Rajasthan electricity regulator rejects Urja Vikas's 3,200 MW thermal plant proposal

Jaipur: The Rajasthan Electricity Regulatory Commission (RERC) has refused to clear the state's Urja Vikas and IT Services Ltd's (RUVITL) proposal to procure 3,200 MW of coal-based power for 25 years. In an order issued on Nov 18, the Commission directed the utility to reassess its requirement in light of updated national and state-level projections, stating that the long-term capacity addition sought was "unjustified, inadequately substantiated, and inconsistent with the state's clean-energy transition roadmap."

TOI had first flagged on Feb 28, 2025 that the state govt did not require the 3,200 MW of thermal power, citing the Central Electricity Authority (CEA) demand and project pipeline assessment for 2032.

RERC noted that the CEA's latest Resource Adequacy Plan (RAP) for 2025 sharply revised Rajasthan's need for new coal-based power downward to 1,905 MW by 2035–36, far below the 3,200 MW by 2031–32 claimed by RUVITL.


The regulator emphasised that the RAP was prepared using data supplied by the state utilities themselves, and RUVITL offered no scientific or technical basis to dispute the national assessment, apart from asserting that CEA's projections were "conservative."

RERC also highlighted that several major upcoming capacities were not adequately factored into the petitioner's requirement estimation. These included 1,400 MW from the Banswara nuclear plant, multiple MoUs with central PSUs, extensive capacity under the Kusum scheme totalling 11,527 MW, and the rapid deployment of rooftop solar and battery storage.

The Commission said these capacities would significantly moderate long-term demand and reduce the need for large thermal additions.

The order further cited the state's evolving regulatory framework, including Green Energy Open Access, Virtual Net Metering, and Group Net Metering rules, all of which were expected to shift demand towards decentralised renewable power and away from locked-in 25-year coal contracts.

The Commission observed that, with such developments, committing to a massive long-term procurement could expose consumers to unnecessary financial burden.

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