Rajasthan Rajya Vidyut Prasaran Nigam Ltd. (RVPN) filed a petition under Section 86 of the Electricity Act, 2003, seeking approval from the Rajasthan Electricity Regulatory Commission (RERC) to revise the threshold limit for Intra-State Transmission Projects. RVPN proposed to raise the limit from ₹250 Crore to ₹2,000 Crore for projects developed through the Regulated Tariff Mechanism (RTM) process. Additionally, RVPN requested an amendment to Regulation 58(3) of the RERC (Terms and Conditions for Determination of Tariff) Regulations, 2019. The petition was filed on April 23, 2024, and various discussions and proceedings followed.
The petition was reviewed by the Commission, with several hearings held throughout 2024. RVPN proposed to increase the threshold limit to facilitate the development of large-scale intra-state transmission projects that are crucial for the state’s energy infrastructure. RVPN aimed to allow more flexibility in selecting projects under RTM rather than the Tariff-Based Competitive Bidding (TBCB) process.
The matter was heard multiple times, with written submissions and responses from various stakeholders, including the Electric Power Transmission Association (EPTA). The petition also saw multiple interlocutory applications (IAs) filed by EPTA, with requests to delay the decision. The Commission granted time for further responses and eventually reserved the order on November 19, 2024, after hearing all the parties involved.
RVPN, in its petition, explained the need for higher threshold limits to accommodate large-scale transmission infrastructure projects that are vital for evacuating power from thermal plants, solar parks, and wind farms. It emphasized that these projects required substantial investments, and RTM would be a more feasible option than TBCB due to financial and operational considerations. RVPN also highlighted that the state’s transmission network needs to be strengthened, especially with the increasing renewable energy generation.
The Commission took note of RVPN’s previous attempts to revise the threshold limits. In 2022, RVPN’s petition to raise the limit from ₹100 Crore to ₹250 Crore was approved. However, it had been denied exceptions for certain projects. RVPN’s latest petition aimed to raise the limit further, arguing that large investments were needed to develop a robust transmission network to handle renewable energy and ensure power availability for future growth.
The Commission also discussed the ongoing Green Energy Corridor-II (GEC-II) project, which includes several high-capacity transmission lines and substations in Rajasthan. These projects are supported by the Government of India and financed partly through central grants and soft loans. The Commission noted that if RVPN did not implement these projects through the State Transmission Utility (STU), the state could lose out on valuable financial support from the central government.
In a decision beneficial to the state’s renewable energy transition, the Commission allowed RVPN to develop three critical projects—400 kV GSS Hanumangarh (Kenchiya), 400 kV GSS Udaipur, and 220 kV GSS Dungarpur—through the RTM mode. This decision was made to ensure the timely evacuation of renewable energy and the effective utilization of central financial support.
However, for the remaining five projects, the Commission directed RVPN to submit them for further evaluation by the State Committee for Transmission (SCT). The SCT would assess the necessity, urgency, and cost-benefit analysis of these projects, ensuring they complement national projects rather than duplicate them. After evaluating these factors, the SCT would recommend whether these projects should be developed under RTM or TBCB.
The Commission emphasized the need for RVPN to align its transmission projects with national energy goals, ensuring they support the growth of renewable energy. It also noted that these projects should be included in RVPN’s investment plan for FY 2025-26, which is due by December 15, 2024.
Overall, the Commission’s decision balances the need for large-scale transmission infrastructure with regulatory guidelines, ensuring that the projects are in the public interest and align with the state’s renewable energy goals. The petition, along with the interlocutory applications, was disposed of with these directives.
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