Rajasthan’s Power Sector Shining Bright in the Sun

The Rajasthan Power Sector is at the cusp of a monumental transformation, poised to redefine the state’s role in India’s Energy Transition journey. When the current government took charge in December 2023, the sector was in shambles with issues related to demand-supply mismatches, load shedding, and mismanagement, leading up to a financial burden of Rs 1,39,200 crore in the form of outstanding loans. It was staring at a crisis with lack of clarity on ways to address the increasing gap between demand and supply. Despite the abundance of solar potential in the state, bids for multiple projects were initiated, but not awarded leading to a stagnant supply capacity. After taking charge, the current government under the leadership of CM Bhajan Lal Sharma, assessed the sector holistically and has been taking decisive steps for both short and long term. Through these initiatives, the state has not only secured power supply for its vast growing population and resources, but also ensured that it is done in a cost-effective manner through private participation, without putting consumer under economic strain while supporting entrepreneurial nature of people.

Over the last decade, Rajasthan’s average electricity demand has increased by 6%, reaching approx 13,000 MW. This demand is projected to grow at an annual rate of 8-10% over the next 6 to 7 years, potentially reaching 20,000 MW, driven by factors such as urbanization, industrialization, and increasing agricultural demand for irrigation. While this growth is essential, it also poses challenges, including a widening supply gap that could strain finances and create inconvenience for consumers. To address these issues, the state is pursuing transformative measures to increase supply capacity, manage demand effectively, and strengthen transmission and distribution networks. On the generation side, Rajasthan heavily relies on thermal energy (~14 GW), complemented by approximately 5 GW of solar power, 4 GW of wind energy, and 2 MW of hydroelectric power. To meet the growing demand, especially during peak hours, the state has implemented various initiatives to improve power supply. In the coming years, Rajasthan aims to add close to 30 GW of additional generation capacity, primarily through renewable power projects (~25 GW). Additionally, the state plans to expand its lignite assets, adding around 1,700 MW and encouraging private sector participation

Rajasthan Rajya Vidyut Utpadan Nigam (RRVUN), the state’s power generation company, is adopting an innovative approach by entering into over 10 joint ventures with central public sector units (PSUs) like NTPC, NTPC Green Energy, Coal India, NLC India, GAIL, IGL, and OIL. These collaborations will focus on both thermal and renewable power projects, resulting in an estimated investment of Rs 1,60,000 crore in the state. These partnerships allow Rajasthan to leverage its resources while bringing in the necessary capital and expertise to build and expand energy infrastructure. Notable progress has been made in this area, with tenders and expressions of interest (EoIs) released for projects such as the capacity expansion of Chhabra (2x660 MW) in collaboration with NTPC and lignite-based plants in Bikaner (3x125 MW) with NLC. To tackle the intermittency of renewable energy, Rajasthan has initiated Battery Energy Storage Solutions (BESS) projects under the Build-Own-Operate (BOO) model. These projects, supported by the Centre’s Viability Gap Funding (VGF), aim to install over 15 GWh of storage in the short term to stabilize transmission networks, manage demand and supply fluctuations, and support growing renewable energy capacity.

On the transmission front, Rajasthan Vidyut Prasaran Nigam (RVPN), the state’s transmission utility, is working to improve operational efficiencies by reducing turnaround times for transformer repairs and upgrading transformers to minimize failures. The deployment of state-of-the-art SCADA (Supervisory Control and Data Acquisition) systems has enhanced digital capabilities, enabling real-time monitoring of transmission networks and improving maintenance practices. Looking ahead, Rajasthan plans to accelerate transmission capacity expansion over the next 3-5 years. This includes the addition of 8 substations of 765 kV, 16 substations of 400 kV, 51 substations of 220 kV, and 96 substations of 132 kV, with a total investment of Rs 25,000 crore. To attract funding and expertise, RVPN has entered into a joint venture with Power Grid Corporation of India. Rajasthan is also leveraging central government schemes to accelerate its energy transition. The PM KUSUM scheme is a key initiative aimed at decentralizing solar power generation, particularly for farmers. The benefits of the KUSUM scheme will also enable the provision of approximately 1,45,000 new agricultural connections in the near future. Under the Revamped Distribution Sector Scheme (RDSS), Rajasthan is strengthening its distribution network. Key activities include augmenting existing substations, constructing new 33/11 kV substations to accommodate solar power generation, and implementing 11 kV feeder segregation to reduce losses. The state has awarded projects worth Rs 16,677 crore to reduce distribution losses and improve energy efficiency. Additionally, Rajasthan plans to install approximately 60 lakh smart meters annually and implement digitalization to simplify billing and enhance maintenance in metro cities. These efforts are expected to improve the quality and reliability of power supply while reducing Aggregate Technical and Commercial (AT&C) losses. The PM Surya Ghar Yojana, which promotes rooftop solar installations in residential areas, is another critical initiative in Rajasthan. The scheme has received over 4 lakh registrations, with more than 1 lakh applications already submitted. This initiative is helping reduce peak demand pressure on the grid, improving load management for distribution utilities. Rajasthan Renewable Energy Corporation Limited (RRECL) is also leading the installation of rooftop solar systems in government buildings using a first-of-its-kind Hybrid Annuity Model (HAM). Under this model, 489 MW of rooftop solar capacity has been awarded, with commissioning expected by October 2025. Additionally, Rajasthan is developing large-scale solar parks such as the 4.5 GW Pugal and Bodana Solar Parks. The state is collaborating with NLC and central PSUs to develop a 2,000 MW solar park. Further, solar projects totaling 2,100 MW are being planned near these solar parks, with land being sought in Barala, Mahrasar, and Deensar

THE VIEWS EXPRESSED BY THE AUTHOR ARE PERSONAL

Alok (IAS), The writer is ACS, Energy Department, Rajasthan