Guidelines for Resource Adequacy Planning Framework for Power Sector

June 29, 2023

The recently issued guidelines in the power sector aim to ensure the availability of sufficient electricity for the country’s growth. These guidelines, formulated in consultation with the Central Electricity Authority (CEA), introduce a procurement framework that focuses on advance resource procurement by DISCOMs (Distribution Companies).

Procurement Framework: Advance Procurement of Resources

The guidelines emphasize the establishment of an advance procurement framework by DISCOMs. This approach enables proactive planning and ensures the availability of resources to meet the electricity demand effectively. By procuring resources in advance, potential challenges related to resource scarcity and demand fluctuations can be addressed more efficiently.

Long-Term Contracts and Resource Adequacy

Under the guidelines, DISCOMs are suggested to allocate a significant share of long-term contracts. At least 75% of the total capacity required by DISCOMs should be covered by long-term contracts. This approach brings stability to the power sector and promotes long-term sustainability by ensuring a consistent supply of electricity.

National Load Dispatch Centre’s Role

To address any capacity shortfall in short-term Distribution Resource Adequacy Plans, the National Load Dispatch Centre (NLDC) plays a crucial role. The NLDC conducts bids to procure the necessary capacity required to meet short-term resource adequacy plans. This mechanism ensures a reliable and balanced power supply even during periods of increased demand or unforeseen circumstances.

Time-Bound Procurement Processes

One of the significant aspects of the guidelines is the specification of a time frame for procurement processes by DISCOMs. This ensures that the capacity procured by DISCOMs becomes available when required to serve the projected load. By setting specific time-bound procurement processes, efficiency is enhanced, and potential delays are mitigated.

Benefits of the Guidelines

These guidelines will bring several major benefits to the power sector. First and foremost, they aim to provide consumers with 24×7 reliable power supply, ensuring uninterrupted access to electricity. Additionally, optimized electricity tariffs are sought, allowing consumers to avail themselves of electricity at reasonable costs.

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