Archive · 21 May 2025
Experts Criticize Rajasthan's Thermal Power Tender
Rajasthan's plan to buy a lot of power from coal plants for a long time is causing debate.
Experts worry it's too expensive and doesn't consider cheaper, cleaner options like solar and wind with battery storage.
They believe coal power will cost more than alternatives, potentially increasing electricity bills.
The state agency hasn't explained why coal is the best choice.
Using solar with storage could save the state billions.
A hearing about the plan was held but delayed to allow for more information.
The main concern is that the plan isn't economically or technically sound, potentially harming consumers.
Rajasthan's agency plans to secure 3,200 MW of thermal power for 25 years.
Experts criticize the plan, calling it economically unsound.
They say the agency didn't justify choosing coal over cheaper renewables.
Solar power with storage could lower costs compared to coal.
A hearing was postponed to allow for additional stakeholder submissions.
- Who
- Energy sector experts and Rajasthan Urja Vikas and IT Ltd (RUVITL)
- What
- Rajasthan Urja Vikas and IT Ltd's (RUVITL) plan to secure 3,200 MW of thermal power for 25 years.
- When
- Tuesday; December 2024 (tender issued)
- Where
- Jaipur, Rajasthan
- Why
- To meet the state's projected power deficit and address concerns regarding economic viability and cost-effectiveness.
Critics
Rajasthan Urja Vikas and IT Ltd
Economic Viability
Critics
Coal is not the most cost-effective solution compared to renewables.
Rajasthan Urja Vikas and IT Ltd
Coal power is economically viable and aligns with long-term energy needs.
- Proposed Thermal Power
- 3,200 MW
- Contract Duration
- 25 years
- State Involved
- Rajasthan
- Projected Power Deficit Addressed
- FY 2031-32
- FDRE tariff (approx)
- Rs 3.52 a unit
- Potential Savings (FDRE)
- Rs 5,960 crore (first year)
- Cumulative Savings (FDRE)
- Over Rs 58,000 crore (decade)