Thiruvananthapuram: Kerala can save Rs 9,000 crore over a five-year period if they replace coal power purchases with renewable energy contracts by 2040, according to a new study. If the southern state replaces its scheduled purchases of coal power from central sector plants with new renewable energy at an average tariff of Rs 3/kWh, the state would save approximately Rs 969 crore per annum, it said.

The report also suggests a transition pathway that sees the most expensive central sector power contracts phased out first, saving the state Rs 4,505 crore through the phase-out of 1560 MW of coal power by 2026-27, the study further said.

The significant findings were made by think-tank Climate Risk Horizons (CRH). This finding comes just months after Chief Minister Pinarayi Vijayan announced that the state will aim for 100 per cent renewable energy over the next 17 years.

In addition to explaining the financial and climate-related benefits of this move, the CRH report also charts out the transition pathway for Kerala to achieve its targets. The final analysis was released at an event titled the 'Roundtable of Energy Transition in Kerala's Electricity Sector, held here on Friday, a statement said.

Organised by Asar, Equinoct and SEEM, the event began with the release of the report followed discussion between experts, media and representatives of the state's electricity sector.

KR Jyothilal, Additional Chief Secretary of the Power Department, DR RVG Menon, the Chairman of the Kerala Energy Management Centre (EMC) and other members of the Kerala State Electricity Board took part in the programme.

In total, a phased energy transition plan to replace all coal power contracts with renewable energy could save the state an estimated Rs 1,843 crore annually by way of lower electricity costs, it further said. Kerala can save Rs 9,000 crore over a five-year period if they replace coal power purchases with renewable energy contracts by 2040, it said.

State Power Secretary KR Jyothilal during his address, said Kerala imports close to 70 per cent of its power, depending on other states for our daily needs.

"It is now time to move from a state of dependence to independence. We have immense capacity to generate green power within the state and have the potential to become India's green energy exporting hub," he said. Kerala is a small state and our vision should reflect that, he said adding that the transition journey should begin from the local governing bodies.