Kasaragod: The Kerala State Electricity Board (KSEB) is saving upwards of ₹3.6 lakh daily by drawing power from its newly operational 15-megawatt (MW) Battery Energy Storage System (BESS) in Mulleria. While purchasing electricity from external suppliers during evening peak hours typically costs over ₹16 per unit, power drawn from the Mulleria BESS costs less than ₹10 per unit. With a minimum net saving of ₹6 per unit on a daily intake of 60,000 units, the facility delivers a daily windfall of at least ₹3.6 lakh to the state power utility.

Although the project - completed on October 15 - awaits formal commissioning, KSEB began tapping its capacity on October 16. The facility discharges 15 MW continuously between 7:00 PM and 11:00 PM, delivering 60,000 units directly into the grid. Prior to this, the board was forced to procure this peak-hour power from external markets at steep rates.

As Kerala’s first operational BESS facility, the plant functions by soaking up cheap power from solar parks and the National Grid during the day, storing it, and discharging it when nighttime demand surges. During daytime hours, KSEB procures power at a ceiling price of ₹5.60 per unit, and at times for under a rupee.

Developed under the aegis of the National Hydroelectric Power Corporation (NHPC), the project was executed entirely on a private investment model. KSEB’s involvement was limited to providing the land, while Gujarat-based Opera Green Yana Private Limited invested the entire ₹60 crore capital expenditure. In return, KSEB pays the developer a service fee of ₹4.38 per unit.

Factoring in the peak daytime purchase cost of ₹5.60 and the developer's service fee of ₹4.38, the total landed cost of power from the BESS comes to ₹9.98 per unit. In sharp contrast, external market purchases during peak evening hours routinely surpass ₹16 per unit, having occasionally soared to ₹22 during acute shortages. Even the power currently under negotiation from Hyderabad comes with an asking rate of ₹14.50 per unit—excluding transmission costs and wheeling losses. Against this backdrop, the Mulleria unit guarantees daily savings of at least ₹3.6 lakh.

Mylatti Project delay strains finances
Meanwhile, protracted delays in completing the larger 125-MW BESS plant at Mylatti are proving costly for KSEB, causing estimated daily losses exceeding ₹30 lakh. Once commissioned, the Mylatti plant will supply 5 lakh units of electricity during peak evening hours, curbing reliance on costly open-market purchases and saving the board over ₹30 lakh every single day.

The State Electricity Regulatory Commission has expressed strong displeasure over the project’s sluggish progress. Ironically, Mylatti was the first BESS project to be approved and initiated in Kerala, yet construction remains stalled halfway through.