Rajasthan Regulator Rejects Proposal for 3,200 MW Coal Power Project
The Rajasthan Electricity Regulatory Commission has rejected a proposal for a 3,200-megawatt coal-fired power project, citing inconsistencies with national clean-energy goals and a lack of justification based on future demand forecasts. In an order released Thursday, the regulator dismissed a petition from state-run Rajasthan Urja Vikas and IT Services Ltd, which sought approval to procure coal power for 25 years through a competitive bidding process.
The commission noted that the utility’s claim of needing new coal capacity to meet rising round-the-clock demand was not supported by the Central Electricity Authority’s latest Resource Adequacy Plan. The plan estimates that Rajasthan will require only 1,905 MW of additional coal capacity by 2035–36—far below the 3,200 MW proposed. It added that upcoming nuclear projects, expanding solar installations, and battery storage developments would significantly strengthen the state’s energy supply.
The order further warned that long-term coal contracts could lock consumers into higher tariffs, hinder renewable energy integration, and worsen air quality. The regulator highlighted that the proposed plant would burn roughly 40,000 tonnes of coal per day, emitting hundreds of tonnes of particulate matter. Given persistent curtailment of renewable energy in the state, the commission urged Rajasthan to prioritize the full utilization of its solar and wind resources before pursuing new coal-based additions.
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