Kerala’s peak electricity demand likely to cross 7,000 MW by 2026-27, according to new report

Thu Apr 03 13:35:12 UTC 2025: ## Kerala’s Electricity Demand to Surge by 2026-27, Driven by ACs and EVs: Report

**Thiruvananthapuram, April 3, 2025** – Kerala’s peak electricity demand is projected to exceed 7,000 megawatts (MW) by 2026-27, a significant increase driven primarily by the rising demand for air conditioning, according to a new report by the Energy Management Centre (EMC) Kerala.

The report, titled ‘Analysing Viability of Energy Storage Systems (ESS) at the Sub-national level,’ reveals that air-conditioner energy demand is expected to grow at a 15% compound annual growth rate (CAGR) over the next three years. This, combined with increased demand from electric vehicles (EVs) and induction cookstoves, will lead to a 10.5% overall increase in peak demand – far exceeding the historical rate of 4.6%.

The EMC projects a peak demand increase of over 1,800 MW by 2026-27, reaching 7,164 MW compared to 5,300 MW in 2023-24. This represents a year-on-year growth of approximately 530 MW-700 MW over the next three years. The report highlights that while Kerala’s current generation capacity stands at 6,669 MW, including renewable energy sources which have increased from 8% to 20% of the mix, this increase in demand necessitates urgent action.

EV registrations in Kerala have already seen a 55% jump from 2022-23 to 2023-24. The report estimates that by 2026-27, EVs, induction cookstoves, and air conditioners will contribute an additional 339 million units (mu), 340 mu, and 1208 mu of energy demand, respectively.

To address this escalating demand, the EMC recommends large-scale deployment of battery energy storage systems (BESS), suggesting a need for over 7 GWh of energy storage capacity. While pumped storage projects (PSPs) are also considered, the report emphasizes that BESS offer a more timely and commercially viable solution given the longer gestation period of PSPs.

The report, submitted to the Kerala State government on Wednesday, aims to guide policymakers in ensuring grid stability and meeting future power needs.

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