CHAPTER 7

ENERGY DEVELOPMENT

National Scenario

Energy is a basic requirement for all facets of our life, it is also a basic human need and is
a critical infrastructure on which the Socio – economic development of the country relies.
Colonial India got little attention and less benefit; fossil fuels such as petrol were scarce and
expensive for people. In 1947, the nation's electricity supply came from a sparse collection of
stations with a total installed capacity of 1360 MW. During the tenth five year plan, 41,000 MW
of the new capacity was to have come up; but merely half that target was achieved, leaving the
national grid about10 percent short of capacity. Census 2001 found that over 72 percent of
households in the country used firewood, cowdung or farm waste to cook, leaving their kitchens
smoky and unhealthy. Only 33 million had recourse to liquefied petroleum gas, the clean fuel.
7.2 India's hydroelectric potential is estimated to be 84000 MW. At present, generation
capacity is about 34,680 MW. If India can achieve the full potential of 84000 MW; it will
generate about 400 million kwh, two percent of the desired total energy supply.
7.3 On the other side, India has abundant and cheap coal reserves and coal accounts for 53
percent of the present commercial energy supply. Therefore, coal remains to dominate the energy
mix.

7.4 The nuclear power is a clean and non-polluting energy. In India, total installed capacity
of the nuclear power is about 4120 MW, which contributes 3 percentage of the total installed
capacity in India.
7.5 Total Installed Capacity of the Power Sector in India as on 30.11.2007 is depicted in the
Table 7.1
Table 7.1
Total Installed Capacity in India
Sl.No. Fuel MW Percentage
1 Thermal
(a) Coal 73492.38 53.2
(b) Gas 14581.71 10.1
(c) Oil 1201.75 0.9
2 Hydro 34,680.76 25.2
3 Nuclear 4120.00 3.1
4 Renewable 10175.03 7.5
Total 138251.63 100
Source: Ministry of Power: Government of India

7.6 The installed power generation capacity in the country has increased from 124271.97 MW as
on 31.5.2006 to 138251.63 MW as on 30.11.2007. The capacity addition during the period was
13979.66 MW. Out of total Installed capacity of 138251.63 MW, a major chunk of the installed
capacity in the power sector was from State sector. The contribution was 72,231.82 MW. This
formed 52.3 percentage. Contribution of each sector to the national grid as on 30.11.2007 is
shown in the table 7. 2.
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Table 7.2
Sectoral Contribution
Sl.
Sector MW Percentage
No.
1 State sector 72231.82 52.3
2 Central sector 47350.99 34.0
3 Private sector 18668.82 13.7
Total 138251.63 100.00
Source: Ministry of Power, Government of India

Nuclear Energy Source

7.7 Uranium is an important raw material to develop the nuclear energy. In India, Uranium
reserves are limited. What compounds the problem is that setting up heavy water plant, fast
breeder rector and other equipments pertaining to the nuclear energy plant involve a lot of
investment without adequate returns. In this context Koodamkulam Atomic power station
(2x1000MW) in Tamilnadu, is a major boon, mainly because Russia gives all technical support
towards this project. If this project comes into force, 2000 MW of power can be added to the
national grid. By 2020, India hopes to produce 20000 MW of nuclear power. This will be a
meagre 7 percent of our aggregate installed capacity.

Energy Sector in Kerala

7.8 The need for equipping Kerala Power System to meet the demands of the expected
explosive growth in the industrial sector is well recognized. The expected growth in modern areas
like I.T sector calls for increased quality and reliability of the system. The need of the hour is a
quality improvement to meet the demands of the industrial field and match the modern consumer
expectation. In Kerala, Kerala State Electricity Board (KSEB) is the sole organization to supply
the power to different categories of the consumers. KSEB has a major role in setting of adequate
generation capacity as well as transmission and distribution network. As per section 172(a) of the
Electricity Act 2003, KSEB has been continuing as the State Transmission Utility (STU) and
Distribution Licensee. KSEB aims at providing electricity for all at affordable price and meet the
future demand during the Eleventh Plan period by developing Hydro Electric projects in the State
and ensuring share from upcoming interstate projects. Integrated functioning of all the key
sectors viz. Generation, Transmission and Distribution is imperative in this background.

Generation
7.9 Increasing the capacity of hydel generation by harnessing the untapped potential in the
State without much disturbances to the forest and its bio-reservoirs is the key strategy adopted by
the KSEB. Hydel energy being green energy and low cost one, the KSEB continues to
concentrate on adding capacity of hydel generation.

7.10 There are 24 Hydel projects owned by KSEB and 2 by private agencies. The wind farm
located at Kanjikkode with an installed capacity of 2.025 MW is the only one of its kind utilizing
the non-conventional energy sources. The Brahmapuram and Kozhikode Thermal Power Plants
with an installed capacity of 106.6 MW and 128 MW respectively uses LSHS as fuel and are
owned by the KSEB.
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7.11 The Kerala State Electricity Board has an installed capacity of 2087.23 MW on its own
with another 570.016 MW contributed by NTPC and private sector producers taking the total
installed capacity of State to 2657.25 MW.

7.12 The plants that are catering to the energy demands of the State are the Kayamkulam plant
of NTPC with an installed capacity of 359.58 MW and the BSES, Kochi Plant with an installed
capacity of 157.00 MW. The KPCL, Kasaragod with capacity of 20.44MW is the latest entrant in
the Independent Power Project (IPP) segment of generation. The balance is met from import of
power from the central sector.
Details of energy source and its installed capacity in Kerala are shown in the Table 7.3

Table 7.3
Energy Source in Kerala as on 31.03.2007
Sl. Installed Capacity
No. Source of Energy
(MW)
1 Hydel : KSEB 1850.60
2 Thermal : KSEB 234.60
3 Wind : KSEB 2.03
4 NTPC 359.58
5 Thermal : IPP 177.44
6 Hydel : Captive 33.00
Total 2657.25
Source:KSEB

7.13 Figure 7.1 also highlights total Installed Capacity in Kerala from hydel, thermal and
wind.

Fig: 7.1

Wind
2.03
Thermal
771.62

Hydel
1883.6

Installed Capacity (MW)

7.14 Total installed capacity went up by 0.49 percent to 2657.25 MW as on 31.3.2007, from
2644.25 MW in 31.3.2006. Only 13 MW of the power has been added in the Kerala grid, which
was made possible through renovation and modernization of Neriamangalam and Sabarigiri
hydroelectric projects. No other project has been commissioned during 2006 – 07. Many of the
schemes initiated by KSEB, such as Kuttiar Diversion Scheme (37 MU), Kuttiadi Tail Race
Scheme (3.75 MW), Kuttiadi Additional Extension Scheme (100 MW), Neriamangalam
 213

Extension Scheme (25 MW) are progressing, these are expected to be commissioned in 2007 – 08
itself. Details of ongoing generation project and completed projects in Kerala are shown in
Appendix7.2 and 7.3. Projects in the pipeline are shown in the Table 7.4
Table 7.4
Projects in the pipeline
Energy
Sl. Installed
Name of the Project Potential(
No Capacity(MW)
MU)
1 Athirapally 163.00 233.00
2 Sengulam Augmentation 85.00
3 Sengulam Tailrace 3.60 12.57
4 Chathankottunada:II 6.00 14.67
5 Poozhithodu 4.80 10.97
6 Vilangad 7.50 22.63
7 Thottiar 40.00 99.00
8 Mankulam 40.00 82.00
9 Pasukkadavu 2.00 5.36
10 Maniyar tailrace 4.00 16.73
11 Perumthenaruvi 6.00 25.77
Source: KSEB

