Context + Overview

• Background -> Karnataka procures 100 MW of power daily from Assam under the 'One Nation, One Grid, One Frequency' system since September 1.
• Primary Cause -> Deficient monsoon rains combined with extreme heat forcing households to run ACs, fans, and coolers longer than usual.
• Consumption Spike -> State power consumption reached 339.51 Million Units (MU) on September 17, 2026, compared to 251.48 MU on the same day last year.

Why Southern States Aren't Helping

• Regional Power Crunch -> Karnataka cannot purchase power from Kerala, Telangana, Andhra Pradesh, or other southern states because they are facing a similar energy shortage.
• Previous Inter-State Practices -> Purchasing power from other states or via barter systems is a routine summer exercise (e.g., procuring 1,500 MW per day from Uttar Pradesh, Punjab, and Haryana last summer).

Procurement Strategies & Agreements

• Current Process -> Power is being procured from Assam through the national grid system, and the process is expected to conclude by the end of the month, after which local supply will stabilize.
• Long-Term PPAs -> The energy department previously signed long-term Power Purchase Agreements (PPAs) with private companies at ₹7.5 per unit of electricity.
• Cost Efficiency -> Bidding in the open market currently costs ₹11.5 per unit, making long-term agreements much more favorable.
• Emergency Measures -> Requests have also been made to independent power producers and private companies to provide 100 to 200 MW per day in case of emergency under nominal prices.