Rajasthan’s 1,000 MW Solar Power Procurement: Record-Low Tariffs Of ₹2.61/kWh

The Rajasthan Electricity Regulatory Commission (RERC) recently reviewed a petition submitted by the Rajasthan Urja Vikas & IT Service Limited (RUVITL). This petition sought approval for the procurement of 1,000 MW of solar power from various respondents, following guidelines issued by the Ministry of New and Renewable Energy (MNRE).

On May 2, 2023, the financial bids were opened, revealing the lowest tariff at ₹2.65 per kWh. The e-Reverse Auction conducted on May 4, 2023, resulted in the lowest tariff of ₹2.61 per kWh. Following this, RUVITL’s board, in its 56th meeting on June 9, 2023, approved the issuance of Letters of Award (LOAs) to successful bidders for long-term procurement of 1,000 MW solar power at the discovered tariff, subject to approval from the Government of Rajasthan. Power Purchase Agreements (PPAs) were subsequently executed with the selected bidders.

The hearing was conducted with the presence of key representatives from the petitioner and respondent companies. The primary objective of RUVITL, previously known as Rajasthan Urja Vikas Nigam Limited, is to procure power from diverse sources and distribute it to consumers within specified jurisdictions.

RUVITL’s petition outlined the necessity to meet Renewable Energy Purchase Obligations (RPO) and to secure power under different MNRE schemes or through competitive bidding processes. The board of RUVITL, in its 51st meeting on August 16, 2022, approved the initiation of the bidding process in line with the relevant guidelines to tie up power from 2,500 MW solar power projects in Rajasthan, connected to the State Transmission Utility (STU). This decision aimed to meet the state’s day power demand and RPO targets.

Subsequently, the Government of Rajasthan granted approval for long-term power procurement based on guidelines from MNRE. RUVITL then launched a transparent bidding process on January 18, 2023, through the ETS portal for selecting developers for 1,000 MW STU-connected solar power projects. The tender process included technical evaluation, financial evaluation, and an e-Reverse Auction. Nine bidders participated, offering a combined total of 2,000 MW. All technical bids were deemed qualified by RUVITL’s evaluation committee.

RUVITL approached RERC for the adoption of tariffs, as mandated by guidelines, within 60 days of the PPA signing. The petition detailed the transparent and compliant bidding process, aiming for the commission’s approval to complete the power procurement process, ensuring adherence to various regulatory directives.

In response, the respondents, including Avaada Solar Power Pvt Ltd, JGRJ Solar Pvt Ltd, MRS Green Energy Rajasthan Pvt Ltd, Solarcraft Power India 15 Pvt Ltd, Martial Solren Pvt Ltd, and SJVN Green Energy Ltd, confirmed their participation and compliance with the bidding process. They provided details of their bids, the awarded capacities, and the tariffs agreed upon. Each respondent requested the commission’s approval for the power procurement agreements.

The hearing concluded with RUVITL seeking the commission’s approval to finalize the procurement of 1,000 MW solar power at the discovered tariffs through the executed PPAs. This procurement is crucial for meeting the state’s energy demands and RPO targets, ensuring a consistent and sustainable power supply for Rajasthan.