KSERC Publishes Draft Kerala State Electricity Regulatory Commission (Renewable Energy and Related Matters) Regulations, 2025

Introduction

The Kerala State Electricity Regulatory Commission (KSERC) has released draft regulations for renewable energy and related matters modernizing the state’s electricity sector.[1] Published on May 30, 2025, these comprehensive regulations aim to promote renewable energy adoption while ensuring grid stability and fair billing practices for all stakeholders. The draft regulations invite public comments and suggestions within one month of publication, demonstrating KSERC’s commitment to transparent policymaking.

Explanation (Key Points)

Scope and Coverage

The new regulations will apply to all grid-interactive renewable energy systems, prosumers (consumers who also produce energy), captive consumers, generating companies, and distribution licensees throughout Kerala. The regulations have a five-year control period starting from the financial year 2025-26.

Multiple Metering Systems

The regulations introduce six distinct metering and billing options to suit different consumer needs:

• Net Metering: Allows consumers to offset their electricity consumption with surplus generation, with capacity limits of 1-3 kW for most consumers and 5 kW for those with storage systems
• Net Billing: Separate accounting for energy consumed and generated, with maximum capacity up to 500 kW
• Gross Metering: Complete sale of generated energy to the grid with separate billing for consumption
• Behind the Meter: Systems that don’t inject energy into the grid
• Virtual Net Metering: Allows sharing of renewable energy across multiple locations
• Group Net Metering: Enables consumers to use excess energy at different premises

Energy Banking and Time Zones

A sophisticated energy banking system allows prosumers to store surplus energy credits for later use. The system operates across three time zones – solar hours (8 AM to 6 PM), peak hours (6 PM to 11:30 PM), and off-peak hours – with different normalization factors to encourage storage adoption.

Grid Support Charges and Tariffs

To maintain grid stability, the regulations introduce grid support charges of Re. 1 per unit for exported energy, though existing domestic consumers up to 10 kW and agricultural consumers are exempted. Feed-in tariffs are based on capacity-weighted averages of SECI bid prices, encouraging competitive renewable energy development.

Technical Requirements

The regulations mandate compliance with Central Electricity Authority standards and require smart meters for systems above 100 kW from April 2027. Hosting capacity limits ensure grid stability while allowing reasonable renewable energy penetration.

Innovative Features

The draft includes provisions for emerging technologies like Vehicle-to-Grid systems, Virtual Power Plants, and Peer-to-Peer energy trading, positioning Kerala at the forefront of energy sector innovation.

Conclusion

These draft regulations represent a balanced approach to renewable energy promotion while ensuring grid reliability and fair cost distribution. By offering multiple metering options and incentivizing energy storage, KSERC aims to accelerate Kerala’s transition to clean energy while maintaining system stability. The comprehensive framework addresses both current needs and future technological developments, making it a forward-looking policy initiative. Stakeholders are encouraged to provide feedback to help finalize these important regulations that will shape Kerala’s renewable energy landscape for the next five years.