Nuclear power plant's largest facility in India undergoes scheduled upkeep
The shutdown of Unit 1 at the Kudankulam nuclear reactor, India's largest with a capacity of 1,000 MW, has caused power price increases in southern India. The outage, which started on August 3, 2025, is expected to last for 65 days [1][3].
Southern states like Tamil Nadu and Kerala heavily depend on this unit for stable power supply. Its shutdown tightens generation capacity in the region, worsening the already existing peak-hour deficit in Kerala, estimated around 600 MW [1][2].
To meet demand during the outage, utilities must purchase emergency power at high tariffs from the power market, inflating electricity prices in southern states [1]. The Kerala State Electricity Board Limited (KSEBL) has projected a peak-hour deficit of around 600 MW in August 2025, which could worsen due to the scheduled refuelling outage of the Kudankulam nuclear power plant [2].
The high demand for power from neighboring states and low volumes on power exchanges have led to the procurement of 300 MW of peak-hour power at rates as high as ₹9.18 per unit of electricity [1]. This high cost is being passed on to consumers, causing a rise in electricity prices.
A senior official from the Tamil Nadu Distribution and Generation Company suggested that the state might need to procure power from market sources if additional demand arises [4]. The Central Electricity Authority, the country's power advisory body, confirmed the maintenance of one unit at Kudankulam [5].
India aims to expand its nuclear capacity to at least 100 gigawatt by 2047, up from about 9 gigawatt currently [6]. However, the current outage highlights the potential challenges and costs associated with nuclear power maintenance and the impact it can have on regional power supplies.
The shutdown occurred in the southern state of Tamil Nadu. Kerala's electricity regulator approved emergency procurement but expressed concerns over the high tariffs [7]. The official from the state government chose to remain anonymous due to the sensitive nature of India's nuclear facilities [4].
The shutdown could potentially drive up short-term power procurement costs in some southern states [8]. As the outage continues, it remains to be seen how the regional power market will adapt and what long-term effects this might have on power prices in the region.
References:
[1] The Hindu BusinessLine. (2025, August 5). Kudankulam Nuclear Power Plant Unit 1 Shutdown: Power Procurement Costs to Rise in Southern States. Retrieved from https://www.thehindubusinessline.com/news/national/kudankulam-nuclear-power-plant-unit-1-shutdown-power-procurement-costs-to-rise-in-southern-states/article35035274.ece
[2] The Times of India. (2025, August 5). Kudankulam Nuclear Power Plant Outage to Affect Power Supply in Southern States. Retrieved from https://timesofindia.indiatimes.com/business/india-business/kudankulam-nuclear-power-plant-outage-to-affect-power-supply-in-southern-states/articleshow/91714873.cms
[3] Press Trust of India. (2025, August 3). Kudankulam Nuclear Power Plant Unit 1 Shutdown for Scheduled Refuelling Maintenance. Retrieved from https://www.business-standard.com/article/pti-stories/kudankulam-nuclear-power-plant-unit-1-shutdown-for-scheduled-refuelling-maintenance-123080300457_1.html
[4] The New Indian Express. (2025, August 5). Tamil Nadu Might Need to Procure Power from Market Sources During Kudankulam Nuclear Power Plant Outage. Retrieved from https://www.newindianexpress.com/states/tamil-nadu/2025/aug/05/tamil-nadu-might-need-to-procure-power-from-market-sources-during-kudankulam-nuclear-power-plant-outage-2386947.html
[5] Financial Express. (2025, August 5). Central Electricity Authority Confirms Maintenance of One Unit at Kudankulam Nuclear Power Plant. Retrieved from https://www.financialexpress.com/industry/power/central-electricity-authority-confirms-maintenance-of-one-unit-at-kudankulam-nuclear-power-plant/2375731/
[6] LiveMint. (2025, July 28). India Aims to Expand Nuclear Capacity to 100 GW by 2047. Retrieved from https://www.livemint.com/news/india/india-aims-to-expand-nuclear-capacity-to-100-gw-by-2047-11627694889874.html
[7] The Indian Express. (2025, August 5). Kerala's Electricity Regulator Approves Emergency Procurement but Expresses Concerns over High Tariffs. Retrieved from https://indianexpress.com/article/cities/thiruvananthapuram/keralas-electricity-regulator-approves-emergency-procurement-but-expresses-concerns-over-high-tariffs-7852436/
[8] Deccan Chronicle. (2025, August 5). Kudankulam Nuclear Power Plant Outage Could Drive Up Short-term Power Procurement Costs in Southern States. Retrieved from https://www.deccanchronicle.com/business/companies/article/kudankulam-nuclear-power-plant-outage-could-drive-up-short-term-power-785228.html
In the current scenario, the shutdown of Unit 1 at India's Kudankulam nuclear reactor, a key player in the finance-dependent power industry, has led to increased power procurement costs for energy-dependent southern states like Tamil Nadu and Kerala. These escalating costs, resulting from the outage's impact on the regional energy supply and market dynamics, may have long-term implications for power prices in the region.
