Founded in 2011, Kerala State Electricity Board Limited (KSEBL) was reinstated under the Kerala Electricity Second Switch Scheme of 2013. It operates as a fully integrated electricity service provider, managing the generation, transmission, and distribution of electricity for nearly 99 percent of the state’s consumers. From an initial installed capacity of 109 MW in 1957, KSEBL has grown to an impressive 2,482.42 MW as of 2023-24. The utility has achieved one of the lowest aggregate technical and commercial (AT&C) losses in the nation, consistently maintaining losses in the single digits.
To address the increasing energy requirements, KSEBL aims to ensure 10,000 MW of power availability in the state by 2030. The utility is prioritizing grid modernization and renewable energy projects, focusing on solar power, energy storage, and innovative solutions such as pumped storage facilities. It is also significantly investing in smart metering and distribution infrastructure enhancements under the Revamped Distribution Sector Scheme (RDSS).
Energy mix
Kerala’s electricity demand has risen dramatically. While the state’s internal generation capacity is approximately 3,819 MW, power demand reached 5,301 MW in 2023-24.
The state’s energy mix is primarily dominated by renewable sources, with hydropower contributing 1,904 MW, followed by solar energy at 1,314 MW. Small-hydro projects account for 276.52 MW, while thermal energy contributes 537 MW. Wind energy and biopower add 63.5 MW and 2.5 MW respectively.
In 2023-24, KSEBL significantly expanded its renewable energy capacity. This included an addition of 244.34 MW of solar capacity, exceeding the state’s total solar capacity of 1 GW. Furthermore, the 6 MW Peruvannamoozhi small hydroelectric project (HEP) was inaugurated. Under PM-KUSUM, 1.3 MW of installations were completed at eight sites. In the current financial year (2024-25), KSEBL recently commissioned the Thottiyar HEP (40 MW). The 60 MW Pallivasal extension scheme in Idukki is also nearing completion.
Transmission and distribution
In 2023-24, the state saw the commissioning of seven additional extra high tension (EHT) substations, including Kerala’s first 400 kV gas-insulated substation at Kottayam, alongside the addition of 297 ckt km of transmission lines. The state’s import capacity increased by nearly 1,000 MW.
At a recent Energy Line conference, Biju Prabhakar, Chairman and Managing Director, KSEBL, mentioned that the utility boasts one of the lowest AT&C losses in the country, at 7.55 percent in 2023-24. In 2021-22 and 2022-23, AT&C losses were reduced to 8.26 percent and 7.55 percent, respectively, in comparison to the target averages of 13 percent and 12.2 percent. He also noted that KSEBL has consistently maintained low SAIFI and SAIDI values at 12.23 and 58.79, respectively, for 2024, indicating fewer and shorter power outages compared to other state-owned utilities.
The state’s electricity purchase volume has expanded at a CAGR of 4 percent from 2016-17 to 2023-24, indicating a steady rise in energy consumption. Despite an abundant solar supply during the day, supported by an average addition of 35 MW from rooftop solar to the grid, Kerala faces challenges with grid congestion and effectively balancing supply. To tackle shortfalls, the state frequently relies on gas-based power stations, pushing electricity prices above Rs 10 per unit during critical times.
Kerala’s total consumer base reached 13.2 million as of March 2024, with residential consumers making up 76 percent, followed by commercial consumers at 19 percent and industrial consumers at 12 percent.
KSEBL’s total electricity sales for 2023-24 were 27,675 MUs. The low tension residential consumer segment represented the largest share at 50 percent, reflecting substantial residential demand. The high tension and extra high tension categories accounted for 22 percent of total energy sales, followed by commercial low tension customers at 17 percent. Industrial low tension and other categories each contributed 5 percent, agricultural low tension constituted 1 percent, and the export category recorded no sales.
Financial performance
In terms of financial performance, KSEBL’s consolidated statement indicates significant improvement for the year ending March 31, 2024. Total revenue rose to Rs 218.02 billion, up from Rs 189.38 billion the previous year, marking a growth of 15.13 percent. Notably, the company achieved a net profit of Rs 2.12 billion in 2024, a remarkable turnaround from a net loss of Rs 9.91 billion in 2023. This considerable recovery can be attributed to enhanced operational efficiency and improved financial management throughout the year.
New initiatives
KSEBL is undertaking several strategic initiatives to enhance infrastructure, promote sustainability, and improve customer services across Kerala. Under the Dyuthi project, KSEBL aims to elevate its distribution grid to international standards through a comprehensive five-year plan from 2022-23 to 2026-27. Despite the success of Dyuthi 1 (2018-22), KSEBL recognized the need to achieve global performance standards in various areas. Consequently, its board approved the Dyuthi 2 project with a budget of Rs 40.16 billion. Dyuthi 2 incorporates essential features and requirements from the Dyuthi 1 initiative and the RDSS, focusing on robust and secure installations, ensuring uninterrupted supply during the plan period, and seamless integration of renewable energy.