7.15 Once again nature has been kind enough to provide bountiful monsoon which helped the
KSEB to generate more hydel power. The board could manage the power supply situation with
higher quantum of cheaper hydropower. This also helped Board to earn substantial revenue by
utilizing the features of the Availability Based Tariff (ABT) by generating more power during
day peak periods thereby availing higher Tariff under Unscheduled Interchange (UI). With the
strategic decision, Board also could sell excess power to the traders in the Central Public Sector.
During the year peak demand reached 2742 MW and the normal demand reached 2034 MW. The
year also witnessed the record consumption in a day viz. 47.81 MU on 23.3.2007 and record
monthly consumption 1413.44 MU in March 2007. The increase in demand and consumption is
a definite and encouraging indication of the things to come and KSEB is taking various measures
such as tap hydel potential to the extent possible and avail power from Central Sector units to
meet the increasing demand.
7.16 Share from Central Sector Power Stations is given in the Table 7.5
Table 7. 5
Share from Central Sector Power Stations
Total Capacity Allocated
Sl. Rate in
Power Plant in operation Capacity to
No. Rs.
(MW) KSEB (MW)
1 Talchar - 11 2000 427.00 0.64
2 NLC II - Stage I 630 65.90 1.20
3 NLC II – State II 840 93.83 1.20
4 NLC - Expansion 420 68.71 1.14
5 NTPC (RSTPS) 2100 260.40 1.04
6 NTPC (RSTPS) NCW 500 64.75 1.04
7 MAPS 340 23.89 1.98
8 KAIGA 440 41.32 3.01
Total 1048.80
Source: KSEB
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7.17 Meanwhile, Government of India has unilaterally decided to cut down the State’s share
from the Central grid. This impedes KSEB’s commitments to meet growing power requirement
from peak and off peak seasons.

Coal Based Power Project

7.18 Baitarni West Coal block has been jointly allotted to Orissa Hydro Power Company
(OHPC), KSEB and Gujarat Power Corporation Ltd (GPCL). MOU has been signed between the
allottees on 12.11.2007 for the formation of SPV/Joint Venture Company for the development of
mines and mining of coal from Baitarni West Coal Block. About 60.21 crore tonnes coal reserve
has been identified at the proposed block and it can be utilized by these states. Kerala can also
generate 1000 MW of power from this project. The growth of power system in Kerala is shown in
Table 7.6

Table 7.6
Growth of Power System in Kerala
Particulars/ 2007(up to
2005 2006
Year 31-08-2007)
Installed 2644 2657 2657
Capacity(MW)
Annual 10270 11331 4850
Sales(MU)
Per Capita 427* 465* 467#
Concumption
(Kwh)
EHT.Lines- 10292 10399 10447
Ctkm
Sub Stations- 256 271** 275**
Nos
HT-lines-Ctkm 34596 36415 36961
LT-Lines-Ctkm 217899 226128 229458
Distribution 37724 39872 40718
Transformers-
Nos
Revenue from 3590.11 4286.13 1648.62
Sale of Power –
Rs.crore
Source: KSEB
*Population based on 2001Census
**Includes 1no 400KV Pallippuram S/S of PGCIL
#Estimated value based on present consumption pattern

Power Purchase Agreement (PPA)

7.19 KSEB has signed Power Purchase Agreement (PPA) with National Thermal Power
Corporation (NTPC) for State's share of electricity from the proposed second stage of the NTPC'S
mega thermal power project at Simhadri in Andhra Pradesh. As per agreement Kerala will get
200 MW from Simhadri Coal based Power Project. The coal as a fuel and enjoying exemption
from the excise duty and income tax under the union government' s Mega Power Policy, would
cost Kerala only about Rs. 2.50. The tenure of the agreement is 25 years.
 215

7.20 On the otherhand, KSEB has made attempts to obtain power from the proposed Ultra
Mega Power Projects (UMPP) for 1200 MW from Tadri (400 MW) in Karnataka, Akalthara
(200MW) in Chattisgarh, Krishnapatnam (400 MW) in Andhrapradesh and Orissa (200 MW).
But only a tentative allocation of 200 MW power from the prposed Tadri, Karnataka has been
given to Kerala. Kerala has been allocated 300 MW from Tamilnadu UMPP.

7.21 The cost of power purchase and generation has been arrived at assuming a normal rainfall
in 2007 – 08. During 2006 – 07, State has received sufficient rainfall. On account of good
monsoon, the board has taken necessary steps to avoid spilling of dams and the Board could sell
the additional power at competitive rates through M/s NTPC Vydyuth Vypar Nigam Ltd
(NVVN) and Power Trading Corporation (PTC). Due to the high price of Naphtha & LSHS,
KSEB has not been able to schedule full generation of energy from BSES Kochi, KPCL
Kasaragode and NTPC Kayamkulam and from the KSEB'S own power stations BDPP and
KDPP. However, considering the increase in peak load requirements and also for system
reliability, the KSEB proposes to operate 40 MW from BDPP and 60 MW from KDPP during
peak hours in 2007 – 08.The Ratio of Hydro – Thermal mix in Kerala is shown in Table: 7.7

Table 7.7
Hydro – Thermal Mix in Kerala from 2002 – 03 to 2006 – 07
Thermal(M
Hydel(
Year Hydel(MU) U)+Import( Total(MU) Thermal(%)
%)
MU)
2002-03 4819 7932 12751 38% 62%
2003-04 3910 8545 12455 31% 69%
2004-05 6134 6314 12448 49% 51%
2005-06 7450 6169 13619 55% 45%
2006-07 7497 7301 14798 51% 49%
Source:KSEB

7.22 According to the report on Seventeenth Electric Power Survey of India, Power requirement
in Kerala is substantially increased every year. In the year 2006 – 07, 11147 million kwh of
power has been utilized. It reveals that 8.5 percent of power additionally utilized during 2006 –
07 over the corresponding period of previous year. In the coming five years total utility will be
hiked by 7 to 35 percentage. KSEB have already initiated steps for new power projects to meet
growing power demand. Details of power consumption in Southern State are shown in the Table:
7.8
Table 7.8
Electrical Energy Consumption (in Million kwh)
Sl. State
2004 - 05 2005 - 06 2006 – 07
No.
1 Kerala 9360 10272 11147
2 Tamilnadu 41286 43780 46935
3 AP 37620 41246 45134
4 Karnataka 24781 26518 28747
Source: Seventeenth Electric Power Survey of India
 216

Transmission

7.23 Transmission network in Kerala is connected to the Southern Region Transmission

System through two 400KV double circuit lines at Madakkathara and Trivandrum. There are five
major inter state transmission lines. The major substations include one 400 KV. Substation and
fourteen 220 KV substations and four 220 KV substations under construction. The main grid
comprises of the 220 KV system. The present peak load demand is increased up to 2800MW.

7.24 The transmission network has been expanded by adding 106 Kms of EHT lines
constructed during 2006 – 07.

7.25 The targets and achievements of Transmission infrastructure during 2006 – 07 is shown
in the Table7.9
Table 7.9
Transmission Infrastructure 2006 – 07
Sl. Percentage of
Item Target Unit Achievement Unit
No. Achievement
440KV
1 0 Nos 0 Nos 0
Substations
220KV
2 4 Nos 0 Nos 0
Substations
110KV
3 10 Nos 2 Nos 20
Substations
66KV
4 4 Nos 3 Nos 75
Substations
33KV
5 47 Nos 10 Nos 21.28%
Substations
Source : KSEB

7.26 The above table reveals that the target of transmission infrastructure could not be
achieved. No 220KV substation was constructed during 2006 – 07 against the target of four
numbers. Only 2 numbers of 110KV substations were constructed during the tenure against its
target of 10 nos. Imperative performance has not been shown in the case of construction of 66KV
and 33KV substations during 2006 – 07 against their targets.

