RERC Drafts New Power Procurement Rules After 20 Years, Addresses Capacity Planning
RERC Issues Draft Power Procurement Guidelines After 20 Years

Rajasthan Electricity Regulator Unveils Draft Guidelines to Modernize Power Procurement Framework

After nearly two decades of operating under an outdated system, the Rajasthan Electricity Regulatory Commission (RERC) has taken a significant step forward by issuing draft guidelines for resource adequacy regulations. This move aims to bring clarity and structure to the state's power procurement processes, which have long relied on a patchwork of regulations from 2004 and reports from the Central Electricity Authority (CEA).

Timing Coincides with Critical State Hearing on Power Procurement

The release of these draft guidelines comes at a pivotal moment, as the regulator is scheduled to conclude discussions at a hearing on Tuesday regarding a state government proposal to procure 3,200 megawatts (MW) of power through competitive bidding. Rajasthan is currently managing multiple power planning initiatives while simultaneously integrating a growing pipeline of renewable energy from national schemes such as the Kusum program and the PM Surya Ghar Yojana.

Divergent Capacity Estimates Highlight Planning Challenges

The need for updated regulations is underscored by conflicting projections regarding Rajasthan's future power requirements. Initially, the CEA's resource adequacy plan projected a need for approximately 3,246 MW of additional thermal capacity by the 2031–32 period. However, an updated assessment released in early 2025, which extended the timeframe to 2035–36 and incorporated the latest state data, suggested a more moderate demand trajectory without increasing thermal capacity requirements.

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This indicates that the proposed 3,200 MW procurement might not be necessary. In contrast, the state's own Energy Assessment Committee has estimated that Rajasthan may require an additional 2,000 MW of thermal capacity by 2030–31, escalating to more than 5,000 MW by 2035–36.

Regulations Aim to Bridge Uncertainty Gap

These divergent estimates have created persistent uncertainty in power planning, a challenge that RERC's new resource adequacy regulations specifically seek to address. The draft guidelines are designed to provide a more coherent and reliable framework for assessing and meeting the state's future electricity needs.

Implementation Capacity Remains a Key Concern

While industry representatives acknowledge that the regulations appear well-structured on paper, they raise a crucial question about implementation. The more pressing issue is whether Rajasthan's distribution companies (discoms) possess the necessary capacity and capability to effectively implement these new regulations. This concern highlights the gap between regulatory intent and practical execution in the state's power sector.

The draft guidelines represent a critical attempt to modernize Rajasthan's approach to power procurement after twenty years of reliance on outdated frameworks. As the state balances traditional thermal capacity needs with renewable energy expansion, these regulations could provide much-needed clarity in a complex and evolving energy landscape.

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