The load-shedding has been in force for the last several months as the water level in reservoirs depleted drastically due to deficient rainfall last year.
According to Kerala State Electricity Board (KSEB), the decision followed an instruction from the government to review the situation and lift the curbs in view the state getting over 40 per cent excess rainfall so far this season.
The KSEB had earlier this week stopped the one-hour day-time power cut.
The energy outlook for the state, which relies heavily on hydro-electrical projects, has brightened after passing through a searing summer of grim power crunch.
The monsoon this season not only set in over Kerala promptly on June 1 but also brought excess rainfall of 41 per cent since then, according to the MeT Department.
Last year, the total rainfall received by the state was deficient by 24 per cent during the southwest monsoon and 35 per cent during the northeast monsoon period.
Deficiency in rainfall pushed the state into one of its worst power crisis, forcing the government to clamp 90 minutes load shedding, half of which was during peak hours in the evening, curbs in consumption by non-domestic consumers.
Since January, the state has been pinning its hopes entirely on good monsoon showers, which is crucial for the state to avoid sliding into darkness.
While the state as a whole has been getting bountiful rainfall since the onset of the monsoon, what is of greater significance is that Idukki and Pathanamthitta districts have received excess rainfall, replenishing reservoirs in that area.
Power generation from hydroelectric projects accounts for bulk of the power in KSEB's grid, with supply from thermal plants and small, small and micro projects and non-conventional sources contributing just a minor portion of demand required.