Rajasthan Approves Procurement Of 300 MW Solar Power From NLC India At ₹2.52/kWh

The Rajasthan Electricity Regulatory Commission (RERC) has received a petition from Rajasthan Urja Vikas and IT Services Limited (RUVITL) seeking approval to procure 300 MW of solar power from NLC India Ltd. under a Central Public Sector Undertaking (CPSU) scheme. This initiative is part of the Ministry of New and Renewable Energy’s (MNRE) efforts to promote renewable energy through government-supported projects.

The petition highlights that RUVITL is working to meet renewable energy obligations by purchasing power under various schemes, including competitive bidding processes. The CPSU scheme, initiated in March 2019, aims to set up 12,000 MW of grid-connected solar photovoltaic (PV) power projects using domestically manufactured solar cells and modules. The electricity generated is intended for government use or by government entities through distribution companies.

IREDA has been designated as the nodal agency to handle this scheme on behalf of MNRE. Following a competitive bidding process, NLC India Ltd. emerged as a successful bidder and was awarded a letter of award (LoA) to develop a 510 MW solar PV power project. NLCIL proposed setting up a 300 MW project at Barsingsar in Bikaner, Rajasthan, with a power usage charge initially agreed at ₹2.40 per kWh.

Due to changes in GST rates from 5% to 12%, MNRE increased the maximum allowable usage charge from ₹2.45 per kWh to ₹2.57 per kWh. Consequently, NLCIL requested an increase in the agreed usage charge to ₹2.52 per kWh. This revised rate was approved by the RUVITL Board of Directors and later by the Government of Rajasthan.

A Power Usage Agreement (PUA) between RUVITL and NLCIL was signed on August 17, 2023, formalizing the procurement of 300 MW at ₹2.52 per kWh for 25 years. RUVITL then submitted a petition to the RERC seeking formal approval for this procurement.

During various hearings, representatives from RUVITL, NLCIL, and IREDA presented their submissions. RUVITL emphasized that this procurement would help meet renewable energy compliance requirements and contribute to the state’s energy security. NLCIL confirmed that their proposal adhered to the CPSU scheme guidelines and that the process was transparent and competitive.

RUVITL assured the Commission that all necessary regulations and guidelines had been followed, and they provided the required documents, including the LoA from IREDA. The Commission was informed that the procurement would benefit the state by ensuring compliance with renewable energy obligations and supporting environmental sustainability.

The Commission considered all submissions and documentation before making a decision. This procurement is seen as a significant step towards enhancing Rajasthan’s renewable energy portfolio, contributing to national energy security, and supporting the government’s green energy initiatives.