RERC Introduces Demand-Side Management and Flexibility Regulations

The Rajasthan Electricity Regulatory Commission (RERC) released the Demand Flexibility/Demand Side Management Regulations, 2026, establishing a regulatory framework to shift the power sector from supply-centric to demand-responsive operations. The regulations empower utilities to control and influence electricity demand, incentivizing consumers to modify consumption patterns and timing to enhance grid efficiency. This creates new compliance and commercial opportunities for demand aggregators, flexible load operators, industrial consumers, and smart grid technology providers. Businesses engaged in demand response, load management, and grid services must now operate within the RERC regulatory framework and develop demand flexibility capabilities. The regulations represent a material shift in how electricity demand is managed and monetized in the state.