UERC Finalizes 2026 Resource Adequacy Framework With Long-Term Power Procurement Rules In Uttarakhand

The Uttarakhand Electricity Regulatory Commission (UERC) has finalized the Uttarakhand Electricity Regulatory Commission (Framework for Resource Adequacy) Regulations, 2026, to strengthen power supply reliability and improve long-term electricity planning in the state. The regulations were finalized after considering feedback from stakeholders across the energy sector.

The framework covers power generating companies, distribution licensees, the State Load Despatch Centre (SLDC), the State Transmission Utility (STU), and transmission licensees. It introduces a structured approach to demand forecasting, capacity planning, and power procurement.

Under the new regulations, distribution licensees will have to prepare hourly or sub-hourly demand forecasts at the state periphery. Forecasting will be carried out across three periods: long-term planning of five to 10 years, medium-term planning of one to five years, and short-term planning covering one year.

The forecasts will have to consider Commission-approved loss trajectories and three demand scenarios: optimistic, business-as-usual, and pessimistic. Distribution utilities will also be required to conduct annual load research using smart meters. The exercise is intended to capture changes in consumer electricity consumption, policy developments and peak demand patterns.

The Commission has also prescribed a procurement structure for distribution utilities. Between 75% and 80% of power procurement should be secured through long-term contracts, while 10% to 20% should come from medium-term contracts. The remaining requirement can be met through short-term procurement.

However, short-term power purchased through power exchanges will not be considered for fulfilling the mandatory Resource Adequacy Requirement (RAR). Distribution licensees must also demonstrate 100% contracted power tie-up for the first planning year and at least 90% tie-up for the second planning year.

The SLDC will consolidate forecasts submitted by individual distribution licensees into a unified state-level forecast by May 31 every year. UERC has also extended its plan approval timeline from 60 days to 120 days after receiving resource plans vetted by the Central Electricity Authority (CEA).

The regulations include monitoring and compliance provisions. Non-compliance may lead to legal proceedings and financial penalties against defaulting utilities. Such penalties cannot be recovered from consumers through Aggregate Revenue Requirement (ARR) filings.

To strengthen institutional capacity, distribution utilities must establish a dedicated Resource Adequacy planning cell within three months of the regulations coming into force. They must also establish a 24/7 operational cell responsible for real-time, intra-day, day-ahead and week-ahead power procurement and sales.

The guidelines governing both cells must be submitted for Commission approval within 45 days. Through these measures, UERC has established a formal resource planning framework aimed at aligning electricity demand, contracted capacity and procurement requirements with the state’s future power needs.