Key Messages

The State’s capacity addition plans seem inadequate to meet projected demand in the next 5 years. If the current situation continues, the State is likely to face about 21-26% annual energy shortfall (12,000 – 18,000 Million units) and 15-17% peak shortfall (~ 2000 MW) in the short-term (2 years) and 13-8% (~10,000 Million Units) and 16% (~2500 MW) in the medium term (5 years). This is after  accounting for all likely capacity addition. This implies that the State will have to rely on widespread load shedding or rely on short-term power purchases. The latter is an expensive option for the ESCOMs and likely to have an adverse impact on the electricity tariffs in the State. It is also uncertain because of transmission corridor capacity constraints.

Roadmap for Karnataka's Power Sector - Vision for 2021-22