RERC Approves NVVN As Single Bidder For Short-Term Power Procurement In November And December 2026 In Rajasthan

The Rajasthan Electricity Regulatory Commission (RERC) has approved the selection of NTPC Vidyut Vyapar Nigam Limited (NVVN) as the single bidder for short-term power procurement by Rajasthan Urja Vikas and IT Services Limited (RUVITL) during the November and December 2026 Rabi season. The approval is aimed at ensuring an uninterrupted electricity supply during anticipated morning and evening peak demand periods across the state.

The Commission issued its decision on a petition filed by RUVITL under Section 86(1)(b) of the Electricity Act, 2003, and Clause 7.1 of the Ministry of Power’s guidelines for short-term power procurement. The guidelines generally require participation from at least two bidders to maintain competition. However, Clause 7.1 allows procurement through a single bidder with the approval of the Appropriate Commission.

Rajasthan experienced significant pressure on its electricity supply system in September 2026 due to high temperatures, increased humidity, inadequate rainfall, and rising agricultural demand. Average electricity demand reached approximately 14,518 MW, while peak demand touched 17,557 MW. At the same time, the state’s domestic power generation was affected by extended outages at major generating stations, including Kalisindh and Kota, as well as continuing coal supply constraints.

The situation was further complicated by electricity shortages across the country, which reduced the availability of power through electricity exchanges. These conditions also prompted warnings from the National Load Despatch Centre (NRLDC) regarding grid overdrawals, highlighting the need for advance power procurement to maintain system stability.

To address the anticipated electricity deficit during November and December, RUVITL initiated a bidding process through the DEEP Portal under e-Reverse Auction TN-35. The procurement exercise was designed to secure additional electricity during critical morning and evening peak hours. However, attempts to attract multiple participants through the open market did not receive the expected response, leaving NVVN as the sole bidder for the identified power supply blocks.

Under its bid, NVVN offered 45 MW of electricity for November 2026 during morning hours from 05:30 to 09:30 at a tariff of ₹9.49 per kWh. For evening hours between 16:30 and 21:30, the company offered 40 MW at ₹9.99 per kWh. Additionally, NVVN offered 30 MW for evening power supply during December 2026 at ₹9.99 per kWh.

The State Load Despatch Centre (SLDC) supported RUVITL’s petition, stating that advance arrangements for firm power supply were necessary to maintain grid security and avoid irregular overdrawals during peak demand periods.

After examining the petition and relevant provisions, the RERC bench comprising Chairman Dr. Rajesh Sharma, Shri Hemant Kumar Jain and Shri Vijay Pal Singh approved NVVN’s selection for the proposed procurement.

The Commission clarified that the actual expenditure incurred on power procurement would be examined during subsequent true-up proceedings. It also directed the utility to explore more economical power procurement options, accelerate the deployment of Battery Energy Storage Systems (BESS), and develop stronger resource adequacy and demand flexibility plans to manage future electricity demand.