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TFP Bureau, New Delhi; February 12, 2024: The Ministry of Power, Government of India, has issued a comprehensive letter to all states and union territories, emphasizing the importance of adhering to “Resource Adequacy Guidelines” to ensure sufficient growth in the nation’s power capacity in alignment with the rapidly increasing electricity demand.
With the Indian economy projected to maintain a high growth rate and become the world’s third-largest economy by 2030, the demand for power has surged significantly. The peak power demand has escalated by over 79%, from 136 GW in 2014 to 243 GW presently. Correspondingly, the generation capacity has also witnessed a substantial increase, from 248.5 GW in March 2014 to 428.3 GW in December 2023, marking a 72.4% rise. Moreover, the nation has established adequate inter-regional transmission infrastructure, enabling the movement of 117 GW of power across the country.
To meet the escalating demand effectively, it is imperative for the country’s generation capacity to expand rapidly.
In accordance with Rule 10 of the Electricity (Rights of Consumers) Rules, 2020, distribution licensees are mandated to provide round-the-clock power supply to all customers, except for specific consumer categories with reduced supply hours set by the State Electricity Regulatory Commission. Therefore, it is essential for all distribution licensees to secure sufficient capacity for continuous power supply. In line with this, the Indian government issued “Resource Adequacy Guidelines” on June 28, 2023, pursuant to Rule-16 of the Electricity (Amendment) Rules, 2022.
As per the Resource Adequacy (RA) Guidelines, distribution licensees are required to prepare RA Plans for a 10-year horizon (on a rolling basis) to meet their peak and energy requirements. It is crucial for all States and UTs to finalize their Resource Adequacy Plans for the period from 2024-25 to 2033-34 in accordance with the stipulated rules and guidelines.
As of now, RA Studies up to 2031-32 have been completed by the Central Electricity Authority (CEA) for 23 States/UTs, while ongoing studies are underway for the remaining regions, including Delhi, Goa, Sikkim, Haryana, Bihar, West Bengal, Chandigarh, Puducherry, and Jammu & Kashmir. Distribution licensees are now required to furnish data up to 2033-34 to the CEA for conducting national-level RA studies. A detailed letter dated February 2, 2024, has been dispatched to states and UTs, urging them to comply with the Resource Adequacy Guidelines.