7.27 The transmission facilities like substations and transmission lines as on 31.8.2007 are
given in the Table 7.10
Table 7.10
Transmission facilities in Kerala As on 31.8.2007
Capacity Sub-stations (Nos) Lines (Km)
400KV 2(1.PGCIL)
220KV 14 2642
110KV 112 3934
66KV 86 3008
33KV 61 706
22KV 157
Total 275 10447
Source: KSEB
 217

Transmission Plan

7.28 Enhancing load handling capacity of the transmission system, avoiding

bottlenecks/congestion in power flow, adequate redundancy to meet the system exigencies,
ensuring power evacuation from the new projects, ensuring availability of power in every part of
State etc. are the core objective of the State Transmission Plan. Being the State Transmission
Utility, KSEB is statutorily bound to discharge all functions of planning and co-ordination
relating to intra-state Transmission system.

Load Dispatch Activities

7.29 The State load dispatch centre schedules generation from various generating stations,
central sector stations and IPP depending on the load condition and the real time frequency. The
Load Dispatch Centre also monitors the transmission system and issues sanction for shutdowns.
Water availability, inflow consumption, demand etc are daily collected and monitored in the Load
Dispatch Stations.

Major Activities
Daily Scheduling Generation
Short term & Long term planning of generation schedule
Economic load dispatching
Grid discipline
Co-ordination with neighbour grid
Maintenance of the communication net work, communication equipments and
SCADA system etc.
AT&C Loss reduction

7.30 Since 2001 – 02, the Board has been able to achieve significant reduction of losses in the
system by replacement of faulty meters and electromechanical meters by electronic meters, anti-
theft activities, system improvement schemes, energy audit and computerization of billing etc.

7.31 The total loss in the system in 2001 – 02 was 32.15% which has been reduced to 23.43%
by the close of 2006 – 07. The AT&C losses in the system, reduction achieved and financial
savings accrued to the Board are given in the table7.11

TABLE 7.11
Impact of AT&C loss reduction
Total Energy Impact of loss
generated and T&D reduction (estimate)
Energy
Year power Loss Savings Amount
Sold(MU)
purchased by (%) in MU .Rs.
KSEB (MU) Crore
2001-02 8667.32 12773.37 32.15
2002-03 8873.30 12751.14 30.41 221.06 61.90
2003-04 8910.84 12455.37 28.46 243.36 75.44
2004-05 9384.40 12719.77 26.22 284.65 88.53
2005-06 10269.80 13618.96 24.59 221.99 68.59
2006-07 11331.00 14798.06 23.43 205.62 69.09
Source:KSEB
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7.32 The above table depicts that despite marginal increase in consumption of energy over the
years, the total quantum of energy generated and purchased remained more or less at the same
level between 2001 – 02 and 2004 – 05 due to progressive reduction in the loss and saving of
energy which ranged from 221.06 MU to 284.65 MU per years. Thus, by way of AT&C loss
reduction there has been saving of Rs.61.9 crore in 2002 –03, Rs. 75.44 crore during 2003 – 04
Rs.88.53 crore in 2004 – 05, Rs. 68.59 crore in 2005 – 06 and 69.09 crore in 2006 – 07.
Transmissions Distribution loss has also declined considerably in the consecutive year from 2001
– 02 to 2006 – 07. The seventeenth electric power survey of India anticipates that T&D loss
would be reduced to 15% by the year 2011-12 from 23.43 percent during 2006-07. Figure 7.2
highlights reduction in the T&D loss over the years.

Figure: 7.2
35
32.15
30.41
30 28.46
26.22
25 24.59
T&D Loss (%)

20 23.43

15

10

0
2001-02

2002-03

2003-04

2004-05

2005-06

2006-07
Year
Transmission&Distribution loss

Distribution
7.33 Electrifying all households is a national target in the power sector. At present 66.79
lakhs households in Kerala are electrified. However, a recent survey on various socio economic
conditions in Kerala put the percentage of electrified households in Kerala as 85%, which is well
above the national average. Thus roughly around 10-11 lakhs households, mostly in the rural
areas remain to be electrified in Kerala. The RGGVY Scheme launched by Government of India
is expected to cover a large portion of these areas.
7.34 The distribution system is being modernized by computerization of different activities in the
sector. Computerization work of billing and revenue collection in all section offices is in
progress. The target and achievement in the distribution sector is shown in Table7.12
Table 7.12
Targets and Achievements of distribution infrastructure during 2006 – 07
Sl. Percentage of
Item Target Unit Achievement Unit
No. Achievement
1 11 KV lines 2000 Kms 1819 Kms 90.95
Distribution
2 3000 Nos 2148 Nos 71.60
Transformers
3 L.T. Lines 10000 Kms 8229 Kms 82.29
Service
4 5.00 lakhs 4.79 Lakhs 95.80
connections
Source : KSEB
 219

7.35 In addition to above, composition of category of consumers as on 31-10-2007 is shown in

figure 7.3
Figure 7.3

Category of Consumers as on 31-10-2007

Agriculture
Industrial 5%
1%

Commercial
15%

Domestic
79%

National Electricity Policy

7.36 In compliance with section 3 of the Electricity Act 2003, the Central Government has
notified the national electricity policy. It aims and objectives are follows:
Access to electricity – Available for all households in next five years
Availability of power- Demand to be fully met by 2012. Energy and peaking
shortages to be overcome and adequate spinning reserve to be available.
Supply and reliable quality power of specified standards in an efficient manner
and at reasonable rates.
Per capita availability of electricity to be increased to over 1000 units by 2012.
Minimum life line consumption of 1unit/household/day as a merit good by years
2012.
Financial turn around and commercial viability of Electricity sector.
Protection of consumers' interests.

7.37 In line with the above objectives, several reforms were made by the KSEB, which are
summarized below:

Power Sector Reforms

Improve consumer satisfaction

(a) Trouble cell management system
7.38 The Board has introduced centralized trouble cell management system and mobile service
units for attending to break down and for restoring uninterrupted power supplies in the major
cities in Kerala.

(b) Distribution Automation Project

7.39 KSEB has introduced distribution automation project by installation of 120 RMU and
laying of 120 KM of 11 KV XPLE cables.
 220

(c) Computerization of Billing and Revenue Collection

7.40 Board has already completed computerization of LT billing, cash collection and accounting
in 184 section offices. Data entry work in the balance 426 is in progress.
The H.T&E.H.T billing has also been computerized.

(d) Simplification of procedure for service connection

7.41 As part of mitigating complaints on metering, consumers themselves have been permitted
to purchase energy meters of their own for installation after checking by the Electrical
Inspectorate.

7.42 The District Advisory Committee has been constituted in all the districts and considering
the consumer density and geographical area, 80 new electrical section offices have been formed
throughout the State to facilitate better service to the consumers.

(e) Additional Service Connections

7.43 The State Government and KSEB are taking efforts to provide additional service
connections to 5 lakh consumers ever year. 5.48 lakh connections could be given during the year
2005 – 06 and 4.79 lakhs connection during 2006 – 07. Board has also given 3.35 lakh
connections to BPL category over the last four-years.

7.44 Board has also taken up the prestigious schemes such as APDRP and RGGVY to strengthen
the transmission and distribution net work in Kerala.

(f) Revenue Gap

7.45 Revenue gap has been reduced considerably for the past 3 –6 years, during 2006 – 07
revenue gap was recorded all time low about 142.23 crores compared with the previous years.
(g) Anti Power Theft Squad (APTS) was active during the years with as many as 16221
inspections throughout the State. An amount of Rs. 11.04 crores was realized against an
assessment of Rs.12.73 crore.
(h) Prudent Power management initiatives have resulted in a situation wherein the State was
free from power cuts and load shedding. Voltage & frequency of the power system was well
within the specified limits. The availability of EHT & HT feeders was about 98% all over the
State.

