agreement.
Power procurement approach
Government explanation
The government says it is buying electricity according to actual requirements and avoiding expensive purchases that could create an unnecessary financial burden.
Previous-government responsibility
The offer from Himachal Pradesh illustrates the concern: Kerala was offered power at Rs 13 per unit but did not need the entire daytime supply.
- Planned coverage
- From October 1 until the next monsoon
- Previous agreement
- Kerala had received 465 MW under a 25-year power purchase agreement
- Consumption increase
- About 950 MW compared with September last year
- Himachal Pradesh offer
- 330 MW during the day and 80 MW at night at Rs 13 per unit
- Nuclear Power Corporation supply
- 150 MW secured at Rs 4.65 per unit, with another 150 MW expected
- Additional power
- Satheesan said Kerala now had an additional 650 MW
- Remaining gap
- Approximately 1,000 MW, according to Satheesan