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RERC Rejects 3,200 MW Coal Plan, Citing RAP Findings and Clean Energy Commitments

The Rajasthan Electricity Regulatory Commission (RERC) has turned down RUVITL’s proposal to add 3,200 MW of coal-based round-the-clock power, stating that the utility’s demand projections far exceed the Central Electricity Authority’s RAP 2025 estimates and overlook major upcoming capacity additions.

RUVITL had sought approval to develop four 800 MW thermal units under a DBFOO model with coal allocation through the SHAKTI policy and a 25-year PPA. However, RERC found that the petition relied on inaccurate demand assessments, noting that Rajasthan’s Energy Assessment Committee projected long-term needs beyond its mandated five-year horizon and failed to consult the CEA as required under the Electricity Act.

The commission pointed out that RUVITL’s projected requirement of 3,200 MW by 2031-32 contrasts sharply with the RAP 2025, which estimates Rajasthan will need only about 1,905 MW of new coal capacity by 2035-36. RUVITL’s disagreement with these figures, RERC said, lacked analytical basis.

RERC also observed that several upcoming additions—including 3,325 MW through state–central PSU MoUs and a 1,400 MW nuclear plant in Banswara—were not considered by the utility. Factoring these in, the regulator said, would significantly reduce or even remove the need for further coal procurement.

The order underscored that the proposal did not align with the Rajasthan Integrated Clean Energy Policy 2024, which prioritizes renewables and storage. RERC highlighted existing approvals for large capacities under KUSUM, rooftop solar programs, and planned battery storage, along with policies like Green Open Access and Net Metering that are expected to moderate future demand.

Financial concerns also shaped the decision. With coal power tariffs in many states already above Rs6 per unit and Rajasthan’s projected costs nearing Rs7 per unit due to long transport distances, RERC questioned committing consumers to such long-term expenses when renewable-plus-storage options are available at Rs3–4 per unit.

RERC concluded that RUVITL had not provided evidence supporting claims of local socio-economic benefits, especially when coal transport costs could rise 15–20%. The commission has directed the utility to revisit its projections, consult the CEA with complete data—including expected retirements—and submit a fresh petition only if a genuine requirement remains.