Rajasthan, Gujarat have huge energy arbitrage potential: Power Secy

Bottled-up renewable power, battery storage and pumped storage projects could improve grid flexibility, while the government advances reforms under the proposed National Electricity Policy 2026. 2 Min Read Rajasthan and Gujarat have huge potential for energy arbitrage and battery storage due to the availability of bottled-up renewable energy, Power Secretary Pankaj Agarwal has said, while flagging the challenges arising from the geographical concentration of renewable energy capacity in a few states. Agarwal said 230 GW of new renewable capacity was expected to be connected to Inter-State Transmission Systems (ISTS), but noted that some transmission lines built to evacuate renewable power are currently used for only six to seven hours a day. Speaking at the second Indian Power Sector Conference organised by FICCI in New Delhi, Agarwal said the government is also working on the National Electricity Policy (NEP) 2026.

A Cabinet Note has been moved on the policy and inter-ministerial consultations are underway. He said the proposed policy would focus on financially stronger distribution companies (discoms), greater open access and regulatory reforms. The government is also incorporating eligibility mandates for Green Hydrogen projects and data centres, with the mandates targeting very large electricity loads that can accommodate greater flexibility.

Also read: India aims to make smart meter chips domestically by 2030: Power Secretary Agarwal said Pumped Storage Projects (PSPs) with a combined capacity of 16 GW are currently under consideration. He added that PSPs could help reduce the need for synchronous condensers, which cost around ₹2 crore per MW. On electricity tariffs, Agarwal said the government had received suggestions to introduce seasonal time-of-day tariffs instead of applying a uniform structure for 12 months.

He called for policymakers to learn from the failures and mistakes of other countries while taking the overall cost of energy systems into account. Power demand has risen by more than 14% so far in September 2026, Agarwal said. He added that domestic coal supplies have improved and logistical challenges have been addressed, helping reduce supply constraints.

On opening up electricity exports to Nepal, Agarwal said the neighbouring country would bid for power based on its demand. (Edited by : Asmi Saxena) Home Energy News Rajasthan, Gujarat have huge energy arbitrage potential: Power Secy

Source: cnbctv18.com