Telangana Electricity Regulatory Commission (TGERC) has issued a resource adequacy framework outlining a mechanism for electricity generation, transmission, and distribution planning to reliably meet the projected power demand.

The Telangana Electricity Regulatory Commission (Framework for Resource Adequacy) Regulation, 2026, will apply to generating companies, distribution licensees, the state load dispatch center (SLDC), transmission companies, and other grid-connected entities.

The framework will take effect once published in the Telangana Gazette.

The resource adequacy framework will cover a mechanism to ensure there is enough electricity to meet future demand.

It includes forecasting demand, planning generation capacity, strengthening transmission and distribution networks, arranging power procurement, and ensuring monitoring and compliance of the framework initiatives.

The planning exercise will cover a 10-year period and will be updated annually. Distribution companies must prepare long-term, medium-term, and short-term resource adequacy plans. The state transmission utility (STU) must align transmission planning with the resource adequacy plans and submit them to the Commission along with the tariff petitions.

Demand Forecast

Under the new regulation, distribution companies (DISCOMs) must prepare long- and medium-term demand forecasts in accordance with the Central Electricity Authority’s (CEA) guidelines. The forecasts must estimate demand on an hourly or sub-hourly basis.

DISCOMs must provide, on April 21 each year, category-wise consumption data for the previous financial year to the SLDC. They must project each consumer category’s peak demand and the total energy requirement using methods such as trend analysis, the end-use or partial end-use model, econometric models, autoregressive integrated moving-average models, and AI-based tools.

Projections must consider factors such as open access, electric vehicles (EVs), distributed energy resources, demand response, agricultural patterns, seasonal variations, tariff signals, electrification trends, and policy impacts.

DISCOMs must determine peak demand and prepare scenarios after accounting for losses and differences across consumer segments. These must include the most probable, business-as-usual, and aggressive (high-growth demand) scenarios. Such scenarios and the demand forecast must be supported by sensitivity, probability, and statistical analysis.

For short-term demand, the DISCOMs will develop a methodology for hourly or sub-hourly demand forecasting and maintain a historical database.

They must conduct load research analysis and consider the influence of demand response, load shift measures, and the time-of-use for ascertaining the hourly load profile and for assessing the contribution of various consumer categories to peak demand, with inputs from the SLDC.

The framework mandates the use of advanced tools, scientific and mathematical methodologies, and comprehensive data, including weather data, historical data, demographic and econometric data, consumption profiles, and policies and drivers.

DISCOMs must prepare hourly or sub-hourly one-year short-term, five-year medium-term, and 10-year long-term demand forecasts on a rolling basis.

The SLDC will aggregate demand forecasts, accounting for load diversity, congruency, and seasonal variation. It must submit state-level aggregate demand forecasts for the long-, medium-, and short-term to the national and regional load dispatch centers by May 31 each year.

The STU will estimate the demand for the entire state after taking inputs from the SLDC and demand estimates from the DISCOMs, and after considering Andhra Pradesh’s load diversity.

Generation Resource Planning

DISCOMs must carefully plan their future electricity supply by assessing existing and upcoming power projects and retiring capacity.

They must also consider the capacity credit while including a planning reserve margin. Capacity credit reflects the amount of dependable power each source can provide, and planning reserve margin refers to an additional buffer above expected peak demand.

Capacity credit calculation must use separate methodologies for hydro, thermal, and storage projects, excluding abnormal events such as natural disasters or war.

The 10-year long-term distribution resource adequacy plans will be based on demand forecasts and national guidance. The resource adequacy plans must be updated annually.

These plans, which will be submitted to the Commission for approval, must demonstrate adequate tie-ups for peak demand. The SLDC will prepare state-level plans and undertake ongoing short-term reviews to ensure operational readiness of Andhra Pradesh’s power supply system.

Procurement Planning

Procurement planning for securing power capacity to meet the state’s peak demand and resource adequacy requirements.

This planning will involve an optimal power procurement resource mix, procurement modalities (types and tenures), and capacity sharing.

DISCOMs must adopt a structured and cost-effective power procurement strategy to ensure a reliable supply and meet regulatory obligations. The contracted resource mix must support the smooth integration of renewable energy and comply with the renewable purchase obligation and energy storage targets.

Procurement planning must consider existing and upcoming capacity, future additions, and project gestation periods.

Renewable energy procurement must comply with the Ministry of Power’s competitive bidding guidelines. Storage capacity from battery energy storage systems, pumped storage projects, or other technologies must also be contracted in accordance with central guidelines. Any deviation from prescribed bidding processes will require prior Commission approval.

Power can be procured from the state and central generating projects, independent power producers, renewable projects, traders, exchanges, or through bilateral agreements and approved platforms such as the Discovery of Efficient Electricity Price and the Portal for Utilisation of Surplus Power platforms, as well as the term-ahead markets.

All new long- and medium-term power purchase agreements (PPAs) will require prior Commission approval. DISCOMs must also submit details of existing PPAs.

In the event of unexpected demand spikes, supply shortfalls, cost changes, or emergency grid conditions, DISCOMs can procure additional short-term power, provided they inform the Commission within 15 days with proper justification.

Roles, Responsibilities, and Timelines

Under the regulation, DISCOMs must regularly share detailed data with the SLDC, including the consumer consumption patterns, demand history, weather data, losses, renewable integration, EV growth, and policy impacts. They must maintain at least 10 years of historical consumption data and provide annual updates by April 21.

The SLDC will aggregate this information at the state level and submit the forecasts and capacity details to national agencies, including CEA and the national and regional load dispatch centers.

The peak demand shares will be allocated based on the national plans. DISCOMs must submit their long-term resource adequacy plans for approval within specified timelines to ensure sufficient contracted capacity.

Transparency and Oversight Framework

The regulation requires the DISCOMs and SLDC to publish short- and long-term power procurement and generator schedules details on their websites within 45 days of the actual power procurement or sale.

The SLDC must also publish the monthly merit-order dispatch stack and the variable costs of each generating station.

DISCOMs must set up dedicated resource adequacy planning and real-time power procurement cells.

This January, TGERC amended the Terms and Conditions of Open Access Regulation, 2024, to clarify the regulatory treatment of energy injected prior to the execution of wheeling agreements and enable renewable energy generators to receive renewable energy certificates for unutilized banked energy.

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