Ajmer Vidyut Vitran Nigam Limited (AVVNL) filed a petition with the Rajasthan Electricity Regulatory Commission for the approval of the levelized tariff for solar power projects under the PM-KUSUM Scheme. This initiative is aimed at providing affordable and sustainable energy solutions, particularly for agricultural purposes. The petition was heard on July 23, 2024, and an order was issued on July 26, 2024.
The petition outlines AVVNL’s role as one of the three electricity distribution licensees in Rajasthan. The company is responsible for the distribution and retail supply of electricity within its jurisdiction. The PM-KUSUM Scheme, launched by the Ministry of New and Renewable Energy (MNRE) in March 2019, aims to support farmers by promoting solar energy solutions. The scheme comprises three components:
Installation of decentralized ground-mounted grid-connected renewable power plants up to 2 MW, Installation of standalone solar-powered agricultural pumps up to 7.5 HP, and Solarization of grid-connected agricultural pumps up to 7.5 HP.
The MNRE issued guidelines for the implementation of these components in July 2019 and introduced additional guidelines for feeder-level solarization in December 2020. This component involves the installation of grid-connected solar power plants to cater to the annual power needs of agricultural feeders, supported by central financial assistance.
Several amendments have been made to the scheme since its inception. Notably, in August 2022, the requirement for domestic content in solar cells was waived for projects awarded by June 2023. Furthermore, in March 2023, the MNRE exempted the procurement of solar PV modules from the Approved List of Models and Manufacturers (ALMM) for projects commissioned by March 2024.
In January 2024, the MNRE issued comprehensive guidelines for the scheme’s implementation, followed by amendments in March 2024 concerning the release of central financial assistance. The guidelines stipulate that assistance is limited to solar capacity for 7.5 HP pumps, with calculations based on either annual consumption or solar PV capacity.
For the fiscal year 2022-23, the MNRE set a target of 100,000 grid-connected agricultural pumps for Rajasthan’s distribution licensees under the feeder-level solarization component. AVVNL, along with other licensees, was allocated specific targets. The energy department has requested additional capacity allocations from the MNRE.
In 2024, AVVNL floated tenders for the solarization projects under the PM-KUSUM Scheme. These tenders were issued in March and April, with bids opened in May. The bidding process attracted substantial interest, resulting in numerous bids. The evaluation and negotiation processes were conducted through various meetings of the Contract Level Project Committee (CLPC).
Following these negotiations, Letters of Intimation (LoI) were issued to successful bidders for 62 solar power plants. The details of the awarded plants, including the names of bidders and final negotiated tariffs, were documented in the order. The tariffs were inclusive of all taxes and varied slightly depending on the specific plant and location.
The Commission’s order highlights the collaborative efforts between AVVNL and the MNRE to advance solar power adoption in Rajasthan. This initiative not only supports the state’s energy sustainability goals but also provides economic benefits to farmers by reducing their electricity costs. The transparent competitive bidding process ensured fair pricing and the selection of capable bidders, contributing to the overall success of the scheme.
This development signifies a significant step towards achieving energy security and promoting renewable energy in the agricultural sector, aligning with national and state-level objectives for a sustainable future.
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