Developmental Activities
7.46 KSEB has undertaken various developmental activities in the distribution sector. In
respect of MPLADS and SDF for MLA's, total 1074 and 3143 works were carried out. Under the
peoples plan campaign, 38887 works were completed till 31.8.2007. These details are given in
the tables 7.13, 7.14 and 7.15

Table 7.13
Works under MPLADS as on 31-08-2007
Amount of Works
Total no of Works
Region executed
Works Completed
(Rs.lakhs)
South 392 377 321.20
Central 233 219 325
North 514 478 811.19
Total 1139 1074 1457.39
Source:KSEB
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Table 7.14
Works under SDF for MLA’s as on 31-8-2007
Amount of Works
Total no of Works
Region executed
Works Completed
(Rs.lakhs)
South 1048 979 642.65
Central 775 698 528.13
North 1693 1466 1027.36
Total 3516 3143 2198.14
Source: KSEB

Table 7.15
Works under Peoples Campaign Programme
Total no of Works
Region
Works Completed
South 14386 13439
Central 11439 10625
North 16097 14823
Total 41922 38887
Source:KSEB

Accelerated Power Development and Reforms Programme (APDRP)

7.47 APDRP, a major initiative to bring about reforms in power distribution, has been initiated
by the Ministry of Power, Government of India, for restoring the commercial viability of the
distribution sector. The funds provided for the programme are utilized for upgradation and
modernisation of sub transmission and distribution networks.

7.48 Works execution of 46 town scheme amounting Rs.341.81 crores have been sanctioned for
installation of energy meters, construction and re-conducting of 11KV lines, installation of 100
KVA transformers, computerization of billing etc so as to reduce T&D loss and for new service
connections and energy accounting. As on 31.3.2007 total expenditure was 277.13 crores.

7.49 In addition to town scheme, KSEB is also implementing city scheme. Three special
schemes for the cities of Trivandrum, Kochi and Kozhikode with total outlay of Rs. 304 crores
have been sanctioned. The major works include construction of 11 KV lines (underground
cables), installation of distribution transformers, construction of substations, Distribution
Automation, SCADA, TCMS, GIS mapping etc and they are proposed to be completed by
31.10.2008. Expenditure incurred for the city scheme as on 31.3.2007 was Rs. 2.12 crores.
Financial Achievement of APDRP scheme is given in Table 7.16
 222

TABLE 7.16
Financial Achievement under APDRP Scheme as on 31.3.2007
Amount Counter Total
Amount Counter Total
Received funding amount
Name of Date of Scheme Released part amount
from from Received
Scheme Sanction Amount fromGoI funding spent by
GoKby KSEB by
to GOK received KSEB
KSEB fund KSEB
Circle 26-8-2002 148.24 72.00 143.11
Scheme (closed)
(3 Circle)
161.22
Town 27-11- 160.72 55.07 138.48
Scheme 2002 241.24 19.88 420.24
(7Towns)
New Town 01-10- 123.91 32.05 101.38
Scheme 2004
(26 towns) 40.66
New Town 4-4-2005 57.18 37.27
Scheme
(13 Towns)
New City 04-04- 304.00 46.69 46.69 46.69 2.12
Scheme 2005
(3 Cities)
Total 794.05 248.57 287.93 159.12 19.88 466.93 422.36
Source:KSEB

7.50 Meanwhile Government of India has released an amount of Rs. 12.89 crores to Kerala as
incentive component under APDRP for the State's Annual Plan 2007 – 08.

Rajiv Gandhi Grameen Vidyuthikarn Yojana (RGGVY)

7.51 RGGVY is a new programme of the Government of India for providing access of
electricity to all households within five years, which is one of the goals of National Common
Minimum Programme (NCMP).

7.52 The scheme includes creation of Village Electrification Infrastructure (VEI) for
electrification of households in unelectrified villages/habitations and for providing Rural
Electricity Distribution Backbone (REDB) package for construction of 33/11KV or 66/11KV
substations. 90% capital subsidy would be provided for the overall cost of the project under the
scheme and 10% as loan from Rural Electrification Corporation (REC) Ltd.

7.53 Government of India have agreed in principle for the project proposal of Kerala
amounting Rs. 438.36 crores. The proposals are

(a) (Village Electrification Infrastructure)

7.54 VEI scheme for electrification of 3578 unelectrifical habitations covers 930 revenue
villages of Kerala with an outlay of Rs. 343.78 crores. This package covers construction of 8353
 223

Kms of 11 KV line, installation of 9298 nos of 25 KVA Distribution Transformers, Construction

of 3955 Kms of LT line and effecting 46784 nos of service connections.

(b) Rural Electricity Distribution Backbone (REDB)

7.55 Package for construction of 7 nos of 66/11KV substations and 18 numbers of 33/11 KV
substations involves an outlay of Rs. 94. 57 crores. M/s REC Ltd, the funding agency of
Government of India, has sanctioned the RGGVY Scheme for implementation in the seven
districts viz. Kasaragod, Kannur, Kozhikode, Wayanad, Malappuram Palakkad and Idukki with
an outlay of Rs.221.75 crores. In Idukki district, Letter of Award has been issued to M/s. ICSA
(1) Ltd for execution of works and NTPC has been entrusted to execute the works in the
remaining six districts.

7.56 REC has also agreed to the proposal amounting Rs. 99.25 crores to execute the work in
Southern districts of Thiruvananthapuram, Kollam, Pathanamthitta, Kottayam, Alappuzha,
Ernakulam and Thrissur on May 2007.

Pending Tariff Arrears

7.57 Different Government, Public and Private Sector organizations are not remitting the
electricity tariff to KSEB promptly.

7.58 As on 31.3.2007 Rs. 1670.91 crores remained as outstanding dues to be collected. Kerala
Water Authority (KWA) is a highest defaulter and has to pay a staggering amount of Rs. 636.16
crores. KSEB has to collect the pending amount from the defaulters on warfooting so as to reduce
mounting burden faced by the KSEB. Details of arrears pending with different sectors are given
in Table 7.17
Table 7.17
Arrear Details of Consumers as on 31-3-2007
(Rs.crore)
Sl .
Name of Depts LT HT/EHT Total
No
1 Stat Govt Dept 114.89 14.00 128.89
2 State PSUs 339.80 493.37 833.17
3 Local Bodies 11.59 3.23 14.82
A Total 466.28 510.60 976.88
4 Central Govt Depts 0.21 0.29 0.50
5 Central Public 0.22 33.47 33.69
Sector Under
takings
6 Inter State Energy 0.00 19.73 19.73
7 Private Sector 61.51 578.60 640.11
b Total under Central 61.94 632.09 694.03
Govt, Inter State
&Private
Grand Total 528.21 1142.70 1670.91
Source: KSEB
 224

LNG Terminal at Kochi

7.59 The LNG terminal is a part of the newly created port based Special Economic Zone
(SEZ) at Kochi and Petronet LNG Ltd (PLL) is one of the co – developers of the SEZ. The LNG
receiving re-gasification terminal at Kochi would satisfy the enormous demand of natural gas for
power, fertilizers, petro – chemical and various other industries in Southern States. The terminal
is designed to handle a capacity of 5 Million Metric Tones Per Annum (MMTPA) of LNG.
However initially re-gasification facilities shall be installed for 2.5 MMTPA of LNG. Cochin
Port Trust has allocated 32 hectares of land at Puthuvypeen island for development of the LNG
terminal which includes construction of jetty, storage and re gasification facilities - including two
unloading arms, two full LNG tanks, vaporization system, utilities and off – site facilities. All the
pre – project activities including various on – shore and off shore services, investigation,
preparation of detailed feasibility report and basic engineering package, mathematical and
physical modeling studies, marine environment impact assessment study etc have been
completed. The company has also obtained various statutory approvals including environmental
clearance from the Ministry of Environment and forest. As per the project schedule, the
mechanical completion of the project will take 42 months from the date of award of contract. The
mechanical completion of the project is expected by June 2010. The approximate cost of the
project is Rs. 2500 crores. RGCCPP, Kayamkulam will be benefited most by way of conversion
to gas based generation.

