RERC Denies Approval For 3,200 MW Coal Plan Amid Renewable First Strategy

Jaipur, Nov 21 (KNN) Rajasthan’s power regulator has rejected a proposal to procure 3,200 Mega Watt (MW) of new coal power capacity, stating that the plan conflicts with national demand forecasts and the state’s renewable energy trajectory.

In an order issued, the Rajasthan Electricity Regulatory Commission (RERC) dismissed a petition from Rajasthan Urja Vikas and IT Services Ltd, which had sought approval to enter a 25 year coal based power procurement arrangement to meet rising round the clock demand.

RERC said the proposal was inconsistent with the Central Electricity Authority’s latest Resource Adequacy Plan, which estimates that Rajasthan will require only 1,905 MW of additional coal capacity by FY 2035-36, far less the 3,200 MW requested, reported Reuters.

The regulator also pointed to upcoming nuclear projects, significant solar additions and battery storage plans, noting that these resources are expected to address future supply gaps.

The order cautioned that a long-term coal contract could raise consumer tariffs due to rising fuel costs, as the plant would use nearly 40,000 tonnes of coal daily. It also flagged major environmental risks, including high particulate matter emissions.

RERC further highlighted that renewable energy curtailment remains a challenge in the state and advised utilities to maximise use of existing solar and wind resources before committing to new coal-based capacity.

The decision comes at a time when several other states are expanding coal procurement to meet growing demand, even as Rajasthan continues to lead India’s solar power generation.

(KNN Bureau)