RERC Approves JVVNL’s Competitive Bidding Tariff For 116.33 MW Solar Projects Under PM-KUSUM Scheme

The Rajasthan Electricity Regulatory Commission (RERC) recently reviewed a petition submitted by Jaipur Vidyut Vitran Nigam Limited (JVVNL) regarding the approval of a levelized tariff discovered through competitive bidding for solar power projects. The projects, with a combined capacity of 116.33 MW, fall under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme, specifically Component-C which focuses on feeder-level solarization.

The petition outlines the competitive bidding process undertaken by JVVNL and seeks approval for the tariffs discovered during this process. The Ministry of New and Renewable Energy (MNRE) launched the PM-KUSUM scheme to help farmers by installing decentralized ground-mounted grid-connected renewable power plants, standalone solar-powered agriculture pumps, and the solarization of grid-connected agriculture pumps. The scheme aims to provide financial assistance and facilitate the implementation of solar projects.

The hearing took place on July 23, 2024, and included the presence of advocate Sandeep Pathak representing JVVNL. JVVNL is one of the three main electricity distribution companies in Rajasthan, responsible for distributing and supplying electricity to the public.

The MNRE issued several guidelines to support the PM-KUSUM scheme. Initially launched on March 8, 2019, the scheme’s guidelines were updated on December 4, 2020, to include feeder-level solarization. This update allowed for the installation of grid-connected solar power plants to meet the power requirements of segregated agriculture feeders. The MNRE provided financial assistance covering 30% of the project cost for CAPEX mode or Rs. 1.05 per MW for RESCO mode.

In subsequent updates, the MNRE relaxed the conditions for domestic content requirements for solar cells and exempted projects from procuring Solar PV modules from the Approved List of Models and Manufacturers (ALMM) for the financial year 2023-24. These changes aimed to facilitate the implementation of solar projects and ensure timely completion.

JVVNL highlighted the benefits of the PM-KUSUM scheme, particularly Component-C, which aims to solarize agriculture pumps connected to the grid. The MNRE set a target of solarizing 1,00,000 grid-connected agricultural pumps for the financial year 2022-23, which was later extended for the year 2023-24. JVVNL has been proactive in bidding for solar projects to meet these targets and secure financial assistance.

The RERC had previously set a ceiling tariff of Rs. 3.14 per unit for projects under Component A of the PM-KUSUM scheme, which was to remain applicable up to a capacity of 725 MW. For Component C, the ceiling tariff was adjusted to Rs. 3.55 per unit. JVVNL has been actively engaging in bidding processes, conducting rate analyses, and ensuring transparency to discover reasonable tariffs aligned with market conditions.

As part of the implementation strategy, JVVNL published various Requests for Selection (RfS) for solar power plants through the e-procurement portal of Rajasthan. The projects involve the design, survey, supply, installation, testing, commissioning, operation, and maintenance of solar power plants for 25 years. The goal is to solarize agriculture consumers connected to various 33/11 kV substations under the PM-KUSUM scheme.

Additionally, JVVNL has explored innovative approaches to reduce tariffs and benefit consumers, such as grouping multiple substations in a single bidding process. They have also sought to maximize financial assistance from the MNRE by selecting feeders that can avail maximum benefits, thereby lowering power purchase costs over the long term.

The Saur Krishi Ajivika Yojna (SKAY) was launched by the Government of Rajasthan to support the PM-KUSUM scheme. This initiative provides a platform for farmers and landowners to lease their barren or unutilized land for setting up solar power plants. The SKAY portal facilitates collaboration between landowners and solar power developers to boost decentralized solar generation.

The RERC’s review of JVVNL’s petition and the subsequent approval of the levelized tariff for solar projects under the PM-KUSUM scheme highlight the ongoing efforts to promote renewable energy in Rajasthan. The initiatives aim to support farmers, optimize the use of available land, and ensure sustainable energy distribution while benefiting from government financial assistance programs.