The Rajasthan Electricity Regulatory Commission (RERC) has approved the levelized tariffs determined through a competitive bidding process conducted by the Jaipur Vidyut Vitran Nigam (JVVNL) for 78 solar projects with a total capacity of 228.85 MW.

These projects are implemented under Component C (feeder-level solarization) of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM).

The approved tariffs range from ₹2.78 (~$0.032)/kWh to ₹3.04 (~$0.035)/kWh.

Background

JVVNL floated a tender on December 13, 2024, for the solarization of 25,149 agricultural connections at the feeder level spread across 82 grid substations in Rajasthan. The tariffs discovered after the bidding process ranged from ₹2.78 (~$0.032)/kWh to ₹3.04 (~$0.035)/kWh for a 25-year power purchase agreement period.

JVVNL contended that the tariff discovered was cost-effective and compliant with RERC regulations and Ministry of New and Renewable Energy (MNRE) norms, including domestic content requirements (DCR), central financial assistance (CFA) computation methodology, lease rent mechanisms, remote monitoring system installation, and transformer configurations based on site-specific requirements.

It emphasized that the quoted tariff range is significantly below the average variable power purchase cost of ₹4.03 (~$0.046)/kWh.

Commission’s Analysis

The Commission approved the tariffs ranging from ₹2.78 (~$0.032)/kWh to ₹3.04 (~$0.035)/kWh, stating that the highest tariff was lower than the average variable power purchase cost of ₹4.03 (~$0.046)/kWh.

It acknowledged that JVVNL had followed transparent processes and that the petitioner complied with MNRE guidelines and Commission directions.

It examined JVVNL’s adherence to MNRE guidelines, particularly the 30% CFA and the capping for 7.5 HP pump-equivalent loads, as well as the robust inclusion of DCR costs, RMS expenses, land lease rent, operations and maintenance costs, and degradation factors in the tariff computation.

The Commission said the distribution companies can benefit from lower procurement costs and improved compliance with the renewable purchase obligations. Farmers will benefit from improved daytime power supply and potential earnings from land leases.

Recently, RERC 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).

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