Kerala is one among the few Indian states which has the lowest rates for electricity for both domestic and commercial outfits. Hydel energy is the main source of power generation in the state, and the Kerala State Electricity Board (KSEB) is the sole organization to supply power to different categories of consumers. KSEB has an installed capacity of 2087.23 MW on its own, with another 570.016 MW contributed by NTPC and private sector producers, thereby taking the total installed capacity of State to 2657.25 MW.

There are 24 Hydel projects owned by KSEB and 2 by private agencies. The wind farm located at Kanjikode, Palakkad with an installed capacity of 2.025 MW is the only one of its kind utilizing the non-conventional energy sources. The Brahmapuram and Kozhikode Thermal Power Plants with installed capacities of 106.6 MW and 128 MW respectively uses LSHS as fuel and are owned by KSEB.