No disagreement with Chief Minister over electricity purchase: Sunny Joseph

Kerala Power Minister Sunny Joseph stated on Friday that there are no disagreements between him and Chief Minister V.D. Satyanath Pillai regarding the issue of electricity purchase. He clarified that the government will continue its efforts to procure electricity through long-term contracts to meet the state's growing power demand.

Responding to queries from journalists in Kannur, Minister Joseph stated that there is currently no immediate electricity crisis, but the government cannot ignore the increasing demand, especially during the summer months. He further clarified that the state has not entered into any agreement with the private power procurement platform GNA and there are currently no immediate plans to enter into such deals.

Earlier, Chief Minister V.D. Satyanath Pillai had claimed that the state wants to purchase electricity from GNA at lower prices, although he later clarified that no agreement had been made. When asked about disagreements with the Chief Minister regarding electricity purchase through GNA, Sunny Joseph denied them. According to a report by The Hindu, he said, "No decision was taken at that time. The media misrepresented it. Everything has been resolved through discussion."

Regarding the GNA arrangement, the Minister stated that the government has examined the benefits and practical difficulties of purchasing electricity through this private platform. Although its rates appeared lower compared to other sources, certain practical issues, such as the need to purchase electricity during both day and night, were encountered in this arrangement. He added that the Chief Minister has been informed about these differences and difficulties, hence no agreement will be made with GNA at present.

The Minister dismissed allegations that the Kerala State Electricity Board (KSEB) had exaggerated the possibility of an electricity crisis to push the proposed agreement forward. He said the department had merely emphasised the growing electricity requirement. Minister Joseph stated that instead of waiting for a serious shortage to occur, it is necessary to plan for future electricity needs.

He further stated that the electricity situation has seen a temporary improvement due to rainfall in the state, cold weather in North India, and Diwali holidays, which led to a decrease in demand. However, this does not mean that the electricity crisis is resolved. Efforts to procure more electricity to meet long-term summer requirements are ongoing.

The Minister informed that following a discussion held in New Delhi about a month ago between the Chief Minister, himself, and the Chairman of NTPC, the state has secured an additional 540 MW of electricity from NTPC. NTPC has agreed to provide 270 MW and another 270 MW of electricity, which will provide the state with electricity at relatively lower prices. This arrangement will provide relief, but more long-term contracts are still needed for summer demand.

Electricity demand in Kerala is constantly increasing. Compared to last year, there has been an increase of approximately 1,000 MW in demand, and demand has doubled in the last decade. However, electricity production in the state has not increased at the same pace. The Minister stated that in the last 10 years, electricity demand has increased by approximately 2,500 MW, while production has increased by only 150 MW. He noted that Kerala is largely dependent on hydropower projects for electricity production. Along with this, he explained that an increase in rooftop solar production should not be considered a complete solution to the state's electricity needs.