The Rajasthan Electricity Regulatory Commission (RERC) has stopped the state’s plan to buy 3200 MW of coal-based electricity for now. The Commission said Rajasthan must first prepare a fresh estimate of how much extra power will actually be needed in the coming years.
RERC said such a big decision cannot be approved without studying the impact of already planned thermal and nuclear power projects, renewable energy production and battery storage systems in the state.
What is the whole matter?
This matter is related to the plan of Rajasthan Urja Vikas Evam IT Services Limited (RUVITL), which sought permission for the state’s DISCOM companies to purchase 3200 MW (4800 MW) coal-based Round The Clock (RTC) electricity for 25 years.
The company had claimed that Rajasthan could face a severe power shortage in the coming years, hence long-term preparation is necessary from now. However, the commission had earlier rejected this proposal and asked CEA (Central Electricity Authority) to conduct a new review. Now, while deciding on the review petition, the commission has maintained the same stance.
Green Energy and Battery Storage also considered important
RERC stated in its order that the use of green energy, i.e., solar and other energy, is rapidly increasing across the country, including Rajasthan. In such a situation, future electricity demand cannot be estimated solely by old methods.
The commission said that new systems like Green Energy Open Access (GEOA), Virtual Net Metering (VNM), Group Net Metering (GNM), and Battery Energy Storage System (BESS) are being rapidly implemented. This will enable people and companies to generate their own electricity and also store it when needed.
According to the commission, due to these new systems, the pressure on DISCOM companies to purchase electricity may reduce in the coming time. For this reason, it is necessary to re-evaluate the need for new coal-based power projects.
Nuclear and new thermal projects are also a reason
The commission also stated that several large power projects are already proposed in the state, which need to be included in the estimation of electricity demand.
These include approximately 3325 MW thermal projects with companies like NTPC, CIL, and NLCIL, and a proposed 1400 MW nuclear power project in Banswara. The commission said that it is not appropriate to consider these projects uncertain, as MOUs for them have already been signed.
New review requested from CEA again
Following the commission’s order, RUVITL wrote to CEA on November 24, 2025, requesting a new estimate of Rajasthan’s future electricity demand. The company stated – By the year 2035-36, the state may need an additional thermal capacity of 5790 MW. Approximately 1350 MW of old thermal plants are about to be shut down.
In response, CEA clarified on November 27, 2025, that there might be a need for additional coal-based capacity in the future, but the decision on how much electricity to purchase and from which source will have to be made by the DISCOM companies.
RUVITL said that by 2035-36, the requirement could reach 4440 MW. File photo
EAC later indicated a greater need
In the review petition, RUVITL stated that the commission did not give sufficient importance to the conclusions of the EAC meeting held on August 21, 2025. According to EAC, an additional thermal capacity of 2395 MW will be required by the year 2030-31. By the year 2035-36, this requirement could reach 4440 MW.
If 1350 MW of old plants are shut down, the total requirement could go up to 5790 MW. The committee said that new thermal plants take 4-5 years to be ready, so it is necessary to plan now.
What was the commission’s final decision?
RERC stated in its final order that the decision to purchase additional coal-based power up to 4440 MW is to be made by the DISCOM companies. This decision will be taken keeping in mind a transparent process and low cost. A detailed technical review will be necessary before closing the 1350 MW old thermal plants.
The commission has not approved the 3200 MW power purchase plan for now, but has kept open the option to file a new petition if the need is proven in the future.