Issues and Challenges faced by the KSEB

7.60 KSEB is facing some issues and challenges. The most pertinent among them are the
following:
• Environmental objections on new hydel projects.
• Absence of optimum utilisation of hydel potential in the State
• As fallout of the increasing price of petroleum products, the cost of thermal power is
skyrocketing. Obviously power purchase from thermal station is not affordable.
• Inadequate transmission facility leads to poor quality of power supply. Thick vegetation,
high density of population, constraints on availability of land etc are the major factors that
inhibit the drawing of transmission lines.
• Large amount of tariff arrears pending with Govt/PSU/Private sector.
• Industrial, HT, EHT consumption are almost stagnant.
• Forfeiting of power from Centre’s unallocated pool to Kerala.

Tariff Structure

7.61 Tariff shall apply to consumers to whom Kerala State Electricity Board has undertaken or
undertakes to supply electricity notwithstanding anything to the contrary contained in any
agreement entered into with any consumer earlier by Board/Government or any of the Tariff
Regulations or rules or orders.

7.62 Government had reduced the tariff by 20 paise per unit in respect of LT 1(a) Domestic
and LT-VII (A)&B commercial category of consumers. Later, Government have revoked this
order, and lifted the 20 paise concession for domestic category. The Board expects that this will
result in Rs.10crores additional realization per month.
 225

7.63 Board had estimated the aggregate sale of energy as 10064.55 MU for 2005 – 06 and
10796.34 MU for 2006 – 07. As a result overall average realization rate from tariff increased by
4.85% to 324 paise/unit including sale to NVVN/PTC in 2006 – 07 from 309 paise/unit in the
previous year. During 2006 – 07, KSEB sold energy at the rate of 499 and 564 paise/ unit to
NVVN/PTC and TNEB respectively. This is a major contributing factor for increasing overall
tariff in 2006-07.
7.64 The realisation efforts have been by and large successful. Average realization has gone
up to 340 paise/unit in 2006 – 07 from 326 paise/unit over the previous year. The sale to TNEB
was a major factor in the enhancement of the average realization. The details are shown in the
appendix 7.4 and 7.5

Finance
7.65 A major source of fund generation by the Board was borrowings from the various
financial institutions in the country. During 2006 – 07, Board borrowed Rs. 2637.90 crores. The
major lending agencies are LIC of India, IDBI, NEC, SIDBI and PFC. Centre and State
Governments are not providing any financial assistance/grant to the KSEB. However KSEB
benefits from the central projects of APDRP and RGGVY. Source of funding of KSEB is shown
in the Appendix 7.7.

Revenue Gap
7.66 Performance during 2006 – 07 indicate a continuing trend of improvement in the
financial and operating performance. This has been brought about by strategic initiatives for
improving the power management and overall productivity and efficiency coupled with cost
reduction efforts. As a result revenue deficit was reduced from Rs. 144.58 crores in 2005 – 06 to
Rs. 142.23 crores in 2006 – 07 (provisional). The total revenue during 2006 – 07 amounted to
Rs. 4416.17 crores and the total expenditure was Rs. 4558.40 crores. Revenue gap can be further
reduced and eventually even eliminated provided the defaulters are some how made to pay their
out standing tariff dues. Top priority need be given to efforts towards at making the defaulters
clear their liabilities in a time bound manner.

7.67 As on 30.09.2007, the revenue earned from sale of power and other receipts was Rs.
1956.02 crores for the year 2007 – 08. The expenditure towards purchase of power was Rs.
862.68 crores, the annual budgeted figure being Rs. 2020.39 crores. As part of prudent
management of the power system, the off take from the thermal plants in the State has been
minimized to the extent possible.
7.68 Details of Revenue earnings and Revenue gap are shown in the Table 7.18 &7.19
Table 7.18
Revenue Earnings
Sl.
Particulars 2004 – 05 2005 - 06 2006 - 07
No.
1 Energy sold (Mu)
(including sales outside 9384.40 10905.70 12377.89
the State)
2 Income (crores)
From Tariff 2917.36 3367.30 4009.70
Non Tariff 339.63 325.43 406.47
Total 3256.99 3692.73 4416.17
Source: KSEB
 226

Table 7.19
Revenue Gap
Income Total Revenue
Years
Tariff Non tariff Total Expenditure GAP
2004 - 05 2917.36 339.65 3257.01 3599.77 -342.76
2005 - 06 3367.30 325.43 3692.73 3837.32 -144.58
2006 – 07 4009.70 406.47 4416.17 4558.40 -142.23
(pro)
Source: KSEB

7.69 The average cost of supply per unit, revenue realization and the gap are given in the
Table No. 7.20 which indicates reduction of cost, increasing tend in revenue realization and
sizeable reduction in revenue gap over the years.

Table 7.20
Comparison of per unit cost of supply and realization
(Rs/Kwh)
Sl.
Particulars 2004 - 05 2005 - 06 2006 - 07
No.
1 Average cost of supply 3.84 3.52 3.55
2 Average revenue realised 3.47 3.39 3.36
Gap : 1 –2
0.37 0.13 0.19
Source: KSEB

Swapping of High cost Loans

7.70 The Board, by taking advantage of the prevailing interest rates in the financial market,
has swapped the high cost outstanding loans by borrowing fresh loans at low interest rates. So
far, KSEB has swapped Rs. 1733.40 crores of loans, saving an interest liability of Rs. 241.08
crore payable during the rest of the repayment period of the loans and an annual saving of Rs.
39.54 crore. The details of the swapping are given in the Table7. 21

Table 7.21
Details of Swapping of high cost loans
(Amt in crores)
Item Amou Before Swapping After Swapping Premi Net Annual
Year

nt Interest Amount Interest Amou um Savings Net

% % nt Paid Savings
Non SLR Bond
300.00 15.25 187.58 7.50 54.72 132.86 26.57
VI
REC Ist Stage 649.43 13-15 278.95 10.50 226.89 20.21 31.85 3.98
REC II nd
118.97 13.00 39.97 10.00 29.36 2.96 7.65 0.85
Stage
2003-04

LIC 187.41 14.00 102.98 11.00 80.91 7.80 14.27 1.10

PFC Ist Stage 100.00 15-17 67.26 8.5-10 49.98 8.55 8.73 0.97
PFC 2nd Stage 18.13 13.5-15 7.21 8.5 5.74 0.94 0.53 0.08
Loan taken
125.00 13.75 48.35 11.25 25.47 22.88 2.29
from KDPP
Total 1498.94 732.30 473.07 40.46 218.77 35.84
 227

Premature
redumption-
6.48 13.25 2.22 6.50 1.09 1.13 0.37
2004-05 Non-SLR
Bonds(BondIX)
REC Short 48.77 9.75 3.23 6.50 1.71 0.42 1.10 1.10
term loan
Total 55.25 5.45 2.80 0.42 2.23 1.47
Premature
redumption
Non SLR 1.95 13.75 0.27 6.20 0.12 0.15 0.15
Bonds
(BondVII)
Premature
redumption
Non SLR 1.60 13.00 0.21 6.25 0.10 0.11 0.07
Bonds
(BondVII-a
2005-06

