Kerala to sign power purchase deal for Sinnar thermal project

Kerala will soon sign a power purchase agreement to buy low-cost electricity from the Sinnar thermal power project in Maharashtra.

Power Supply Details

Electricity from the plant will cost ₹5.18 per unit. The State initially expected power supply to start from January 2027, but the timeline has shifted to March 2027. The government also aims to increase the total power supply to 1,000 MW.

Project Background

NTPC Ltd earlier promised 540 MW of power from the Sinnar station to the Kerala State Electricity Board. The Sinnar thermal power project, situated in Nashik, is a joint venture between NTPC Ltd and the Maharashtra power generation utility MAHAGENCO. Chief Minister V.D. Satheesan recently met the chairperson of NTPC Ltd in New Delhi to discuss the matter.

Regulatory Orders

The Kerala State Electricity Regulatory Commission urged the Kerala State Electricity Board to sign the power purchase agreement as soon as possible. The commission issued orders directing the board to execute the agreement to ensure supply begins as soon as the first two units achieve their commercial operation date.

Context

Power purchase agreements are long-term contracts between electricity generators and distribution utilities that help secure reliable power supplies and steady rates for consumers over many years. States often look outside their borders to tie up generation capacity when local demand outstrips internal production.