Ministry of Power Issues Directive to States and UTs for Adherence to “Resource Adequacy Guidelines”

New Delhi: The Ministry of Power, Government of India, has taken a proactive step towards ensuring a robust power infrastructure in the face of escalating electricity demand. In a detailed letter addressed to all states and union territories, the ministry emphasizes the importance of adhering to “Resource Adequacy Guidelines” to facilitate substantial growth in the nation’s power capacity.

As India continues its trajectory towards becoming the third-largest economy globally by 2030, the Ministry of Power underscores the critical need for a proportional increase in power generation capacity. The nation has experienced a staggering surge in power consumption, with peak power demand escalating by over 79%, from 136 GW in 2014 to the current 243 GW. In tandem, the generation capacity has witnessed a commendable rise from 248.5 GW in March 2014 to 428.3 GW in December 2023, marking a substantial 72.4% increase.

To meet the escalating demand, the Ministry emphasizes the necessity for accelerated development of the country’s generation capacity. Rule 10 of the Electricity (Rights of Consumers) Rules, 2020, mandates distribution licensees to provide round-the-clock power supply to all consumers, except for specified categories with lower supply hours defined by the State Electricity Regulatory Commission.

In alignment with Rule-16 of the Electricity (Amendment) Rules, 2022, the Indian government issued “Resource Adequacy Guidelines” on June 28, 2023. According to these guidelines, distribution licensees are obligated to prepare a Resource Adequacy (RA) Plan for a 10-year horizon on a rolling basis to meet their peak and energy requirements.

The Ministry has called upon all states and union territories to finalize their Resource Adequacy Plans for the period from 2024-25 to 2033-34, adhering to the specified rules and guidelines. While “Resource Adequacy Studies” have been completed up to 2031-32 for 23 States/UTs, ongoing studies are in progress for the remaining regions.

In the latest directive dated 2nd February 2024, states and UTs have been urged to comply with the “Resource Adequacy Guidelines,” emphasizing the significance of timely submission of data up to the year 2033-34 to the Central Electricity Authority (CEA) for conducting national-level RA studies.