Peak demand, swap arrangements worsen power situation in Keralam

Kerala is facing a significant power crisis as surging electricity demand, driven by extreme heat, outpaces the state's supply capacity. The situation is further strained by a mandatory daily power-swap obligation that requires the Kerala State Electricity Board (KSEB) to return borrowed electricity to other states during peak consumption periods.
Why it matters
The shortfall of approximately 600 MW highlights the vulnerability of regional power grids to climate-induced demand spikes and the limitations of relying on bilateral swap agreements during periods of resource scarcity.
Surging peak electricity demand and a daily power return obligation of 3.4 million units (mu) under swap arrangements have worsened the power crisis the State is facing.
According to the State Load Despatch Centre (SLDC) data, the State anticipated a peak demand of 4,850 MW in September. However, soaring temperatures have pushed the demand up to 5,450 MW, forcing the KSEB to impose power cuts.
KSEB sources say under the power-swap agreements, the board must return electricity borrowed from other States to manage high consumption between January and April 2026.
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