Kudankulam outage threatens higher power costs in southern India

India has shut Unit 1 of its Kudankulam nuclear reactor in Tamil Nadu for scheduled maintenance, removing 1,000 MW of capacity from the grid during peak summer demand. The outage, expected to last 65 days, is already tightening supply across southern states, with Kerala warning of worsening deficits of up to 600 MW.

Utilities have been forced into costly short-term procurement, securing peak-hour power from private suppliers at rates above 9 rupees per unit—well above average tariffs. Regulators approved the purchases but raised concerns about the financial strain of sustained high-cost imports.

While Unit 2 remains operational, the disruption highlights structural risks in India’s generation mix as it works toward an ambitious target of 100 GW nuclear capacity by 2047, up from 9 GW today.

Read the full article for insights on the implications for energy markets and utilities in the region.