Rajasthan Seeks Approval for Solar Expansion and Thermal Power Procurement

In a bid to enhance energy security and meet rising electricity demand, Rajasthan Urja Vikas and IT Services Ltd. (RUVITL) has approached the Rajasthan Electricity Regulatory Commission (RERC) for approval to procure 3,200 MW of thermal power through a competitive bidding process.

Additionally, the state has outlined plans to expand its solar capacity by 8,000 MW, reinforcing its commitment to renewable energy. The proposed 3,200 MW thermal power capacity, planned under the Design, Build, Finance, Own, and Operate (DBFOO) model, will consist of four coal-based plants of 800 MW each.

To ensure fuel supply, RUVITL has sought coal allocation under the Ministry of Coal’s SHAKTI scheme. The move comes in response to an anticipated energy deficit in Rajasthan, emphasizing the need for reliable round-the-clock (RTC) power.

Originally, RUVITL intended to bundle the thermal capacity with 8,000 MW of solar power in a single tender. However, due to the complexity of integrating both energy sources and feedback from prospective bidders, the agency has decided to prioritize the thermal power procurement while re-evaluating its solar strategy.

Rajasthan, a leading state in India’s renewable energy transition, must add 19,322 MW of solar capacity by 2029-30, according to the Central Electricity Authority (CEA). While large-scale solar installations are crucial for meeting future energy demand, integrating them into the grid presents significant challenges. Developing adequate transmission infrastructure and energy storage solutions is essential to ensure stability and reliability.

The state government has actively promoted solar energy through initiatives such as the PM-KUSUM scheme, which facilitates decentralized solar solutions for farmers and rural communities. While these efforts improve energy access and sustainability, they also require long-term investments in grid modernization and storage technologies to handle fluctuations in renewable energy generation.

Due to the challneges involved in bundling solar and thermal power in a single tender, RUVITL has opted for a phased approach. The agency will proceed with the 3,200 MW thermal power procurement first, while developing a revised framework for the 8,000 MW solar expansion. Despite the change in procurement strategy, Rajasthan remains committed to increasing its solar capacity through separate tenders and decentralized energy systems.

Renewable energy remains a key focus in the state’s budget, with dedicated funding for solar and energy storage projects. By balancing thermal power for grid stability with large-scale solar expansion, Rajasthan aims to secure a sustainable and resilient energy future.