Kerala seeks 500 MW coal power under SHAKTI scheme to ease supply crisis

The Kerala State Electricity Board (KSEB) has made a renewed push to tap into coal-based power under the Government of India's SHAKTI (Scheme for Harnessing and Allocating Koyala/Coal for Generating Electricity Via Pithead Power Plants) policy, according to official communications. The move comes as the state grapples with persistent power supply challenges that have prompted the utility to explore additional generation capacity through central schemes.

Under its latest bid, KSEB has submitted a request to qualify for the supply of 500 megawatts of baseload power to be delivered continuously over a 25-year period. The SHAKTI policy, administered by the Ministry of Coal, is designed to improve power security for states by allocating coal blocks and enabling direct linkages to thermal power plants based at pit-head locations.

The initiative represents KSEB's strategy to augment power availability through cheaper, domestically-sourced coal-fired generation rather than relying solely on hydroelectric resources or purchasing costlier thermal power from other states. The 500 MW allocation, if secured, would constitute a significant addition to Kerala's installed generation capacity and help stabilize the grid during peak demand periods.

The utility's qualification under the SHAKTI scheme would enable it to contract power directly from designated coal-based power stations, potentially reducing procurement costs while ensuring long-term supply certainty. The board is among several state electricity distributors across India seeking to leverage the central government's coal linkage initiative to address growing electricity demand and supply deficits.