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Rajasthan Strengthens Power Procurement Through AI-Driven Digital Transformation – EQ

Rajasthan Strengthens Power Procurement Through AI-Driven Digital Transformation – EQ

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In Short : Rajasthan has invested ₹35 crore in artificial intelligence and digital tools to improve power procurement efficiency across its electricity sector. The initiative focuses on data-driven decision-making, demand forecasting, and system optimisation to reduce costs, enhance transparency, and strengthen operational performance while supporting long-term energy security and grid reliability.

In Detail : The state of Rajasthan has taken a significant step toward modernising its power sector by investing ₹35 crore in artificial intelligence and digital technologies to improve power procurement efficiency. This move reflects a broader shift toward using advanced analytics and automation to manage complex energy systems more effectively.

Power procurement is a critical function for electricity distribution, as it directly affects costs, system reliability, and financial sustainability. With rising electricity demand and increasing integration of renewable energy, traditional procurement methods are no longer sufficient to handle dynamic market conditions.

The adoption of AI-based tools enables more accurate demand forecasting by analysing historical consumption patterns, weather data, and real-time system behaviour. This helps utilities anticipate peak loads, optimise purchase schedules, and avoid unnecessary or expensive short-term power purchases.

Digital platforms also enhance transparency in procurement processes by providing real-time visibility into power contracts, supply sources, and pricing structures. This reduces information gaps and supports more informed decision-making by utilities and system operators.

One of the key benefits of AI-driven systems is their ability to optimise cost management. Automated algorithms can compare multiple supply options, predict price fluctuations, and recommend the most economical procurement strategies under different scenarios.

The integration of digital tools also strengthens operational efficiency by reducing manual intervention. Automated workflows, real-time dashboards, and predictive analytics improve coordination between different departments and minimise delays in procurement planning.

From a system reliability perspective, AI supports better risk management. Advanced models can identify potential supply disruptions, forecast shortages, and suggest corrective actions, helping utilities maintain stable power supply even during periods of high demand.

The investment further supports Rajasthan’s broader energy transition goals. As renewable energy capacity expands, AI tools help balance variable generation by enabling smarter scheduling, flexible procurement, and improved grid responsiveness.

Overall, Rajasthan’s ₹35 crore investment represents a strategic move toward data-driven energy governance. By leveraging AI and digital technologies, the state is not only improving power procurement efficiency but also laying the foundation for a more resilient, cost-effective, and future-ready electricity system.

Anand Gupta Editor - EQ Int'l Media Network