The Government of India, in consultation with the Central Electricity Authority (CEA), has recently issued comprehensive guidelines for the Resource Adequacy Planning Framework. These guidelines, framed under the Rule 16 of Electricity (Amendment) Rules, 2022, aim to ensure the availability of sufficient electricity to support the country’s growing power needs. By establishing an advanced procurement framework for resources, the guidelines will enable Distribution Companies (DISCOMs) to meet electricity demands in a cost-effective manner. This proactive approach seeks to mitigate power shortages, enhance energy security, and optimize electricity tariffs, ultimately providing consumers with reliable 24×7 power supply.
The newly introduced guidelines establish an institutional mechanism for Resource Adequacy planning, ranging from the national level down to the DISCOM level. This approach guarantees the availability of resources necessary to meet electricity demand at each level. The framework includes the assessment of new generation capacities, energy storage solutions, and flexible resources well in advance, ensuring the reliable fulfilment of future energy requirements at the most optimal cost.
To foster long-term stability, the guidelines recommend that a minimum of 75% of the total capacity required by DISCOMs should be procured through long-term contracts. These contracts will be based on the long-term National Resource Adequacy Plan (LT-NRAP) or as specified by the respective State Electricity Regulatory Commissions (SERCs). Medium-term contracts are suggested to constitute 10-20% of the total capacity, while short-term contracts can fulfil the remaining power demand. In the event of any capacity shortfall, the National Load Dispatch Centre (NLDC) will conduct bids to procure additional resources required to meet the Short-term Distribution Resource Adequacy Plans (ST-DRAP), which aggregate the plans of individual DISCOMs.
The guidelines also outline specific timelines for the procurement process by DISCOMs for each type of generation. These timelines ensure that the procured capacity becomes available when required to serve the projected load. By streamlining and expediting the procurement process, the guidelines aim to eliminate the practice of load shedding by DISCOMs and prevent electricity supply crunch periods in the future.
Union Power & New and Renewable Energy (NRE) Minister, RK Singh, hailed the guidelines as a significant reform that prioritizes consumer satisfaction by providing reliable power supply round the clock at optimized electricity tariffs. The Minister emphasized that the scientific and time-bound approach to assess future electricity demand and proactively procure resources will help avoid power shortages and ensure uninterrupted power supply. Furthermore, he highlighted that the robust resource adequacy framework aligns with the nation’s goals of energy security, cost optimization, and a sustainable future.
The CEA will publish the LT-NRAP, which will provide the Planning Reserve Margin (PRM) required at the national level to meet demand reliably. The NLDC will prepare the Short-term National Resource Adequacy Plan (ST-NRAP), considering the planned maintenance schedules of existing generating stations. Each DISCOM will then create its Long-term Distribution Licensee Resource Adequacy Plan (LT-DRAP) for a duration of 10 years, vetted by the CEA. Additionally, State Load Dispatch Centres (SLDCs) will prepare Short-term Distribution Resource Adequacy Plans (ST-DRAP) for their respective states, accounting for the Renewable Purchase Obligations (RPOs) to promote renewable energy capacity addition.
