Rajasthan Sets ₹2.67/kWh As Price of Energy Supplied to DISCOMs Under REC Mechanism

The regulations will come into force from April 1, 2019


The Rajasthan Electricity Regulatory Commission (RERC) has issued a notice inviting suggestions from interested parties before finalizing its Renewable Energy Certificate (REC) and Renewable Purchase Obligation (RPO) Compliance Framework (Third Amendment) Regulations, 2019.

According to the draft notification, amendment in Regulation 10 of the principal regulations says that the price of energy supplied by a renewable energy project to distribution licensee will be ₹2.67 (~$0.035)/kWh, effective from April 1, 2019 for the projects commissioned up to March 31, 2019.

This price was determined after the RERC observed that the lowest pooled cost determined by the commission so far was ₹2.67 (~$0.035)/kWh and the present floor price determined by the Central Electricity Regulatory Commission for trading of solar and non-solar REC is ₹1 (~$0.014)/kWh.

Here are some other amendments-

  • Purchase of electricity from renewable sources after having been issued REC would not be counted for the fulfillment of RPO
  • The projects may use electricity for self-consumption or sell electricity at mutually agreed price to other entities
  • In case a renewable generator under REC mechanism wishes to opt out of REC mechanism and if the DISCOMs agree to purchase the power, they may extend the PPA at a tariff not exceeding ₹3.17 (~$0.052)/kWh for remaining useful life of the plant.
  • In such cases, the electricity purchased would be counted towards fulfilment of RPO and renewable generator would not be entitled to REC certificate

The last date to submitting the suggestions is February 25, 2019 and regulations will come into force from April 1, 2019.

RecentlyRERC also issued fifth amendment to its regulations for RPO.

In the new amended regulations, the commission has revised the renewable purchase obligation for financial year 2018-19 to 4.75 percent from the earlier 6.75 percent. According to the RERC, revised RPO for FY 2018-19 will be applied retroactively from April 1, 2018.

In October 2018, the commission had released a staff paper on projects registered under renewable energy certificate mechanism in the state. It had proposed that DISCOMs should purchase the renewable power generated from such projects at the lowest pooled cost notified by the RERC since 2010, that is ₹2.67 (~$0.035)/kWh.

Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer