Rajasthan Amends Regulations to Determine Tariffs for Solar and Wind Projects
Regulations will come into force after notification in the official gazette
The Rajasthan Electricity Regulatory Commission (RERC) has finalized new regulations to amend its terms and conditions for the determination of tariff for renewable energy sources – wind and solar energy. These regulations were first passed in 2014.
These regulations will come into force from the date of their notification in the official gazette.
According to Mercom Q4 and Annual 2018 India Solar Market Quarterly Update, as of December 2018, cumulative solar installed capacity in Rajasthan stood at approximately 3 GW. Thermal power still makes up the majority of the installed power capacity in the state in spite of the state’s attractive solar insolation levels.
Key Highlights from the New Regulations
- Tariff norms according to these regulations will continue to remain applicable until notification of the revised regulations.
- RERC will determine project-specific tariff, on a case-to-case basis, for solar photovoltaic, solar thermal, wind and other renewable energy projects in Rajasthan.
- A petition for the determination of project-specific tariff must be accompanied by a fee determined by RERC.
- Detailed project report outlining technical and operational details, site-specific aspects, the premise for capital cost and financing plan, details of installation, manufacturer’s/supplier’s guaranteed and other technical particulars, recommended operation and maintenance practices and public safety requirements need to be submitted along with a petition for tariff determination.
- The dispatch principles for the electricity generated from wind and solar energy projects will be according to the provisions of the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010, except for cases where specific provisions have been made by the RERC.
- For project specific tariff determination, the generating company will submit the break-up of capital cost items along with its petition.
- If the equity deployed is more than 30 percent of the capital cost, equity more than 30 percent will be treated as a normative loan.
- Cases, where equity deployed, is less than 30 percent of the capital cost, the actual equity will be considered for the determination of tariff.
- For generic tariff, loan tenure of 13 years will be considered.
- If in any time block, injected energy is more than the energy drawn, the excess energy will be cumulated until the end of the month and set off against the cumulative drawl of DISCOM energy in the same month.
- For 10 percent of remaining excess injected energy, if any at the end of the month, the renewable energy generator/developer will get paid at the rate of 60 percent of energy charges applicable for large industrial power tariff, excluding fuel surcharge.
- Unutilized banked energy, more than 10 percent will lapse.
RERC had issued the draft regulations in January 2019 to invite comments and suggestions from stakeholders.
Previously, the RERC had fixed ₹5.26 (~$0.08)/kWh without accelerated depreciation (AD) and ₹4.87 (~$0.0754)/kWh with AD as the levelized generic tariff for wind projects located in Jaisalmer, Jodhpur and Barmer districts of Rajasthan. The RERC had also fixed ₹5.52 (~$0.085)/kWh without AD and ₹5.12 (~$0.07)/kWh with AD as the levelized generic tariff for wind projects located in other districts of Rajasthan.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.