Kerala State Electricity Regulatory Commission (KSERC) approved a power sale agreement between Kerala State Electricity Board Ltd (KSEBL) and the Solar Energy Corporation of India (SECI) for procurement of 200 Megawatt (MW) of solar capacity paired with a 100 MW/400 Megawatt hour (MWh) Energy Storage System (ESS). The KSERC order dated July 27, 2026 covers supply from Welspun Renewable Energy through special purpose vehicle Satpura Renewable Private Ltd and forms part of SECI’s ISTS Tranche XX.

The 25-year agreement sets a discovered tariff of Rs 2.86 per unit and a trading margin of Rs 0.07 per unit, yielding an effective price of Rs 2.93 per unit at the delivery point. KSEBL has said that purchases from power exchanges often cost around Rs 9 per unit during peaks, and the arrangement is expected to reduce procurement costs.

The developer must supply 2,000 kWh per MW each day in the peak window between six pm and midnight, delivering approximately 146 mn units of peak energy a year. Minimum annual supplies are required at 417.26 mn units for the first 10 years and 392.72 mn units thereafter. These obligations are designed to address evening shortages and support grid stability.

The agreement includes strict penalties for shortfalls or unauthorised third party sales, with any deficit attracting penalties equal to one point five times the agreed tariff. The enforcement provisions aim to ensure reliable delivery during the specified windows. The trading margin payable to SECI will remain part of the commercial framework to facilitate scheduling.

KSERC noted that Kerala’s peak demand has crossed 6,100 MW and that SECI has tied up 500 MW of the 2,000 MW tranche, and it urged KSEBL to consider additional purchases. The Commission directed KSEBL to act in time to have any extra capacity commissioned before the June 30, 2028 deadline for Inter-State Transmission System charge exemption. KSEBL was asked to submit a progress report by August 5, 2026.