RERC Issues Interim Resource Adequacy Order To Strengthen Rajasthan’s Power Planning Framework

The Rajasthan Electricity Regulatory Commission has issued a major suo-motu order to strengthen the state’s power infrastructure by introducing a formal Resource Adequacy framework. The directive, led by Chairman Dr. Rajesh Sharma along with Members Hemant Kumar Jain and Vijay Pal Singh, requires all distribution companies (Discoms) in Rajasthan to take advance steps to ensure that sufficient power capacity is available to meet future electricity demand.

The order is based on Rule 16 of the Electricity (Amendment) Rules, 2022, which directs state electricity regulators to frame rules in line with guidelines issued by the central government and in consultation with the Central Electricity Authority. Although the Commission has already prepared detailed Resource Adequacy Regulations and is close to finalizing them, this interim order has been issued to avoid any regulatory gap before the formal rules are notified. Until then, Discoms have been instructed to follow the existing central government guidelines.

Under this order, all Discoms must prepare and submit a detailed Resource Adequacy Plan. This plan must be reviewed by the Central Electricity Authority and should cover different planning periods, including short-term, medium-term, and long-term requirements. The Commission has clearly outlined the key elements that must be included in these plans to ensure proper assessment and future preparedness.

Discoms are required to provide detailed projections of both energy demand and peak load demand. They must also submit complete information on their existing contracted power capacity and any new capacity they plan to tie up in the coming years. In addition, the plans must include strategies to meet renewable energy obligations, along with the integration of Distributed Renewable Energy and necessary energy storage solutions.

Another important requirement is the identification of expected power shortages or surplus situations. Discoms must clearly explain how they plan to address any gaps, whether through additional procurement, new projects, or other measures. This ensures that future supply remains reliable and uninterrupted.

A key feature of the directive is the requirement to maintain a “Planning Reserve Margin.” This margin acts as a safety buffer by ensuring that extra power capacity is available beyond the expected peak demand. It helps maintain grid stability during sudden demand spikes or unexpected supply disruptions.

The Commission has made it clear that compliance with these directions is mandatory. Any failure by Discoms to submit their plans on time or to follow the approved framework may result in regulatory action. This could include disallowance of certain costs during future tariff approvals, which may affect the financial position of the utilities.

At the same time, the order does not affect existing power purchase agreements or ongoing petitions before the Commission. It is intended as a temporary but binding step to ensure energy security in Rajasthan while the final regulations are being completed. The Commission has also directed that the order be made publicly available on its website to maintain transparency and keep all stakeholders informed.