Another initiative, Filament Free Kerala, was completed in collaboration with local self-governments. This project successfully replaced filament bulbs with LED lighting, reducing peak demand and mercury pollution by distributing 11.8 million LED bulbs to consumers. The NILAVU program, also in partnership with local self-governments, has replaced traditional streetlights with LED alternatives, with installations reaching 366,980 as of March 31, 2024.
In the realm of e-mobility, KSEBL has established 63 fast-charging stations and 1,169 pole-mounted charging points. It is promoting the “recharge and refresh” concept, facilitating charging at shopping malls and workspaces where vehicles are typically parked. Furthermore, it plans to deploy fast-charging infrastructure throughout the state.
Another significant initiative is KEMapp, an app developed by KSEBL that provides information about charging stations for electric vehicles (EVs) and allows remote operation of these stations. Created in collaboration with five vendors, KeMAPP addresses the challenges faced by EV users, especially the fragmentation of mobile applications. To streamline operations and enhance the user experience, KeMAPP has been developed as a comprehensive software solution and mobile application.
Additionally, KSEBL is transitioning customer services to digital platforms to boost efficiency. Since December 1, 2024, all services have been made available online, with offline services being discouraged. KSEBL is also focusing on implementing IT and digital solutions; introducing cloud telephony services that allow consumers to register complaints, request services, and obtain billing information via IVR and WhatsApp; and reducing manual intervention and wait times.
Through the voluntary disclosure scheme, KSEBL is promoting energy savings by permitting self-declaration for revising connected loads for low tension consumers. It is also undertaking significant electrification initiatives. These
adopt the electrification of BPL households with a connected load of up to 1,000 W, financed by KSEBL’s own resources, along with extensive tribal colony electrification efforts. So far, 29 colonies have been electrified. KSEBL has also played a role in ensuring 4G network coverage across Kerala, enhancing connectivity within the region.
Future objectives
KSEBL has identified various key areas to improve operational efficiency, encourage renewable energy, and implement advanced technologies. KSEBL is aiming for a total installed capacity of 10,000 MW by 2030. This encompasses 500 MW of solar, 530 MW of wind, 1,500 MW of hydro, and 35 MW of monthly rooftop solar additions. Furthermore, it is set to achieve 3,000 MWh of battery energy storage systems (BESS) and 2,000 MW of pumped storage (six-hour discharge) capacity. It also intends to investigate small modular reactors for establishing nuclear power in the state.
In the transmission sector, KSEBL is concentrating on developing green energy corridors and enhancing infrastructure through trans-grid projects. TransGrid 2.0 aims to establish intra-state high-capacity corridors for smooth power transfer, ensuring power availability at all load centers with minimal losses.
KSEBL is further advancing GIS mapping of all its generation, transmission, and distribution assets. Technical trials are being conducted for asset inspections using drones/UAV technology.
KSEBL is executing the RDSS with an investment of approximately Rs 28.80 billion. Of this amount, 60 percent of financial support will be sourced from the Ministry of Energy, while the remaining 40 percent will come from KSEBL’s own resources to upgrade and enhance distribution infrastructure. Nearly 77 percent of the budget is allocated for improvements in distribution infrastructure. Tenders for projects have been finalized. SCADA and Internet of Things initiatives will also be implemented in the state.
The discom plans to raise the share of HT lines in its network to improve the quality of power supply and minimize losses. Additionally, it is adopting covered conductors to prevent interruptions and developing hotline maintenance strategies to enhance reliability. It is also conducting health monitoring of distribution transformers and pilot asset inspections using drones and UAVs.
To tackle the current challenges in transformer supply chains, KSEBL is adjusting its approach to strengthen in-house manufacturing capabilities, ensuring a more resilient and self-sufficient system.
To enhance demand-side management, KSEBL has embraced resource adequacy plans and smart meter-driven demand management while piloting BESS in villages and promoting public investment in solar batteries.
Obstacles and outlook
A significant challenge KSEBL faces is the difficulty in maintaining the supply chain for components/key equipment as increased demand leads to longer lead times and higher costs. KSEBL also experiences opposition from labor unions regarding technological shifts such as smart meters.
Despite these obstacles, KSEBL’s progressive strategy demonstrates its ongoing commitment to developing a robust and dependable energy sector in Kerala. By embracing renewable energy, modernizing infrastructure, and collaborating with local government bodies, KSEBL is setting a strong example of how to effectively and sustainably address rising energy demands.
