The Rajasthan Electricity Regulatory Commission (RERC) has allowed the state's power distribution companies to procure up to 1,300 MW of hydropower from the Government of Himachal Pradesh at Rs 16.62 per unit for four months, from November 2026 to February 2027, to tide over a severe power shortage in the Rabi season. The approval lets Rajasthan Urja Vikas and IT Services Ltd (RUVITL) proceed with a negotiated bilateral arrangement, to be routed through PTC India Ltd.

Source: The Times of India, Jaipur

The commission said in its October 29 order that the decision was made due to exceptional circumstances, including an acute power shortage, limited availability in the short-term market and the need to maintain grid discipline. RERC clarified that the approval should not be treated as a precedent and that short-term procurement should ordinarily be through competitive bidding or power exchanges.

Source: SolarQuarter

The power supply position deteriorated sharply in September, when average demand rose to 14,518 MW against 12,340 MW in the corresponding month last year, and peak demand touched 17,557 MW, the TOI report said. The commission noted that Rajasthan could face substantial deficits during morning and evening peak hours in the Rabi season.

1,300 MWMaximum hydropower to be procured
Rs 16.62Landed cost per unit
17,557 MWPeak demand recorded in September
3,255 MWProjected morning deficit in December

The discoms have projected an average deficit of 3,255 MW during morning hours in December and 3,032 MW in January. The corresponding evening deficits are estimated at 1,650 MW and 1,872 MW. The tariff build-up reported by SolarQuarter puts the price at Rs 15.50 per unit at the seller's periphery, with inter-state transmission charges and losses of about Rs 1.12 per unit taking the landed cost to around Rs 16.62 at the RVPNL periphery. The supply is day-ahead hydropower, concentrated in morning and evening peak hours.

The State Load Despatch Centre had flagged repeated overdrawal from the national grid, warning of deviation charges. TOI had earlier reported that the government has tapped the Dholpur gas plant, which costs Rs 46 per unit, to meet peak demand. RERC has asked RUVITL to continue exploring cheaper sources of peak power wherever available and to expedite battery energy storage for firm renewable energy, and said the actual power procured and expenditure will face a prudence check during the FY 2026-27 true-up process.

The four-month arrangement runs through the winter Rabi season, when irrigation demand pushes morning and evening peaks higher across the state. Whether the costly purchase keeps the grid stable without fresh overdrawal will be tested first in December, when the projected morning deficit is at its highest.