RERC Denies Petition For Purchase Of Additional 2.9 MW Renewable Power In Rajasthan

The Rajasthan Electricity Regulatory Commission (RERC) has rejected a petition filed by M/s Jindal Urban Waste Management (Jaipur) Ltd., concerning the purchase of electricity from additional generation capacity. The order was issued on September 8, 2025, following a series of hearings held on May 8, July 18, and August 8, 2025. The petition, filed under Section 86(1) of the Electricity Act, 2003, requested the Commission to direct Jaipur Vidyut Vitran Nigam Limited (JVVNL), the distribution licensee, to buy one hundred percent of the power generated from the petitioner’s renewable sources, including a new 2.9 MW capacity.

The petitioner argued that the terms of an existing Power Purchase Agreement (PPA), established seven years ago, should be applied to the additional capacity. However, the RERC found that this request was neither legally nor equitably valid. The original PPA was based on financial and operational parameters relevant at the time and could not automatically extend to the new capacity. The petitioner also did not provide any details regarding incremental investment for the additional 2.9 MW generation, which was critical for assessing tariff applicability.

The Commission noted communications from the petitioner, including letters dated June 30, 2021, and February 2, 2024, as well as the consent from Nagar Nigam dated February 20, 2024. These communications indicated that the additional capacity was intended for the open access route and was not designed to place contractual obligations on JVVNL. The RERC concluded that the petitioner’s attempt to seek a similar tariff for the new capacity contradicted their earlier position and appeared as an “afterthought.”

The order emphasized that procurement of electricity by a distribution licensee must strictly follow the legal framework outlined in the Electricity Act, 2003. Any attempt to bypass the established procedure and secure commercial benefits without proper tariff determination cannot be permitted. The Commission underscored that new capacity or any changes in power generation agreements must undergo proper regulatory approval to ensure transparency, fairness, and compliance with the law.

RERC’s decision highlights the importance of adhering to regulatory procedures for power generation and procurement in Rajasthan. By rejecting the petition, the Commission reaffirmed that approvals under Section 62 of the Electricity Act, 2003, are mandatory for determining tariffs for additional capacity. This ruling serves as a reminder for all power developers and distribution companies to strictly follow legal and regulatory processes when expanding capacity or seeking commercial arrangements.

The disposal of the case reinforces the principle that existing agreements cannot be automatically extended to new projects without proper evaluation and regulatory approval. It also clarifies that open access arrangements, as indicated in the petitioner’s prior communications, cannot be converted into obligations for distribution licensees without explicit consent and tariff determination.

Overall, the RERC order underscores the need for clear regulatory compliance and formal approvals in the renewable energy sector. The ruling ensures that the process of electricity procurement and tariff determination in the state remains transparent and consistent with the legal framework. Developers looking to add capacity or change commercial terms must follow due process to avoid rejection or legal complications. The case demonstrates that regulatory oversight plays a critical role in maintaining fairness and adherence to the law in Rajasthan’s power sector.