The Rajasthan Electricity Regulatory Commission (RERC) has approved Rajasthan Urja Vikas and IT Services’ (RUVITL) request to extend its power purchase agreements (PPAs) for 2.5 MW and 1.25 MW wind projects in the state’s Jaisalmer district for five years.

The Commission also approved the discovered tariff of ₹2.44 (~$0.028)/kWh.

Background

In December 2004, the petitioner, RUVITL, signed two PPAs for setting up 2.5 MW (2 x 1.25 MW) wind projects and a 1.25 MW wind project at the Kotari village in the Jaisalmer district. The PPAs expired in September 2024.

The petitioner approached RERC requesting an extension of the PPAs for an additional five years to September 2029 at the discovered tariff of ₹2.44 (~$0.028)/kWh.

RUVITL submitted the consent letters furnished by the power developers, agreeing to the extension at the discovered price. It contended that distribution companies (DISCOMs) are facing a shortfall in meeting their renewable purchase obligations (RPOs), and the PPA extension will help meet these requirements.

The petitioner also cited the Commission’s 2020 judgment directing DISCOMs to make up their shortfalls in the following three years by purchasing renewable energy.

Commission’s Analysis

The Commission acknowledged that Rajasthan’s DISCOMs were facing a shortfall in meeting their RPO targets, and the PPA extensions would help them meet these goals. It also referred to its December 2021 order directing the DISCOMs to ‘make all possible efforts’ to meet their RPO targets.

It also observed that the wind power developers with whom the petitioner had signed the PPAs consented to the requested extensions at the discovered tariff.

The Commission approved the PPA extension for five years from their initial expiry date or 25 years from the wind projects’ commercial operation date, whichever occurs earlier.

In July this year, RERC approved tariffs ranging between ₹2.84 (~$0.033)/kWh and ₹3.04 (~$0.035)/kWh for 33 solar projects with a cumulative capacity of 81.86 MW.

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