Rajasthan Approves 500 MW Solar Power Procurement From SJVN Green Energy At ₹2.57 Per kWh

The Rajasthan Electricity Regulatory Commission recently reviewed a petition filed by Rajasthan Urja Vikas and IT Services Limited. The petition sought approval for procuring 500 MW of solar power from SJVN Green Energy Limited. This procurement falls under the Central Public Sector Undertaking (CPSU) Scheme managed by the Ministry of New and Renewable Energy (MNRE).

The case was heard on May 28 and June 20, 2024. The petitioner was represented by Advocate Parinitoo Jain, while representatives Manish Chandra and Vivek Sharma appeared for IREDA and Rajasthan Renewable Energy Corporation Limited (RRECL), respectively. The petition aimed to fulfill the renewable energy obligations (RPO) set by the Commission, intending to procure renewable energy through various schemes of MNRE and competitive bidding processes.

The CPSU Scheme, introduced by MNRE on March 5, 2019, aims to set up 12,000 MW of grid-connected solar photovoltaic power projects by government producers. These projects receive Viability Gap Funding (VGF) support and are intended for self-use or use by government entities, either directly or through distribution companies (DISCOMs). The scheme’s primary goals include enhancing national energy security and promoting environmental sustainability through domestically produced renewable energy.

In response to the petition, SJVN Green Energy Limited highlighted that they were selected as the successful bidder for developing 1,000 MW of solar PV power under an RfS issued by IREDA on January 29, 2021. Subsequently, a Power Usage Agreement (PUA) was signed between Rajasthan Urja Vikas and IT Services Limited (RUVITL) and SJVN Green Energy Limited on March 10, 2024, for the procurement of 500 MW of power at a tariff of ₹2.57 per kWh.

During the hearings, IREDA confirmed that the entire process, from the issuance of the RfS to the selection of the solar power developer, adhered to the guidelines outlined in the CPSU Scheme. This assurance included the certification that all procedures conformed with the scheme’s guidelines, which had been amended over time.

The Rajasthan Renewable Energy Corporation Limited, although a pro forma party in the petition, noted that it had registered the 1,000 MW capacity solar power project of SJVN Green Energy Limited on January 18, 2023. This project is located in Bikaner and supplies renewable energy to the Bikaner-II Substation of PGCIL’s ISTS network.

The Commission’s evaluation considered the petitioner’s compliance with RPO targets, anticipated future energy requirements, and the economic benefits of the proposed solar power procurement. It was noted that recent competitive bidding in other states had resulted in solar power prices ranging from ₹2.52 to ₹2.88 per kWh. Additionally, Rajasthan’s tenders had discovered prices between ₹2.61 and ₹2.64 per kWh.

Given these considerations, the Commission deemed the proposed tariff of ₹2.57 per kWh for the 500 MW solar power procurement to be reasonable. The approval was granted under the relevant provisions of the Electricity Act, 2003. This decision aligns with the Commission’s goal of meeting renewable energy targets and reducing the overall power purchase cost for the state’s DISCOMs, ultimately supporting the broader objective of promoting renewable energy usage and sustainability.

The petition was thus approved, allowing Rajasthan Urja Vikas and IT Services Limited to proceed with the procurement of 500 MW of solar power from SJVN Green Energy Limited under the specified terms and conditions.