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Kerala RE Policy - 2002

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Nodal Agency

  • Agency for Non-Conventional Energy and Rural Technology (ANERT)

  • KSEB (Kerala State Electricity Board) will be the authority for SHP projects from 3 MW to 25 MW

Applicable Technologies

Solar, wind, small hydro, biomass, MSW tidal, wave, geothermal etc. 

Policy Period

Not available 

Green Pricing

Choice of Green Pricing is given to interested customers, who choose to pay extra for energy generated from RE Sources

RE Consumption for Captive Plants

Large industries having 2000 kVA and above as connected load should produce at least 5% of their requirement throughcaptive power plants using RE sources

Eligibility Conditions

All power producers generating grid-grade electricity and power producers from ‘stand-alone projects’ using non-conventional energy sources are eligible producers. For small hydro projects, power producers who have installed station capacity of 25 MW and less will be eligible

Grid Interfacing

Interfacing, including transformers, panels, kiosk protection, metering, HT lines from points of generation to the nearest HT line etc.,and their maintenance, will be undertaken by the producer as per KSEBspecifications and requirements

Tax Exemptions

Equipments and materials shall be exempted from entry tax/octroi.

Evacuation Arrangement

  • KSEB shall initially bear the expenditure for erection of high-tension sub stations

  • and transmission infrastructure.ANERT shall recover 50 per cent of this expenditure from the power project promoters and will give it to KSEB. 

  •  Developers shall bear the cost of transmission lines from the substation to the project and all other related equipment such as metering arrangement and protection system, capacitor banks etc.





Power generated through RE sources and purchased by KSEB, will be at a ceiling rate of Rs.2.50 /unit for small hydel power plants. For power from all other RE sources, the price will be at a ceiling rate of Rs.2.80/unit, with base year fixed as 2000-01 and with 5% escalation for every year upto 5 years of operation. Thereafter the rate shall be mutually settled between KSEB and the eligible producer in all cases of RE sources including SHP. In special cases appraisal committee shallstudy and recommend the government for higher tariff. 


  • 100% banking is allowed from June to February and from March to June producer bank energy with KSEB.

  • Accounting shall be done at the end of every financial year. 


KSEB will transmit, power generated by the eligible producer and make it available to him for captive use or for banking, at a uniform wheeling charge of 5% of energy fed into the grid, which includes compensation for transmission loss irrespective of the distance from the generating station. 

Energy conservation

  • Solar Water Heating Systems are mandatory in all lodges and hotels with 10 rooms or more and in hospitals with 20 beds or more.
  • Use of energy efficient devices such as, community chulhas, gasifiers, etc., are mandatory in all hotels, hostels and schools with noon meal scheme and in all industries using firewood for fuel

Provision for policy review

Not available



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