Rajasthan Power Procurement Plan Under Fire as Regulatory Hearings Conclude
Jaipur: The Rajasthan Electricity Regulatory Commission (RERC) concluded crucial hearings on Tuesday regarding a review petition for the proposed procurement of 3,200 megawatts (MW) of power. The proceedings saw intense scrutiny from industry representatives and consumer groups, who raised fundamental questions about the rationale and motivations behind the plea filed by Rajasthan Urja Vikas and IT Ltd (Urja Vikas).
Stakeholders Challenge Basis of Thermal Plant Retirement
During the hearing, stakeholders presented evidence contradicting Urja Vikas's justification for retiring over 1,300 MW of thermal capacity. "While Urja Vikas attempted to build its case on the shutdown of multiple units at the Kota Thermal Power Plant (KTPS) and Suratgarh Thermal Power Station (STPS), the official records submitted tell a completely different narrative," participants stated.
They highlighted that submissions from Rajasthan Rajya Vidyut Utpadan Nigam, the state's generation company, demonstrated these units were operational, efficient, and supplying power at relatively low tariffs. "These functional units should not be retired until adequate replacement capacity is firmly in place," stakeholders emphasized, adding that the review petition appears to push for premature retirement to justify the need for fresh procurement.
Regulatory and Environmental Arguments Questioned
Civil society organizations argued the proposed retirement was premature and violated established procedures. "The reliance by Urja Vikas on a letter from the Central Electricity Authority (CEA) as new evidence further weakens their case instead of supporting it," they asserted.
According to stakeholders, the CEA letter clarified that the impact of retiring 1,350 MW had never been properly assessed and would require a fresh, detailed analysis. They noted that CEA guidelines permit additional capacity only if existing plants like Kota and Suratgarh are obsolete or non-operational.
The environmental justification for retirement also faced criticism. "Even the environmental argument put forward by Urja Vikas fails to hold water, as stakeholders point out that certain units fall under exempted categories, while others are already implementing compliance measures such as installing emission control systems (FGD)," sources explained. "In effect, the argument for retirement collapses on both technical and regulatory grounds."
Lack of Documentation and Broader Concerns
Participants expressed surprise that, despite directions from both the CEA and the Commission, the review petition lacked essential techno-economic analysis or board-approved documents to support the proposed shutdown. "This omission has led to widespread criticism that the process is being driven to fill a gap that may not even exist," sources at the hearing revealed.
They also noted the petition ignored key factors like the rapid growth in renewable energy capacity, upcoming thermal and nuclear power sources, and changing demand patterns, remaining narrowly focused on defending the 3,200 MW procurement figure.
Potential Long-Term Consequences
Stakeholders warned that proceeding with the proposal could have severe long-term implications. "It may lock consumers into expensive long-term thermal contracts, undermine solar integration efforts, and create stranded assets," they cautioned, urging the Commission to consider these risks in its final decision.
The hearings have set the stage for a pivotal ruling that could shape Rajasthan's energy landscape, balancing immediate power needs against sustainable and cost-effective solutions for the future.
