RERC refrains from approving 3200 MW thermal power procurement

Jaipur: The Rajasthan Electricity Regulatory Commission (RERC) Friday disposed of the review petition on the proposed 3200 MW thermal power procurement without granting direct approval. The commission has left it to the state discoms to determine the optimal mix of thermal tie-ups up to 4440 MW for FY26-FY36 after reassessing existing, upcoming and retiring capacities and securing approval from competent authorities.

In its final order issued on May 15, the commission accepted that the Central Electricity Authority’s clarification dated Nov 27, 2025 materially changed the understanding of Rajasthan’s coal requirement. The CEA clarified that Rajasthan’s Resource Adequacy Plan envisages 4440 MW of additional coal-based capacity by FY36, not merely the 1905 MW earlier interpreted by the Commission.

However, the commission did not give blanket approval for the proposed 3,200 MW project. Instead, it directed the petitioner, Rajasthan Urja Vikas & IT Services Ltd (RUVITL), to prepare an updated annual resource adequacy plan and undertake detailed assessments before proceeding further.

A key part of the order was the commission’s insistence that Rajasthan cannot simply ignore already planned or tied-up thermal projects under various joint ventures and MoUs with central PSUs such as NTPC, CIL and SCCL. The commission observed that unless these projects are formally cancelled with approval from competent authorities, they must continue to be treated as part of the state’s planning horizon.

The commission also ruled that the proposed retirement of 1350 MW of ageing thermal capacity by 2029-30 cannot yet be treated as final. It said that a detailed technical and economic analysis be undertaken before any retirement decision is taken.

DD Agarwal, director of Samta Power, an NGO working in the sector, observed: “It is important that the responsibility for approving power procurement does not rest solely with the discoms, particularly when they are also petitioners before the commission. The process should ensure transparency and balanced oversight.”

The order acknowledged Rajasthan’s growing renewable energy capacity but noted that firm thermal generation still remains critical for grid stability, reserve support, and meeting peak demand in a high renewable-energy state. While disposing of the review petition, the commission effectively left the door open for future procurement of the 3,200 MW project, but only after detailed planning exercises, updated resource adequacy assessments, and clarity on existing tied-up capacities and plant retirements.