Established on January 14, 2011, Kerala State Electricity Board Limited (KSEB) serves as the primary electricity utility in Kerala. As a fully integrated entity, KSEB manages all aspects of electricity generation, transmission and distribution across the state, reaching almost 99 per cent of consumers. Notably, NITI Aayog’s State Energy and Climate Index has recognised KSEB as a top performer in the accessibility, affordability and reliability category. KSEB excelled by achieving the highest scores in several critical areas such as hours of electricity supplied to agriculture and industry, effective cross-subsidisation, implementation of time-of-day tariffs and industrial energy-saving initiatives.
Generation
KSEB’s installed generation capacity stands at 2,320.44 MW as of March 31, 2024. The primary power generation in the state is through hydroelectric power, comprising 2,096.36 MW or 90 per cent of the total installed capacity. Solar power accounts for the other 10 per cent with 224.08 MW capacity.
The total capacity under construction amounts to 203.5 MW, which includes projects such as the pallivasal extension Scheme (60 MW), Thottiyar hydroelectric Project (HEP) (40 MW), Mankulam HEP (40 MW) and Bhoothathankettu small-HEP (24 MW). Further, work for about 24 MW has been awarded during 2023-24.
The Soura Scheme is one of KSEB’s key programmes, under which 500 MWp of solar power plants are planned to be established by utilising the rooftops of domestic, public and private buildings. During 2023-24, 151 grid-connected solar plants with a capacity of 1.26 MW under Phase I of the non-subsidy scheme and 13,841 plants with a capacity of 53.6 MW under Phase II of the subsidy scheme were commissioned.
Further, KSEB plans to operationalise hydro projects with a capacity of 1,485 MW by 2026. The state also plans to add 1,342 MW of solar power, including 240 MW each from domestic and government rooftop systems (RTSs), 230 MW from other RTSs, 132 MW from ground-mounted solar projects, 100 MW from the PM-KUSUM scheme and 400 MW from floating solar projects.
Additionally, 460 MW of wind power and 140 MW of hybrid wind-solar projects are expected to be developed. Storage projects will add around 1,000 MW, including 60 MW from battery energy storage systems. Furthermore, KSEB aims to produce 40 tonnes per day of hydrogen in the near future.
Transmission
The transmission assets of the company include 425 substations and 13,042.62 ckt km of lines, comprising 178.26 ckt km at the 400 kV level, 3,202.17 ckt km at the 220 kV level, 5,663.36 ckt km at the 110 kV level, 1,486.6 ckt km at the 66 kV level and 2,379.88 ckt km at the 33 KV level. The total transformation capacity stands at 25,520.70 MVA.
In 2023-24, there were significant achievements in the transmission sector, including the commissioning of seven extra high tension (EHT) substations, consisting of one 400 kV and six 110 kV substations, as well as the addition of 297 ckt km of transmission lines. On May 13, 2023, KSEB inaugurated the Kottayam gas-insulated substation (GIS), its first 400 kV GIS.
Additionally, the installation of two 500 MVA interconnecting transformers at Kochi and Palakkad, coupled with downstream enhancements, bolstered the state’s import capacity
by nearly 1,000 MW, reaching a total of 4,260 MW.
KSEB is implementing the TransGrid 2.0 project with the aim of enhancing transmission capacity to meet future demand, improve reliability and reduce losses. The project focuses on transferring power to the northern regions and evacuating power from high capacity inter state transmission system projects. The project is divided into two phases. Phase I (2017-23) involves constructing 12 substations and 1,826 ckt km of EHT lines at an estimated cost of Rs 27.11 billion. All 12 substations targeted in Phase I have been commissioned, with around 1,746 ckt km of lines completed.
Phase II (2019-27), estimated at Rs 36.3 billion, includes 14 GIS substations and approximately 1,844 ckt km of EHT lines, incorporating Green Energy Corridor II projects. Construction is under way for two GIS substations and four line packages, and tenders have been issued for three 220 kV substations and various line components.
