RERC Sets 2025-26 Roadmap For Rajasthan Discoms With Strong Push For Solar And Renewable Energy Expansion

The Rajasthan Electricity Regulatory Commission (RERC) has completed an important review process involving the state’s three major power distribution companies—Jaipur Vidyut Vitran Nigam Ltd (JVVNL), Ajmer Vidyut Vitran Nigam Ltd (AVVNL), and Jodhpur Vidyut Vitran Nigam Ltd (JDVVNL). The Commission has finalized its Aggregate Revenue Requirement (ARR), Tariff, and Investment Plan for the Financial Year 2025-26. This decision, taken after a hybrid public hearing held in June 2025, is expected to shape the state’s electricity landscape with a strong focus on solar and renewable energy integration.

One of the key highlights of the order is the growing emphasis on renewable energy expansion, particularly solar power. During the hearing, several stakeholders urged the Commission and the Discoms to present a medium-term business plan that could demonstrate how the state intends to increase renewable energy procurement and promote solarisation, especially in the agricultural sector. They also stressed the importance of investing in battery storage systems to improve the reliability of solar energy supply. The Discoms informed that they had already submitted such a plan, which includes capacity additions to meet Renewable Purchase Obligation (RPO) targets and the implementation of central government programs such as the PM-KUSUM scheme and the PM Suryaghar-Muft Bijli Yojana.

The plan also emphasizes the use of storage technologies to make better use of solar energy during non-sunny hours. This move aligns with Rajasthan’s broader vision of becoming a leading solar state while ensuring that power supply remains stable and cost-effective.

The Commission has also approved a more liberal framework for industries to promote self-consumption of renewable energy. The new RERC regulation now allows industries to set up captive renewable energy projects, including solar, up to 200 percent of their connected load. This significant relaxation is expected to boost solar adoption among industrial consumers, reduce their dependency on conventional power, and lower their electricity bills. Alongside this, the state government is preparing guidelines for the widespread rollout of the PM Suryaghar scheme, ensuring that even new and unregistered consumers can benefit from rooftop solar installations and related subsidies.

In terms of power procurement, the Discoms plan to prioritize low-cost renewable energy to optimize their purchase costs. However, stakeholders have expressed concern about the Discoms’ repeated failure to achieve RPO compliance over several years. The utilities have sought relief from penalties, explaining that the shortfall is largely due to delays in the commissioning of renewable energy projects, including those allocated through RUVITL. The Commission is now expected to direct the Discoms to establish a clear and time-bound roadmap to meet their renewable energy obligations going forward.

Despite these efforts, the state’s distribution sector continues to face operational challenges, particularly high technical and commercial losses. Stakeholders pointed out that the benefits of cheaper renewable power cannot reach consumers unless the Discoms improve their system efficiency. The RERC order, therefore, serves as a reminder for the Discoms to focus equally on loss reduction and renewable integration. By strengthening operational performance and expanding solar power usage, the Rajasthan power sector aims to move closer to a cleaner, more efficient, and financially sustainable future.