The Kerala State Electricity Regulatory Commission (KSERC) has permitted India Gateway Terminal (IGTPL) to procure 2 MW of solar power from its proposed captive project in Malappuram for use in its Vallarpadam port operations through open access.

Background

The petitioner, IGTPL, is a subsidiary of DP World. It operates the International Container Transshipment Terminal at Vallarpadam in the Cochin Port Authority (CoPA) SEZ.

IGTPL has an energy supply agreement with CoPA, the distribution licensee for the Vallarpadam SEZ area, with a contract demand of 5 MVA. The petitioner aimed to meet 30% of its energy requirements from renewable sources by 2026.

According to the Harit Sagar Green Port Guidelines 2023, issued by the Ministry of Ports, Shipping, and Waterways (MoPSW), the share of renewable energy at ports is expected to exceed 60% by 2030.

To achieve its target, IGTPL had installed an 830 kW ground-mounted and a 170 kW rooftop solar project at its premises in Vallarpadam, which accounts for approximately 12% of its total energy requirements.

To further meet its target, the company proposed setting up a 5 MW captive solar project in the Malappuram district.

The petitioner approached KSERC, seeking its approval for open access to wheel power from Vallarpadam and banking of surplus solar power with Kerala State Electricity Board (KSEBL).

KSEBL raised objections regarding inter-license banking, stating that it is not allowed under the current renewable energy regulations. It suggested alternatives, such as battery storage and reducing solar capacity to match current demand.

Commission’s Analysis

KSERC acknowledged the petitioner’s right to procure power through open access under Sections 39 and 42 of the Electricity Act, 2003. It also noted that IGTPL’s annual electricity consumption for 2024–2025 was 12 MU.

The Commission observed that the petitioner needs to generate approximately 3.6 to 4 MU from renewable sources to meet its renewable energy obligation of 30% by 2026. Currently, its existing 1 MW solar project produces around 1.84 MU annually. To fulfill the remaining renewable energy requirement, an additional 2 MW solar capacity would be sufficient.

KSERC noted KSEBL’s concerns and observed that CoPA might not be able to absorb IGTPL’s surplus generation. During the absence of clean banking guidelines, the Commission allowed banking only within the billing cycle, with any surplus settled at the Average Power Purchase Cost rate.

KSERC also said that once it notifies the KSERC (Renewable Energy & Related Matters) Regulations applicable for the control period from 2025-2026 onwards, the petitioner can take appropriate steps to meet its renewable energy targets under the Harit Sagar Green Port Guidelines 2023, issued by MoPSW.

It approved a power sale agreement between KSEBL and the Solar Energy Corporation of India (SECI) for procuring 500 MW of solar power.

In January this year, KSERC approved a power sale agreement between KSEBL and SECI for procuring 500 MW of solar power.

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