Pressmediaofindia
Related Articles
20-05-2026
Bureau Report + Agencies
NEW DELHI: A filing revealed that the power regulator in Rajasthan, India’s largest solar producer, refused to approve a 3,200 megawatt coal project. The power regulator said it was against clean energy goals, and lacked justification based on demand forecasts.
In an order published Thursday, the Rajasthan Electricity Regulatory Commission announced that it had rejected a petition filed by state-run Rajasthan Urja Vikas and IT Services Ltd to obtain coal power through bidding for a period of 25 years.
The utility claimed that the new capacity would be needed to meet a growing demand for electricity around-the-clock.
The regulator, however, said that the proposal was incompatible with the Central Electricity Authority’s latest Resource Adequacy Plan.
The Resource Adequacy plan estimates that Rajasthan will only require 1,905 MW additional coal capacity in 2035-36. This is far less than 3,200 MW.
This decision is made at a time when other Indian states are increasing their coal power purchase, citing a strong demand for power and the need to have base-load electricity available round-the clock.
Rajasthan’s power regulator noted that upcoming nuclear projects and large-scale solar additions, as well as battery storage plans, would help to ease the state’s supply gap.
In its order, the commission stated that long-term coal contracts can lock in expensive power and undermine renewable energy integration.
The commission warned consumers that locking in coal prices for 25 years would increase their costs and worsen the air quality. This is because the proposed plant will burn about 40,000 tons of coal per day, releasing hundreds if not thousands of tons of fine particulates.
The Rajasthan Electricity Regulatory Commission said in an order published on Thursday it had dismissed a petition by state-run Rajasthan Urja Vikas and IT Services Ltd seeking approval to procure coal power for 25 years through bidding.
The utility argued the new capacity was needed to meet rising round-the-clock demand.
However, the regulator said the proposal was inconsistent with the Central Electricity Authority’s latest Resource Adequacy Plan.
The Resource Adequacy Plan estimates Rajasthan will require only 1,905 MW of additional coal capacity by 2035-36, far less than the 3,200 MW sought.
The decision comes even as other Indian states are accelerating their coal power purchases, citing strong power demand and the need for round-the-clock, base-load power.
The Rajasthan power regulator also noted upcoming nuclear projects, large-scale solar additions and battery storage plans would ease supply gaps for the state.
The Rajasthan Electricity Regulatory Commission had already refused permission for the proposed coal power project in November, saying it conflicted with clean energy goals and lacked justification under demand forecasts.
State power utility Rajasthan Urja Vikas & IT Services Ltd, however, filed a review petition, arguing the new capacity was needed to meet rising round-the-clock demand. In an order issued late on Friday, the regulator disposed of the review petition without clearing the project.
It also directed state utilities to carry out proper resource planning to assess how much coal power was needed for the state.
Several other Indian states are accelerating their coal power purchases, citing strong power demand and the need for round-the-clock, base-load power.
