Rajasthan Power Board Considers Retiring Kota Thermal Units Amid 3,200 MW Tender
Jaipur: Rajasthan Vidyut Utpadan Nigam Ltd (RUVNL) convened a board meeting this week to consider retiring four units of the Kota Thermal Power Plant. This decision revives a plan that had been previously halted and is directly linked to the proposed procurement of 3,200 MW of new thermal capacity under a fresh tender.
Reversal of 2021 Directive
The move represents a significant reversal of a July 2021 directive issued under the Congress government. That earlier directive had specifically halted a proposal to retire two units at the Kota plant. In an official letter from that time, the state government's joint secretary instructed the RUVNL chairman to keep in abeyance the decision to phase out units one and two.
Regulatory Scrutiny and Stakeholder Concerns
The board meeting occurs as the Rajasthan Electricity Regulatory Commission (RERC) is actively examining Rajasthan Urja Vikas and IT Ltd's (RUVITL) case for procuring the 3,200 MW of thermal power. RERC has directed the petitioner to submit detailed clarifications on several critical points:
- The capacity already planned within the state's power infrastructure
- The justification for retiring existing thermal units to support the new procurement proposal
After hearing from public stakeholders on Tuesday, RERC reserved its order but permitted additional submissions to be filed. The commission's record of proceedings reveals substantial concerns raised by various stakeholders.
Expert Analysis and Cost Considerations
The Council on Energy, Environment and Water (CEEW), one of the key stakeholders, presented a compelling argument that retiring thermal plants does not automatically justify adding equivalent new capacity. They emphasized the need for detailed modeling and comprehensive cost analysis before proceeding with such significant infrastructure changes.
Prayas Energy Group, another stakeholder, pointed out that state-owned plants like Kota and Suratgarh continue to generate power at lower costs compared to potential new alternatives. Consumer groups and power producers echoed these concerns, warning that entering into a new 25-year thermal contract could substantially raise costs for consumers, especially when older plants remain both cheaper and operationally efficient.
Contradictory Positions and Disclosure Issues
RUVNL's latest move appears contradictory to its own positions in recent years. The utility has repeatedly written to the Central Electricity Authority, consistently stressing the Kota plant's economic viability and efficient performance metrics.
RERC has also flagged RUVITL's failure to disclose its consent to purchase 1,400 MW from the new 2,800 MW nuclear plant at Banswara. This nuclear power is notably cheaper by Rs 3-4 per unit compared to thermal alternatives. Questions have emerged about why this crucial information wasn't shared with the CEA during the planning of the state's power requirements.
Additionally, RUVITL has been asked to clarify how much power it expects to receive from storage solutions and distributed renewable energy sources, highlighting the growing importance of alternative energy considerations in Rajasthan's power planning.
