HERC Approves HPPC Short-Term Power Procurement for Summer 2026 Peak Demand

Panchkula, April 28, 2026

The Haryana Electricity Regulatory Commission (HERC) has granted formal authorization to the Haryana Power Purchase Centre (HPPC) for the procurement of short-term round-the-clock (RTC) power to manage the state’s energy requirements for the 2026 summer and paddy season. The approval follows a rigorous regulatory review of a revised proposal submitted by HPPC, aimed at mitigating projected power deficits during months characterized by historically high agricultural and domestic consumption.

Approved Procurement Quantum and Timeline

Following a revision of the initial requisition—which originally sought 750 MW across all months under Tender Enquiry NIT-124/HPPC—the Commission has stipulated the following approved capacities:

• June 2026: 390 MW
• July 2026: 687 MW
• August 2026: 200 MW

The Commission observed that these revised figures represent a scaled-back procurement strategy intended to align more closely with specific deficit projections while maintaining grid stability.

Pricing and Technical Parameters

The procurement is mandated under a “firm power” arrangement, ensuring reliability of supply during the designated window. The Commission established several technical and financial constraints:

• Procurement Nature: The power is defined as “round-the-clock” (RTC) under a short-term arrangement, characterized by a single, constant tariff at the delivery point.
• Tariff Constraints: As per the bidding guidelines, the tariff must include all components, including capacity charges, energy charges, trading margins, and transmission losses. The Commission emphasized that no escalation shall be permitted during the contract period.
• Mandated Delivery Point: The delivery point for the authorized power is stipulated at the Haryana State Periphery within the Northern Region.

Administrative and Regulatory Context

The approval was processed under Petition No. 10 of 2026, filed by HPPC under Section 86(1)(b) and Section 63 of the Electricity Act, 2003. Significantly, the proceedings were governed by the HERC (Framework for Resource Adequacy) Regulations, 2024, marking a heightened focus on long-term supply reliability and systematic deficit planning.

Operational Justification The procurement is designed to bridge the gap between Haryana’s available long-term contracted capacity and the sharp surges in demand during the paddy season. HPPC justified the necessity of these short-term measures by citing historical load patterns and the need for “cushion” in the state’s availability to manage sudden outages or fuel shortages in existing thermal units.

Regulatory Oversight and Scrutiny Prior to the final order, the Commission conducted a thorough examination of the proposal, as evidenced in an interim order dated April 23, 2026. The Commission initially sought clarifications on several critical points, including:

• A comprehensive cost-benefit analysis of the intended procurement.
• Justification for seeking RTC power instead of exploring bidding for non-solar hours to optimize costs.
• Reconciliation of discrepancies in projected deficits, specifically questioning the shift from a 331 MW projected deficit to 590 MW for July 2026.

While granting the approval, HERC underscored that while recurring short-term procurement is a necessary measure for immediate peak demand, the utilities must continue to prioritize resource adequacy and efficiency in long-term power purchase planning to minimize the financial burden on state consumers.