In a major move to modernize India’s power sector, the Rajasthan Electricity Regulatory Commission (RERC) has published the Draft Demand Flexibility (DF) and Demand Side Management (DSM) Regulations, 2026. They are inviting comments and suggestions from stakeholders before finalizing the regulations.
The draft regulations aim to create a clear framework for Demand Flexibility. They position electricity demand as an active and valuable resource for the grid. This change shows Rajasthan’s increasing focus on effective grid management tools that are important for supporting a system dominated by renewable energy.
Demand as a Strategic Grid Resource
Energy experts have long pointed out that “Energy Storage” is the next frontier, while “Demand Flexibility” will be the last frontier of energy management. The newly proposed regulations aim to put this idea into practice by turning demand into a reliable system asset for DISCOMs and system operators.
The intent is to enable Demand as a Resource, providing operational flexibility and system resilience by making demand:
- Continuous and predictable
- Stackable across different time scales
- Dispatchable (or at least callable)
- Monetisable and contractable
By incorporating these attributes, Demand Flexibility is expected to play a central role in balancing variable renewable energy, improving grid efficiency, and reducing overall system costs.
Key Role in Renewable-Dominant Power Systems
Demand flexibility is becoming an essential grid resource, planned, priced, dispatched, and paid for. Its integration will help with real-time grid balancing, managing peak demand, and using generation and network assets more efficiently. This is especially important as the use of renewable energy continues to grow.
The draft framework matches the wider goals of changing DISCOMs into Distributed Energy Resource Management Systems (DERMS) and gradually transforming them into Distribution System Operators (DSOs). This change should improve coordination among distributed energy resources, consumers, and grid operators.
Stakeholder Participation Invited
RERC has invited stakeholders, industry participants, and interested persons to submit their comments and suggestions on the draft regulations by 27 February 2026. Inputs received will be considered before the regulations are finalised.a
The draft regulations mark another pioneering move by Rajasthan toward building a flexible, future-ready electricity system capable of meeting evolving energy challenges.
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