Ministry Urges States to Ensure Adequate Growth of Power Generation Capacity

States must draft resource adequacy plans for 2024-25 until 2033-34

February 12, 2024


The Ministry of Power has written to all states and union territories (UTs) to adhere to the recently issued “Resource Adequacy Guidelines” to ensure sufficient growth in power generation capacity in line with the rapidly increasing electricity demand in the country.

As per the guidelines issued in June last year, distribution companies (DISCOMs) were required to develop 10-year electricity demand forecasts and ensure adequate power supply to meet the projected peak demand.

The DISCOMs are required to have at least 75% of their total capacity requirements covered by long-term contracts as specified in the long-term national resource adequacy plan or by the respective state electricity regulatory commissions. Medium-term contracts are recommended to constitute 10-20% of the capacity, with the remaining power demand being met through short-term contracts.

This will be essential to fulfill the Electricity (Rights of Consumers) Rules’ 2020 mandate of supplying round-the-clock power to consumers apart from a few categories for which the state regulators have set lower supply hours.

The Central Electricity Authority has conducted studies on resource adequacy until 2031-32 for 23 states and UTs. The remaining states, namely Delhi, Goa, Sikkim, Haryana, Bihar, West Bengal, Chandigarh, Puducherry, and Jammu and Kashmir, have been asked to provide data up to 2033-34 to enable nationwide resource adequacy planning.

All states and UTs have been directed to complete their respective Resource Adequacy Plans for 2024-25 to 2033-34 based on the guidelines, as the plans are key to ensuring that the power supply grows in tandem with the economy.

The ministry noted that India’s economy is projected to become the third largest in the world by 2030, which will drive up electricity consumption. Peak power demand has already increased by 79% from 136 GW in 2014 to 243 GW, it said, while generation capacity has expanded by 72.4% in this period.

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