Rajasthan Boosts Power Procurement with AI, Rs 35 Cr Plan

• RUVITL to invest ₹35 crore in an AI-powered digital system to optimize power procurement and reduce market volatility impacts
• The platform will address demand uncertainty, renewable intermittency, DSM penalties, and fragmented data
• Integrates SLDC, RLDC, SCADA, and market data for better procurement

Rajasthan Urja Vikas and IT Services Ltd (RUVITL) to invest ₹35 crore to develop an integrated energy portfolio management system, which uses AI and digital technologies to eliminate procurement inefficiencies and control expenses that result from forecasting mistakes and market fluctuations.

The Rajasthan power initiative is accelerating AI in energy and power procurement through digital transformation, strengthening smart grid India efforts and marking a significant Rajasthan energy investment that highlights the growing role of power sector AI.

The program will solve operational difficulties, which include unpredictable demand patterns and intermittent renewable energy production, deviation settlement expenses and incomplete data from load dispatch centers and distribution utilities.

Officials explained that organizations need to adopt a complete decision-support system which operates in real-time because its absence leads to suboptimal scheduling methods and increased dependency on short-term, term-ahead market purchases and additional financial risks.

Ajitabh Sharma, Additional Chief Secretary (Energy), stated, “The increasing share of renewable energy and market-based procurement requires a far more sophisticated planning and forecasting framework. Advanced analytics, artificial intelligence, and machine learning tools will form a key part of the solution”.

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He added, “This initiative is aimed at strengthening data-driven decision-making, reducing avoidable power purchase costs, and improving grid discipline across the state”.

The selected implementation agency, through a competitive bidding process, will provide a digital solution, which includes complete demand and renewable forecasting together with scenario analysis, scheduling, dispatch planning, trade optimization, energy accounting and invoice verification.

Utility companies face operational limitations because their power procurement methods depend on manual work instead of automated systems, which prevent them from optimizing their purchasing methods and responding to market price changes.

The organization experiences increased operational costs because inaccurate forecasting leads to higher costs through the deviation settlement mechanism, which particularly affects high renewable generation periods.

RUVITL officials describe the proposed system as a solution that will gather data from SLDCs, RLDCs, SCADA platforms, and power exchanges to enable utilities to assess multiple purchasing options while they enhance their bilateral and exchange-based procurement methods to achieve better portfolio performance.