RUVNL Granted Permission By RERC To Secure 490 MW Of Hybrid Power At ₹4/kWh

In a significant development, Rajasthan Urja Vikas Nigam Ltd. (RUVNL) has filed a petition seeking approval to acquire 490 MW of Hybrid power, a blend of Solar and Pumped Storage Power (PSP), from the Solar Energy Corporation of India Limited (SECI), and RERC (Rajasthan Electricity Regulatory Commission) granted the permission to secure the Hybrid power at ₹4/kWh. This power procurement stems from competitive bidding conducted by SECI, and Greenko Energies Private Limited (GEPL) has offered to supply this renewable energy to Rajasthan for consumption through Discoms (Distribution Companies).

Background: The Power Bidding Process

SECI plays a vital role in sourcing Renewable Energy through competitive bidding. After selecting successful bidders and project developers, Power Sale Agreements (PSAs) are executed with various entities across the nation, including special entities like RUVNL and Distribution Licensees. SECI serves as the nodal agency of the Ministry of New & Renewable Energy, Government of India, to boost Renewable Energy initiatives.

The journey began when SECI issued a Request for Selection (RfS) for the establishment of a 1,200 MW Inter-State Transmission System (ISTS)-connected Renewable Energy Projects, guaranteeing Peak Power Supply in India. The bids were invited in August 2019.

GEPL emerged as the lowest bidder, offering to supply 490 MW of peak power at a tariff of ₹6.12/kWh, and it was subsequently awarded a Letter of Intent (LOI) by SECI in February 2020.

GEPL, through a letter dated November 11, 2021, extended an offer to RUVNL, agreeing to supply 490 MW of Hybrid Power at competitive rates as determined through the Electricity Act of 2003. Notably, the offered energy would not surpass an average tariff of Rs. 4.00/kWh, including the trading margin payable to SECI.

RUVNL’s Decision and Commitment to Renewable Energy

After careful consideration, RUVNL, along with the Board’s approval, decided to procure 490 MW of power from Greenko. Subsequently, RUVNL conveyed its consent through a letter dated December 3, 2021, for procuring power from a Renewable Energy-based project. The agreed-upon rates were ₹6.12/kWh during peak hours and ₹2.88/kWh during off-peak hours, with a trading margin of ₹0.07/kWh, locked in for 25 years. Additionally, they agreed to the terms and conditions, including a commitment to maintain an annual weighted average tariff not exceeding ₹4.00/kWh.

Greenko, in alignment with SECI’s and RUVNL’s terms, pledged to offer 100% firm power on a day-ahead basis, with no revisions unless mutually agreed upon. This power would be supplied during specific time frames, ensuring the electricity supply curve meets the requirements. Notably, no power would be supplied during night hours, coinciding with the state’s lowest demand period.

Regulatory Approvals and Compliance

RUVNL’s petition for the procurement of 490 MW of hybrid power has been met with positive considerations. The Central Electricity Regulatory Commission (CERC) has already adopted the tariffs discovered through the competitive bidding process, further validating the initiative.

This move aligns with Rajasthan’s commitment to Renewable Purchase Obligation (RPO) targets. The state has experienced a shortfall in achieving solar obligation targets, and at present, there is no functional capacity within Rajasthan’s Discoms to meet Hydro Purchase Obligation (HPO). The hybrid power procurement strategy aims to bridge these gaps, with solar power meeting solar obligation needs and Pump Storage Hydropower (PSP) power fulfilling HPO requirements.

This decision is expected to not only enable Discoms to meet their statutory RPO obligations but also provide them with firm power and operational flexibility. This increased efficiency will ultimately benefit consumers across the state.

Rajasthan’s efforts to procure 490 MW of Hybrid Power represent a significant step towards a greener and more sustainable future. With regulatory approvals and compliance in place, this initiative promises to bolster the state’s renewable energy portfolio and contribute to a cleaner environment.

Please view the document below for more details.