Kerala State Electricity Board Secures 500 MW Solar Power in Landmark Deal with SECI

Kerala State Electricity Board inks a 25-year deal with SECI to secure 500 MW of solar power at INR 3.49 per unit, advancing its renewable energy ambitions.

In a major move to boost Kerala's renewable energy capacity, the Kerala State Electricity Board (KSEB) has signed a 25-year agreement with the Solar Energy Corporation of India (SECI) to procure 500 MW of solar power. The contract, aimed at enhancing energy efficiency and reducing the state's dependence on costly external energy sources, will provide solar energy at a rate of INR 3.49 per unit starting from September 2026.

Reducing Power Costs Through Solar Energy

The agreement was formalized by SECI General Manager (Commercial) A K Naik and KSEB Chief Engineer (Commercial) G Sajeev, in the presence of Kerala's Electricity Minister K Krishnankutty. Currently, KSEB spends INR 13,000 crore annually on power purchases from external sources. By locking in a more affordable rate for solar power, the board expects to cut costs by at least 10 percent.

The solar energy generated under this agreement will be primarily used during peak demand periods, especially after 6 pm, with battery storage systems aiding the grid during high-demand hours.

Expanding Renewable Energy Ambitions: 10,000 MW by 2030

This deal is part of KSEB's broader renewable energy strategy, which includes plans to generate 10,000 MW of renewable energy by 2030. Apart from solar, KSEB is also expanding its wind power portfolio with 300 MW of wind energy projects at key locations such as Ramakkalmedu, Attappadi, Manmuttimedu, Pappanpara, and Kanjikode.