The White Paper on Kerala’s fiscal health has urged 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 investments in the power sector for boosting power generation capability.“Significant growth demands a substantial increase in power generation capacity, 6,000 MW through solar power, 8,000 MW through pumped hydro-electric projects and even more through closed-loop reactors developed by Bhabha Atomic Research Agency (BARC) and through Small Modular Reactors,” the document said.The government should adopt a long-term energy strategy for ensuring energy security and reducing the cost of power. “This requires actively facilitating and incentivising investment in diverse energy sources, including solar, hydel and nuclear power, while also strengthening transmission and storage infrastructure,” the document said.Increasing power generation capability is imperative as emerging sectors such as artificial intelligence, data centres, cloud computing, advanced manufacturing and digital services are highly energy-intensive and require a reliable and competitively priced power supply.“Without adequate availability of affordable electricity, Kerala risks losing investment and employment opportunities in these future-oriented industries,” the White Paper said. Published - June 04, 2026 10:47 pm IST