Rajasthan Approves Solar Tariffs For 228.85 MW Under PM-KUSUM Feeder Solarization Scheme

Jaipur Vidyut Vitran Nigam Limited (JVVNL) filed a petition with the Rajasthan Electricity Regulatory Commission seeking approval for the levelized tariff discovered through competitive bidding for 228.85 MW solar projects under the PM-KUSUM Component-C (Feeder Level Solarization). The bidding process was conducted under Tender No. TN-15. The scheme aims to solarize agriculture feeders by installing solar power plants near substations to cater to the annual power needs of agricultural consumers.

The PM-KUSUM scheme was launched by MNRE with three components. Component-C involves solarizing 35 lakh grid-connected agricultural pumps. JVVNL opted for the RESCO model, where private developers install, operate, and maintain solar plants for 25 years. Developers will receive a 30% Central Financial Assistance (CFA) or ₹1.05 crore per MW. JVVNL floated tenders and finalized 82 solar plants totaling 238.44 MW capacity to serve 25,149 agriculture consumers across districts in Rajasthan.

The bidding process under TN-15 received strong participation, with 94 bidders submitting proposals for the 82 plants. The lowest quoted tariff was ₹2.78 per unit, and the highest accepted tariff was ₹3.04 per unit, which is lower than the Discoms’ average variable power purchase cost of ₹4.03 per unit. This translates to significant cost savings for Discoms and improved Renewable Purchase Obligation (RPO) compliance. These solar projects also help reduce transmission losses and improve voltage profiles in rural areas.

The capital cost of projects was calculated based on prevailing market rates and MNRE guidelines. For plants below 2.55 MW with 11 kV connectivity, the cost was ₹0.33 crore. For larger plants with 33 kV connectivity, it was ₹0.87 crore. Other financial parameters included a 25-year project life, 70:30 debt-equity ratio, 19% CUF, 11% interest rate, and 4.67% depreciation for the first 15 years. Operations and maintenance costs were estimated at ₹5 lakh per MW per year with 3.84% escalation. RMS installation is also mandatory, with ₹75,000 fixed cost and ₹100 per month recurring charges.

The commission was informed that the eligible CFA ranged between ₹0.385 crore to ₹1.036 crore per MW, depending on pump capacities. A total of 78 out of 82 projects were finalized after price negotiations. Letters of Intent were issued for these, subject to regulatory approval.

A pilot study on 33/11 kV substations under Bansur GSS revealed that solar generation significantly reduced demand on the grid. During peak season, up to 97% of demand was met by local solar power, with excess generation used within and across feeders. This helped reduce grid dependency and load variation.

The implementation progress reported includes 548.95 MW capacity already under Power Purchase Agreements (PPAs) and 101.92 MW commissioned under earlier tenders. The Petitioner seeks the Commission’s approval for the discovered tariffs to proceed further with solarizing agriculture feeders across Rajasthan under the PM-KUSUM scheme.