Top Indian solar state, Rajasthan, blocks 3.2 GW coal plan for clean energy

The power regulator of Rajasthan, India's largest solar power producer, has refused permission for a proposed 3,200-megawatt coal power project, saying it conflicts with clean energy goals and lacks justification under demand forecasts, a filing showed.

The Rajasthan Electricity Regulatory Commission said in an order published on Thursday it had dismissed a petition by state-run Rajasthan Urja Vikas and IT Services Ltd seeking approval to procure coal power for 25 years through bidding.

The utility argued the new capacity was needed to meet rising round-the-clock demand.

However, the regulator said the proposal was inconsistent with the Central Electricity Authority's latest Resource Adequacy Plan.

The Resource Adequacy Plan estimates Rajasthan will require only 1,905 MW of additional coal capacity by 2035-36, far less than the 3,200 MW sought.

The decision comes even as other Indian states are accelerating their coal power purchases, citing strong power demand and the need for round-the-clock, base-load power.

The Rajasthan power regulator also noted upcoming nuclear projects, large-scale solar additions and battery storage plans would ease supply gaps for the state.

Long-term coal contracts could lock in costly power and undermine renewable integration, the commission said in its order.

The commission warned that locking in coal for 25 years could burden consumers with high tariffs and worsen air quality, as the proposed plant would burn about 40,000 tonnes of coal daily, releasing hundreds of tonnes of particulate matter.

It also flagged renewable energy curtailment as a persistent issue and advised the state to maximize the use of its solar and wind resources before adding new coal capacity.