TGERC Issues Resource Adequacy Framework to Ensure Reliable Power Supply

Telangana Electricity Regulatory Commission (TGERC) has notified the Framework for Resource Adequacy Regulation, 2026, laying down a comprehensive mechanism to ensure reliable electricity supply in the State through scientific planning of generation, transmission and distribution resources.

The regulation mandates DISCOMs to prepare short-term (1 year), medium-term (5 years) and long-term (10 years) Resource Adequacy Plans on a rolling basis. These plans will be based on detailed demand forecasting using statistical models, artificial intelligence tools and econometric analysis, factoring in electric vehicles, rooftop solar, agricultural load patterns, demand-side management and policy initiatives such as the National Hydrogen Mission.

Under the framework, utilities must assess available generation capacity after applying capacity credit to different resources such as solar, wind, hydro, thermal and storage. A Planning Reserve Margin (PRM) will be maintained over and above peak demand to ensure system reliability, using indices such as Loss of Load Probability and Normalised Energy Not Served.

The regulation also formalises the role of energy storage systems, including battery energy storage and pumped storage projects, as capacity resources for meeting peak demand and integrating renewable energy.

Power procurement will be guided by least-cost optimisation, with DISCOMs required to avoid over-contracting and stranded capacity. Long-term and medium-term power purchase agreements will continue to require prior approval of the Commission. Utilities may procure power from conventional sources, renewable projects, storage systems, power exchanges and other states to meet their resource adequacy obligations.

To strengthen implementation, DISCOMs have been directed to set up dedicated planning cells for demand forecasting and resource planning, as well as round-the-clock trading cells for real-time power procurement. The regulation also prescribes strict timelines for data submission, preparation of plans and contracting of capacity shortfalls.

According to the Commission, the new framework aligns Telangana with the national Resource Adequacy architecture and is aimed at ensuring uninterrupted power supply while supporting large-scale integration of renewable energy in the State’s power system.