RAJASTHAN’S POWER FUTURE: SOLAR + STORAGE COULD SAVE ₹84,000 CRORE, OUTPERFORM COAL IN COST AND RELIABILITY
In a decisive shift for Rajasthan’s power planning, energy experts and stakeholders have raised concerns over the proposed procurement of 3200 MW new coal-based thermal power capacity by RUVITL, petition no. 2298/2025. The opposition urges a shift toward renewable alternatives—especially solar energy co-located with Battery Energy Storage Systems (BESS)—to ensure cost-efficiency, faster deployment, and enhanced reliability.
Why Coal is Being Challenged
The proposal to build 3200 MW of new thermal capacity has drawn criticism based on multiple economic and technical grounds. The Central Electricity Authority’s (CEA) Resource Adequacy Plan, which underpins the coal plan, caps renewable growth arbitrarily at Renewable Purchase Obligation (RPO) levels—contrary to Rajasthan’s vast solar and wind potential of over 630 GW.
Recent analysis finds the cost of coal power is escalating rapidly. Current estimates suggest the levelized tariff for coal could range from ₹7.01 to ₹8.29/kWh over the plant’s lifetime, with projections reaching ₹10.32/kWh in worst-case scenarios by FY2031. This is due to rising capital costs (₹11.5–14.2 crore/MW) and variable costs (up from ₹2.71 to ₹4.91/kWh over six years).
Solar + Storage: A Clear Winner
In contrast, the latest SECI tender indicates solar PV co-located with 4-hour BESS can deliver electricity at ₹3.52/kWh—nearly half the cost of new coal-based power. A proposed configuration of 4800 MW wind, 4800 MW solar, and 3200 MW/12,800 MWh BESS could deliver 96% availability at ₹4.09/kWh.
If Rajasthan adopts this mix to meet the 3200 MW firm capacity requirement, annual savings will exceed ₹6,244 crore in conservative scenarios, rising to ₹8,900 crore annually under more realistic cost trajectories. Over ten years, this shift could yield cumulative savings between ₹61,000–84,000 crore.
Reliability: BESS Beats Coal
Modern BESS technology offers numerous reliability benefits over coal:
Near-instantaneous ramp rates (~100% per minute)
Black-start capability without auxiliary diesel
Grid-forming capabilities with minimal additional cost
Modular deployment allows adaptive scaling year-by-year
While coal plants typically require 48 months to commission, BESS systems can be operational within three months—vital given Rajasthan’s current energy deficits.
A Call for Technology-Neutral Tender
Energy analysts and civil society groups recommend RUVITL adopt a technology-neutral approach for acquiring new firm capacity. Such a procurement model would prioritize performance parameters like availability, ramp rate, and inertia, while allowing technologies—thermal, hydro, BESS, or hybrid renewables—to compete purely on cost and reliability.
“The market will decide the most efficient technology. If coal is truly cheaper and better, it will win. But current evidence clearly points toward solar and storage,” said one analyst.
Conclusion
Rajasthan stands at a critical energy crossroads. With abundant renewable resources, rising coal costs, and urgent power demand growth, experts argue the state must seize the opportunity to pivot toward clean, modular, and scalable energy solutions. A technology-agnostic auction could be the key to ensuring both fiscal prudence and sustainable power access for the people of Rajasthan.