The Kerala State Electricity Regulatory Commission (KSERC) has estimated an investment of ₹522.38 billion (~$6.01 billion) would be required by 2030 to upgrade energy infrastructure and integrate renewable energy sources effectively in the state.

In a discussion paper, KSERC made recommendations to help the state transition to 100% renewable energy by 2040 and net zero carbon emissions by 2050. The state currently leads in rooftop solar installations with a capacity of 946.9 MW, comprising 72% of its total solar capacity.

 

 

Kerala’s energy sector faces intermittency challenges from renewable energy sources, particularly solar, which fails to meet peak demand.

To meet its ambitious renewable energy goals, Kerala has set higher Renewable Purchase Obligation (RPO) targets than the national mandate but faces monitoring, compliance, and transparency challenges.

Enhanced RPO compliance mechanisms, clearer reporting, and penalties or incentives to meet targets are required to meet the RPO targets. Kerala faces significant challenges in meeting its 50% RPO target by 2029-30, requiring an additional 10,000 MU of renewable energy, primarily from hydro, solar and wind supported by energy storage systems.

The higher capital costs of new hydro projects and the very limited reservoir storage capacity are major concerns which need to be addressed.

BESS and Pumped Storage

The state requires robust energy systems to manage diurnal and seasonal demand variations. The integration of cost-effective solutions such as battery energy storage systems (BESS) and pumped storage projects has been proposed to stabilize the grid.

KSERC’s proposed framework emphasizes renewable purchase obligations, net metering, and differentiated tariffs to promote renewable energy integration.

The discussion paper proposed implementing battery energy storage systems (BESS) at substations to manage grid instability caused by high rooftop solar penetration.

It emphasized developing pumped storage projects and optimizing hydropower through increased pondage capacity of run-of-river hydro projects to ensure a minimum of 48 to 72 hours of storage.

The Commission recommended designing new small hydro projects as open loop pumped hydro projects to maximize efficiency.

Wind Potential

The Kerala regulator’s discussion paper highlighted the wind energy potential in Kanjikode, Attapady, and Ramakkalmedu for large-scale deployment to complement solar energy generation. he Commission also emphasized the importance of real-time data monitoring, extending these requirements to solar projects of over 100 kW capacity and providing government incentives for energy storage investments.

It also recommended formalizing the existing ₹0.77 (~$0.00886)/kWh green tariff in the upcoming regulations to encourage consumers to adopt renewable energy from distribution licensees.

Among other recommendations, the discussion paper calls for exploring using swamp land for floating solar farms and proposing a capacity of 500 MW/1,000 MWh of BESS across all districts.

It also said that guidelines should be issued for converting internal combustion engine vehicles to electric.

Recently, KSERC approved multiple energy banking agreements entered into by the Kerala State Electricity Board to manage surplus power efficiently.

Earlier this year, Kerala emerged as a leader in residential rooftop solar installations. The state has achieved a 60.13% application-to-installation conversion rate, reflecting high implementation efficiency.