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Power Ministry Urges States to Adhere to Resource Adequacy Guidelines for Growing Electricity Demand

India's robust economic expansion is projected to elevate it to the third-largest economy globally by 2030.

February 12, 2024. By Abha Rustagi

In response to the surging electricity demand driven by India's rapid economic growth, the Ministry of Power, Government of India, has issued a detailed letter to all states and union territories, emphasizing adherence to 'Resource Adequacy Guidelines.' These guidelines aim to ensure sufficient growth in the nation's power capacity to meet the escalating electricity requirements.

India's robust economic expansion is projected to elevate it to the third-largest economy globally by 2030. Consequently, power consumption has surged, with peak power demand witnessing a staggering 79 percent increase, rising from 136 GW in 2014 to 243 GW presently. To match this escalating demand, the nation's generation capacity has expanded by 72.4 percent, reaching 428.3 GW by December 2023. Moreover, significant progress has been made in establishing inter-regional transmission infrastructure, facilitating the movement of 117 GW of power across the nation. To address the growing demand, it is imperative for the country's generation capacity to develop at an accelerated pace.

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 lower supply hours set by the State Electricity Regulatory Commission. Therefore, all distribution licensees must secure adequate capacity to ensure uninterrupted power supply. In June 2023, the Indian government issued 'Resource Adequacy Guidelines' under Rule 16 of the Electricity (Amendment) Rules, 2022, to facilitate this process.

As per these guidelines, distribution licensees are required to prepare Resource Adequacy Plans for a 10-year horizon, on a rolling basis, to meet their peak and energy requirements. It is imperative for all states and union territories to complete their Resource Adequacy Plans for the period from 2024-25 to 2033-34 in line with the prescribed rules and guidelines.

While Resource Adequacy Studies up to the year 2031-32 have been completed by the Central Electricity Authority (CEA) for 23 states/union territories, studies are ongoing for the remaining entities. Distribution licensees are now mandated to submit data up to the year 2033-34 to the CEA for conducting national-level Resource Adequacy Studies. A detailed letter has been dispatched to states and union territories, urging adherence to the Resource Adequacy Guidelines.

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Policies & Regulations

Minister of Power and New and Renewable Energy

Resource Adequacy Guidelines

Electricity Rules

Electricity Rules 2022

Central Electricity Authority