Premature
redumption
Non SLR 10.31 11.40 3.41 6.25 1.87 1.54 0.39
Bonds
(BondX-a)
Premature
redumption
Non SLR 0.05 11.00 0.03 6.25 0.02 0.01
Bonds
(BondX-b)
LIC StageII
145.20 11.00 68.01 9.00 55.64 4.65 7.55 0.58
(2nd time)
Total 159.11 71.93 57.75 4.65 9.36 1.19
Premature
redumption
Non-SLR 0.10 11.40 0.03 Board’s own fund 0.03
Bonds
2006-07

(BondXa)
Closure of loan
from SBT for
20.00 9.00 10.69 Board’s own fund 10.69 1.04
Neriamangala
m
Total 20.10 10.72 10.72 1.04
Grand Total 1733.40 820.40 533.62 45.53 241.08 39.54
Source:KSEB

7.71 Due to swapping of high cost loans, reduction in outstanding loans, fresh borrowings
from least cost sources and reduction in cost of raising finance by way of dispensing with
government guarantee, upfront payments, commitment changes etc, the Board has substantially
reduced the interest burden.
 228

Box 7. 1
KSEB’s least cost Methodology
• Increase in the Sale of Energy
• Effecting disconnection/dismantling and Revenue
Recovery Action against defaulters for improving
revenue realization
• Reducing the commercial losses by replacement
of faulty and sluggish meters by electronic meters
• Conducting special revenue recovery adalaths at
the level of distribution circles
• One time settlement option to settle long pending
HT/EHT dues
• Tapping the non-Tariff income sources
• Intensification of anti power theft activities
• Prudent planning of generation so as to get
maximum advantage of UI and sale of power to
other utilities at competitive rates.

Aggregate Revenue Requirement (ARR)

7.72 KSEB has submitted its ARR for 2007 – 08 to the KSERC. It stated that Rs. 430.11
crores is expected to Revenue Gap limiting Rs. 4545.02 crores of ARR (Exp) and total income
Rs. 4114.91 crores. During 2006 – 07 actual revenue gap was reduced by Rs. 142.24 crores by
way of increased tariff and non-tariff income. Earlier KSEB estimated the total income as Rs.
3694.73 crores. Later this figure was increased substantially by Rs. 4416.17 crores with robust
tariff and non-tariff collection. These details reflects in the Table 7.22
Table 7.22
Summary of Aggregate Revenue Requirement (ARR) 2007 – 08
(Rs.Crore)
2005-06 2006-07 2007-08*
Items
ARR KSERC Actual ARR KSERC Actual ARR
Generation of 55.86 55.86 51.30 43.09 43.09 111.84 54.96
power
Purchase of 1492.77 1427.31 1533.92 1646.02 1646.02 1629.30 2020.39
Power
Interest & 617.68 583.60 565.81 529.76 513.64 429.34 458.61
Finance Charges
Depreciation 430.35 235.65 392.65 424.32 247.43 405.98 460.42
Employee Cost 939.43 845.89 862.52 882.20 823.45 898.09 965.00
Repair& 89.09 85.25 93.82 96.50 90.00 110.99 101.47
Maintenance
Administration 98.27 90.70 113.85 108.85 105.00 135.10 125.63
&General
Expenses
Other Expenses 144.20 50.00 214.29 146.75 91.78 698.66 227.00
Gross 3867.65 3374.26 3828.16 3877.49 3560.41 4419.30 4413.48
Expenditure(A)
 229

Less:Expenses 158.95 138.77 43.61 43.90 43.90 43.19 37.63

Capitalised
Less:Interest 99.15 85.59 48.50 53.50 53.50 35.13 48.25
Capitalised
Net 3609.55 3149.90 3736.05 3780.09 3463.01 4340.99 4327.60
Expenditure(B)
Return on 217.42 217.42 101.26 217.42 217.42 217.42 217.42
Equity(RoE)
ARR(D)=(B)+(C) 3826.97 3367.32 3837.31 3997.51 3680.43 4558.41 4545.02
LessNon-Tariff 259.03 269.54 325.43 301.31 290.51 406.46 361.84
Income
Less:Revenue
from Tariff
(a)With in the 3075.69 3046.47 3170.79 3393.42 3424.55 3476.35 3753.07
State
(b)Outside the - - 196.51 - 150.00 533.36 -
State
Total Income 3334.72 3316.01 3692.73 3694.73 3865.06 4416.17 4114.91
RevenueGap 492.25 51.31 144.58 302.78 -184.63 142.24 430.11
*Projected figure while filing ARR for 2007-08
source:KSEB

Non Conventional Energy Programme

7.73 Our conventional energy reserves are finite and will only be available for a limited period
and that also with the steadily increasing prices. The fossil fuel use is also linked to
environmental problems, particularly global warming and climate change. The challenges of the
present energy scene offer us a window of opportunity for renewable energy sources. This will
reduce dependency on the fossil fuels. It becomes necessary to expand and diversify our energy
supply mix and make the process of development environment - friendly.

7.74 Such energy sources, as biomass and wood energy, geothermal energy, wind energy, tidal
energy and ocean energy are continuously and freely produced in nature and not exhaustible.
They are known as the renewable sources of energy.

7.75 The major non-conventional Energy sources relevant to Kerala are solar energy, Bio
energy, Wind energy, and Small Hydro Power and wave energy.

7.76 Agency for Non Conventional Energy and Rural Technology (ANERT) is the nodal
agency of the Ministry of Non Conventional Energy Sources (MNES) Government of India for
the State of Kerala.

Wind Energy Programme

7.77 Wind energy can be used for two major applications, firstly as wind mills for pumping
water for drinking as well as irrigation purposes and secondly as aero – generator for electricity
generation for domestic and industrial use. In addition to this, wind energy battery charges are
also available, which can store energy for lights, radio communication, and hospital equipment.
They are also used to power various emergency related equipment.
 230

7.78 ANERT has completed data collection at the two wind monitoring stations –
Pasavadigumbe of Kasaragode district and Pushpagiri of Iduki district. Installation of
two new wind monitoring stations, sanctioned by MNRE (under 2005 – 06 scheme) at
Chatayangulay of Palakkad and Talapoya of Wayanad are in progress.

7.79 ANERT was successful to take a lead role in solving the policy limitations. Technical and
administrative clearances could be accorded for establishing 7.2 MW in Agali, Palakkad and 9.75
MW in Ramakkalmedu, Idukki. The initial activities for establishing the 5 MW wind farm at
Ramakkalmedu as a joint project of KSEB and ANERT are still pending with KSEB. The details
of potential sites for Wind Power Generation in Kerala is shown in the Table 7.23

Table7.23
Potential Sites for Wind Power Generation in Kerala
Sl No Annual Mean Wind
Station District Power Density
At 20m At 30m
1 Kailasamedu Idukki 251 300
2 Kolahalamedu Idukki 146 174
3 Kulathummedu Idukki 180 239
4 Kuttikanam Idukki 140 181
5 Panchalimedu Idukki 254 285
6 Parampukettimedu Idukki 447 525
7 Pullikanam Idukki 178 187
8 Ramakkalmedu Idukki 532 534
9 Senapathi Idukki 192 233
10 Sakkulathumedu Idukki 531 533
11 Kanjikkode Palakkad 218 249
12 Kotamala Palakkad 154 187
13 Kottathara Palakkad 207 243
14 Nallasingam Palakkad 324 377
15 Tolanur Palakkad 115 157
16 Ponmudi Trivandrum 216 220
Source: KSEB

Bio Energy Programme

7.80 Biogas is generated by anaerobic digestion of biomass under certain conditions.It is a

gaseous mixture containing about 57.7% methane, 45-30% carbondioxide and traces of other
gasses such as ammonia, hydrogen sulphide, oxygen etc. Cow – dung is one of the important raw
materials for production of biogas. It can be supplemented with other wastes like human excreta,
sheep and poultry droppings and other agricultural and industrial organic weeds.

