RERC Seeks Fresh Assessment Before Approving 3200 MW Power Procurement Proposal In Rajasthan

The Rajasthan Electricity Regulatory Commission has issued an important order on a petition filed by Rajasthan Urja Vikas and IT Services Limited. The petition asked for approval to procure 3,200 MW of firm power for a long-term period of 25 years. This power was planned to come from four units of 800 MW each, to be developed under the DBFOO model, which means Design, Build, Finance, Own, and Operate. The proposal also depended on fuel allocation under the Ministry of Power’s Shakti scheme.

According to the petitioner, this procurement was necessary to meet Rajasthan’s future electricity demand and to replace the power that would be lost when the older and less efficient thermal power units owned by Rajasthan Rajya Vidyut Utpadan Nigam Limited retire. Their internal estimates showed that the state would need a total of 3,200 MW of additional long-term power requirements by the fiscal year 2031-32.

After examining the proposal, the Commission noticed a major difference between the petitioner’s projected demand and the estimates provided by the Central Electricity Authority. The CEA had recently released the Resource Adequacy Plan 2025, which includes demand and capacity requirements for each state. In this plan, the CEA estimated that Rajasthan would need only 1,905 MW of additional capacity by 2035-36. This was much lower than the 3,200 MW projected by the petitioner. The gap of more than 1,200 MW between the petitioner’s claim and the CEA’s calculation was a key concern for the Commission.

The Commission also reviewed other expected capacity additions within the state. One of the major projects considered was the under-construction nuclear power plant at Banswara, which is expected to contribute significant capacity to the state’s electricity supply. This upcoming addition will impact the overall power requirement calculations. The Commission also observed that distributed renewable generation will continue to grow in Rajasthan and could reduce the long-term demand for firm thermal power. With more households and industries adopting distributed renewable systems such as rooftop solar, the need for large amounts of thermal capacity may not grow as fast as earlier projected.

Given these factors, the Commission decided that the proposed procurement of 3,200 MW of round-the-clock power could not be approved immediately. The Commission stated that the long-term requirement must be reassessed based on the corrected data and the latest projections from the CEA. The Commission suggested that RUVITL should first approach the Central Electricity Authority to discuss and review the demand projections, the retirement schedule of the existing thermal units of RVUNL, and the overall assessment of future power needs. The Commission also directed that the petitioner should provide the CEA with all necessary information, data, and material facts so that a proper consultation can take place.

If the CEA, after this consultation, supports the need for new capacity and provides a clear and justified assessment, then the petitioner can file a revised petition before the Commission. The revised petition should include updated figures and a complete evaluation of the demand and supply situation. With these directions, the Commission closed the original petition, making it clear that any future approval would depend on a more accurate and justified assessment of Rajasthan’s electricity requirement.