Augmenting Keralaâs internal power generation capability is not going to come cheap, if a Kerala State Electricity Board (KSEB) estimate is any indication. The power-deficit State, which has seen a sharp increase in electricity demand in recent years, will need an investment of about â¹42,800 crore for adding 7,750 megawatts (MW) to its installed capacity for power generation, according to the state-run power utility.
The KSEB estimate gains significance in the context of a plan to raise the capacity to 10,000 MW by 2030.
The investment projections are tied to per-MW costs for establishing hydropower, wind, solar and pumped storage projects (PSP) and battery energy storage systems (BESS). KSEB chairman and managing director Biju Prabhakar presented the estimates at a public hearing held by the State Electricity Regulatory Commission last week on proposals for revising the electricity tariffs.
In 2023-24, the Stateâs installed capacity â KSEB units and other sources combined â stood at 3,419 MW. Mr. Prabhakarâs presentation at the hearing covered âimmediate investments neededâ spanning different power sources, including those in the KSEB wish list such as BESS and offshore wind energy, for adding another 7,750 MW.
The KSEB estimate calls for an investment of â¹12,000 crore each for adding 1,500 MW through hydropower projects and 2,000 MW through PSPs. In wind energy, 370 MW can be added in onshore projects at â¹2,200 crore, 50 MW through offshore wind projects at an estimated â¹800 crore, and 30 MW via vertical axis wind turbine (VAWT) projects with an investment of â¹300 crore. Ground/floating solar projects will require an investment of â¹2,500 crore for adding 500 MW, while 3,300-MW BESS projects will require â¹13,000 crore.
Cost per MW
The per-MW cost of establishing the projects vary for the power sources, ranging from â¹4 crore per MW for BESS projects to â¹ 15 crore-â¹17 crore/MW for offshore wind projects. For hydel projects, the mainstay of Keralaâs internal power generation, it is estimated at â¹6 crore to â¹8 crore per MW.
Current capacity accounts for only about 30% of Keralaâs electricity requirement. The spending on power purchases to fill the demand-supply gap rose from â¹7,393 crore in 2016-17 to â¹11,241 crore in 2022-23 and â¹12,983 crore in 2023-24, according to the KSEB.
Kerala has been eyeing Central assistance for increasing is power generation capacity. For instance, KSEB proposes to implement BESS projects in eight locations with viability gap funding (VGF) from the Centre. VGF of up to 40% is available under a central scheme if the project gets approved before March 31, 2026.
Published – September 16, 2024 08:59 pm IST