Distribution
The total high tension (HT) line and low tension (LT) line length of KSEB stands at 69,078 km and 301,264 km respectively. The total number of distribution transformers stands at 89,620 as of 2023-24. During fiscal year 2023-24, KSEB undertook extensive infrastructure development, including the construction of 1,297 km of HT lines and the installation of 2,355 new distribution transformers. Additionally, 4,078 km of LT lines were constructed, ensuring last-mile connectivity. As a part of its reconductoring efforts, KSEB upgraded 385 km of HT and 5,853 km of LT lines, enhancing safety, reliability and efficiency. Additionally, 2,019 km was converted from single-phase to three-phase, improving the quality of power supply for customers.
As of March 31, 2024, KSEB serves a consumer base of 13,864,085, comprising 75.7 per cent domestic users, 18.89 per cent commercial users and the remaining being industrial and agricultural consumers. In terms of energy consumption, the domestic sector accounted for 49.2 per cent, while commercial establishments contributed 24.35 per cent. Despite constituting only 1.09 per cent of the consumer base, industrial consumers consumed 18.9 per cent of the total energy supplied in the state.
The aggregate technical and commercial (ATOC) loss at KSEB was 7.55 per cent during 2022-23 as compared to 7.69 per cent in 2021-22, whereas the national average stood high at 16.51 per cent. The billing efficiency was 93.1 per cent in 2022-23 as compared to 92.31 per cent in 2021-22, while the national average was 85.77 per cent. Its collection efficiency was 99.26 per cent in 2022-23 as compared to 100 per cent in the previous year, while the national average was measured at 97.34 per cent. The average cost of supply and average realisable revenue (ACS-ARR) gap was Rs 0.38 per kWh during 2022-23.
Various sanctions have been approved for KSEB under the Revamped Distribution Sector Scheme. The total sanctioned amount for smart meter implementation, including project management agency (PMA) costs, is Rs 82.06 billion. Additionally, Rs 22.69 billion has been sanctioned for loss reduction works, also including PMA costs. The total sanctioned amount for these initiatives stands at Rs 104.75 billion.
KSEB’s operational reliability in the Consumer Service Rating of Discoms, graded A in 2021-22, was elevated to A+ in 2022-23 by REC Limited. Despite facing a substantial surge in demand and challenges with contracted sources, KSEB effectively managed power supply to the state through meticulous planning and diligent efforts.
Technology update
KSEB has prioritised IT and digital solutions, including cloud telephony services for consumer interactions, spot billing machines for doorstep payments, and the successful implementation of supervisory control and data acquisition/distribution management systems for efficient grid management. It has introduced a geo-referenced grid map using Google Earth and Google Maps plugins for enhanced field visibility. A learning management system has been established for over 30 training programmes, conserving resources and facilitating IT-enabled training. Additionally, an Indo-German technical collaboration was undertaken by KSEB, involving asset inspection using drones and the implementation of a distribution transformer health monitoring system. The collaboration also explores vehicle-to-grid technology and assesses the impact of renewable energy and electric vehicles on system strengthening. Efforts are being made to improve short-term load forecasting methodologies and develop community grids. Additionally, the partnership aims to provide cost-effective solutions for substation automation at the 33 kV level.
Future plans
KSEB is focusing on developing projects in new and emerging segments, including green hydrogen production and pumped storage initiatives, with the aim to reduce carbon emissions and facilitate the clean energy transition. Blockchain technology for green energy certification and peer-to-peer energy transactions is being explored. Further, it is focusing on agri-voltaic farming, which combines solar energy generation with agriculture, promoting additional income for farmers. Comprehensive distribution hotline maintenance solutions will improve network reliability. Digitalisation and data analytics are prioritised for optimising grid operations and enhancing customer engagement. Strategic planning emphasises innovation, sustainability and distributed generation. Balancing resource adequacy amid grid transformation is crucial due to rising costs and increasing electrification demands. Artificial intelligence may be explored for addressing challenges such as climate change-driven water issues. Customer awareness of electricity usage and sourcing choices will be crucial, with personalised messaging and bidirectional conversations through digital channels. Revisiting traditional approaches to customer experience and developing new digital capabilities are essential for offering tailored energy solutions. Overall, KSEB’s future plans prioritise innovation, sustainability and efficiency to meet growing energy demands while promoting sustainable development.