Author: PPD Team Date: 20/02/2025
The Government of Kerala (GoK) has allocated Rs 11,567.6 million for energy development in the 2025-26 state budget. The funds will support solar, hydro, and green hydrogen projects, along with energy storage and conservation initiatives.
For the non-conventional and renewable energy sector, Rs 679.6 million has been allocated, including Rs 511 million for the Agency for New & Renewable Energy Research and Technology (ANERT).
Additionally, Rs 315 million has been set aside for various renewable energy programs, Rs 50 million for the electrification of remote tribal hamlets, and another Rs 50 million for installing solar panels in Tribe Nagars.
The Green Hydrogen Valley Project, which aims to leverage Kerala’s resources for green energy, has received Rs 50 million.
The state is also focusing on expanding solar power projects and battery energy storage systems (BESS) to enhance renewable energy capacity. A 500 MW BESS will be operational at Mylatti in Kasargod by 2026, with Rs 50 million allocated for its implementation.
Since the Communist Party of India (Marxist) (CPI (M)) assumed office, domestic electricity production has increased by 1,306.238 MW. This includes 148.55 MW from hydroelectric projects, along with the completion of expansion works for the 60 MW Pallivasal Hydroelectric Project. Under the Soura Project of Kerala State Electricity Board (KSEB), 229.528 MW of solar power plants have been installed on 49,530 rooftops.
The state government has allocated Rs 20 million for the Maripuzha Minor Hydro Electric Project and Rs 120 million for other minor hydroelectric projects. An additional Rs 2,000 million has been set aside for the renovation and modernization of existing hydroelectric stations, while Rs 3,700 million will be used to upgrade transmission networks.
For the KSEB, a total outlay of Rs 10,888 million has been provided for 2025-26. The overall energy sector budget stands at Rs 11,567.6 million, with Rs 1,000 million earmarked for implementing pumped storage projects. The Dyuthi Project, which aims to reduce commercial power losses, has received Rs 4,300 million. The Innovation Fund and Energy Saving and Coordination Team (ESCOT), focused on energy conservation initiatives, will receive Rs 412.2 million.