The Rajasthan Electricity Regulatory Commission (RERC) has approved the levelized tariffs for 233.97 MW solar projects under Component-C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM).

The approved tariffs for the 82 solar projects ranged between ₹2.711 (~$0.031)/kWh and  ₹3.041 (~$0.035)/kWh.

Background

The petition was filed by Jaipur Vidyut Vitran Nigam (JVVNL) seeking approval for tariffs discovered through competitive bidding for solarizing 24,841 agriculture pumps across 82 solar PV power plants with a total capacity of 233.97 MW.

JVVNL issued two tenders, TN-13 and TN-14, to select developers and received bids for all 82 solar projects. Tariffs quoted ranged from ₹2.711 (~$0.031)/kWh to ₹4.440 (~$0.051)/kWh.

After negotiation and technical assessment, JVVNL finalized tariffs between ₹2.711 (~$0.031)/kWh and ₹3.041 (~$0.035)/kWh, well below the average variable cost of conventional power purchases, which stood at over ₹4 (~$0.046)/kWh.

JVVNL provided a detailed computation of the levelized tariffs using guidelines from the Commission’s renewable energy tariff regulations. Capital costs, interest rates, depreciation, and operational expenses were all included in the calculations. It also factored in the central financial assistance.

The distribution company submitted that it ensured compliance with the domestic content requirement guidelines. It also outlined the bidding outcomes, including the list of successful bidders, tariff offers, capacity awarded, and status of implementation.

JVVNL requested the Commission’s approval for the discovered tariffs for it to proceed with the power purchase agreements.

Following a Commission directive, JVVNL submitted data on commissioned capacity, ongoing system studies, and expected grid integration outcomes.

Commission’s Analysis

The Commission examined the bidding process and found it to be transparent and in line with the legal framework outlined in Section 63 of the Electricity Act. It appreciated JVVNL for conducting extensive consultations and technical evaluations, including load flow analysis, before floating the tenders.

It also noted that the tariff discovery process attracted strong market participation, with 225 bidders across the two tenders.

The Commission evaluated the financial assumptions used to compute the levelized tariff. It confirmed that JVVNL used parameters consistent with the RERC tariff regulations, including debt-equity ratio, capacity utilization factors, return on equity, interest rates, depreciation schedules, and operational costs. The regulator found that the tariff computation was robust and that the final tariffs offered were lower than the prevailing variable cost of conventional power procurement.

Additionally, the Commission acknowledged the expected long-term benefits of the KUSUM program. These include reduced power purchase costs, improved compliance with Renewable Purchase Obligations, and better voltage profiles in rural areas. The Commission particularly noted that solarizing feeders during daytime hours would help in reducing peak demand pressures and transmission losses.

In response to earlier directives, JVVNL had submitted data indicating that approximately 101.92 MW of solar capacity was already commissioned and that another 548.95 MW was at various stages of implementation.

The Commission noted that JVVNL had ensured compliance with change-in-law clauses, domestic content rules, and project commissioning timelines. It also found JVVNL’s approach to land acquisition, including payment of lease rents directly to farmers, to be consistent with policy goals of rural income generation.

The Commission expressed satisfaction with JVVNL’s efforts to group substations and conduct real-time monitoring using remote monitoring systems. The impact assessment conducted at the Bansur substation was particularly appreciated, showing that solar projects successfully covered daytime agricultural demand in both peak and lean seasons.

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