THIRUVANANTHPURAM: Kerala State Electricity Regulatory Commission has rapped KSEB for not taking genuine efforts to explore opportunities to purchase power at competitive rates and asked the board to adopt modern technologies, including Artificial Intelligence , to generate reliable resource adequacy plan and a realistic power consumption forecast.
“The commision is of the considered view that KSEBL is not taking keen interest on meeting the power shortages which were anticipated much earlier at the least cost”, the commission said in its order approving the KSEB request for approval for the purchase of 250 MW power through short term purchase during April and May , 2025.
The commission said KSEBL should go for a judicious power purchase mix of long/medium term and short term contracts to ensure security of supply to their consumers at low cost. KSEBL should also avoid its over reliance on the electricity market. For this, the KSEBL should have a resource adequacy plan. Once that plan is firmed up, KSEBL can accordingly. The commission then directed KSEBL to submit a detailed resource adequacy plan to ensure 24X7 reliable power to consumers at low cost. “The resource adequacy plan need to be updated one in every six months. Hence, there after, he revised and updated plan shall be submitted on half yearly basis, as on January 1 and July 1, every year”, the order said.
SCERC warned KSEBL for inordinate delay in filing petitions before commission, seeking approval of deviations in the power purchase agreements the board wish to enter into at short notice. It noted that the rate of power puchase of the proposed short term purchase seemed excessively high. While the average cost of power purchase approved by the commission is Rs 4.70/unit, the proposed purchase cost of 250 MW power is Rs 9.73/unit.
The Commission criticised KSEB for not taking efforts to make power generators honour the long term power purchase agreements, to which the commission had in December gave clearance following the government intervention. If the generators refuse to honour the agreements with KSEB, it should take legal steps against the companies. KSERC further clarified that it never ordered the cancellation of 465 MW power from these contractors, though the agreements were not approved.
“…in the analysis submitted before the Commission, KSEBL has not included the availability of 315MW of power from these approved sources, citing that the generators in these contracts are not willing to supply power. The Commission cannotaccept the reasons submitted by KSEBL”, it said.
Referring to the stark mis matches in the power demand projection and the actual consumption in April and May , 2023, KSERC said KSEBL should urgently resort to modern technics of data analysis and including artificial intelligence for an informed decision making. KSEBL can also seek the help of the agencies like Digital University, Kerala.
“Since huge additional financial liability is involved in the decision of additional power purchase as proposed above, KSEBL should carry outs uch detailed appraisal including sensitivity studies before taking a final decision on such additional power purchase. It asked KSEBL to submit such detailed studies and analyses when KSEB approaches the commission seeking approval for additional power purchase in future.
“The commision is of the considered view that KSEBL is not taking keen interest on meeting the power shortages which were anticipated much earlier at the least cost”, the commission said in its order approving the KSEB request for approval for the purchase of 250 MW power through short term purchase during April and May , 2025.
The commission said KSEBL should go for a judicious power purchase mix of long/medium term and short term contracts to ensure security of supply to their consumers at low cost. KSEBL should also avoid its over reliance on the electricity market. For this, the KSEBL should have a resource adequacy plan. Once that plan is firmed up, KSEBL can accordingly. The commission then directed KSEBL to submit a detailed resource adequacy plan to ensure 24X7 reliable power to consumers at low cost. “The resource adequacy plan need to be updated one in every six months. Hence, there after, he revised and updated plan shall be submitted on half yearly basis, as on January 1 and July 1, every year”, the order said.
SCERC warned KSEBL for inordinate delay in filing petitions before commission, seeking approval of deviations in the power purchase agreements the board wish to enter into at short notice. It noted that the rate of power puchase of the proposed short term purchase seemed excessively high. While the average cost of power purchase approved by the commission is Rs 4.70/unit, the proposed purchase cost of 250 MW power is Rs 9.73/unit.
The Commission criticised KSEB for not taking efforts to make power generators honour the long term power purchase agreements, to which the commission had in December gave clearance following the government intervention. If the generators refuse to honour the agreements with KSEB, it should take legal steps against the companies. KSERC further clarified that it never ordered the cancellation of 465 MW power from these contractors, though the agreements were not approved.
“…in the analysis submitted before the Commission, KSEBL has not included the availability of 315MW of power from these approved sources, citing that the generators in these contracts are not willing to supply power. The Commission cannotaccept the reasons submitted by KSEBL”, it said.
Referring to the stark mis matches in the power demand projection and the actual consumption in April and May , 2023, KSERC said KSEBL should urgently resort to modern technics of data analysis and including artificial intelligence for an informed decision making. KSEBL can also seek the help of the agencies like Digital University, Kerala.
“Since huge additional financial liability is involved in the decision of additional power purchase as proposed above, KSEBL should carry outs uch detailed appraisal including sensitivity studies before taking a final decision on such additional power purchase. It asked KSEBL to submit such detailed studies and analyses when KSEB approaches the commission seeking approval for additional power purchase in future.