Energy dept's 3.2k MW thermal power tender not required, says CEA report

Time of India

21 hours ago

Jaipur: The fate of Rajasthan's proposed 3,200 MW thermal power plant hangs in the balance following a revised Resource Adequacy Report by the Central Electricity Authority (CEA), which said the state does not require any additional coal-powered plants to meet its demand over the next decade.
A joint tender for 3,200 MW thermal and 8,000 MW solar was cancelled in Sept last year. However, Rajasthan Urja Vikas and IT services Ltd (RUVITL) floated 3,200 MW tender for thermal plants this year based on the power demand projection made earlier by the CEA.
In its updated report, the CEA reduced Rajasthan's thermal power requirement for the period FY26 to FY36 from 20,532 MW to 16,561 MW, comprising 15,960 MW coal and 601 MW gas.
This revision renders the proposed 3,200 MW tender and other projects unnecessary and excessive, resulting in a surplus of 830 MW beyond the state's projected needs by 2031-32.
A major point of contention has been the demand estimation underpinning this procurement. Rajasthan Urja Vikas and IT Services Ltd relied on CEA's previous Resource Adequacy Report, based on the power situation in 2022-2023, which projected a need for 20,532 MW of contracted capacity by FY 2031-32 (comprising 19,710 MW coal and 822 MW gas).
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Based on this, distribution companies (discoms) submitted a petition indicating a requirement for an additional 6,897 MW, of which 3,756 MW was already secured through joint ventures with Central Public Sector Undertakings (CPSUs), CGS allocations, and other arrangements. The remaining 3,141 MW was to be addressed through the 3,200 MW tender, which the Rajasthan Electricity Regulatory Commission is currently evaluating.
Anshuman Gowthal of the Centre for Energy, Environment and People (CEEP) said, "This overestimation of demand may lead to over-investment, which not only burdens the public exchequer but also locks the already distressed state utilities into long-term financial obligations with stranded assets, with direct cost implications for consumers."
Citing the projects not factored into the estimate of CEA, Gothwal said RUVITL has also overlooked several recent procurement arrangements and existing surplus capacities, further deepening concerns about excess procurement.
Director, Samta Power, an NGO in the power sector, DD Agarwal, raised the issue at various forums, including during the meetings at RERC.
"The state power corporations are already in the process of adding 3,655 MW through various contracts and tenders. This capacity has not been included in the existing capacity category of the revised CEA report," Agarwal said.
Both said that besides demand concerns, there is a noticeable absence of cost comparisons between thermal power and emerging alternatives such as Firm Dis-patchable Renewable Energy (FDRE), which includes solar power bundled with Battery Energy Storage Systems (BESS). These newer technologies, widely seen as the future of reliable power supply, are gaining traction globally for their lower lifecycle costs and environmental benefits.
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