The rapid growth in solar power production in Kerala may result in an annual burden of ₹500 crore by 2024-25, according to the Kerala State Electricity Board (KSEB). If this cost is absorbed as a surcharge, it could potentially lead to an increase of 19 paise per unit in electricity tariffs. By 2034-35, this figure is projected to rise further.
The KSEB has expressed concerns over the potential financial implications of the rapid expansion of solar power generation in the state. The board has requested additional restrictions in the new renewable energy source regulations proposed by the regulatory commission, citing the need for maintaining grid stability and managing costs.
The Commission’s new regulations are aimed at promoting the use of renewable energy sources to reduce carbon emissions and achieve energy security. However, the KSEB has argued that without adequate safeguards, these measures could lead to an unsustainable financial burden on consumers.
The state government and the KSEB have been actively encouraging solar power generation as part of Kerala’s ambitious plan to become a ‘100% renewable energy state’. Solar panels have been installed across various public buildings, schools, and homes, contributing significantly to the state’s power grid.
The concern over potential cost increases comes amidst increasing demand for solar power and the drive towards a greener economy. It remains to be seen how the regulatory commission will address these concerns in its final regulations.
Meanwhile the Commission is expected to announce its final regulations soon.
