RERC’s Path To Grid Stability: Rajasthan’s Pursuit Of 1,000 MW Pump Storage Energy Solutions

The Rajasthan Electricity Regulatory Commission (RERC) received a petition from Rajasthan Urja Vikas & IT Service Limited, representing the distribution licensees of Jaipur, Ajmer, and Jodhpur, seeking approval for a long-term tie-up of 1,000MW/6,000 MWh per day from a pump storage-based energy solution connected to the Central Transmission Utility (CTU). The petition also requested approval for the associated bidding documents.

The petitioner highlighted that the Government of Rajasthan had approved the procurement of power on a long-term basis from 1,500 MW wind-solar hybrid projects with required storage systems to meet the state’s energy demand and Renewable Purchase Obligation (RPO). An energy assessment committee identified a deficit during peak hours, prompting the Board of Rajasthan Urja Vikas & IT Service Limited to initiate a tender for 1,000 MW of energy storage solutions from pump storage hydro projects.

The petitioner noted the absence of standard bidding documents or guidelines for such projects, seeking the Commission’s approval to proceed with the bidding process and to allow modifications based on feedback from prospective bidders and experts.

The matter was heard on multiple occasions. During the hearing on March 7, 2024, the Commission directed the petitioner to issue a Request for Proposal (RfP) for selecting developers within four days and to incorporate stakeholder feedback.

Subsequently, the Chief Engineer of Rajasthan Urja Vikas & IT Service Limited requested an extension of the timeline to finalize the state policy and resource adequacy plan, as new guidelines from the Ministry of Power required a mix of long, medium, and short-term contracts for energy security.

The petitioner informed the Commission that the resource adequacy plan for Rajasthan was being aligned with recommendations from the Central Electricity Authority (CEA) and that recent tenders for solar and thermal projects were part of this plan. The petitioner also mentioned ongoing efforts to finalize guidelines for pump storage projects.

The Commission acknowledged the importance of energy storage for grid stability, especially in states with high renewable energy penetration like Rajasthan. It directed the petitioner to prepare the resource adequacy plan according to CEA guidelines and to seek approval from the Commission. The petition was disposed of, granting the petitioner liberty to approach the Commission once the state policy and resource adequacy plan were finalized.