Rajasthan Issues Norms to Develop Captive, Third-Party Renewable Energy Projects
The SOP covers procedures for project registration, power evacuation planning, captive status verification, and BESS installation
November 18, 2025
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The Rajasthan Renewable Energy Corporation (RREC) has issued a comprehensive Standard Operating Procedure (SOP) to streamline the development, approval, and commissioning of renewable energy projects developed under captive and third-party sale modes.
The SOP covers key processes, including project registration, power evacuation planning, captive status verification, installation of battery energy storage systems (BESS), and various compliance requirements mandated under Rajasthan’s energy regulations.
The procedure aims to enhance regulatory transparency and ensure smooth integration of renewable projects with the state’s transmission and distribution network.
Project Registration
Renewable energy project developers must submit online applications, along with all required documents, and a net worth certificate demonstrating a minimum net worth of ₹10 million (~$112,806)/MW. After verification, RREC will issue a letter of registration to the applicant per the Rajasthan Renewable Energy Policy.
Power Evacuation Plan and Technical Feasibility
Developers must submit their Power Evacuation Plan to RREC for approval, which should include a Single-Line Diagram of the plan and detailed information about the power-generating project and the consumer drawal point.
For projects within consumer premises, RREC will forward the application to the respective power distribution company (DISCOM) for examining technical feasibility. If the consumer is directly connected to the Rajasthan Rajya Vidyut Prasaran Nigam (RVPN) network, the request will also be sent to RVPN for its approval.
For projects outside consumer premises, RREC will share the power evacuation plan with DISCOMs or the RVPN for technical evaluation and forward the drawal end plan to the respective DISCOMs.
RVPN/DISCOM will review the Power Evacuation Plan for the proposed power-generating project by evaluating factors such as available spare capacity at the designated grid substation (GSS), bay availability, voltage level, and other relevant technical parameters. They will issue their technical feasibility assessment within the stipulated timeframe as per the prescribed procedure.
The DISCOMs will also assess the technical feasibility at the consumer’s drawal end, taking into account the consumer’s contract demand and the capacity of the existing evacuation system. Following a site inspection, the DISCOM will provide a feasibility report, addressing the status of project commissioning, the consumer’s drawal pattern and the physical condition and captive status of the project, the Chief Electrical Inspector to the Government (CEIG) approval status, and site photographs.
Project Clearance
Upon receiving the power evacuation approval from RVPN/DISOMs and after submission of the detailed project report, land documents, and technical feasibility report, along with the shareholding agreement of the consumer or a chartered accountant certificate (for captive consumers), and a copy of the power purchase agreement (PPA) or an undertaking in the case of third-party sale, the project will be deemed to have obtained in-principle clearance.
Developers must submit a security deposit of ₹100,000 (~$1,128)/MW to RREC. The final approval will be issued to the developer per the Rajasthan Integrated Clean Energy Policy (RICEP) 2024.
The developer must commission the project within the validity period of the power evacuation approval granted by RVPN/DISCOM/Central Transmission Utility (CTU).
Battery Energy Storage Systems
Per RICEP 2025, renewable energy projects exceeding 5 MW and seeking grid connection through STU or DISCOM networks are required to install a 5% BESS capacity without any extra charges of registration. If the developer is interested in installing BESS beyond 5% of renewable capacity, it must pay applicable registration charges.
Captive renewable energy projects with capacities exceeding 100% of the contract demand and up to 200% must install a BESS with a minimum storage capacity equivalent to 20% of the energy generated from the renewable capacity beyond 100% of the contract demand.
Registration charges, transmission, and wheeling charges for renewable projects with BESS will be exempted as per the prevailing policy and regulations, as amended from time to time.
Project Commissioning
Once the project is installed, the developer must submit a formal request to RREC, accompanied by the CEIG approval and all documents required to verify the captive status of the consumer, in cases of captive consumption.
After RREC verifies the captive status of the consumer, the proposal will be forwarded to the DISCOM concerned for the formation of a Commissioning Committee. This committee will oversee the commissioning of the project and issue the commissioning certificate. If the consumer fails to meet the required captive criteria, the corresponding project capacity will be classified as a third-party sale. The consumer will be liable to pay the applicable cross-subsidy surcharge and additional surcharge to the DISCOM, as well as renewable energy development and facilitation charges to the RREC.
The consumer must execute the transmission agreement with RVPN or CTU and also enter into the wheeling and banking agreement with the respective DISCOMs.
Once the project is commissioned, the developer will request RREC to refund the security deposit. RREC will process and refund the security deposit in proportion to the commissioned capacity.
Annual Verification
The consumer must submit an annual verification of the project’s captive status to RREC. This verification must confirm compliance with the eligibility conditions, which include consuming at least 51% of the power generated and maintaining a minimum equity stake of 26% in the project. If the consumer fails to submit the required documents or does not meet the prescribed captive criteria, the project capacity will be reclassified as a third-party sale, attracting applicable charges.
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