7.81 ANERT had taken up implementation of community biogas plants in various institutions.
The achievement so far is 15 nos of community Biogas plants having a total capacity of 375m3
biogas generation per day in private sector institutions for thermal application, 3 biogas plants
having a total capacity of 65m3 biogas generation per day for electrical application
(approximately 15 KW installed capacity) and 9 plants with a total capacity of 170m3 per day (
thermal application) in government Hospitals.
 231

7.82 ANERT has also ventured into the new bioenergy utilization sector by taking up the high
– efficiency biomass direct combustion system for replacing fossil fuel consumption in industrial
establishment. The unit is being established in the Keral Ceramics, Kundara, and Kollam district
with financial support from ANERT.

7.83 This will replace the fossil fuel (SKO/Diesel) being used in their hot air generator with
cheaper and locally available biomass – empty palm fruit bunches which as disposed by Oil Palm
India Ltd as their process waste. This project would be commissioned this year itself and is
expected to be a model for other industries using fossil fuel for thermal applications.

Solar Photovoltaic Programme

7.84 SPV is an appropriate and cost- effective source of electricity for basic services and
amenities in an environmentally sensitive manner. Though identified as a costly option of
electricity generation, solar photovoltaic energy generation was proven to be the most convenient
source of energy for the electrification of remote, isolated – hamlets where the existing power
grid cannot be extended. During the previous five-year plans ANERT had utilized this
technology effectively to electrify about 20,000 remote backward class households. Banking on
this experience ANERT had submitted a proposal to MNRE for assistance to take up solar
electrification in other un-electrified remote backward class habitations also. Accordingly
ANERT obtained Central Financial Assistance (CFA) for solar electrification of 5760 remote
houses (73 backward classes colonies) spread in six districts of the state. ANERT had initiated
steps to carry out detailed site surveys and DPR preparation for this project.

Solar Thermal Energy Programme (STEP)

7.85 Solar thermal energy devices convert radiant energy of the sun into thermal energy for
different productive works. They have an additional advantage of being economical compared to
current fuel prices. Solar water heaters for domestic and industrial purpose, solar crop dryers and
solar cookers are devices propagated under this programme.

7.86 Solar Thermal Energy division had focused its activities in the last two quarters of the
current year, to complete the spill over projects of the previous year with a target of providing
Solar Water Heating systems in domestic and service sector, so as to replace or reduce the use of
electric geysers. The achievement so far in this sector for the current financial year is installation
of 468 nos of Domestic Solar Water Heaters (468000 LPD) and 15100 LPD of substantial Solar
Water Heaters. The institutional installations include 32 nos of 300 LPD SWH installed in
PHC/CHCs and 9 nos of SWHs having capacity of 500 LPD or more in Taluk/District/Medical
College Hospitals.

Improved Chulha Programme

7.87 Under this Programme ANERT had taken up installation of 70803 domestic chulha for
SC/ST families, 9132 domestic chulha for general / BPL families, 314 community chulha for
Anganwadi and 359 communitychulha for schools during2006-07. In continuation to this,
ANERT had installed 5478 domestic model improved chulhas in SC/ST household and 4014
chulhas in general category houses, 104 community model improved chulhas in anganwadies and
115chulhas in schools having noon meal programme.
 232

Table 7.24
Summary of achievement of Improved Chulha Programme
Domestic Chulha Community Chulha
District
SC/ST Gen/BPL Anganwadi Schools
Kasaragod 503 252 63 8
Kannur 457 1438 54 83
Wayanad 904 592 5 25
Kozhikode 1125 1295 115 87
Malappuram 471 831 12 28
Palakkad 2819 368 9 7
Thrissur 435 672 2 8
Ernakulam 198 800 0 20
Idukki 132 229 11 19
Alappuzha 333 1314 0 23
Kottayam 55 219 0 4
Pathanamthitta 67 163 1 23
Kollam 1654 442 22 16
Trivandrum 1650 517 20 8
Total 10803 9132 314 359
Source: ANERT

Micro Hydel Power Programme

7.88 The project taken up in 2006 – 07 for carrying out of the pre – feasibility site
investigation of the Micro Hydel Power (MHP) potential of Kannur district is completed. The
study covered about 80 sites spread along the western ghat ranges of the Kannur District. The
final report of this study is getting ready.

7.89 It is observed that while most of the sites are in the micro range suitable for providing
power to the near by habitations, a few sites are even suitable for supplying power to the grid at
least for part of the year. One of such sites Thenamkayam in Payyavoor Panchayat having a
potential of supplying 2MW power to the grid for about 7 months in a year is taken for model
DPR preparation. Civil Surveys of this site are completed and the DPR preparation is in progress.

7.90 One major limitation of most of the sites is that sufficient water for power generation will
be available up to 6-9 months only and hence it is observed that further studies on “MHP –
Biomass gasification Hybrid Power generation systems” are much relevant.

Total Energy Security Mission (TESM)

7.91 The major thrust in energy sector for the eleventh five-year plan is to achieve Total Energy
Security for the State. Accordingly the flagship project "Total Energy Security Mission” was
launched. The Mission Programme targets to achieve cent percent rural electrification as well as
effective fulfillment of other essential energy needs of the society.

7.92 The objectives of the Mission include the following

• Achieve cent percent household electrification in the state with a minimum

electrical energy availability of one unit per household per day.
 233

• Provide at least the energy equivalent of eight cylinders of liquid petroleum gas
to every household annually for cooking.
• Ensure sufficient energy availability for all rural entrepreneurs and community
institutions.
• Initiate demand side management, energy conservation and promote use of non-
conventional energy to achieve the above on a sustainable basis.

7.93 A State Level Mission Committee consisting of members of the State Planning Board,
Principal Secretaries of Power, Local Self Government and Planning, Directors of ANERT and
EMC has been formed for providing directions to these Mission activities. The Mission is
championed by ANERT and EMC, two leading agencies working on energy in the state along
with the Kerala State Electricity Board. The greatest strength of TESM is the grass root level
linkages that the Mission has achieved by virtue of its partnership with the local governments in
the State.

7.94 As per the GO (Rt) No: 69/2007/PD dated 26.03.2007, Government has constituted the
Mission Group for implementation of programmes in the Non-conventional Energy Sector.
Subsequently, the 7th Meeting of the TES Mission Group decided to organize District Level
Conventions of Local Body Leaders, Three Regional Training Programmes and Training of
Teachers and resource persons in every district in the month of May and instructed ANERT to
provide immediate expenses for the TESM programme from the carry over funds available at
ANERT, which will be reimbursed later from the plan fund allotted for the Mission.

7.95 Accordingly, ANERT organized the "State Level Orientation Workshop for district level
key functionaries" on 27 th April 2007 and the "State Level Review Meeting of the Co-ordination
Committee" on 19th May 2007 both at Kudumbasree Office Auditorium. Based on the
consultations of these meetings, Government has constituted the State Level Co-ordination
Committee of the Mission (GO (Rt) No 111/2007/PD dated 17.05.2007) and District Level Co-
ordination Committees in every district (GO (Rt) No. 1460/07/LSGD dated 21.05.2007).
7.96 The half-day District Level Conventions of Local Body Leaders in all districts were
conducted from 21st to 25th of May. Three Regional Training Programmes for the Resource
Person (or Trainer of Trainees) selected from each districts were held at Thrissur (on 23 rd May),
Thiruvananthapuram (on 24th May) and Kozhikode (on 25th May). Subsequently the District
Level Teachers Training for the team of two teachers selected from each Panchayat, Municipality
and Corporation as primary co-ordinators of the "Energy Environment Corp", were held as a one
day orientation training in every district on the 25th and 26th of May. This trained team of
activists took the lead in the conduct of a Lecture Session in all the Local Bodies of Kerala on 5th
June 2007, heralding the launch of "Total Energy Security Mission" as well as building up public
awareness on the relevance of Energy Security, Energy – Environment Linkages and the
Renewable Energy Potential of the State.
7.97 ANERT has also taken up steps for the Information, Education and Communication
activities for the Mission. As part of the IEC campaign Time Table Cards with messages of the
Mission were printed and distributed to the school students, Cinema Theatre Slides were prepared
and distributed to all major theatres in all districts, Video – Audio Sports on the Mission
Programme were prepared and telecasted through AIR and Doordarshan.

