The White Paper calls on Kerala to explore nuclear power and privatization in the power sector

A white paper on Kerala’s fiscal health urges the state government to substantially increase power generation by exploring options including nuclear power. It also advised the government to allow private sector and central public sector investment in the power sector to increase power generation capacity.

“Significant growth requires a substantial increase in electricity generation capacity, 6,000 MW through solar power, 8,000 MW through pumped hydro projects and even more through closed-loop reactors developed by the Bhabha Atomic Research Agency (BARC) and through small modular reactors,” the paper said.

The government should adopt a long-term energy strategy to ensure energy security and reduce energy costs. “This requires active facilitation and incentives for investment in various energy sources, including solar, hydel and nuclear, while strengthening transmission and storage infrastructure,” the document said.

Increasing power generation capacity is necessary because emerging sectors such as artificial intelligence, data centers, cloud computing, advanced manufacturing and digital services are highly energy intensive and require reliable and affordable power.

“Without adequate availability of affordable electricity, Kerala risks losing investment and employment opportunities in these forward-looking sectors,” the White Paper said.

Published – 04 Jun 2026 22:47 IST