Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Telangana Electricity Regulatory Commission Notifies Resource Adequacy Framework

The Telangana Electricity Regulatory Commission (TGERC) has issued the Telangana Electricity Regulatory Commission (Framework for Resource Adequacy) Regulation, 2026, establishing a structured mechanism to ensure sufficient electricity supply to meet the state’s projected demand. The regulation will come into force upon its publication in the Telangana Gazette.

The framework applies to generating companies, distribution licensees (DISCOMs), the State Load Dispatch Centre (SLDC), transmission utilities, and other grid-connected entities. It lays out a comprehensive approach covering demand forecasting, generation planning, transmission and distribution strengthening, procurement strategy, and ongoing monitoring to maintain system reliability over a rolling 10-year horizon.

Demand Forecasting and Planning

Under the regulation, DISCOMs must prepare short-, medium-, and long-term demand forecasts on an hourly or sub-hourly basis, following guidelines issued by the Central Electricity Authority. Forecasting methodologies may include trend analysis, econometric and statistical models, end-use approaches, autoregressive models, and AI-based tools. Projections must account for factors such as electric vehicle adoption, distributed energy resources, open access, agricultural demand patterns, seasonal variations, tariff signals, and policy changes.

DISCOMs are required to develop multiple demand scenarios — most probable, business-as-usual, and high-growth — supported by sensitivity and statistical analysis. The SLDC will aggregate these forecasts at the state level and submit consolidated projections annually to national and regional load dispatch centres by May 31.

Generation and Capacity Planning

The framework mandates detailed generation resource planning based on projected demand and a defined planning reserve margin. DISCOMs must assess existing capacity, upcoming projects, and retiring assets, while calculating capacity credit for thermal, hydro, and storage resources. Abnormal events such as natural disasters are to be excluded from capacity assessments.

Long-term resource adequacy plans must demonstrate firm tie-ups to meet peak demand and will require regulatory approval. These plans must be updated annually to reflect evolving system conditions.

Procurement Strategy and Compliance

DISCOMs must adopt a structured and cost-effective procurement strategy that ensures reliable supply while facilitating renewable energy integration and compliance with renewable purchase obligations and storage targets. Power procurement may be undertaken from central and state generators, independent power producers, renewable developers, traders, exchanges, and approved platforms.

All new long- and medium-term power purchase agreements (PPAs) will require prior approval from the Commission. In case of unforeseen demand spikes or supply shortages, DISCOMs may procure short-term power, subject to reporting and justification within 15 days.

Transparency and Oversight

The regulation introduces enhanced transparency requirements. DISCOMs and the SLDC must publish procurement details, generator schedules, and merit-order dispatch information within 45 days of transactions. Dedicated resource adequacy and real-time procurement cells are to be established to ensure effective planning and operational readiness.

Through this framework, TGERC aims to strengthen long-term power planning, enhance grid resilience, and ensure that Telangana’s future electricity demand is met reliably and efficiently.