7.98 As a prelude to the formulation of projects at Local Self Government institution level, four
regional workshops were held at Thiruvananthapuram, Ernakulam, Palakkad, and Kozhikode for
introducing TES Mission Programmes and vision to the pilot Panchayats. At Present more than
 234

450 Local Self Government Institutions (LSGIs) have proposed projects for preparation of
detailed energy plans during the financial year 2007 – 08 itself and all the district panchayats
have proposed major renewable energy projects as part of the Mission programme. The Mission
also proposes to undertake a detailed survey of promising Small Hydro Electric Power projects in
the State.

Conservation of Energy

7.99 Energy Management Centre (EMC) is an autonomous body under the department of Power,
Government of Kerala. It is the nodal agency for enforcing the Energy Conservation Act 2001.It
is devoted to the Improvement of energy efficiency in the State, promotion of energy
conservation and encouraging development of technology related to energy through research and
training, demonstration programmes and awareness creation.
7.100 The following are the important activities of EMC during 2007.

1. EMC conducted a comparative study to evaluate the energy savings possible in a

ceiling fan by using both electronic as well as conventional (resistance type)
regulators and came to the conclusion that an average saving of 27% can be achieved
under reduced speed, if the fan is used along with an electronic type regulator against
a conventional type regulator. Though the initial cost of the electronic regulator is
high, the higher saving will pay back the investor in less than 10 months.
2. A study on parboiled rice cooking in Kerala has revealed the following:
• Majority of fuel used is firewood, hence the energy conservation will benefit
in protecting forest cover.
• Cooking the food with vessel closed saves time and energy when compared
to vessel open, about 20 – 40%.
• Propagation of improved chullahs save close to 4.5 x 106 metric tonne of
firewood per year. Using thermal/pressure cooker along with this gives
further cut by 1.76 x 106 metric tonne of firewood per year.
3. EMC has commissioned Energy Efficiency improvement studies in the units of
Trivandrum Air Cargo Terminal, Shangumuham, Foam Mattings (India) ltd,
Alappuzha, and Kochi Corporation.
4. In order to encourage energy conservation activities in the State, applications for
Energy Conservation awards instituted by Government of Kerala, are invited every
year by the EMC. In the year 2006 – 07, 27 industrial units participated in the award
scheme and these industries saved 40 Mu/year electrical energy, which is equivalent
to 7.61 MW capacity addition.
5. EMC organized energy clinics through out the State. Every clinic is a unique
programme of EMC on energy conservation activities in domestic sector through
women change agents. At present there are 130 trained women volunteers in the
State. Through awareness, 10 – 15% of total energy can be saved.
6. The EMC, through the efforts in promoting Energy Conservation Club Project
(ECCP) of the Energy Conservation Society (ECS), sets up energy conservation
clubs in schools and colleges all over the State to create awareness among
school/college students. Clubs now exit in about 500 schools and 50 colleges/ITCs
in the State.
7. EMC prepared Techno – Economic Feasibility Report (TEER) for the small
hydropower projects at Palchuram, Alamparathodu and Mukkuttithode for Sree
Rayalaseema Hi – strength Hypo Ltd, Hyderabad.
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8. EMC had prepared 8 DPRs in total of them the first phase of 4 projects are at
Kozhiyilakuthu, Panamkidantha, Padivathil and Killikkalthodu and the second phase
of 4 projects are at Rasathikuth, Rajamudy, Balanthode and Edathanalkuthu.
9. EMC acts as a consultant for kickstarting the implementation of Arippara SHP, by
providing technical advice and interacting with financial institutions, KSEB, KERC
etc.
Enforcement of Standards and Statutes

7.101 Functioning under the control of Electrical Inspectorate, The Meter Testing and Standards
Laboratory tests and sets the specifications and quality of electrical equipment, materials and
gadgets as per the standards prescribed by the Bureau of India Standards (BIS).

7.102 The following are the achievements/activities during 2006 – 07.

• There are four Regional Testing Laboratories attached to the District Offices at
Thiruvananthapuram, Ernakulam, Thrissur and Kozhikode. During 2006 – 07,
five more districts Offices had started under Electrical Inspectorate at Palakkad,
Malappuram, Kannur and Kottayam and Kollam.
• Completed office automation for granting licences without delay to
wireman/supervisor/contractor, in the Kerala State Electricity licensing Board
which is under the control of Electrical Inspectorate.
• Department has observed Tower Safety Week all over India in order to minimize
electrical accidents and to create awareness among the people.
• The Kerala State Electricity Licensing Board and Kerala Cinema operators
Examination Board are functioning under Electrical Inspectorate.
• The activities of State/District Level Electrical Accident Controlling Committee
were made more effective during the period.
• There was much increase in the case of Revenue Recovery during the period.
• Proposal has been submitted to the government for amendment of Electricity
Duty Act 1963.
Kerala State Electricity Regulatory Commission (KSERC)
7.103 KSERC was constituted on 14th November 2002 under the provision of Kerala State
Electricity Regulatory Commission Act, 1998 and came into effect from 10th June 2003. At
present KSERC has come under the purview of Electricity Act, 2003 and its function as per the
section 8 of the Electricity Act 2003 are the following.
1. Determine the tariff for generation, supply, transmission and wheeling of
electricity within the State.
2. Regulate Electricity purchase and procurement, process of distribution licenses
including the prices.
3. Facilitate inter – state transmission and wheeling of electricity.
4. Issue licenses to persons seeking to act as transmission licenses, distribution
licenses and electricity traders.
5. Promote cogeneration and generation of electricity from renewable sources of
energy by providing suitable measures for connectivity with the grid and sale of
electricity to any person enforce standards with respect of quality, continuity and
reliability of service by licensees.
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Regulations issued by the Commission

1. Kerala State Electricity Supply Code (Second Amendment) Regulations, 2007

Notification dt 20th April 2007
2. KSERC (Licensees' Standards of Performance) Regulations, 2006 – postponement of
enforcement in the case KSEB Notification dt 28 th April 2007.
3. KSERC (Consumer Grievance Redressal Forum and Electricity Ombudsman) (First
Amendment) Regulations, 2007 Notification dt 3rd May 2007.
4. Kerala State Electricity Regulatory Commission (Fees) Regulations, 2007
Notification dt 29th June 2007.
5. KSERC (Supply of Power from Captive Generating Plants to Distribution Licensees)
Regulations, 2007 Notification dt 6th August 2007.
Orders issued by the Commission

7.104 Kinfra Export Pormotion Industrial Parks Ltd., Rubber Park India (P) Ltd,
Cochin Special Economic Zone, Kanan Deven Hills Plantation Company Pvt Ltd and Thrissur
Corporation have filed their ARR and ERC for the year 2007-08. KSERC has issued the order
accordingly. Moreover the proceedings for approving the ARR & ERC submitted by KSEB for
the year 2007 – 08 and revision of Electricity Tariff are in the final stage Orders will be issued
very shortly.