Kerala is making major progress in strengthening its electricity network by developing multiple Battery Energy Storage System (BESS) projects across the state. These projects are aimed at improving grid stability, meeting peak electricity demand, and ensuring a reliable power supply. Along with projects being developed within the state, Kerala is also securing additional battery storage capacity through an agreement with the Solar Energy Corporation of India (SECI).
The state currently has five major BESS projects under development at Mylatti, Sreekantapuram, Mulleria, Areacode, and Pothencode. One of the biggest advantages of these projects is that they do not require land acquisition or environmental clearance. They also involve no upfront capital investment from Kerala State Electricity Board (KSEB) Ltd. or the state government. Once all five projects become operational, they will together provide 250 MW of electricity for four hours every day during peak demand periods. The estimated cost of power from these projects is less than Rs. 7.30 per unit.
Among these projects, the Mylatti BESS is the largest, with a capacity of 125 MW and 500 MWh. The Power Sale Agreement (PSA) for the project was signed on April 10, 2025, and it received approval from the Kerala State Electricity Regulatory Commission (KSERC) on July 31, 2025. The project is expected to be commissioned on October 16, 2026. It has a capacity charge of Rs. 4.41 lakh per MW per month and is being monitored by Executive Engineer Sri. Sivadas S.
The remaining four projects include Sreekantapuram with a capacity of 40 MW and 160 MWh, Mulleria with 15 MW and 60 MWh, Areacode with 30 MW and 120 MWh, and Pothencode with 40 MW and 160 MWh. Their PSAs were signed on July 14, 2025, and KSERC approved all four projects on August 6, 2025. These projects are scheduled to begin operations on October 15, 2026. Their monthly capacity charges range from Rs. 4.34 lakh to Rs. 4.57 lakh per MW. All five projects have received Viability Gap Funding of Rs. 27 lakh per MU. The projects are being supervised by designated officials, including Sri. Babu Prajith K.P., Sri. Dheepu Chandran, Sri. Bijumon M.A., and Sri. Manoj.
In addition to these in-state developments, Kerala has also contracted battery storage capacity through SECI to further strengthen its power system. This interstate project has a total BESS capacity of 500 MW, with 500 MWh reserved for peak-hour supply. The PSA was signed on September 12, 2024, and KSERC approved it on January 17, 2025.
The SECI project is expected to be commissioned by September 27, 2026. It will provide 250 MW of electricity for two hours every day during peak demand at a single-part tariff of Rs. 3.488 per unit, including the trading margin. The project is being monitored by Deputy Chief Engineer Sri. Shibu K. Joseph. Together, the state-based and SECI-backed battery storage projects are expected to significantly improve Kerala’s energy security, increase grid flexibility, and ensure a more reliable electricity supply during periods of high demand.
Subscribe to get the latest posts sent to your email.
){kind=link}