Power Ministry writes to States and UTs on adherence to Resource Adequacy Guidelines to ensure adequate power in line with rapidly growing electricity demand – EQ

In Short : The Ministry of Power has communicated with States and Union Territories, urging adherence to Resource Adequacy Guidelines. This initiative aims to ensure a reliable and sufficient power supply, aligning with the escalating electricity demand due to the country’s rapid growth and development.

In Detail : All States and UTs are required to complete Resource Adequacy Plans for the period starting 2024-25 to 2033-34

Central Electricity Authority is preparing National-Level Resource Adequacy Plan up to the year 2033-34

The Ministry of Power, Government of India has sent a detailed letter to all states and union territories for adherence to “Resource Adequacy Guidelines”, in order to ensure adequate growth in the nation’s power capacity in line with the rapidly growing electricity demand.

The Indian economy is expected to keep growing at a high rate and become the third-largest economy of the world by the year 2030. As a result, our power consumption has also surged, with the peak power demand rising by more than 79%, from 136 GW in 2014 to 243 GW today. Correspondingly, our generation capacity has also expanded, rising from 248.5 GW in March 2014 to 428.3 GW in December 2023, a 72.4% increase. Additionally, the nation has installed adequate inter-regional transmission infrastructure to move 117 GW of power across the nation.

To cater to the rapidly growing demand, it is imperative that the country’s generation capacity also develops at an accelerated rate.

Rule10 of the Electricity (Rights of Consumers) Rules, 2020 states that distribution licensees must provide power to all customers round-the-clock, with the exception of a few consumer categories for which the State Electricity Regulatory Commission has set lower supply hours. As a result, it is required that all distribution licensees tie up enough capacity for a round-the-clock power supply. In this regard, on June 28, 2023, the Indian government issued “Resource Adequacy Guidelines” in accordance with Rule-16 of the Electricity (Amendment) Rules, 2022.

As per the Resource Adequacy (RA) Guidelines, to meet their own peak and energy requirement, the Distribution licensees are mandated to prepare RA Plan for a 10-year horizon (on a rolling basis).It is imperative that all States and UTs must complete their Resource Adequacy Plans for the period starting 2024-25 to 2033-34 in accordance with the aforementioned rules and guidelines.

As on date “Resource Adequacy (RA)Studies” up to the year 2031-32 have been completed by the Central Electricity Authority (CEA), for 23 States/UTs, whilethe RA studies are in progress for the rest of the States and UTs, namely for Delhi, Goa, Sikkim, Haryana, Bihar, West Bengal, Chandigarh, Puducherry and J&K.However, the distribution licensees are now required to submit to CEA the data up to the year 2033-34, for carrying out national-level RA studies. Accordingly, a detailed letter dated 2nd February, 2024 has been sent to the states and UTs, for adherence to “Resource Adequacy Guidelines”.