Jodhpur Vidyut Vitran Nigam Limited (JdVVNL) has successfully obtained approval from the Rajasthan Electricity Regulatory Commission (RERC) for the purchase of power from 10 solar PV plants under Component-C (Feeder Level Solarization) of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme. The decision was made by the regulatory commission after a thorough consideration of JdVVNL’s petition filed under Section 63 of the Electricity Act, 2003.
The commission emphasized that, according to Section 63 of the Electricity Act 2003, procuring distribution companies (Discoms) must file petitions for the adoption of tariffs for each bid conducted by them. The approved ceiling tariff for the solar projects was set at Rs 3.55/kWh under PM KUSUM Scheme Component-C Feeder Level Solarization.
The PM-KUSUM Scheme, launched by the Ministry of New and Renewable Energy (MNRE) in 2019, aims to encourage decentralized solar energy generation for farmers. Component-C specifically involves the solarization of grid-connected agriculture pumps or feeders using solar power plants.
JdVVNL initiated the process by floating a tender, TN-DSM-02, for setting up solar power plants at specific locations along the Amritsar-Bhatinda-Jamnagar Corridor. The tender received bids for 10 out of the 11 identified solar power plants, with a total capacity of 27.43 MW. The plants are strategically placed in the vicinity of 8 substations, catering to 1606 connected agriculture consumers.
Opting for the RESCO (Renewable Energy Service Company) mode for project implementation, JdVVNL faced challenges with poor bidder response. Despite extending the bid submission deadline multiple times, only four bidders participated. The technical bid was finally opened on April 13, 2023, leading to negotiations on the quoted levelized tariff on June 7, 2023. As a result, a reduced levelized tariff was agreed upon by the competent authority for 10 out of the 11 solar PV projects.
Earlier, JdVVNL had filed a petition that was disposed of by the commission on September 21, 2023, directing the petitioner to seek clarifications from MNRE. The clarifications were related to the compatibility of TN-DSM-02 with MNRE guidelines. MNRE responded on October 6, 2023, affirming that solar pumps in the vicinity of substations, catering to agriculture feeders, could be installed under PM-KUSUM Component-C at any land parcel.
To streamline the approval process for future projects, JdVVNL sought a ceiling level for the levelized tariff under PM-KUSUM Scheme Component-C. The commission, considering the petitioner’s submissions, approved the purchase of power from the 10 solar PV plants in TN-DSM-02 for 25 years. However, the request for exemption from filing petitions for approval of a levelized tariff for groups of solar power plants with tariffs equal to or below the ceiling tariff was denied.
Furthermore, the commission directed Discoms to use the ceiling tariff in future bids, with a provision to revise it based on market conditions. If a downward revision is necessary, Discoms should do so independently, but any upward revision requires a separate petition. Discoms were also advised to select feeders that maximize benefits from the Government of India’s financial assistance.
In conclusion, the commission’s decision marks a significant step in promoting solar power projects under the PM-KUSUM Scheme, providing clarity on tariffs and encouraging efficient bidding processes for future endeavors in the renewable energy sector.
Please view the document below for more details.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
