The Kerala State Electricity Regulatory Commission (KSERC) has approved a ₹1,490.23 crore capital investment plan (CIP) of the Kerala State Electricity Board (KSEB) for power generation, but warned that it will not permit any cost escalation due to delays in project implementation to be passed on to the consumers.
The CIP is meant to cover the ‘control period’ from 2022-23 to 2026-27.
The Commission has given provisional approval for ₹ 820.14 crore for six hydel projects including the 24 MW upper Sengulam, 40 MW Mankulam and 24 MW Poringalkuthu SHEP Stage II under ‘new projects.’ Under the category ‘new solar projects’ the Commission has approved a pending of ₹ 53.15 crore. Other approvals include ₹130.75 crore for the Dam Rehabilitation and Improvement Project (DRIP) and ₹486.19 crore for ‘new renovation/replacement’ works in two cost categories.
However, the Commission wanted the KSEB to constitute a monthly monitoring mechanism for projects. “The Commission has noted undue delays in project execution by KSEB, resulting in time and cost overruns. The Commission will not permit cost escalation due to these delays to be passed through in tariffs. The KSEB must implement suitable mechanisms at the policy, strategic, and operational levels to prevent such delays in project implementation,” the Commission, headed by T.K. Jose, noted.
Hydel plants in ‘hybrid mode’
The Commission has urged the KSEB to explore the possibility of designing upcoming hydel plants to operate in ‘hybrid mode;’ operating mostly in generation mode during the rainy season and as Pumped Storage Projects (PSP) during the summer periods. “This approach, if feasible, can ensure year-round operation and support peak summer demand, thereby enhancing the viability of new hydro investments,” it said.
Although the KSEB had earmarked ₹ 105 crore for ‘Advanced energy storage technologies,’ the Commission did not consider this proposal on the grounds that the KSEB did not furnish any detailed project report. The panel also observed that Kerala has a number of large storage hydro projects.
The Commission wanted the KSEB to improve the viability of its projects by enhancing storage capacities, reducing capital costs and using project sites for renewable energy generation.
In its petition, the KSEB had sought approval for a CIP worth ₹5130.58 crore for the period from 2022-23 to 2026-27. The power utility had listed 14 hydel projects with a combined capacity of 920.50 crore and cost estimate of ₹4749.81 crore. The list also included the proposed ₹3062.08 crore, 800 MW Idukki (Golden Jubilee) Extension Scheme, which the Commission noted was due for completion only in 2028-29.
Published - October 23, 2024 09:16 pm IST
