The Rajasthan Electricity Regulatory Commission (RERC or the Commission) issued draft Resource Adequacy (RA) regulations, 2026, and invited comments on the same. These regulations provide a framework for Rajasthan DISCOMs to plan their power procurement in a cost-optimal manner while taking cognizance of available technologies, given the cost reductions in standalone BESS by ~75% since 2022 and the emergence of cost competitive Solar+ESS and FDRE contracts to provide close to round-the clock supply, as well as changes in demand. We welcome the publication of these draft regulations which has incorporated the following forward-looking frameworks:
- The mandate to develop and prepare long-term 10 year rolling plans.
- Requiring the instituion of dedicated planning cells.
- Requiring DISCOMs to furnish a plan to meet their Resource Adequacy Requirement for a 5-year horizon to the Commission for approval.
- Repealing the existing power purchase & procurement regulations from 2004 towards ensuring harmony and avoid legal ambiguities.
Considering this, Prayas (Energy Group)’s comments and suggestions highlight areas where more clarity is needed to enable a smooth rollout and implementation of the RA regulations. In addition, we suggest certain changes towards ensuring a robust and transparent resource planning and cost-effective power procurement as highlighted below:
- Extent and applicability of Resource Adequacy regulations
- Strengthening effective demand forecasting
- More robust capacity crediting framework
- Planning Reserve Margin
- Mechanism of power procurement
- The need for one state RA study and responsibilities of different entities
- Harmony between the RA study and tariff process
- RA studies and power procurement plans should be approved via transparent public hearing process
- Resource Adequacy Requirement
- Penalty provision
- Need for enhanced transparency
- Leveraging wider sector expertise in the country to finalise RA studies and procurement plans
- The need for additional guidelines